SPASA Australia Annual Report 2018

ANNUAL REPORT

2018

Surfside Pools - Commercial Project of the Year

OUR ORGANISATION

4

OUR DIRECTORS

5

REGIONAL ADVISORY COMMITTEES

6

CHAIRPERSON REPORT

7

FINANCE REPORT

9

2018 ACCOMPLISHMENTS

10

AWARDS OF EXCELLENCE WINNERS

20

2018 SPONSORS & PARTNERS

24

AUDITED FINANCIAL REPORT

25

SPASA AUSTRALIA - ANNUAL REPORT 2018

Polar Pools - Courtyard/Plunge Pool

CONTENTS

PAGE 3

Classic Pools - Vinyl Lined Modular Pool

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 for all members.

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 installations, products and services • Deliver a consistently improving organisation dedicated to member benefits

SPASA Australia represents the largest body of 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.

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SPASA AUSTRALIA - ANNUAL REPORT 2018

OUR DIRECTORS

Rob Kruber Chairperson Spa Industries

Troy Cartwright Poolwerx

Lynley Papineau Aquatic Leisure Technologies

Neil Davey Crackerjack Consulting

Adam Jaworski Fluidra

John Daniel Jade Swimming Pools

Andrew Jakovac Majestic Pools & Landscapes

Garth Jackson Triton Pool & Spa Inspections

Elena Gosse Australian Innovative Systems

Stefan Ossenberg Protector Aluminium

OUR TEAM Lindsay McGrath Luke Daly Peter Holland Rodney Smith Melinda Zoanetti

Chief Executive Officer Membership Executive QLD RTO Manager Membership Executive SA Accounts Manager

SPASA AUSTRALIA - ANNUAL REPORT 2018

Spiros Dassakis Nicole Daws Suzie Kent David Stennett

Chief Operations Officer RTO Administrator Communications Manager Sales & Media Manager

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Boardwalk Pools - Concrete Pool up to $100,000

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.

NSW & ACT

QUEENSLAND

SOUTH AUSTRALIA

Janine Bellifemine Sunrise Pools

Troy Cartwright Poolwerx

Jeremy Bennett Freedom Pools SA

John Daniel Jade Swimming Pools

Michael Chapman Classic Pools

John Colella SA Temp Pool Fencing

Garth Jackson Triton Pool & Spa Inspections

John Dixon Sunbather

Neil Davey Crackerjack Consulting

Peter Moore Aquatic Pool Consulting

Daniel Gibbs Jagun Constructions

Mathew Giles Australian Outdoor Living

Merv Smith Sunbather

Elena Gosse Australian Innovative Systems

Manuel Karkafiris Poolwerx Tea Tree Gully

Wayne Haylock Burleigh Pools

Anthony Scaffidi Elite Pools

Andrew Jakovac Majestic Pools & Landscapes Chris Nicholls Queensland Family Pools Stefan Ossenberg Protector Aluminium Kylie Rojahn Atlantis Pool Services

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SPASA AUSTRALIA - ANNUAL REPORT 2018

CHAIRPERSON REPORT There is no mistaking that SPASA Australia has gone from strength to strength since its inception.

With over 775 members, SPASA Australia currently possesses the highest number of members of any Swimming Pool & Spa Association. The association has been designed to evolve and be self sustainable, ensuring its viability well into the future. The past 12 months has been no exception, with a focus on consolidation of last years achievments and expansion into new markets such as New Zealand.

SPASA Australia has placed a high level of emphasis on the creation and delivery of various training initiatives. Being able to provide professional training and support ensures that as an industry, we are equipped to deal with the everchanging regulatory demands that we all face.

The continued professionalism of RTO Manager, Peter Holland and the appointment of RTO Administrator, Nicole Daws as enabled the association to promote solid career paths and significantly expand our training offerings. This not only assists in upskilling existing industry staff but also aids in attracting new people into our businesses as a attractive career opportunity.

With environmental pressures continually being an important consideration, SPASA Australia recognised the need for an initiative and launched the Climate Care Certification Program, the first efficiency and sustainability certification program promoting products to regulators and consumers.

2018 saw a few new faces join the SPASA Team.

SPASA AUSTRALIA - ANNUAL REPORT 2018

Membership Executives, Rodney Smith and Luke Daly have been working in field to provide a higher level of communication and support in order to better service our members.

Over the past year we have also seen a few members of the SPASA team move on from the association due to either retirement or to seek alternate career opportunities. Thank you to Adrian Hart, Diane Turas, Vicki Taylor and Megan McElhinney for their time and commitment to the industry. We wish them all the best with their future endeavours.

In August 2018, SPASA Australia successfully ran the SPLASH! Pool & Spa Trade Show for the first time. This event achieved a record number of exhibitors and attendees with plans to expand by a further 30% due to the event being a complete sell out.

As an industry, it is important that we continue to promote our products to end consumers. Pool & Spa Events and Expo’s are an integral part of this strategy. This year has also seen the NSW Pool, Spa & Outdoor Living Expo achieve another strong result with the SA event also gaining momentum and getting stronger and better.

In addition to the Australian events, in May 2019, SPASA Australia will host the first ever Pool & Spa Show to take place in Auckland, New Zealand.

The SPLASH! Magazine has been achieving strong results. Working alongside the Pool & Spa Magazine, both publications aim to deliver better content to the industry.

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Aloha Pools - Concrete Pool over $100,000

With more women now holding senior positions in our industry, SPASA Australia recognised the need to promote and develop this category and in 2018, the first ever Women in Leadership Event for the industry took place. The program was a great success and is an initiative this is being further developed and expanded in 2019.

These initiatives result in new revenue streams so as not to rely on the need for increasing membership fees, plus an improvement to our balance sheets and the overall profitability of the Association.

Not only is the role of SPASA Australia to promote pools and spas, but also to provide protection to the industry with hundreds of hours are being dedicated to lobbying for consistent regulations.

Fencing and Energy Regulations are just a couple of examples that are currently being worked on.

“There is no mistaking that SPASA Australia has gone from strength to strength since its inception”

When reflecting on my first year as Chairperson, it is evident that the association has covered a lot of ground, gained momentum and is continuing to build a strong and successful future for our industry.

Progress does not happen without hard work and dedication. I would like to take this opportunity to thank SPASA Australia’s CEO, Lindsay McGrath for his unwavering dedication and passion for our industry. Congratulations on another massive year.

Lindsay leads an equally passionate team who continue to put in the hard yards to not only support our members but also propel our industry forward.

Thank you to Spiros Dassakis, Nicole Daws, Luke Daly, Peter Holland, Suzie Kent, Rodney Smith, David Stennett and Melinda Zoanetti.

SPASA Australia is a very exciting board to be a part of. Amongst our board members, we possess a very diverse and incredibly strong array of skill sets that combined, ensure that SPASA Australia continues to provide our industry with the best representation possible.

Thank you to my fellow board members, Troy Cartwright, John Daniel, Neil Davey, Elena Gosse, Garth Jackson, Andrew Jakovac, Adam Jaworski, Lynley Papineau, and Stefan Ossenberg.

In summary, the past 12 months has seen SPASA Australia gain more members, offer more benefits, provide a higher level of representation with a fresh new look association, that has proven to be and will continue to be a vehicle for our industry to move forward into the future.

Rob Kruber Chairperson

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SPASA AUSTRALIA - ANNUAL REPORT 2018

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 the association is strong and is combined with a corporate governance and economic management model that produced a solid result long term.

The 2018 consolidated operating result for SPASA Australia was a surplus of $468,351. The result is due to the consistency of existing services and the expansion of new events and media programs.

Following the 2016/17 financial year report, 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. As a result, the financials for the 2017 year covered the six month period from July to December 2017 with a full years’ reporting for 2018.

SPASA Australia reports all entities in a consolidated manner including the Registered Training Organisation and the Trustee of the 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 Audit Report for the year ending 31 December 2018, herein attached.

SPASA AUSTRALIA - ANNUAL REPORT 2018

Key Points: • Operational efficiency and growth programs resulted in a full year net surplus of $468,351 with Net Assets and Equity of $4,267,549 • Membership has increased by 5% over the prior year, with fees totalling 17% of 2018 revenue.

• Investment strategy included the SPLASH! acquisition, which delivered for the southern hemisphere the largest trade pool and spa expo on record.

• Training represented 10% of total income.

Investments have been made in expanding courses and qualifications to meet the industry’s educational and professional development requirements.

• SPASA restructured its human resources to employ new staff members dedicated to infield support to members.

• The SPASA office in NSW is owned by the Association. A valuation was conducted in the last quarter of 2018 reflecting a value of $770,000.

Adam Jaworski Finance Audit and Compliance Committee Chairman

PAGE 9

Elite Pool Constructions - Innovative Project

2018 ACCOMPLISHMENTS December 2018 saw the close of the second full calendar year of this national entity SPASA. Key milestones have been achieved earlier than planned due to the dedication of the Board, Committees, Staff and Members.

The financial sustainability of SPASA through new revenue streams and business models was a five year goal delivered in two. Further expansion, partnerships and opportunities have already been put into place to ensure this security is robust and delivering value back to members long term.

With great advocacy comes the requirement of comprehensive engagement with our members and industry stakeholders. Restructuring our organisation and resources has allowed for local staff to receive infield direct member engagement for a well researched policy development.

Proactive and reactive lobbying has been invested in across the various levels of government with the

“The financial sustainability of SPASA... a five year goal delivered in two.”

support of targeted technical committees. Effective advocacy hinges on the ability to prioritise and to focus effort on the big picture issues, that stand to most substantially benefit our industry.

Energy and water saving has become a regular discussion with regulators and new programs that promote self regulation such as Climate Care Certified are being well supported by members and Smart Approved Water Mark.

Consumer events such as our Expos provide a pull strategy, increasing the total market share from competing industries. Our push in Media with Brands like SPLASH allow a professional message to resonate beyond our membership.

Workplace relations is a growing area of significance impacting businesses on their ability to secure a reliable workforce. Our training and education programs support career path development and staff retention and our Leadership programs provide inspiration and aspiration.

As with all things in a member based organisation we take our direction from the thousands on contact points our members provide each year.

At SPASA we have never been more optimistic about and excited by the future of the Pool, Spa and outdoor living industry. We look forward to working with you across 2019 to tackle the challenges, and make the most of the great opportunities before us.

Lindsay McGrath Chief Executive Officer

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SPASA AUSTRALIA - ANNUAL REPORT 2018

775 Members

MEMBERSHIP Members are our greatest asset.

The association continues to consolidate its position as the 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.

TRAINING & EDUCATION - A CAREER OF CHOICE SPASA Australia’s purpose for owing and operating a Registered Training Organisation (RTO) is to invest in our people. We strive for a dynamic, recognised and desired industry, building professionals through career development. To do so, our goal is to provide the level of training required by all associated with our industry to be qualified, competent and engaged. Not only in continuing education and development, but promote to the consumer that they are SPASA accredited and certified, offering the peace of mind associated with professional, competent and educated workers.

• Certification and Accreditation Program - This program for members is to be able to actively promote their professionalism and commitment to ongoing learning and development by achieving and maintaining their certified and accredited status each year via CPD activities.

• National Workshops - Our SPASA Training calendar kicked off with over one hundred face-to-face courses in 2018 for both pool builders and service technicians. Such is the level of expertise of our trainers, we have been invited to provide training overseas to resorts in Fiji, Solomon Islands and the facilities at Australia’s federal Parliament House.

By investing in and engaging with tomorrow’s leaders, SPASA can ensure that the swimming pool and spa industry will continue to thrive into the future.

SPASA AUSTRALIA - ANNUAL REPORT 2018

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Queensland Family Pools - Freeform Pool up to $100,000

TRAINING & EDUCATION - GROWTH

266 Trade Students

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: • • • • •

2732 Units of Competency (distributed)

Certificate III in Swimming Pool and Spa Service Certificate IV in Swimming Pool and Spa Service Certificate IV in Swimming Pool Building Qld Pool Safety Inspector’s Course Certificate IV in Building and Construction

- CPP31218 - CPP41312 - CPC40808 - 10660NAT - CPC40110

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

SPASA Training - New Additions to our Training Scope It is our vision to provide trade and career skills to every sector of the swimming pool and spa industry as well as affiliated industries such as landscaping and design, sales and marketing as well as the retail sector.

Our educational pathways are designed to provide all sectors a career pathway that will allow members and the broader industry to remain and grow with their chosen area.

With that in mind, SPASA Training is pleased to announce the further expansion of our training with the introduction of the following qualifications.

184 Certificates Issued

1.

2.

3.

4.

5.

6.

7.

8.

Certificate III in Landscape Construction Certificate III in Retail Cert IV Retail Management Cert IV Leadership and Management Cert IV Business Diploma of Retail Leadership Diploma of Management Diploma of Business

Our vision is to provide training options commensurate with career aspirations that target every sector.

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SPASA AUSTRALIA - ANNUAL REPORT 2018

MEMBER BENEFITS 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 2018

PAGE 13

WA Fibreglass Pools - DisplayPool/Centre

THE NEW BENCHMARK IN ENVIRONMENTAL SUSTAINABILITY FOR SWIMMING POOLS & SPAS

The Climate Care Certification Program is an initiative of the Swimming Pool & Spa Association of Australia Ltd (SPASA). It is the industry’s efficiency and sustainability certification program.

SPASA is proud to deliver an industry wide program to support, protect and promote the way the swimming pool and spa industry operates and strives for best practice sustainable solutions.

BENEFITS OF CERTIFICATION CONSUMER BENEFITS • • •

Purchase with confidence knowing that you are choosing a certified environmentally sustainable solution Enjoy the benefits of choosing a solution which utilises water efficiency, energy efficiency, noise reduction measures, environmentally sustainable designs or efficiency/sustainability innovations Reduce your overall carbon footprint whilst saving money

INDUSTRY BENEFITS • • •

Highlight your product/system/installation’s environmentally sustainable qualities Show your commitment to preserving the environment and to industry best practice Demonstrate your investment in the industry’s sustainable future and inspire others to do the same

THIRD-PARTY VERIFICATION All Climate Care Certified products undergo independent third-party testing and/or verification to assess and report on claims being made such as water efficiency and energy savings.

Only credible and trusted local, national and international testing and verification bodies are considered

by SPASA to ensure that claims being made on energy and water efficiency and sustainability are substantiated.

SPASA is proud to have appointed Smart Approved Watermark as their certification partner for water efficient products. www.smartwatermark.org

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SPASA AUSTRALIA - ANNUAL REPORT 2018

2018

SPASA Australia engaged an independent organisation, Business Benchmarking Solutions to undertake its inaugural national Wages and Salaries Survey for the swimming pool and spa industry.

Wages & Salary Survey

The Wages & Salary Survey will provide current salary and remuneration data and trends for industry sectors, based on a diverse range of factors: • • • •

Benchmark wages/salaries/rates against the market Design competitive remuneration packages Evidence of industry standards for pay and incentive negotiations Reduce staff turnover and profile existing positions

PROMOTION - 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, government and industry.

17,004

3 Industry Expos

Member & Consumer Enquiries

3347 Social Media Followers

SPASA AUSTRALIA - ANNUAL REPORT 2018

340,296 People reached via SPASA digital and print

PAGE 15

Suncatcher Pools - Concrete Pool over $100,000

PROMOTION - SPLASH! TRADE SHOW The SPLASH! Pool & Spa Trade Show has grown to be the biggest of its kind in the southern hemisphere. Held on 1-2 August 2018 along with three different Aquatic conferences that formed the week, it encompassed all elements of the aquatic industry from residential to commercial planning, products and services.

Building on the 2016 move to the larger, more modern facilities at the Gold Coast Convention and Exhibition Centre in Surfers Paradise, the 2018 event was even bigger, more professional and more successful than ever before.

Feedback from exhibitors and visitors following the event was overwhelmingly positive and supportive of the changes made.

The trade show featured more than 120 exhibitor stands that spilled over into three halls, overflowing into the lobby and onto the outdoor terrace, making this the largest show ever.

The show had the largest attendance ever, with total numbers coming in just shy of 3000 - an increase of 22 per cent over the 2016 numbers.

The 2018 show also included additional events such as the very well received Women in Leadership seminar sponsored by Maytronics and the high energy Young Leaders networking evening sponsored by Pool Ranger.

Those looking to mix education with a recreational challenge there was the Andrew Simons Memorial Golf Day sponsored by Lo-Chlor and the site tour of the Gold Coast Aquatic Centre.

SPASA Australia has provisioned additional floor space in 2020, to cater for expansion and for those who missed out in 2018 due to the event selling out early.

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SPASA AUSTRALIA - ANNUAL REPORT 2018

PROMOTION - NETWORKING SPASA meetings provide regular access to the latest and most relevant industry networks and information including regulatory affairs, technical standards and sustainability issues.

The specific sector network meetings provide members with regular access to Government regulators and key partners to the industry.

The Women in Leadership Seminar held at SPLASH!, sponsored by Maytronics, was an outstanding success and a precursor to the upcoming Women in Leadership Network.

The Women in Leadership Seminar brought women leaders from the industry together to look at how they can continue to strengthen their positions and empower each another.

It included presentations by Elena Gosse, CEO of AIS, Lynley Papineau, managing director of Aquatic Leisure Technologies; Roslyn Ronning, managing director of C-Change Potential; and Lee Salisbury, owner of Sapphire Wetwork Pool & Spa.

Meetings provide an excellent resource for our members to connect to other likeminded industry leaders while also accessing the latest information from key industry and government speakers.

Agendas for each round of meetings are distributed in advance ensuring members and the broader industry has every opportunity to attend.

Member companies often present and/or host at the various meetings, which provides the vehicle to showcase products, services and best practice process directly to other members.

SPASA AUSTRALIA - ANNUAL REPORT 2018

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Laguna Pools & Spas - Water Feature

REPRESENTATION 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.

Representing Industry Influencing Policy

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.

A sample of 2018 SPASA Advocacy touchpoints included: • • • • • • • • • • •

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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 State and regional Water Boards Australian Building Code Board Department(s) of Health Standards Australia

SPASA AUSTRALIA - ANNUAL REPORT 2018

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. The volunteer Directors meet regularly during the year to consider, determine and review strategies and policies.

The projection for 2020 and beyond is a progressive message, whilst respecting what has come before.

the message

A BETTER LIFE everyone deserves a pool and spa

what we deliver üüPromoting members as the first option to consumers

üüMember services that add value üüInvestment in our people, building professionals through career development

üüRepresenting and influencing policy as the major stakeholder for the industry

üüA sustainable, ethical and responsible association

SPASA AUSTRALIA - ANNUAL REPORT 2018

who we are

The Swimming Pool & Spa Association of Australia Ltd (SPASA Australia) is Australia’s Peak Swimming Pool & Spa Industry Body that innovates, educates and governs for the benefit of members and consumers, resulting in a better community.

25 25

the vision

25% growth of member businesses by 2025

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Freedom Pools Sydney - Pool of the Year

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.

The program provides 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.

We would like to thank all sponsors, entrants and judges involved in the 2018 Awards and congratulate the winners. View our gold winning members below; the full complement can be viewed on the SPASA website.

POOL OF THE YEAR

FIBREGLASS POOL BUILDER OF THE YEAR

NSW & ACT Freedom Pools Sydney Queensland Majestic Pools & Landscapes South Australia Elite Pool Constructions Victoria Aloha Pools Western Australia Blue Stone Pools National Freedom Pools Sydney

NSW & ACT South Australia National

SUPPLIER OF THE YEAR NSW & ACT Europe Imports Queensland Blue Glass Pebble Company Western Australia Austral Pool Solutions National Europe Imports

RETAILER OF THE YEAR Queensland South Australia National

Atlantis Pool Services Prospect Pool + Spa Prospect Pool + Spa

SPA OF THE YEAR NSW & ACT Queensland National

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CONCRETE POOL BUILDER OF THE YEAR NSW & ACT Queensland South Australia National

Award Pools Group Queensland Family Pools Elite Pool Constructions Award Pools Group

PRODUCT OF THE YEAR NSW & ACT Protector Aluminium Queensland Protector Aluminium South Australia Hayward Pool Products Victoria Hayward Pool Products Western Australia Supreme Heating National Supreme Heating

EDUCATION TRAINING AWARD Adept Pools Placid Pools The Concrete Pool Company

COMMERCIAL PROJECT OF THE YEAR NSW & ACT Queensland South Australia National

Capital Fibreglass Pools Rainwise Clearview Capital Fibreglass Pools

Capital Fibreglass Pools Surfside Pools Commercial Riverscape Landscaping & Pools Surfside Pools Commercial

All States & National

Clark Rubber

MARKETING CAMPAIGN OF THE YEAR NSW & ACT Wisdom Pools & Landscaping Queensland AstralPool South Australia AstralPool Western Australia Landscapes WA National Landscapes WA

SPASA AUSTRALIA - ANNUAL REPORT 2018

SUSTAINABLE PRODUCT AWARD

FIBREGLASS POOL OVER $60,000

NSW & ACT Queensland South Australia National

NSW & ACT R

M Victoria Western Australia National

Waterco Hayward Pool Products Supreme Heating Hayward Pool Products

VINYL LINED MODULAR POOL Queensland South Australia Western Australia National

Classic Pools QLD Classic Pools SA Classic Pools WA Classic Pools SA

CONCRETE POOL UP TO $50,000 NSW & ACT R Coastline Pools^

M Concept Pools Australia Queensland Queensland Family Pools South Australia Elite Pool Constructions Victoria Seaspray Pools Western Australia Busselton Spa & Pool Installations National Coastline Pools

CONCRETE POOL UP TO $100,000 NSW & ACT R Suncatcher Pools

M Freedom Pools Sydney^ Queensland Queensland Family Pools South Australia 360 Pools Victoria Laguna Pools Western Australia Boardwalk Pools National Freedom Pools Sydney

CONCRETE POOL OVER $100,000 NSW & ACT R Suncatcher Pools^ M Premier Pools Queensland Majestic Pools & Landscapes South Australia Elite Pool Constructions Victoria Aloha Pools Western Australia Quality Dolphin Pools National Aloha Pools

FIBREGLASS POOL UP TO $40,000

Capital Fibreglass Pools Local Pools & Spas^ Compass Pools Melbourne Barrier Reef Pools Perth Compass Pools Melbourne

FREEFORM POOL UP TO $50,000 Queensland & National

Queensland Family Pools

FREEFORM POOL UP TO $100,000 NSW & ACT R Queensland National

Freedom Pools & Spas Riverina^ Queensland Family Pools Queensland Family Pools

FREEFORM POOL OVER $100,000 NSW & ACT R Adept Pools^ Queensland Majestic Pools & Landscapes National Adept Pools

POOL & SPA COMBINATION – CONCRETE NSW & ACT R Valente Dolphin Pools M Premier Pools^ Queensland Majestic Pools & Landscapes South Australia Elite Pool Constructions Victoria Neptune Swimming Pools Western Australia Blue Stone Pools National Premier Pools

POOL & SPA COMBINATION – FIBREGLASS NSW & ACT R Capital Fibreglass Pools M Nepean Pools^ South Australia Australian Outdoor Living Victoria Compass Pools Melbourne Western Australia Barrier Reef Pools Perth National Nepean Pools

POOL & SPA COMBINATION – VINYL LINED Western Australia & National Poolscape Pools

NSW & ACT R Coastline Pools M Nepean Pools^ Queensland Freedom Pools South Australia Rainwise Clearview Victoria Leisure Pools Melbourne Central Western Australia Barrier Reef Pools Perth National Nepean Pools

VINYL LINED IN-GROUND POOL

FIBREGLASS POOL UP TO $60,000

NSW & ACT M Wisdom Pools & Landscaping^ Victoria Aloha Pools Western Australia Boardwalk Pools National Boardwalk Pools

NSW & ACT R M Queensland South Australia Victoria Western Australia National

Capital Fibreglass Pools^ Nepean Pools Esana Aquatics Freedom Pools SA Gordon Avenue Pools & Spas Barrier Reef Pools Perth Freedom Pools SA

SPASA AUSTRALIA - ANNUAL REPORT 2018

Queensland Victoria Western Australia National

Aqualon Interiors Albatross Swimming Pools Add a Splash Pools Add a Splash Pools

ENCLOSED / INDOOR POOL

INTERNATIONAL PROJECT NSW/ACT & National

Waterforms International^

PAGE 21

Award Pools Group - Concrete Pool Builder of the year

COURTYARD/PLUNGE POOL

COMMERCIAL POOL OVER $250,000

NSW & ACT R Polar Pools^

M Award Pools Group Queensland Queensland Family Pools South Australia Elite Pool Constructions Victoria Laguna Pools Western Australia Blue Stone Pools National Polar Pools

Queensland Surfside Pools Commercial Victoria Aloha Pools Western Australia Aquatic Developments Australia National Surfside Pools Commercial

LAP POOL – CONCRETE

RENOVATION UP TO $25,000

NSW & ACT R Freedom Pools & Spas Riverina^ M Jade Pools Queensland Majestic Pools & Landscapes South Australia Elite Pool Constructions Victoria Laguna Pools Western Australia Blue Stone Pools National Majestic Pools & Landscapes

NSW & ACT M Queensland South Australia Victoria Western Australia National

LAP POOL – FIBREGLASS

COMMERCIAL RENOVATION Western Australia & National Reflections Pool & Spa Care

Aquastone Pools & Landscapes^ Queensland Family Pools Adelaide Classic Pools 37 South Pools Reflections Pool & Spa Care Reflections Pool & Spa Care

RENOVATION OVER $25,000

Western Australia & National Poolscape Pools

NSW & ACT R Adept Pools

M Wisdom Pools & Landscaping^ Queensland Jagun Pools + Landscapes South Australia Elite Pool Constructions Victoria Icon Pools Western Australia Graziani Pools National Wisdom Pools & Landscaping

PORTABLE SPA

DISPLAY POOL CENTRE

Victoria Compass Pools Melbourne Western Australia Sapphire Pools National Sapphire Pools

LAP POOL – VINYL LINED

Victoria Western Australia National

Leisurescape Pools & Spas Spa World Osborne Park Spa World Osborne Park

IN-GROUND SPA NSW & ACT R Adept Pools^ M Jade Pools Queensland Placid Pools Victoria Baden Pools Western Australia The Concrete Pool Company National The Concrete Pool Company

SWIM SPA Western Australia & National Just Spas WA

CONCRETE COMMERCIAL POOL UP TO $250,000 Victoria Aloha Pools Western Australia The Concrete Pool Company National The Concrete Pool Company

FIBREGLASS COMMERCIAL POOL UP TO $250,000 South Australia & National

Riverscape Landscaping & Pools

VINYL LINED COMMERCIAL POOL UP TO $250,000 Western Australia & National Reflections Pool & Spa Care

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NSW & ACT R Capital Fibreglass Pools^ M Nepean Pools Queensland Esana Aquatics Victoria Mbuild Master Pools Western Australia WA Fibreglass Pools & Landscapes WA National WA Fibreglass Pools & Landscapes WA

POOL LANDSCAPE DESIGN NSW & ACT R Freedom Pools & Spas Riverina^

M Aquastone Pools & Landscapes Queensland Majestic Pools & Landscapes South Australia Riverscape Landscaping & Pools Victoria C.O.S Design Western Australia Mondo Landscapes National C.O.S Design

INNOVATIVE POOL AND SPA NSW & ACT M Sunrise Pools^ Queensland Majestic Pools & Landscapes South Australia Elite Pool Constructions Victoria Laguna Pools Western Australia Sapphire Pools National Laguna Pools

SPASA AUSTRALIA - ANNUAL REPORT 2018

Capital Fibreglass Pools - Fibreglass Pool Builder of the year

WATER FEATURE

POOL SALES REPRESENTATIVE AWARD

NSW & ACT R Freedom Pools & Spas Riverina

M Concept Pools Australia^ Queensland Norfolk Pools Victoria Laguna Pools Western Australia Aquatic Developments Australia National Aquatic Developments Australia

Queensland South Australia National

LIGHTING FEATURE NSW & ACT R

M Queensland National

Freedom Pools & Spas Riverina^ Aquastone Pools & Landscapes Majestic Pools & Landscapes Majestic Pools & Landscapes

Chris Nicholls - Queensland Family Pools Ross Starkey - Rainwise Clearview Chris Nicholls - Queensland Family Pools

SUPPLIER SALESPERSON AWARD NSW & ACT Queensland Western Australia National

Chris Smith - International Quadratics Michael Kettewell - Blue Glass Pebble Co. Justin Hitchcock - Austral Pool Solutions Chris Smith - International Quadratics

RISING STAR AWARD Western Australia & National Tom Baker - Pool Spa Wembley

SUSTAINABLE PROJECT AWARD

CONSTRUCTION TRADESPERSON AWARD

NSW & ACT Queensland Western Australia National

Queensland South Australia National

Freedom Pools & Spas Riverina Majestic Pools & Landscapes Reflections Pool & Spa Care Majestic Pools & Landscapes

Daniel Gibbs - Jagun Pools + Landscapes Garry Etherington - Rainwise Clearview Daniel Gibbs - Jagun Pools + Landscapes

BEST POOL STORE Queensland South Australia Victoria (AU) Victoria National

Atlantis Pool Services Prospect Pool + Spa Poolwerx Shepparton The Poolstore Bayside Prospect Pool + Spa

WITH THANKS to our Judges

BEST SPA RETAILER Victoria Spa World Western Australia Just Spas WA National Spa World

MOBILE SERVICE BUSINESS OF THE YEAR NSW & ACT Queensland Victoria Western Australia National

Pristine Pool & Spa Service Aqualon Interiors Flowtec Leak Detection Service Pool Assist & Pooltime Pristine Pool & Spa Service

BEST POOL & SPA BARRIER INSPECTOR Queensland & National

Rodney Webb - AWEBBCO

RETAIL SERVICE TECHNICIAN AWARD Queensland South Australia Western Australia National

Kylie Rojahn - Atlantis Pool Service Karl Piteo - Advanced Pools Cassy Rogers - Poolwerx Fremantle Kylie Rojahn - Atlantis Pool Service

IN-FIELD SERVICE TECHNICIAN AWARD NSW & ACT Queensland South Australia Western Australia National

Adam Camilleri - Pristine Pool & Spa Service Andrew Patterson - Bluewater Pool Care Todd Jones - Prospect Pool + Spa Daniel Gianetti - Poolwerx Balcatta Andrew Patterson - Bluewater Pool Care

SPASA AUSTRALIA - ANNUAL REPORT 2018

^ 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 2018 awards post the resignation of SPASA Victoria.

PAGE 23

Placid Pools - Spa of the Year

2018 SPONSORS & PARTNERS PLATINUM Sponsor

SILVER Sponsor

The regional and national awards, Choosing Your Pool & Spa magazine and ongoing annual promotions through digital marketing and consumer shows are all made possible by the valuable contribution of our sponsors and partners.

These companies dedicate a significant investment towards marketing to future pool and spa owners. SPASA encourages all industry participants to support the brands that are a part of the growth of our community of professionals.

INDUSTRY Sponsors and Partners

PAGE 24

SPASA AUSTRALIA - ANNUAL REPORT 2018

AUDITED FINANCIAL REPORT

Swimming Pool & Spa Association of Australia Ltd ABN 74 150 541 816 Financial Report - 31 December 2018

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 25

Swimming Pool & Spa Association of Australia Ltd Directors' report 31 December 2018 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 2018.

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 until May 28th 2018) Robert Kruber (Deputy Chair until 28th May 2018, Chairman from May 28th 2018) Andrew Jakovac (Deputy Chair from 23rd July 2018) Robert Guthrie (resigned 28/05/2018) John O’Brien (resigned 28/05/2018) Trent Moran (resigned 28/05/2018) Adam Jaworski (Chairman Finance audit and compliance committee) Garth Jackson (Appointed 28/05/2018) John Daniel (Appointed 28/05/2018) Neil Davey (Appointed 28/05/2018) Stefan Ossenberg (Appointed 28/05/2018) Troy Cartwright (Appointed 28/05/2018) Elena Gosse (Appointed 06/06/2018) 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 Meetings of directors There were 11 monthly board meetings held during the year.

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 $774, 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.

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

___________________________ Robert Kruber Chairman 2 May 2019

1

PAGE 26

SPASA AUSTRALIA - ANNUAL REPORT 2018

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2018 As lead auditor for the audit of Swimming Pool & Spa Association of Australia Ltd and its controlled entities for the year ended 31 December 2018, 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 and its controlled entities.

LOREN DATT Registered Company Auditor Registration: 339204 Dated: 10 May 2019

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 27

Swimming Pool & Spa Association of Australia Ltd Contents 31 December 2018 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

4 5 6 7 8 19 20

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 2 May 2019. The directors have the power to amend and reissue the financial statements.

3

PAGE 28

SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Statement of profit or loss and other comprehensive income For the period ended 31 December 2018

Note Revenue

3

Consolidated Twelve months Six months ended 31 ended 31 December December 2018 2017 $ $ 3,951,051

1,078,923

42,102

14,629

(280,295) (1,080,488) (1,040,641) (18,000) (380) (309,856) (724,912) (70,230)

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

468,351

(253,969)

-

-

468,351

(253,969)

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

468,351

(233,969)

Interest revenue calculated using the effective interest method Expenses Corporate and administration expenses Event expenses Employee benefits expense Occupancy expenses Depreciation and amortisation expense Marketing expenses Other expenses Finance costs Surplus/(deficit) before income tax expense 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 4

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 29

Swimming Pool & Spa Association of Australia Ltd Statement of financial position As at 31 December 2018 Note

Consolidated 2018 2017 $ $

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

4 5 6 7

3,183,320 586,258 165,635 3,935,213

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

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

8 9

770,000 1,400,000 2,170,000

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

6,105,213

7,452,841

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

10 11 12 13 14

288,763 95,788 250,000 989,787 1,624,338

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

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

15 16 17

13,326 200,000 213,326

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

Total liabilities

1,837,664

3,653,643

Net assets

4,267,549

3,799,198

162,457 4,105,092

162,457 3,636,741

4,267,549

3,799,198

Equity Reserves Retained surpluses

18

Total equity

The above statement of financial position should be read in conjunction with the accompanying notes 5

PAGE 30

SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Statement of changes in equity For the period ended 31 December 2018 Retained profits $

Reserves $

Consolidated Balance at 1 July 2017

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

Retained profits $

Reserves $

Consolidated Balance at 1 July 2018

Total equity $

162,457

3,636,741

3,799,198

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

-

468,351 -

468,351 -

Total comprehensive income for the period

-

468,351

468,351

162,457

4,105,092

4,267,549

Balance at 31 December 2018

The above statement of changes in equity should be read in conjunction with the accompanying notes 6

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 31

Swimming Pool & Spa Association of Australia Ltd Statement of cash flows For the period ended 31 December 2018

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

Consolidated Twelve months Six months ended 31 ended 31 December December 2018 2017 $ $ 3,970,609 (3,809,766)

1,622,702 (1,345,169)

160,843 42,012 (70,230)

277,533 6,903 (20,065)

132,625

264,371

Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles

(250,000)

2,612 (700,000)

Net cash used in investing activities

(250,000)

(697,388)

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings

(703,696)

700,000 (1,040)

Net cash from/(used in) financing activities

(703,696)

698,960

(821,071) 4,004,391

265,943 3,738,448

3,183,320

4,004,391

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

21

Net increase/(decrease) 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 7

PAGE 32

SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 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 During the prior period the Company changed the financial year end from 30 June to 31 December. This comparative information covers the six month period from 1 July 2017 to 31 December 2017.

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 financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, 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 2018 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 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.

8

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 33

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 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 The consolidated entity recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.

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 tax exempt institution in terms of subsection 50-10 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.

9

PAGE 34

SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 1. Significant accounting policies (continued) 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.

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 allowance for expected credit losses. 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 allowance for expected credit losses.

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.

10

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 35

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 1. Significant accounting policies (continued) 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.

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 non-financial 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.

11

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SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 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.

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.

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 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 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.

12

SPASA AUSTRALIA - ANNUAL REPORT 2018

PAGE 37

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 1. Significant accounting policies (continued) 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 2018. 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 Twelve months Six months ended 31 ended 31 December December 2018 2017 $ $ Sales revenue Professional fees Membership fees Event income Other revenue Other revenue Revenue

1,508,949 914,069 1,510,584 3,933,602

642,927 433,597 1,076,524

17,449

2,399

3,951,051

1,078,923

13

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SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 4. Current assets - cash and cash equivalents Consolidated 2018 2017 $ $ Cash on hand Cash at bank Cash on deposit

100 2,022,989 1,160,231

100 2,049,291 1,955,000

3,183,320

4,004,391

Note 5. Current assets - trade and other receivables Consolidated 2018 2017 $ $ Trade receivables Other receivables BAS receivable

555,740 2,570 27,948

1,043,844 24,832 32,164

586,258

1,100,840

Note 6. Current assets - inventories Consolidated 2018 2017 $ $ Stock on hand - at cost

-

5,068

Note 7. Current assets - other Consolidated 2018 2017 $ $ Prepayments

165,635

167,555

Note 8. Non-current assets - property, plant and equipment Consolidated 2018 2017 $ $ Land and buildings - at independent valuation Plant and equipment - at cost Less: Accumulated depreciation

770,000

770,000

1,999 (1,999) -

42,348 (37,361) 4,987

770,000

774,987

14

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 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. 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.

Note 9. Non-current assets - intangibles Consolidated 2018 2017 $ $ Goodwill - at cost

1,400,000

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 was $1,400,000 with $700,000 been paid up front and the remaining $700,000 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 2018 2017 $ $ Trade payables BAS payable Other payables

71,505 123,134 94,124

27,776 176,404 81,824

288,763

286,004

Note 11. Current liabilities - borrowings Consolidated 2018 2017 $ $ Bank loans Property loan

-

52,945 3,696

-

56,641

Note 12. Current liabilities - employee benefits Consolidated 2018 2017 $ $ Employee benefits

95,788

127,699

15

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SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 13. Current liabilities - provisions Consolidated 2018 2017 $ $ Deferred consideration

250,000

250,000

The purchase price was $1,400,000 with $700,000 been paid up front and the remaining $700,000 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.

The purchase price was $1,400,000 with $700,000 been paid up front and the remaining $700,000 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 2018 2017 $ $ Deferred revenue

989,787

1,813,315

Note 15. Non-current liabilities - borrowings Consolidated 2018 2017 $ $ Bank loans

-

647,055

Total secured liabilities The total secured liabilities (current and non-current) are as follows: Consolidated 2018 2017 $ $ Bank loans

-

700,000

Financing arrangements Unrestricted access was available at the reporting date to the following lines of credit: Consolidated 2018 2017 $ $ Total facilities Bank loans Used at the reporting date Bank loans Unused at the reporting date Bank loans

750,000

750,000

-

700,000

750,000

50,000

16

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Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 16. Non-current liabilities - employee benefits Consolidated 2018 2017 $ $ Employee benefits

13,326

22,929

Note 17. Non-current liabilities - provisions Consolidated 2018 2017 $ $ Deferred consideration

200,000

450,000

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 was $1,400,000 with $700,000 been paid up front and the remaining $700,000 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 2018 2017 $ $ Revaluation surplus reserve SPRAA contribution reserve

20,000 142,457

20,000 142,457

162,457

162,457

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 2018 $

Parent

2017 $

Surplus/(deficit) after income tax

462,545

(169,930)

Total comprehensive income

462,545

(169,930)

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SPASA AUSTRALIA - ANNUAL REPORT 2018

Swimming Pool & Spa Association of Australia Ltd Notes to the financial statements 31 December 2018 Note 19. Parent entity information (continued) Statement of financial position 2018 $

Parent

2017 $

Total current assets

2,873,676

4,086,522

Total assets

4,273,676

5,486,902

Total current liabilities

1,515,990

2,457,020

Total liabilities

2,098,804

3,774,579

Equity SPRAA contribution reserve Retained surpluses

142,457 2,032,414

142,457 1,569,866

Total equity

2,174,871

1,712,323

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 2018 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.

Note 21. Reconciliation of surplus/(deficit) after income tax to net cash from operating activities Consolidated Twelve months Six months ended 31 ended 31 December December 2018 2017 $ $ Surplus/(deficit) after income tax expense for the period Adjustments for: Depreciation and amortisation Net loss on disposal of property, plant and equipment Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Decrease in inventories Decrease/(increase) in other operating assets Increase/(decrease) in trade and other payables Increase/(decrease) in employee benefits Increase/(decrease) in other operating liabilities Net cash from operating activities

468,351

(253,969)

380 4,607

190 -

514,582 5,068 1,920 (4,276) (41,514) (816,493)

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

132,625

264,371

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Swimming Pool & Spa Association of Australia Ltd Directors' declaration 31 December 2018 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 2018 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

___________________________ Robert Kruber Chairman 2 May 2019

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SPASA AUSTRALIA - ANNUAL REPORT 2018

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SWIMMING POOL & SPA ASSOCIATION OF AUSTRALIA LTD Opinion We have audited the financial report, being special purpose financial report of Swimming Pool & Spa Association of Australia Ltd (the Company), which comprises the consolidated statement of financial position as at 31 December 2018, 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 2018 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.

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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 2019

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SPASA AUSTRALIA - ANNUAL REPORT 2018

30 Kensington Road Rose Park SA 5067 1300 021 482 members@spasa.com.au www.spasa.com.au ABN: 74 150 541 816