SPASA Australia Annual Report 2017

ANNUAL REPORT

2017

SPASA AUSTRALIA - ANNUAL REPORT 2017

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CONTENTS

Page

OUR ORGANISATION

3

OUR TEAM

3

OUR DIRECTORS

4

CHAIRPERSON REPORT

5

FINANCE REPORT

7

CEO REPORT

8

SPASA SYNOPSIS

10

AWARDS OF EXCELLENCE WINNERS

16

SPONSORS ACKNOWLEDGEMENT

20

AUDITORS REPORT 2016/17

22

AUDITORS REPORT 2017 June to December

43

SPASA AUSTRALIA - ANNUAL REPORT 2017

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OUR ORGANISATION Our function is to empower the industry in the development, promotion and delivery of quality representation, resources, benefits and services to its members.

The Swimming Pool & Spa Association of Australia Ltd (SPASA Australia) is Australia’s Peak Swimming Pool & Spa Industry Body. It is dedicated to maintaining and improving the standards and growth within the swimming pool and spa industry for the betterment of members, consumers and the industry in general. National benefits, delivered locally representing all sectors of the industry.

The Association represents the entire Australian aquatic leisure industry, recognising five key pillars (People, Member Services, Promotion, Representation and Corporate Services) to ensure relevance and credibility to all members.

As the largest association of its kind, SPASA Australia represents the largest body industry professionals across Australia. SPASA Australia’s charter is not simply to advocate and respond on issues of importance to our industry, but also to proactively create and execute strategies to enhance the credibility and longevity of all its members across the country.

KEY PILLARS The associations dynamic strategic plan helps guide the associations to: •

Improve and increase education and industry professional development

•

Improve the reputation and standing of the swimming pool and spa industry

•

Increase utilisation of members for all swimming pool and spa building, products and services

•

Deliver a consistently improving organisation dedicated to member benefits

The Key Pillars below provide a structural basis of all strategies and operations.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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OUR DIRECTORS

Lynley Papineau Chairperson Aquatic Leisure Technologies

Andrew Jakovac Majestic Pools & Landscapes

Rob Guthrie Tru Pool

John O’Brien Poolwerx Corporation

Adam Jaworski AstralPool Australia

Trent Moran Classic Pools & Spas

Rob Kruber Spa Industries Global

OUR EXECUTIVE TEAM Lindsay McGrath Spiros Dassakis Adrian Hart Suzie Kent Peter Holland

Chief Executive Officer Chief Operations Officer Project Manager Communications Manager RTO Manager

Megan McElhinney Melinda Zoanetti Diane Turas David Stennett Vicki Taylor

Events Co-Ordinator Accounts Manager Membership Executive Sales Executive Training Liaison

REGIONAL ADVISORY COMMITTEES SPASA’s commitment to providing quality representation and services to our members is unwavering.

Regional Advisory Committees are local committees created by the Board to ensure the collective voice of local members is heard and valued. Committee members play a key role providing advice and feedback to the SPASA Australia Board in line with the Strategic Pillars.

Our Regional Advisory Committees are there to listen and act on the many suggestions provided by members on how we can improve our role as a peak industry body as well as deliver an arrangement of ideas and concepts for discussion at the many meetings, social events and Trade & Consumer Expos.

NSW & ACT

QUEENSLAND

SOUTH AUSTRALIA

Rob Guthrie*, Tru Pools

Andrew Jakovac*, Majestic Pools & Landscapes Sean Austin, Austin Pool Services Troy Cartwright, Poolwerx Michael Chapman, Classic Pools John Dixon, Sunbather Daniel Gibbs, JAGUN Constructions Wayne Haylock, Burleigh Pools Chris Nicholls, Queensland Family Pools Stefan Ossenberg, Protector Aluminium Kylie Rojahn, Atlantis Pool Services Rod Webb, AWEBBBCO

Lorenzo Peressin*, Urban Oasis

Janine Bellifemine, Sunrise Pools Brad Baxter, Award Pools Group Malcolm Brown, Zodiac Australia Jonathan Hatfield, Waterco Garth Jackson, Triton P&S Inspections Peter Moore, Aquatic P&S Consulting Merv Smith, Sunbather Technologies Michael Steven, Landart Landscapes

John Colella, SA Temp Pool Fencing Fred Frede, SA Pool Fence Inspections Jasmine Heaney, Pentair Water Adam Marling, Freedom Pools & Spas Trent Moran, Classic Pools Stefan Ossenberg, Protector Aluminium Tom Tsakrios, Kuchel Enterprises

*Chairperson SPASA AUSTRALIA - ANNUAL REPORT 2017

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CHAIRPERSON REPORT SPASA Australia continues to grow and evolve as our national industry association and the last 12 months are no exception. With the finalisation of the merger of SA, QLD and NSW/ACT into SPASA Australia and the acquisition of SPLASH!, the board and leadership teams have been focussed on consolidating the associations corporate structure, services and member benefits.

It is important to take time to pause and reflect on the journey of SPASA Australia and what has been achieved in a short period of time. The unification of SA, NSW/ACT & QLD into SPASA Australia have led to operational synergies, cost reductions and combined assets in excess of $3.7 million which will now open up opportunities only considered a pipe dream three years ago. The board remains committed to ensuring the balance between financial security and investment. Our investment strategy is directed equally to ensuring we serve our members and stakeholders into the future while maintaining a sustainable operating model.

SPASA WA have partnered with SPASA Australia as an Association Member and financially contributed through their membership in the development of services and infrastructure to help with representation, training, member benefits and services in which the WA member base has benefitted from. SPASA Victoria continue to remain independent without a formal membership arrangement but participate in the national awards program and we will continue to offer collaboration and open communication for the benefit of all members.

SPASA AUSTRALIA - ANNUAL REPORT 2017

Training for builders and technicians continues to be a priority. SPASA Australia is the only dedicated Registered Training Organisation in Australia for the industry and our commitment to lifting the educational and training benchmark is unwavering.

The Pool and Spa Expos continue to grow with each passing year, both in numbers of exhibitors and attendees. There is no better opportunity for our members to engage with current and future pool owners. It is with great anticipation that we look forward to the nation’s largest trade expo with the SPLASH! Conference in 2018. Under the new management of SPASA Australia, we are excited about the opportunities that exist for our industry by brining everyone together for the many events that are on offer.

Likewise, the Awards of Excellence Gala Dinners across the country attracted representatives from far and wide to help celebrate the Best of the Best. These Awards always provide an opportunity to meet and network with our peers and competitors in an atmosphere of celebration.

A national vision and strategy is only as good as the support it receives. In this regard, I would like to thank my fellow board members for their time and commitment to making the industry association better with each year. SPASA Australia board members work in an honorary capacity – they all work extremely hard and give liberally their time through the year.

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Without the commitment of these generous people an association could not function. I would like to acknowledge and thank Directors John O’Brien, Andrew Jakovac, Robert Guthrie, Trent Moran, Adam Jaworski and Rob Kruber as well as the Alternative Directors, Lorenzo Peressin, Ernie Bevilaqua, Duncan Smith and Troy Cartwright that are at times called upon.

The staff of SPASA Australia are dedicated, committed and passionate about our industry. This is evident when they continually go above and beyond what is required. The appointment of Lindsay McGrath as CEO has enabled the association to become what it is today. He has set a new benchmark of professionalism, corporate governance and built the association into a sustainable national body with a clear strategic direction.

Lindsay is surrounded by a strong team that are driven to make our industry better and on behalf of the Board and the Members, thank you to all of the SPASA Australia staff. I would like to make special mention to Spiros Dassakis and the industry volunteers that participate in technical committees or represent our industry with Standards Australia to review and upgrade standards. Often a time consuming and thankless job but nonetheless one that has to be done and the industry is indebted to you.

SPASA AUSTRALIA - ANNUAL REPORT 2017

Finally to our members, without you, there is no association. You believed in SPASA Australia and came with us on the journey into a single entity. We now better represent all sectors of the industry and are ever expanding to recognise and include other sectors that form part of the swimming pool and spa industry.

As a united industry with consolidated resources we are well positioned to promote pools and spas against other industries. At SPASA Australia, we are determined in our drive to continually improve, set new standards and ask the question – How can we add value to our members and then in turn better the customer experience? This is our commitment to you, the member.

This will be my last year as Chairperson of SPASA Australia after four years. I feel privileged to have served the industry and been a part of the development of the national association. I urge members of our industry to get involved and make a difference even if this is at a local level to begin with.

Succession planning at all levels is key to ensuring a thriving association. It all matters.

I wish all our members a prosperous and successful 2018 and look forward to your continued participation and support.

Lynley Papineau Chairperson

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FINANCE REPORT It is my pleasure to submit to our members the Annual Report of the Swimming Pool and Spa Association of Australia.

The financial health of your association is stronger than ever before, and our corporate governance and economic management has produced a solid result.

The 2016/17 consolidated operating result for SPASA Australia was a surplus of $3,821,340. The result is due to the merging of the 3 regional entities into SPASA Australia. Following the 2016/17 financial year the decision was made to alter the reporting year from a financial year (Jul/Jun) to a calendar year (Jan/Dec) to better align to our membership cycle and as result the financial result for the 2017 year covers the six month period from July to December 2017. The 2017 half year result was a loss of $(233,969) which compares to an unaudited loss of $(405,268) for the same period in the prior year. On a full year basis (Jan/Dec), and removing the impact of one-off costs relating to restructure and acquisition activities, the net earnings result for the combined entities in 2017 was an unaudited profit of $23,314 compared to an unaudited loss of $(30,617) in the prior year.

SPASA Australia reports all entities in a consolidated manner including the Registered Training Organisation and the Trustee and Water Tight trust fund. This provides a total true and correct report of all financial workings within SPASA Australia’s responsibility.

The Association's external Auditors Loren Datt Audit have conducted the 2016/17 and the special purpose Audit Report for the year ending 31st December 2017, herein attached.

Key Points •

The completed merger of the 3 regional Associations into SPASA Australia.

•

Our strong financial position has enabled SPASA to review and act on an investment strategy which included the acquisition of SPLASH!, including the largest pool and spa expo in the southern hemisphere and the dominant trade magazine.

•

Training income is up 77% from the 2016 calendar year. This reflects our Training Pillar – Transforming Industry, Meeting Educational Needs and Building Careers.

•

SPASA has increased its human resources by employing three new staff members and refocusing current employees in specific skilled areas to improve efficiency and increase benefit to members.

•

The SPASA office in NSW is owned by the Association. A valuation was conducted in the last quarter of 2017 reflecting a value of $770,000.

•

A significant improvement in the operational efficiency of the Association over the historical federated model. This has resulted in not requiring the Trust fund interest to cover overheads.

Adam Jaworski Finance Audit and Compliance Committee - Chairman

SPASA AUSTRALIA - ANNUAL REPORT 2017

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CEO REPORT 2017 was an important year for SPASA Australia.

The growing demand for a stronger, unified and collective voice that represents and promotes our industry took a historical step on the 1st of January 2017 when SPASA NSW & ACT, QLD and SA successfully merged into SPASA Australia.

Thank You I would like to put front and centre my thanks to all those who have been a part of delivering the outcomes achieved during this year. The SPASA Australia Board of Directors have shown true leadership setting the standard for culture and strategy. The committees and members have all played a vital role in the outcomes achieved this year, providing guidance and regular feedback. By anyone’s measure, the year delivered outcomes that see immediate positive changes for members and a platform for growth in following years.

The last 18 months has unprecedented support from the volunteer board and committees, members, suppliers and staff to merge 4 separate business entities together. During this process a single unified culture has been developed by and resilient and hardworking staff who I am blessed to lead. This positive can-do culture has continued to deliver the day to day the services for members throughout the immense distribution of the mergers. Consumers saw no pause or fault in our marketing, phone or digital support. New member services and benefits were delivered via an operational efficient association.

Providing leadership for the swimming pool and spa industry is a critical part of everything we do, helping to fulfil our vision of having a positive impact on the consumer, regulators and government. Equally, making sure that swimming pool and spa ownership is promoted in a way that is seen as the only choice for consumers who are considering other options.

Marketing & Communication We have continued to take a strategic approach to media and government relations on key issues, which has helped raise our profile as the “voice” of the industry. Our branding and reputation as a powerful Peak Industry Body is rapidly growing.

Increased investment in Consumer Expos, Magazines, Digital, Awards and other programs will be under constant review to improve our promotion of members to consumers and industry. A special thanks to Astral Pool Australia as our 2017 Platinum Sponsor and AB Phillips our Partner in Insurance and finance.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Improving our Information Technology Every organisation needs systems. To support our vision and strategic goals, we are continuing to address information technology changes, which will enable further enhancements to the way in which we communicate with our members, deliver education programs online and provide information via our website.

Training & Education SPASA Australia continues to be the industry leader for all competency-based education for members and the broader swimming pool and spa industry. We continue to remain the only swimming pool and spa dedicated Registered Training Organisation (RTO) in Australia who provides Accredited National Training for both Pool and Spa Service Technicians and Swimming Pool Builders.

Membership Members are our greatest asset.

The association continues to consolidate its position as a peak body representing the swimming pool and spa industry in Australia. Strong membership growth continues to be the foundation which underpins SPASA Australia’s reputation as the pre-eminent voice in representing, supporting and promoting the industry.

Advocacy SPASA Australia’s credibility in its advocacy relationships with Government, Regulators and industry stakeholders and has played a significant part in influencing Australia’s policy settings and regulatory framework.

77%

Training increase over 2016

745

Members & growing

Fighting for the industry

Consumer and Trade Expos SPASA Australia directly controls consumers expos in NSW and SA, which are hugely successful and contribute millions of dollars in consumer sales to members across Australia.

The launch of the SPASA Leadership Convention was a resounding success and a turning point for industry. The Convention was designed for current leaders looking to grow their business and for those looking to make leadership their vocation.

Our acquisition of SPLASH! is part of SPASA Australia’s integrated strategy and delivers on a key objective – to engage more with members while expanding the brand’s exposure to a larger audience.

Following our recent alliance with Pool+Spa media, the acquisition of SPLASH! is a natural progression for the association as it increases our skill set, expands our communication reach and provides another collaborative model to shape the industry.

Members Voice Behind all the various aspects of the Association is Membership. The direct feedback received is the driving force behind every decision made to promote grow and protect the industry. Thank you to all Members for your support of SPASA Australia.

Lindsay McGrath Chief Executive Officer

SPASA AUSTRALIA - ANNUAL REPORT 2017

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SPASA AUSTRALIA SYNOPSIS

745

230,000

Members

People reached via digital and print

13,295

Member and consumer calls

3

new employees

2

Consumer Expos

SPASA AUSTRALIA - ANNUAL REPORT 2017

Launched Leadership Convention

3 Mergers 1 Acquisition SPLASH! Expo & Magazine

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GROWTH IN EDUCATION There are nearly 5000 Registered Training Organisations (RTOs) in Australia, ranging from large, broad-based Technical and Further Education (TAFE) institutes to private sector and enterprise-based RTOs of varying size and scope. SPASA Training remains the only RTO dedicated to the swimming pool and spa industry in Australia.

Qualifications under the SPASA Training Scope: • • •

Certificate III in Swimming Pool and Spa Service Certificate IV in Swimming Pool and Spa Service Certificate IV in Swimming Pool Building

- CPP31212 - CPP41312 - CPC40808

A coming together of industry training philosophies, demographics, economics and regulatory factors has allowed SPASA to identify and embrace opportunities.

These include: • • • • • •

Career path development Developing a national training culture Reviewing current industry relevant qualifications and courses Ensuring course affordability, accessibility and flexibility Identifying and targeting future learners – the future workforce Introduction of SPASA Certification and Accreditation

These opportunities have assisted SPASA to forecast the future workforce and skill development needs of the swimming pool and spa industry so that our industry continues to evolve and grow.

176

Certificate III & IV New Enrolments

1986

Units of Competency (distributed)

253

Active Students

Trade Qualification Enrolments

54% Students 46% Students

Swimming Pool and Spa Building

Swimming Pool and Spa Service

SPASA AUSTRALIA - ANNUAL REPORT 2017

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THE POOL INDUSTRY - a career of choice

SPASA’s efforts to raise awareness of the swimming pool and spa industry as a career of choice has continued to grow substantially throughout 2017.

For many participants within the swimming pool and spa industry, the sector has provided an interesting and rewarding career with many options available to them, however the sector is still not seen as a career of choice, particularly to school leavers.

SPASA Australia has identified strategies to increase the awareness of potential career paths within the swimming pool and spa industry in order to continue to build the sector.

To encourage participation within the sector swimming pool and spa industry, in 2017 SPASA Australia developed several current workforce and new entrant youth initiatives which include: •

Expanded Training Division Resources include employing one new staff member as well as restructure.

•

Certification and Accreditation Program A CPD Program designed to recognise and promote member professionalism and commitment to ongoing learning.

•

National Workshops Significant planning took place in 2017 to deliver over one hundred face-to-face courses in 2018 for both pool builders and service technicians.

By continuing to invest and engage with tomorrow’s leaders, SPASA can ensure that the swimming pool and spa industry continues to thrive into the future.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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MEMBER BENEFITS Members deserve to be REWARDED! SPASA Australia enables members to take advantage of exclusive benefits, products and services through our alliance with key partners and sponsors, helping them expand and differentiate their business.

These benefits provide significant savings to members across a diverse range of areas that allow members to successfully operate their businesses.

For more information on any of our services visit spasa.com.au

SPASA AUSTRALIA - ANNUAL REPORT 2017

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COMMUNICATIONS + MARKETING SPASA provides lead generation for members through various media outlets including print, digital, radio, television and other consumer focused promotional and awareness.

549 SOCIAL MEDIA POSTS As consumers move more of their research online, their shopping behaviour changes as well. Our social media channels create an extra touch-point, assisting in the connection between members and consumers.

49 MEDIA RELEASES SENT Members, industry affiliates and prospective members are kept updated with the latest industry news and information, via regular bulletins and newsletters.

131ARTICLES PUBLISHED SPASA regularly makes submissions on a range of issues likely to impact the swimming pool industry, raising the profile of members to consumers and businesses.

22 RADIO & TV INTERVIEWS & PR SPASA has represented the swimming pool and spa industry throughout 2017 in various interviews promoting members and the brand.

749 POOL & SPA AWARDS The Awards of Excellence program provides recognition of professionalism, quality and achievement; helping to increase the profile of the industry and creating valuable promotional opportunities for members.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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ADVOCACY & INFLUENCE Advocacy remains high on the SPASA Australia agenda, with significant committee and resource involvement on Australian Standards and associated Working Groups.

Whether it is safety barriers, electrical standards, fibreglass pool manufacture & installation or energy efficiency of pool pumps, SPASA Australia is present and active in lobbying and ensuring the views and interests of members and the broader industry resonate in all forums.

SPASA Australia has enjoyed an outstanding year of advocacy on behalf of members, the broader swimming pool and spa industry, and the community. We are regarded by government, regulators and the media as the go-to organisation on all things swimming pool and spa related. This reputation does not come easily.

It takes passion, hard-work and dedication by staff and volunteers. It also takes clever ideas, research, analysis, strategy, and experience.

We are influencing policy, standards and advocating strongly

A sample of 2017 SPASA Advocacy touchpoints included: • • • • • • • • • • • • • •

State & Federal Governments State Regulators State & National Associations Australian Competition & Consumer Commission Australian Pesticides and Veterinary Medicines Authority Artibus Innovation Department of Climate Change and Energy Efficiency Office of Fair Trading QBCC State and regional Water Boards Australian Building Code Board (ABCB) Building Professional Board (BPB) Department(s) of Health Standards Australia

GOVERNANCE SPASA’s corporate governance systems guide the way we manage the association, minimise risk and ensure integrity.

The Board is responsible for the overall governance and strategic direction of SPASA Australia. It meets regularly during the year to consider, determine and review strategies and policies, and to receive reports from the CEO and the operational teams.

Our internal systems are based on a commitment to fairness, accountability and transparency through executive, board and member meetings, strategic planning and fulfilling our mandatory reporting requirements. Such processes were and continue to be critical to the organisations operational mantra in the lead up and post the merger of New South Wales & Australian Capital Territory, Queensland, and South Australia in January this year.

SPASA Australia is committed to building a sustainable and consolidated single entity. SPASA Western Australia is supported via an agreement with SPASA Australia including Association Membership providing access to services and benefits. SPASA Victoria has remained independent since the resignation from SPASA Australia in July 2016.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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AWARDS OF EXCELLENCE WINNERS The SPASA Australia Awards of Excellence are the swimming pool and spa industry’s most prestigious awards, attracting entries from every region in Australia and showcasing achievements in construction, design, manufacturing, supply, products, retail and service.

These awards provide our members with the only Australia-wide opportunity to showcase their best efforts to their peers, industry, government and their local community. These awards are the ultimate recognition of being leaders in their field.

National Awards of Excellence winners represent the best of the best nationwide. Nominees* are via the regional award programs.

We would like to thank all sponsors, entrants and judges involved in the 2017 Industry Awards and congratulate the winners. View our 2017 gold winning members below, the full complement can be viewed on the SPASA website.

POOL OF THE YEAR NSW & ACT

EDUCATION & TRAINING EXCELLENCE AWARD Splish Splash Pools

All States & National

Queensland

Majestic Pools & Landscapes

PRODUCT OF THE YEAR

South Australia

Urban Oasis

NSW & ACT

Victoria

Apex Pools & Spas

Queensland

Zodiac AstralPool Australia

Western Australia

Quality Dolphin Pools

South Australia

The Pool Enclosure Company

National

Quality Dolphin Pools

Victoria

Sunbather

SPA OF THE YEAR

Waterco

Western Australia

Sunbather

Queensland

Freedom Pools & Spas

National

Sunbather

South Australia

The Pool & Spa Shop

MARKETING CAMPAIGN OF THE YEAR

Victoria

Laguna Pools & Spas

NSW & ACT

National

Laguna Pools & Spas

Queensland

Hayward Pool Products

South Australia

Prospect Pool & Spa

RETAILER OF THE YEAR

Hayward Pool Products

NSW & ACT

Pristine Pool & Spa Service

Western Australia

Aqua Technics

Queensland

Jim's Pool Care Caloundra

National

Hayward Pool Products

South Australia

Prospect Pool & Spa

SUSTAINABLE PROJECT OF THE YEAR

Victoria

Endless Spas

Queensland

Majestic Pools & Landscapes

National

Pristine Pool & Spa Service

South Australia

Heliocol Solar

SUPPLIER OF THE YEAR

Victoria

Tassie Pools & Spas

NSW & ACT

LoChlor

Western Australia

Commercial Aquatics Australia

Western Australia

Austral Pool Solutions

National

Heliocol Solar

National

LoChlor

SPASA AUSTRALIA - ANNUAL REPORT 2017

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SUSTAINABLE PRODUCT OF THE YEAR

RESIDENTIAL FIBREGLASS POOL - OVER $60,000

NSW & ACT

Supreme Heating

NSW & ACT R

Queensland

Supreme Heating

M

South Australia

Supreme Heating

Queensland

Esana Aquatic

Victoria

Pentair Water Australia

Victoria

Compass Pools Melbourne

Western Australia

Supreme Heating

Western Australia

Barrier Reef Pools Perth

National

Supreme Heating

National

Barrier Reef Pools Perth

Capital Fibreglass Pools^ Local Pools & Spas

RESIDENTIAL ENCLOSED / INDOOR POOL

RESIDENTIAL VINYL LINED IN-GROUND POOL

South Australia

Urban Oasis

Queensland

Aqualon Interiors

Victoria

Aloha Pools

Victoria

Albatross Swimming Pools

Western Australia

Quality Dolphin Pools

Western Australia

Reflections Pool & Spa Care

National

Urban Oasis

National

Albatross Swimming Pools

RESIDENTIAL CONCRETE POOLS UP TO $50,000

RESIDENTIAL PRE-ENGINEERED VINYL LINED POOL

NSW & ACT R

Dynamic Pool Designs^

Queensland

Classic Pools & Spas

Aquastone Pools & Landscapes

South Australia

Classic Pools & Spas

Queensland

M

Majestic Pools & Landscapes

Victoria

Albatross Swimming Pools

Victoria

Seaspray Pools

Western Australia

Classic Pools Perth

Western Australia

Perth Concrete Pools

National

Classic Pools & Spas

National

Majestic Pools & Landscapes

RESIDENTIAL PRE-ENGINEERED PORTABLE SPA

RESIDENTIAL CONCRETE POOLS $50,000 TO $100,000

South Australia

The Pool & Spa Shop

NSW & ACT R

Eco Design Pools^

Victoria

Leisurescape Spas

Award Pools Group

Western Australia

Just Spas

Queensland

M

Majestic Pools & Landscapes

National

Leisurescape Spas

South Australia

Elite Pool Constructions

RESIDENTIAL IN-GROUND SPA

Victoria

Apex Pools & Spas

Queensland

Freedom Pools & Spas

Western Australia

Quality Dolphin Pools

Victoria

Laguna Pools & Spas

National

Eco Design Pools

Western Australia

Just Spas

RESIDENTIAL CONCRETE POOLS OVER $100,000

National

Laguna Pools & Spas

NSW & ACT R

Polar Pools

RESIDENTIAL POOL & SPA COMBINATION - CONCRETE

Splish Splash Pools^

NSW & ACT R

M

M

Polar Pools

Queensland

Majestic Pools & Landscapes

South Australia

Urban Oasis

Queensland

Majestic Pools & Landscapes

Oceanscape Pools^

Victoria

Enkipools

South Australia

Freedom Pools & Spas

Western Australia

Quality Dolphin Pools

Victoria

Award Pools & Spas

National

Splish Splash Pools

Western Australia

Quality Dolphin Pools

RESIDENTIAL FIBREGLASS POOL - UP TO $40,000

National

Quality Dolphin Pools

NSW & ACT R

Coastline Pools^

RESIDENTIAL POOL & SPA COMBINATION - FIBREGLASS

Nepean Pools

NSW & ACT R

Capital Fibreglass Pools^

Queensland

M

Freedom Pools & Spas

Queensland

Esana Aquatic

South Australia

Rainwise Clearview

South Australia

Freedom Pools & Spas

Victoria

Naughtons Pools & Spas

Victoria

Naughtons Pools & Spas

Western Australia

Barrier Reef Pools Perth

National

Naughtons Pools & Spas

National

Coastline Pools

DISPLAY POOL / CENTRE

RESIDENTIAL FIBREGLASS POOL - $40,000 - $60,000 NSW & ACT R M

NSW & ACT R

Narellan Pools Northern Rivers

M

Dynamic Pool Designs Wisdom Landscapes & Pools^

Compass Pools Australia^

Queensland

CL Pools

Queensland

Esana Aquatic

South Australia

Freedom Pools & Spas

South Australia

Rainwise Clearview

Victoria

Laguna Pools & Spas

Victoria

Horizon Pools

Western Australia

Barrier Reef Pools Perth

Western Australia

Barrier Reef Pools Perth

National

Freedom Pools & Spas

National

Barrier Reef Pools Perth

SPASA AUSTRALIA - ANNUAL REPORT 2017

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RESIDENTIAL COURTYARD / PLUNGE POOL

RESIDENTIAL RENOVATION OVER $25,000

NSW & ACT R

NSW & ACT R

M Queensland

Coastline Pools Award Pools Group^

M

Dynamic Pool Designs Urban Escape^

Esana Aquatic Rainwise Clearview

Queensland

Jagun Pools + Landscapes

South Australia

South Australia

Adelaide Classic Pools

Victoria

Laguna Pools & Spas

Victoria

Platinum Swimming Pools

Western Australia

Quality Dolphin Pools

Western Australia

Panas Pools

National

Laguna Pools & Spas

National

Urban Escape

LAP POOL - CONCRETE NSW & ACT R M

LANDSCAPE DESIGN OF THE YEAR Leader Landscaping & Pools

NSW & ACT M

Award Pools Group^

Award Pools Group^

Queensland

Majestic Pools & Landscapes

Queensland

Surfside Pools

South Australia

Elite Pool Constructions

South Australia

Freedom Pools & Spas

Victoria

C.O.S Design

Victoria

Acquavita Pools and Spas

Western Australia

Mondo Landscapes

Western Australia

Boardwalk Pools

National

C.O.S Design

National

Award Pools Group

INNOVATIVE POOL & / OR SPA

LAP POOL - FIBREGLASS

NSW & ACT M

NSW & ACT R

Nautical Pools^

Queensland

Majestic Pools & Landscapes

Queensland

Esana Aquatic

South Australia

Urban Oasis

South Australia

Freedom Pools & Spas

Victoria

Aloha Pools

Victoria

Horizon Pools

Western Australia

Commercial Aquatics Australia

Western Australia

Dunsborough Pool & Spa

National

Commercial Aquatics Australia

National

Freedom Pools & Spas

WATER FEATURE

COMMERCIAL POOL UP TO $250,000 NSW & ACT R M

NSW & ACT R

Capital Fibreglass Pools

M

Award Pools Group^

Leader Landscaping & Pools Waterforms International^

Compass Pools Australia^

Queensland

Esana Aquatic

Queensland

Surfside Pools

South Australia

Freedom Pools & Spas

South Australia

Urban Oasis

Victoria

Neptune Pools

Victoria

Cookes Pools & Spas

Western Australia

Pools By Design

Western Australia

Reflections Pool & Spa Care

National

Neptune Pools

National

Compass Pools Australia

LIGHTING FEATURE

COMMERCIAL POOL - OVER $250,000

NSW & ACT R M

Leader Landscaping & Pools

NSW & ACT M

Waterforms International^

Queensland

Surfside Pools

Queensland

Majestic Pools & Landscapes

Sunrise Pools^

South Australia

South Pacific Pools

South Australia

Freedom Pools & Spas

Victoria

Aloha Pools

Victoria

C.O.S Design

Western Australia

Commercial Aquatics Australia

National

C.O.S Design

National

Surfside Pools

SPA RETAILER OF THE YEAR

RENOVATION - COMMERCIAL

South Australia

The Pool & Spa Shop Lonsdale

Queensland

Queensland Family Pools

Victoria

Endless Spas

Western Australia

Aquatic Developments Australia

Western Australia

Just Spas

National

Queensland Family Pools

National

Endless Spas

RESIDENTIAL RENOVATION UP TO $25,000

POOL STORE OF THE YEAR

NSW & ACT R

Polar Pools^

Queensland

Atlantis Pool Services

Aquastone Pools & Landscapes

South Australia

Prospect Pool & Spa

Queensland

Jagun Pools + Landscapes

Victoria

Rainwise Coburg

Western Australia

Panas Pools

Western Australia

The Pool Shop Kalamunda

National

Polar Pools

National

Rainwise Coburg

M

SPASA AUSTRALIA - ANNUAL REPORT 2017

Page 18

POOL & SPA SERVICE BUSINESS OF THE YEAR NSW & ACT Pristine Pool & Spa Service Queensland

Jim's Pool Care Caloundra

Victoria

Aloha Pools

Western Australia

Safe2Swim

National

Jim's Pool Care Caloundra

POOL & SPA SERVICE TECHNICIAN OF THE YEAR NSW & ACT

Jason Pollack - Jim’s Pool Care Umina

Queensland

Andrew Patterson - Blue Water Pool Care

South Australia

James Lunnay - Jim’s Pool Care West Lakes

Western Australia

Brad Smith - Commercial Aquatics

National

Andrew Patterson - Blue Water Pool Care

RETAIL SALESPERSON OF THE YEAR Queensland

Kylie Rojahn - Atlantis Pool Services

South Australia

Ross Starkey - Rainwise Clearview

Western Australia

Ben Jarvis - The Pool Shop Kalamunda

National

Kylie Rojahn - Atlantis Pool Services

INDUSTRY TRADE REPRESENTATIVE OF THE YEAR Queensland

Michael Kettewell - Blue Glass Pebble Company

Western Australia

Glenn Welton - Austral Pool Solutions

National

Michael Kettewell - Blue Glass Pebble Company

RISING STAR AWARD Queensland

Jake Dugan-Gorrie - Aqualon Interiors

National

Jake Dugan-Gorrie - Aqualon Interiors

POOL SAFETY INSPECTOR OF THE YEAR Queensland

Rodney Webb - AWEBBCO

CONCRETE POOL BUILDER OF THE YEAR NSW & ACT

Award Pools Group

FIBREGLASS POOL BUILDER OF THE YEAR NSW & ACT

Capital Fibreglass Pools

CONSTRUCTION SALESPERSON OF THE YEAR Queensland

Chris Nicholls - Queensland Family Pools

CONSTRUCTION SUPERVISOR OF THE YEAR Queensland

Terry Nicholls - Queensland Family Pools

POOL BUILDER OF THE YEAR Queensland

Queensland Family Pools

^ Denotes State winner in NSW & ACT

R = Regional M = Metropolitan

* National award nominees represent the gold award winners from SPASA Australia regional awards, SPASA Western Australia gold winners access the National awards via an agreement with SPASA Australia. SPASA Australia provided SPASA Victorian gold award winner inclusion into the 2016 and 2017 awards post the resignation of SPASA Victoria.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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SPONSORS Platinum Sponsor

Insurance & Finance Partner

With thanks to our generous Sponsors & Partners SPASA AUSTRALIA - ANNUAL REPORT 2017

Page 20

SPONSORS

With thanks to our generous Sponsors & Partners SPASA AUSTRALIA - ANNUAL REPORT 2017

Page 21

Swimming Pool & Spa Association of Australia Ltd ABN 74 150 541 816

Annual Report - 30 June 2017

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Directors' report 30 June 2017 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Swimming Pool & Spa Association of Australia Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2017.

Directors The following persons were directors of Swimming Pool & Spa Association of Australia Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated: Lynley Papineau (Chairman) Andrew Jakovac Robert Guthrie John O’Brien Trent Moran Adam Jaworski (appointed 26 June 2017) Robert Kruber (appointed 23 June 2017) Principal activities During the financial year the principal continuing activities of the consolidated entity consisted of: ● Representation of the Swimming Pool & Spa Industry throughout Australia Meetings of directors The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2017, were 12 and the number of meetings attended by each director were: Number of Meetings Attended Lynley Papineau (Chairman) Andrew Jakovac Robert Guthrie John O’Brien Trent Moran Lorenzo Perissen (Alternate) Ernie Bevilaqua (Alternate) Duncan Smith (Alternate)

11 12 12 9 9 3 1 2

Region WA Qld NSW/ACT Qld SA/NT SA/NT WA Qld

Contributions on winding up In the event of the company being wound up, ordinary members are required to contribute a maximum of $1 each. Honorary members are not required to contribute.

The total amount that members of the company are liable to contribute if the company is wound up is $730, based on the current ordinary members.

Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Directors' report 30 June 2017 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________ Lynley Papineau Chairman 20 April 2018

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AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2017 As lead auditor for the audit of Swimming Pool & Spa Association of Australia Ltd for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been: (a)

no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)

no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Swimming Pool & Spa Association of Australia Ltd.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 10 May 2018

Swimming Pool & Spa Association of Australia Ltd Contents 30 June 2017 Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's report to the members of Swimming Pool & Spa Association of Australia Ltd

5 6 7 8 9 18 19

General information The financial statements cover Swimming Pool & Spa Association of Australia Ltd as a consolidated entity consisting of Swimming Pool & Spa Association of Australia Ltd and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Swimming Pool & Spa Association of Australia Ltd is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is: 30 Kensington Road Rose Park SA 5067 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 20 April 2018. The directors have the power to amend and reissue the financial statements.

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Swimming Pool & Spa Association of Australia Ltd Statement of profit or loss and other comprehensive income For the year ended 30 June 2017 Note Revenue

3

Expenses Corporate and administration expenses Event expenses Employee benefits expense Occupancy expenses Depreciation and amortisation expense Marketing expenses Other expenses Finance costs Surplus before income tax expense Income tax expense Surplus after income tax expense for the year attributable to the members of Swimming Pool & Spa Association of Australia Ltd Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the members of Swimming Pool & Spa Association of Australia Ltd

Consolidated 2017 2016 $ $ 5,407,635

358,459

(88,392) (548,875) (575,030) (12,043) (1,141) (94,199) (266,206) (409)

(41,249) (136,993) (82,514) (2,100) (30,762) (60,519) -

3,821,340

4,322

-

-

3,821,340

4,322

-

-

3,821,340

4,322

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Statement of financial position As at 30 June 2017 Note

Consolidated 2017 2016 $ $

Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other Total current assets

4 5 6 7

3,738,448 158,751 5,068 94,912 3,997,179

287,301 38,511 325,812

Non-current assets Property, plant and equipment Total non-current assets

8

757,789 757,789

1,999 1,999

4,754,968

327,811

Total assets Liabilities Current liabilities Trade and other payables Borrowings Employee benefits Other Total current liabilities

9 10 11 12

97,846 4,736 127,201 480,659 710,442

29,996 85,988 115,984

Non-current liabilities Employee benefits Total non-current liabilities

13

11,359 11,359

-

721,801

115,984

4,033,167

211,827

142,457 3,890,710

142,457 69,370

4,033,167

211,827

Total liabilities Net assets Equity Reserves Retained surpluses

14

Total equity

The above statement of financial position should be read in conjunction with the accompanying notes

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Statement of changes in equity For the year ended 30 June 2017 Retained profits $

Reserves $

Consolidated Balance at 1 July 2015

Total equity $

142,457

65,048

207,505

Surplus after income tax expense for the year Other comprehensive income for the year, net of tax

-

4,322 -

4,322 -

Total comprehensive income for the year

-

4,322

4,322

142,457

69,370

211,827

Balance at 30 June 2016

Retained profits $

Reserves $

Consolidated Balance at 1 July 2016

Total equity $

142,457

69,370

211,827

Surplus after income tax expense for the year Other comprehensive income for the year, net of tax

-

3,821,340 -

3,821,340 -

Total comprehensive income for the year

-

3,821,340

3,821,340

142,457

3,890,710

4,033,167

Balance at 30 June 2017

The above statement of changes in equity should be read in conjunction with the accompanying notes

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Statement of cash flows For the year ended 30 June 2017 Note Cash flows from operating activities Payments to suppliers (inclusive of GST) Payments to suppliers and employees (inclusive of GST)

Consolidated 2017 2016 $ $ 1,855,446 (1,674,979)

433,473 (414,914)

180,467 11,977 (409) -

18,559 2,713 3,000

192,035

24,272

Cash flows from investing activities Payments for property, plant and equipment Cash acquired on business acquisition

3,259,112

(1,999) -

Net cash from/(used in) investing activities

3,259,112

(1,999)

-

-

3,451,147 287,301

22,273 265,028

3,738,448

287,301

Interest received Interest and other finance costs paid Refund of security deposits Net cash from operating activities

17

Cash flows from financing activities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

4

The above statement of cash flows should be read in conjunction with the accompanying notes

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Basis of preparation In the directors' opinion, the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the members of Swimming Pool & Spa Association of Australia Ltd. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1031 'Materiality', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for profit oriented entities.

Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.

Supplementary information about the parent entity is disclosed in note 15.

Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Swimming Pool & Spa Association of Australia Ltd ('company' or 'parent entity') as at 30 June 2017 and the results of all subsidiaries for the year then ended. Swimming Pool & Spa Association of Australia Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 1. Significant accounting policies (continued) The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Rendering of services Rendering of services revenue is recognised upon delivery of service to customer.

Interest Interest revenue is recognised as interest accrues using the effective interest method.

Other revenue Other revenue is recognised when it is received or when the right to receive payment is established.

Income tax As the consolidated entity is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

Consolidated trust funds The organisation produces consolidated reports which are set out in this document. Each entities that comprises the group separately continue to maintain individual accounts for internal, regulatory compliance and audit purposes. The entities that comprise the Group are: • Swimming Pool and Spa Association of Australia Pty Ltd • Swimming Pool and Spa Association of NSW Ltd • SPASA Australia Benefits Pty Ltd Investment information, such as term deposits, cash at bank and other assets are reported on a consolidated basis.

Trust funds held are reported on a consolidated basis rather than a listing of which entities holds which trust funds. This trust information is maintained in the individual accounts of each entity for internal, regulatory compliance and audit purposes.

Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 1. Significant accounting policies (continued) Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other receivables are recognised at amortised cost, less any provision for impairment.

Inventories Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Property, plant and equipment Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Leasehold improvements Plant and equipment Plant and equipment under lease

40 years 3-10 years 3-7 years 2-5 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

Trade and other payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 1. Significant accounting policies (continued) Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Business combinations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquires and the amount of any non-controlling interest in the acquisition. For each business combination, the non-controlling interest in the acquisition is measured at either fair value or at the proportionate share of the acquirer’s identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquire at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.

Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquire and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquisition is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquisition, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 1. Significant accounting policies (continued) Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2017. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

Note 2. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. There are no critical accounting judgements, estimates and assumptions that are likely to affect the current or future financial years.

Note 3. Revenue Consolidated 2017 2016 $ $ Sales revenue Professional fees Membership fees Other revenue Interest Gain on bargain acquisitions Other revenue Revenue

1,073,518 587,037 1,660,555

222,658 133,088 355,746

11,977 3,726,372 8,731 3,747,080

2,713 2,713

5,407,635

358,459

The gain on bargain acquisitions represents the net assets acquired from the merger with SPASA New South Wales, SPASA South Australia and SPASA Queensland.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 4. Current assets - cash and cash equivalents Consolidated 2017 2016 $ $ Cash on hand Cash at bank Cash on deposit

100 3,688,348 50,000

287,301 -

3,738,448

287,301

Note 5. Current assets - trade and other receivables Consolidated 2017 2016 $ $ Trade receivables Other receivables Receivable from SPASA Victoria Ltd BAS receivable

132,611 1,828 2,818 21,494

34,438 1,255 2,818 -

158,751

38,511

Note 6. Current assets - inventories Consolidated 2017 2016 $ $ Stock on hand - at cost

5,068

-

Note 7. Current assets - other Consolidated 2017 2016 $ $ Prepayments

94,912

-

Note 8. Non-current assets - property, plant and equipment Consolidated 2017 2016 $ $ Land and buildings - at independent valuation

750,000

-

Plant and equipment - at cost Less: Accumulated depreciation

42,348 (34,559) 7,789

1,999 1,999

757,789

1,999

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 8. Non-current assets - property, plant and equipment (continued) Valuations of land and buildings The basis of the valuation of land and buildings is fair value. The land and buildings were last revalued on 20 July 2017 based on independent assessments by a member of the Australian Property Institute having recent experience in the location and category of land and buildings being valued. Valuations are based on current prices for similar properties in the same location and condition. The directors have not adjust the carrying value of Land and building at 30 June 2017, as they do not believe the fair value adjustment based on the valuation is material.

Note 9. Current liabilities - trade and other payables Consolidated 2017 2016 $ $ Trade payables BAS payable Other payables

9,711 7,314 80,821

9,813 7,374 12,809

97,846

29,996

Note 10. Current liabilities - borrowings Consolidated 2017 2016 $ $ Property loan

4,736

-

Note 11. Current liabilities - employee benefits Consolidated 2017 2016 $ $ Employee benefits

127,201

-

Note 12. Current liabilities - other Consolidated 2017 2016 $ $ Deferred revenue

480,659

85,988

Note 13. Non-current liabilities - employee benefits Consolidated 2017 2016 $ $ Employee benefits

SPASA AUSTRALIA - ANNUAL REPORT 2017

11,359

15

-

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 14. Equity - reserves Consolidated 2017 2016 $ $ SPRAA contribution reserve

142,457

142,457

Note 15. Parent entity information Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income 2017 $

Parent

2016 $

Surplus after income tax

1,670,426

4,322

Total comprehensive income

1,670,426

4,322

Statement of financial position 2017 $

Parent

2016 $

Total current assets

2,587,557

325,812

Total assets

2,588,127

327,811

Total current liabilities

694,515

115,984

Total liabilities

705,874

115,984

Equity SPRAA contribution reserve Retained surpluses

142,457 1,739,796

142,457 69,370

Total equity

1,882,253

211,827

Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity.

Note 16. Events after the reporting period No matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 30 June 2017 Note 17. Reconciliation of surplus after income tax to net cash from operating activities Consolidated 2017 2016 $ $ Surplus after income tax expense for the year Adjustments for: Depreciation and amortisation Bargain acquisitions

3,821,340

4,322

1,141 (3,726,372)

-

Change in operating assets and liabilities: Decrease in trade and other receivables Decrease/(increase) in other operating assets Increase/(decrease) in trade and other payables Increase in employee benefits Decrease in other operating liabilities

31,128 (32,080) 54,480 54,295 (11,897)

61,250 117,328 (139,530) (19,098)

Net cash from operating activities

192,035

24,272

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Swimming Pool & Spa Association of Australia Ltd Directors' declaration 30 June 2017 In the directors' opinion: ●

the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 1 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd;

●

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards as described in note 1 to the financial statements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

●

the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and

●

there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________ Lynley Papineau Chairman 20 April 2018

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SWIMMING POOL & SPA ASSOCIATION OF AUSTRALIA LTD AND CONTROLLED ENTITIES Opinion We have audited the financial report, being a special purpose financial report of Swimming Pool & Spa Association of Australia Ltd and its controlled entities (the Company), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the directors’ declaration.

In our opinion, the accompanying financial report presents fairly, is in all material respects, in accordance with Corporations Act 2001, including: a) giving a true and fair view of the Company’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other responsibilities in accordance with Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors ’of the Company, would be in the same terms if given to the Directors ’at the time of this audit report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter-Basis of Accounting We draw attention to Note 1 in the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Company’s financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of The Directors for the Financial Report The directors of Swimming Pool & Spa Association of Australia Ltd are responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1 to the financial statements is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine is necessary to enable the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing the applicable, matters relating to going concern and using the going concern basis of accounting unless the directors’ either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The Directors’ are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors’.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors’ regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 10 May 2018

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd ABN 74 150 541 816

Financial Report - 31 December 2017

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Directors' report 31 December 2017 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Swimming Pool & Spa Association of Australia Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the period ended 31 December 2017.

Directors The following persons were directors of Swimming Pool & Spa Association of Australia Ltd during the whole of the financial period and up to the date of this report, unless otherwise stated: Lynley Papineau (Chairman) Robert Kruber (Deputy Chairman) Andrew Jakovac Robert Guthrie John O’Brien Trent Moran Adam Jaworski Principal activities During the financial period the principal continuing activities of the consolidated entity consisted of: ● Representation of the Swimming Pool & Spa Industry throughout Australia Change of reporting period The company changed its financial reporting period to a 31 December 2017 financial year end. For that reason, the financial report covers the six month period ended on that date, with the comparative information covering the twelve month period ended on that date.

Meetings of directors The number of meetings of the company's Board of Directors ('the Board') held during the period ended 31 December 2017 were 5 and the number of meetings attended by each director were: Number of meetings Attended Lynley Papineau (Chairman) Rob Kruber (Deputy Chairman) Andrew Jakovac Robert Guthrie John O’Brien Adam Jaworski Trent Moran Troy Cartwright (Alternate)

Region 5 4 4 3 1 4 5 2

WA Vic Qld NSW/ACT Qld Vic SA/NT Qld

Contributions on winding up In the event of the company being wound up, ordinary members are required to contribute a maximum of $1 each. Honorary members are not required to contribute.

The total amount that members of the company are liable to contribute if the company is wound up is $758, based on the current ordinary members.

Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

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Swimming Pool & Spa Association of Australia Ltd Directors' report 31 December 2017 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________ Lynley Papineau Chairman 20 April 2018

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AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2017 As lead auditor for the audit of Swimming Pool & Spa Association of Australia Ltd for the year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been: (a)

no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)

no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Swimming Pool & Spa Association of Australia Ltd.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 10 May 2018

Swimming Pool & Spa Association of Australia Ltd Contents 31 December 2017 Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration Independent auditor's report to the members of Swimming Pool & Spa Association of Australia Ltd

5 6 7 8 9 21 22

General information The financial statements cover Swimming Pool & Spa Association of Australia Ltd as a consolidated entity consisting of Swimming Pool & Spa Association of Australia Ltd and the entities it controlled at the end of, or during, the period. The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Swimming Pool & Spa Association of Australia Ltd is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is: 30 Kensington Road Rose Park SA 5067 A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 20 April 2018. The directors have the power to amend and reissue the financial statements.

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Swimming Pool & Spa Association of Australia Ltd Statement of profit or loss and other comprehensive income For the period ended 31 December 2017

Note Revenue

3

Consolidated 6 months ended 31 12 months December ended 30 2017 June 2017 $ $ 1,093,552

5,407,635

Expenses Corporate and administration expenses Event expenses Employee benefits expense Occupancy expenses Depreciation and amortisation expense Marketing expenses Other expenses Finance costs

(154,024) (183,746) (530,729) (10,800) (190) (29,742) (418,225) (20,065)

(88,392) (548,875) (575,030) (12,043) (1,141) (94,199) (266,206) (409)

Surplus/(deficit) before income tax expense

(253,969)

3,821,340

-

-

(253,969)

3,821,340

Items that will not be reclassified subsequently to profit or loss Gain on revaluation of property, plant and equipment

20,000

-

Other comprehensive income for the period, net of tax

20,000

-

(233,969)

3,821,340

Income tax expense Surplus/(deficit) after income tax expense for the period attributable to the members of Swimming Pool & Spa Association of Australia Ltd Other comprehensive income

Total comprehensive income for the period attributable to the members of Swimming Pool & Spa Association of Australia Ltd

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Swimming Pool & Spa Association of Australia Ltd Statement of financial position As at 31 December 2017 Consolidated Note

31 December 2017 $

30 June 2017 $

Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other Total current assets

4 5 6 7

4,004,391 1,100,840 5,068 167,555 5,277,854

3,738,448 158,751 5,068 94,912 3,997,179

Non-current assets Property, plant and equipment Intangibles Total non-current assets

8 9

774,987 1,400,000 2,174,987

757,789 757,789

7,452,841

4,754,968

Total assets Liabilities Current liabilities Trade and other payables Borrowings Employee benefits Provisions Other Total current liabilities

10 11 12 13 14

286,004 56,641 127,699 250,000 1,813,315 2,533,659

97,846 4,736 127,201 480,659 710,442

Non-current liabilities Borrowings Employee benefits Provisions Total non-current liabilities

15 16 17

647,055 22,929 450,000 1,119,984

11,359 11,359

Total liabilities

3,653,643

721,801

Net assets

3,799,198

4,033,167

162,457 3,636,741

142,457 3,890,710

3,799,198

4,033,167

Equity Reserves Retained surpluses

18

Total equity

The above statement of financial position should be read in conjunction with the accompanying notes

SPASA AUSTRALIA - ANNUAL REPORT 2017

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Swimming Pool & Spa Association of Australia Ltd Statement of changes in equity For the period ended 31 December 2017 Retained profits $

Reserves $

Consolidated Balance at 1 July 2016

Total equity $

142,457

69,370

211,827

Surplus after income tax expense for the period Other comprehensive income for the period, net of tax

-

3,821,340 -

3,821,340 -

Total comprehensive income for the period

-

3,821,340

3,821,340

142,457

3,890,710

4,033,167

Balance at 30 June 2017

Reserves $

Consolidated Balance at 1 July 2017

Retained profits $

Total equity $

142,457

3,890,710

4,033,167

Deficit after income tax expense for the period Other comprehensive income for the period, net of tax

20,000

(253,969) -

(253,969) 20,000

Total comprehensive income for the period

20,000

(253,969)

(233,969)

162,457

3,636,741

3,799,198

Balance at 31 December 2017

The above statement of changes in equity should be read in conjunction with the accompanying notes

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Swimming Pool & Spa Association of Australia Ltd Statement of cash flows For the period ended 31 December 2017

Note Cash flows from operating activities Payments to suppliers (inclusive of GST) Payments to suppliers and employees (inclusive of GST)

Consolidated 6 months ended 31 12 months December ended 30 2017 June 2017 $ $ 1,622,702 (1,345,169)

1,855,446 (1,674,979)

277,533 6,903 (20,065)

180,467 11,977 (409)

264,371

192,035

Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Cash acquired on business acquisition

2,612 (700,000) -

3,259,112

Net cash from/(used in) investing activities

(697,388)

3,259,112

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings

700,000 (1,040)

-

Net cash from financing activities

698,960

-

265,943 3,738,448

3,451,147 287,301

4,004,391

3,738,448

Interest received Interest and other finance costs paid Net cash from operating activities

21

Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period

4

The above statement of cash flows should be read in conjunction with the accompanying notes

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Reporting period The company changed its financial reporting period to a 31 December 2017 financial year end. For that reason, the financial report covers the six month period ended on that date, with the comparative information covering the twelve month period ended on that date.

Basis of preparation In the directors' opinion, the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the members of Swimming Pool & Spa Association of Australia Ltd. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1031 'Materiality', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for profit oriented entities.

Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.

Supplementary information about the parent entity is disclosed in note 19.

Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Swimming Pool & Spa Association of Australia Ltd ('company' or 'parent entity') as at 31 December 2017 and the results of all subsidiaries for the period then ended. Swimming Pool & Spa Association of Australia Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entit y when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 1. Significant accounting policies (continued) Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Rendering of services Rendering of services revenue is recognised upon delivery of service to customer.

Interest Interest revenue is recognised as interest accrues using the effective interest method.

Other revenue Other revenue is recognised when it is received or when the right to receive payment is established.

Income tax As the consolidated entity is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

Consolidated Entities The organisation produces consolidated reports which are set out in this document. Each entities that comprises the group separately continue to maintain individual accounts for internal, regulatory compliance and audit purposes. The entities that comprise the Group are: • Swimming Pool and Spa Association of Australia Pty Ltd • Swimming Pool and Spa Association of NSW Ltd • SPASA Australia Benefits Pty Ltd Investment information, such as term deposits, cash at bank and other assets are reported on a consolidated basis.

Trust funds held are reported on a consolidated basis rather than a listing of which entities holds which trust funds. This trust information is maintained in the individual accounts of each entity for internal, regulatory compliance and audit purposes.

Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 1. Significant accounting policies (continued) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other receivables are recognised at amortised cost, less any provision for impairment.

Inventories Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Property, plant and equipment Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Leasehold improvements Plant and equipment Plant and equipment under lease

40 years 3-10 years 3-7 years 2-5 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 1. Significant accounting policies (continued) Intangible assets Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

Impairment of non-financial assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other nonfinancial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Trade and other payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial period and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted.

The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are classified as non-current.

Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Provisions Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.

If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 1. Significant accounting policies (continued) Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Business combinations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.

Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value.

Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 31 December 2017. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 2. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. There are no critical accounting judgements, estimates and assumptions that are likely to affect the current or future financial years.

Note 3. Revenue Consolidated 6 months ended 31 12 months December ended 30 2017 June 2017 $ $ Sales revenue Professional fees Membership fees Other revenue Interest Gain on bargain acquisitions Other revenue Revenue

642,927 433,597 1,076,524

1,073,518 587,037 1,660,555

14,629 2,399 17,028

11,977 3,726,372 8,731 3,747,080

1,093,552

5,407,635

The gain on bargain acquisitions represents the net assets acquired from the merger with SPASA New South Wales, SPASA South Australia and SPASA Queensland.

Note 4. Current assets - cash and cash equivalents Consolidated 31 December 30 June 2017 2017 $ $ Cash on hand Cash at bank Cash on deposit

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100 2,049,291 1,955,000

100 3,688,348 50,000

4,004,391

3,738,448

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 5. Current assets - trade and other receivables Consolidated 31 December 30 June 2017 2017 $ $ Trade receivables Other receivables Receivable from SPASA Victoria Ltd BAS receivable

1,043,844 24,832 32,164

132,611 1,828 2,818 21,494

1,100,840

158,751

Note 6. Current assets - inventories Consolidated 31 December 30 June 2017 2017 $ $ Stock on hand - at cost

5,068

5,068

Note 7. Current assets - other Consolidated 31 December 30 June 2017 2017 $ $ Prepayments

167,555

94,912

Note 8. Non-current assets - property, plant and equipment Consolidated 31 December 30 June 2017 2017 $ $ Land and buildings - at independent valuation

770,000

750,000

Plant and equipment - at cost Less: Accumulated depreciation

42,348 (37,361) 4,987

42,348 (34,559) 7,789

774,987

757,789

Valuations of land and buildings The basis of the valuation of land and buildings is fair value. The land and buildings were last revalued on 20 July 2017 based on independent assessments by a member of the Australian Property Institute having recent experience in the location and category of land and buildings being valued. The directors do not believe that there has been a material movement in fair value since the revaluation date. Valuations are based on current prices for similar properties in the same location and condition.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 9. Non-current assets – intangibles Consolidated 31 December 30 June 2017 2017 $ $ Goodwill - at cost

1,400,000

-

The goodwill is for the purchase of the SPLASH magazine and show. No assets or liabilities were acquired only the right to prepare the magazine and host the show.

The purchase price of the SPLASH magazine and event was $1,400,000 with $700,000 been paid up front and the remaining $700,00 being deferred and payable as follows $250,000 by 9 August 2018, a further $250,000 by 9 August 2019 and the final $200,000 by 9 August 2020.

Note 10. Current liabilities - trade and other payables Consolidated 31 December 30 June 2017 2017 $ $ Trade payables BAS payable Other payables

27,776 176,404 81,824

9,711 7,314 80,821

286,004

97,846

Note 11. Current liabilities – borrowings Consolidated 31 December 30 June 2017 2017 $ $ Bank loans Property loan

52,945 3,696

4,736

56,641

4,736

Refer to note 15 for further information on assets pledged as security and financing arrangements.

Note 12. Current liabilities - employee benefits Consolidated 31 December 30 June 2017 2017 $ $ Employee benefits

SPASA AUSTRALIA - ANNUAL REPORT 2017

127,699

16

127,201

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 13. Current liabilities – provisions Consolidated 31 December 30 June 2017 2017 $ $ Deferred consideration

250,000

-

The purchase price of the SPLASH magazine and event was $1,400,000 with $700,000 been paid up front and the remaining $700,00 being deferred and payable as follows $250,000 by 9 August 2018, a further $250,000 by 9 August 2019 and the final $200,000 by 9 August 2020.

Note 14. Current liabilities – other Consolidated 31 December 30 June 2017 2017 $ $ Deferred revenue

1,813,315

480,659

Note 15. Non-current liabilities – borrowings Consolidated 31 December 30 June 2017 2017 $ $ Bank loans Total secured liabilities The total secured liabilities (current and non-current) are as follows:

Bank loans

647,055

-

Consolidated 31 December 30 June 2017 2017 $ $ 700,000

-

Assets pledged as security.

The Bank loan is secured by a mortgage over the land and buildings, totalling $347,500 and a flawed asset arrangement, amounting to $405,000, held over cash on deposit.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 15. Non-current liabilities - borrowings (continued) Financing arrangements Unrestricted access was available at the reporting date to the following lines of credit: Consolidated 31 December 30 June 2017 2017 $ $ Total facilities Bank loans

750,000

-

Used at the reporting date Bank loans

700,000

-

50,000

-

Unused at the reporting date Bank loans Note 16. Non-current liabilities - employee benefits

Consolidated 31 December 30 June 2017 2017 $ $ Employee benefits

22,929

11,359

Note 17. Non-current liabilities – provisions Consolidated 31 December 30 June 2017 2017 $ $ Deferred consideration

450,000

-

The purchase price of the SPLASH magazine and event was $1,400,000 with $700,000 been paid up front and the remaining $700,00 being deferred and payable as follows $250,000 by 9 August 2018, a further $250,000 by 9 August 2019 and the final $200,000 by 9 August 2020.

Note 18. Equity - reserves Consolidated 31 December 30 June 2017 2017 $ $ Revaluation surplus reserve SPRAA contribution reserve

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20,000 142,457

142,457

162,457

142,457

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 19. Parent entity information Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income Parent 6 months ended 31 12 months December ended 30 2017 June 2017 $ $ Surplus/(deficit) after income tax

(169,930)

1,670,426

Total comprehensive income

(169,930)

1,670,426

Statement of financial position Parent 31 December 30 June 2017 2017 $ $ Total current assets

4,086,522

2,587,557

Total assets

5,486,902

2,588,127

Total current liabilities

2,457,020

694,515

Total liabilities

3,774,579

705,874

Equity SPRAA contribution reserve Retained surpluses

142,457 1,569,866

142,457 1,739,796

Total equity

1,712,323

1,882,253

Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity.

Note 20. Events after the reporting period No matter or circumstance has arisen since 31 December 2017 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2017 Note 21. Reconciliation of surplus/(deficit) after income tax to net cash from operating activities Consolidated 6 months ended 31 12 months December ended 30 2017 June 2017 $ $ Surplus/(deficit) after income tax expense for the period Adjustments for: Depreciation and amortisation Bargain acquisitions Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Increase in other operating assets Increase in trade and other payables Increase in employee benefits Increase/(decrease) in other operating liabilities Net cash from operating activities

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(253,969)

3,821,340

190 -

1,141 (3,726,372)

(942,089) (72,643) 188,158 12,068 1,332,656

31,128 (32,080) 54,480 54,295 (11,897)

264,371

192,035

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Swimming Pool & Spa Association of Australia Ltd Directors' declaration 31 December 2017 In the directors' opinion: ●

the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 1 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd;

●

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards as described in note 1 to the financial statements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

●

the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2017 and of its performance for the financial period ended on that date; and

●

there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________ Lynley Papineau Chairman 20 April 2018

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SWIMMING POOL & SPA ASSOCIATION OF AUSTRALIA LTD AND CONTROLLED ENTITIES Opinion We have audited the financial report, being a special purpose financial report of Swimming Pool & Spa Association of Australia Ltd and its controlled entities (the Company), which comprises the consolidated statement of financial position as at 31 December 2017, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the directors’ declaration.

In our opinion, the accompanying financial report presents fairly, is in all material respects, in accordance with Corporations Act 2001, including: a) giving a true and fair view of the Company’s financial position as at 31 December 2017 and of its performance for the year ended on that date; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001 Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other responsibilities in accordance with Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors ’of the Company, would be in the same terms if given to the Directors ’at the time of this audit report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter-Basis of Accounting We draw attention to Note 1 in the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Company’s financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of The Directors for the Financial Report The directors of Swimming Pool & Spa Association of Australia Ltd are responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1 to the financial statements is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine is necessary to enable the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing the applicable, matters relating to going concern and using the going concern basis of accounting unless the directors’ either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The Directors’ are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors’.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors’ regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 10 May 2018

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30 Kensington Road, Rose Park SA 5067 1300 021 428 members@spasa.com.au

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