Townsville Enterprise Annual Report 2022-2023

2022-2023 ANNUAL REPORT

BUILDING THE REGION IS EVERYONE’S BUSINESS As a member of Townsville Enterprise, your business will be supported by strategic activities that attract investment, create jobs, drive visitation and improve liveability in the Townsville North Queensland region.

TOWNSVILLE

BURDEKIN

CHARTERS TOWERS

HINCHINBROOK

PALM ISLAND

Townsville Enterprise is only as strong as our members and with your support we can continue to secure the future for Townsville North Queensland.

JOIN WITH US AT TOWNSVILLEENTERPRISE.COM.AU

CONTENTS 4 ABOUT TOWNSVILLE ENTERPRISE 7 CHAIR & CEO MESSAGE 10 YEAR IN SUMMARY 12 22|23 BOARD OF DIRECTORS 13 22|23 COMMITTEES 14 INDUSTRY SNAPSHOT 19 ADVOCACY 22 MEMBERSHIP & EVENTS 24 TOURISM DEVELOPMENT 26 DESTINATION MARKETING 32 VISITOR SERVICES 34 REGIONAL DEVELOPMENT & INVESTMENT 37 NORTH QUEENSLAND HYDROGEN CONSORTIUM 38 CONVENTION BUREAU 40 MEMBERSHIP 43 FINANCIAL REPORT Townsville Enterprise pays its deepest respects to Aboriginal and Torres Strait Islander Peoples as the traditional custodians of the land in Australia, and recognise their continuing connection to land, water and culture.

We pay our respect to Elders past, present and emerging.

We acknowledge the stories, traditions and living cultures of Aboriginal and Torres Strait Islander peoples and commit to fostering a culture of learning and working with First Nations peoples in the spirit of reconciliation and access to justice.

ABOUT TOWNSVILLE ENTERPRISE Townsville Enterprise is a not-for-profit, non-partisan, membership-based organisation that represents the local government areas of Townsville, Magnetic Island, Hinchinbrook, Burdekin, Charters Towers and Palm Island.

For over 30 years, Townsville Enterprise has played a critical role in leading the economic progress for the Townsville North Queensland region. As the peak economic development and destination management body, Townsville Enterprise has the remit of securing the future of North Queensland. This is achieved through strong political advocacy, attracting major investment, promoting the region as a place to visit, invest and live, supporting our members and enhancing our destination through product and experience development.

JOIN US AS A MEMBER TODAY AND HELP SECURE THE FUTURE OF TOWNSVILLE NORTH QUEENSLAND.

Hinchinbrook. Photo by mycolourfulworld

Townsville Enterprise Annual Report 2022 - 2023

OUR VISION To be the most influential and respected Advocacy and economic development body in Australia.

OUR PURPOSE Securing the Future of Townsville North Queensland

OUR VALUES EXCELLENCE Accept nothing less than quality in everything we do PARTNERSHIPS Work together, inspire each other and use external membership relationships to achieve strategic priorities NON-PARTISAN Strive for what is best for the region – independent for politics. Be transparent, informative and data led CREATIVE Be innovative and imaginative in creating an exciting and vibrant future

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Claudia Brumme-Smith Chief Executive Officer

Kevin Gill Chairman

CHAIR & CEO MESSAGE The Townsville North Queensland region has seen one of the strongest and most robust periods of economic growth. Last year, the Townsville North Queensland region saw one of the strongest periods of growth in many years. More than $13.6 billion worth of projects were committed to our region and the economic activity in North Queensland has resulted in the lowest unemployment in the state of Queensland for 12 consecutive months.

Our region is forecast to grow by approximately 50,000 new jobs in the next decade. Townsville North Queensland is on the cusp of significant economic prosperity that will further cement its position as the Capital of Northern Australia.

North and Northwest Queensland is linked to the low carbon economy focus of both the public and private sector like nowhere else in the country. There has never been a more opportune time for our industry to drive the green credentials of our nation through world class wind and solar resources, our richness in critical minerals, excellent logistics connections and smart determined people.

Townsville North Queensland can enjoy lengthy economic prosperity bringing new critical mineral refining to Australia, adding to our expertise as a base metals refining hub.

We knew that the key enabling infrastructure to achieve this nation leading vision for Australia was CopperString. The 7th of March 2023 will be written in our North Queensland history books, after 10 years of fierce advocacy, the Premier of Queensland announced $5 billion to fund the largest transmission project in the country at a Townsville Enterprise Green Energy event.

Australia’s most significant transmission infrastructure project will not only secure 20,000 existing jobs, but it will also unlock $740 billion worth of untapped known minerals in the region, and unleash 33GW of green energy potential along the Northwest corridor.

Townsville Enterprise acknowledges the Queensland Government’s commitment to this nation building project that will not only deliver economic output, but it will also support the nation in transitioning toward a net-zero future, of which Townsville North Queensland is front and centre.

We thank the Palaszczuk government for its commitment to our region.

It’s the single largest government investment we have ever welcomed and its Townsville Enterprise’s biggest advocacy win to date.

Townsville Enterprise continues to be at the forefront of the region's development alongside our members and regional leaders in securing the future for Townsville North Queensland.

It is now, because of Copperstring, we have already welcomed private sector investment decisions such as Australia’s first Vanadium Processing facility. In June, Vecco successfully launched its first $26 million Vanadium electrolyser facility in Townsville. This cutting-edge establishment has not only catalysed economic development in the region but has also created employment opportunities for 21 individuals. Vecco is set to produce enough electrolytes for 175 megawatt hours, growing to 350 megawatt hours of storage annually and has plans to increase the capacity of the existing plant 10 times in the future. Further to this, because of CopperString we are seeing many proposed projects moving into the next phase of development such as Solquartz, Queensland Pacific Metals, Edify and others.

With the reopening of international borders, Townsville Enterprise participated in the region’s first international investment delegation since COVID-19. Along with the Premier, our Resources Minister and Member for Townsville, Scott Stewart and the Mayor of Townsville, Jenny Hill, Townsville Enterprise visited South Korea and Japan, meeting with a series of Government officials and private investors. This delegation centred on the North and North West’s renewable energy capability, particularly green hydrogen.

It was welcome news to see General Motors (GM) announce their investment of $110M in Townsville Enterprise member Queensland Pacific Metals (QPM’s) Townsville Energy and Chemical

Hub (TECH) Project. This offtake agreement and major equity investment was reached to ensure that GM will have a secure supply of nickel and cobalt sulphate for its electric vehicles. GM’s investment in the project is in addition to existing investments made by Korean conglomerates, LG and POSCO. The positive outlook to the future for our regional economy is strongly aligned to Townsville Enterprise’s advocacy campaigning. As always, Townsville Enterprise, in partnership with the Mayors of the North Queensland Regional Councils, undertook State and Federal delegations to put a strong case forward for our region. These delegations were an opportunity to share the message of the region’s economic significance and its potential, and importantly highlighted the projects and policies that North Queensland needs to unlock this potential.

In the recent State budget in May, we saw $900 million committed to our region, the largest infrastructure commitment we have ever seen for North Queensland in any one year. In addition, the Burdekin Shire Council secured an investment of $8 million to build a 4.5-hectare RegenAqua Macroalgal Bioremediation facility in the Burdekin. This transformational technology will drive sustainable growth of agriculture and aquaculture while reducing existing levels of nitrogen and phosphorus being discharged into rivers and the Great Barrier Reef.

Federally, a $1.2 billion defence announcement involving the relocation of the Armoured Combat Brigade from Adelaide as well as the location and establishment of the new Apache Attack helicopters to Townsville North Queensland was confirmed. This was a welcome announcement off the back of the joint Townsville City Council and Townsville Enterprise’s Defence submission. We worked closely with the Defence experts in our region to present a united approach

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and we were pleased to see that almost all recommendations made in our submission were supported.

Unfortunately, however, the region didn’t secure all our infrastructure advocacy priorities. Despite a previous Federal Government commitment to construct the Hells Gate Dam, in the October 2023 Federal Budget, the Albanese Government did not maintain the $5 billion in funding. That was bitterly disappointing, but we have no intention of giving up because it is never the wrong time to fight for the right thing. We know that water security will be a key advantage for our region and we need governments to take a long-term strategic view on water storage for a region that will grow significantly not only in population but also major industries.

From a tourism perspective the 2022/2023 Financial Year was the biggest year in our history books with over $1 billion in overnight visitor expenditure in this important sector.

It also marked the beginning of the region’s new destination brand, an 18 month project which is firmly cementing Townsville North Queensland in the minds of prospective travellers.

The new brand, Townsville North Queensland – Up for unexpected launched in February 2023 and in the first few months since launch saw an increase in awareness by 166% and more than 70% of audiences who were exposed to the campaign materials took action towards booking a holiday.

Almost 10,000 visitors were brought to the region as a direct result of

marketing and campaign activity, contributing $9.6M in visitor spend and $17.6M in economic benefit. The region was also successful in securing significant national media exposure across publications including print, television, billboards, digital, social media and bus wraps targeting our key audiences from Brisbane, Sydney, Melbourne and our drive market.

This year also saw the launch of The Magnetic Island Tourism Masterplan, a blueprint for sustainable tourism growth on Magnetic Island and the first of its kind. The Masterplan identified 26 initiatives to support the Island’s vision and is designed to be a living document monitored and delivered through the Magnetic Island Tourism Masterplan Steering Committee.

Tourism industry development remained a key priority for Townsville Enterprise. Across the year a series of capacity building, mentoring programs and training services were provided to the tourism industry. Notably, a new self-paced tourism development toolkit was launched providing new or potential tourism experiences with the tools, templates and resources needed to commence a new tourism operation. Resources cover topics including business basics, marketing, experience development and trade distribution. With the reopening of international borders and the recovery of the tourism industry post COVID-19, Townsville Enterprise along with several operators from the region attended key trade events including ATEC Meeting Place and the Australian Tourism Exchange, meeting more than 100 key international and domestic wholesalers and trade partners to promote the region and our tourism experiences.

A trade mentoring program funded through Tourism and Events Queensland and delivered by Townsville Enterprise helped to increase trade presence and internationally ready product for the region and will continue to be a priority moving forward.

This financial year we experienced substantial membership growth with an additional 63 new members. This reflects a growing interest and support from businesses towards growing the regional economy. Townsville Enterprise also undertook community sentiment surveying to understand the communities awareness and perception of performance for the organisation.

Townsville Roadshow TIQ Event 2023. Photo by Andrew Rankin

Townsville Enterprise Annual Report 2022 - 2023

The results saw that 62% of respondents believed that Townsville Enterprise is either effective or very effective in pursuing their vision to secure the future of Townsville North Queensland.

Moving into the new financial year, Townsville Enterprise remains strong on advocating and promoting North Queensland to secure our region’s future. We would like to thank our principal partner Townsville City Council, our North Queensland regional councils, our platinum partners Townsville Bulletin, Bravus Mining and Resources, Paradise Outdoor Advertising, Southern Cross Austereo, key stakeholders Tourism and Events Queensland and all our members for their support. A year that truly saw us breaking records.

Brisbane delegation 2023

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YEAR IN SUMMARY

Brand uplift results Destination awareness up by 166%

Across the Financial Year government commitments were made across 10 projects equating to an estimated

$6.5 BN

in advocacy wins for North Queensland

24.5%

growth in members Launched Opportunity North Queensland (OTNQ) Hosted over

1,750

people at our events

Those who saw marketing assets, 70% took action toward booking a holiday Improved by 25% in top-of-mind destinations for North Queensland 33% increase in consideration of Townsville North Queensland as a holiday destination

Destination Campaign Results Impressions

34,393,130

Clicks

171,694

Approx. 10,000

visitors were brought to the region as a direct result of marketing and campaign activity, contributing

$9.6M $17.6M in visitor spend and

in economic benefit

Townsville Enterprise mentions in the news reached

OVER 18.1M PEOPLE Townsville Enterprise Annual Report 2022 - 2023

Destination Media Coverage Total media reach

4.7M (+14 syndications across print)

Sentiment

Average engagement rate

100% 17.8%

(industry average of 2-3%)

Community sentiment survey results about Townsville Enterprises effectiveness

56%

of respondents are aware of Townsville Enterprise. Of those..

62%

feel Townsville Enterprise is effective in their vision to secure the future of Townsville North Queensland

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22|23 BOARD OF DIRECTORS

CHAIR

Kevin Gill

DIRECTOR

DEPUTY CHAIR

Prof Simon Biggs

Cr Jenny Hill

Vice Chancellor and President

Mayor Townsville City Council

James Cook University

DIRECTOR

DIRECTOR

Joe Carey

DIRECTOR

Ranee Crosby

Kathy Danaher

Director Carey Accountants Pty Ltd

Chief Executive Officer Port of Townsville Limited

Vice Chairwoman/Director/ Company Secretary/Public Officer Ark Energy Corporation

DIRECTOR

DIRECTOR

Jamie Fitzpatrick

Michael Jones

Managing Director FGH Group

Chief Executive Officer The Ville Resort–Casino

Townsville Enterprise Annual Report 2022 - 2023

DIRECTOR

Moya Steele Director/Principal Keir Steele Waldon Lawyers Pty Ltd

DIRECTOR

Peter Wheeler Managing Director Colliers Townsville

22|23 COMMITTEES Finance Audit & Risk

Economic Development Strategic Advisory

Tourism & Events Strategic Advisory

Kathy Danaher, Chair Ark Energy Corporation

Ranee Crosby, Chair Port of Townsville Limited

Michael Jones, Chair The Ville Resort-Casino

Shawn Anderson Queensland Country Bank

Mark Bogiatzis Great Northern Laundry

Jaqueline Bohn Townsville City Council

Peter Duffy wilson/ryan/grose lawyers

Jaqueline Bohn Townsville City Council

Nyree Bolton Townsville City Council

Luke Guazzo Northern Australia Primary Health Ltd

Nyree Bolton Townsville City Council

Cr Mary Brown Hinchinbrook Shire Council

Kevin Gill, Chair Townsville Enterprise Limited

Cr Mary Brown Hinchinbrook Shire Council

Amanda Byrne Queensland Airports Ltd

Observers:

Brendan Cook Townsville Airport Limited

Mark Evans Paronella Park

Stuart Cunningham Core Developments NQ

Jacqui James-Eggins North Queensland Toyota Cowboys

Colin Lea Carey Accountants Pty Ltd

Associate Professor Laurie Murphy James Cook University

Paul Taylor Glencore

Claudia Brumme-Smith Townsville Enterprise Limited

Carl Valentine PVW Partners

Lisa Woolfe Townsville Enterprise Limited

Claudia Brumme-Smith Townsville Enterprise Limited

Simone Sullivan Townsville Enterprise Limited

Tracey Holmes Townsville Enterprise Limited

Observers:

Claudia Brumme-Smith Townsville Enterprise Limited Tracey Holmes Townsville Enterprise Limited

Membership Committee Jamie Fitzpatrick FGH Group Peter Wheeler Colliers Townsville

Observers: Claudia Brumme-Smith Townsville Enterprise Tracey Holmes Townsville Enterprise Karen Davis Townsville Enterprise

Jasmine Gooda Townsville Enterprise Limited Jane Meredith Townsville Enterprise Limited Wayde Chiesa Regional Development Australia

Kevin Gill Townsville Enterprise Limited Chair Jamie Fitzpatrick FGH Group Michael Kern Townsville Chamber of Commerce

Observers: Marie-Claude Brown NQROC Michael Kern Townsville Chamber of Commerce James Doyle Department of State Development, Infrastructure, Local Government, Planning Maria James MITEZ

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KEY INDUSTRY SNAPSHOT North Queensland continues to prosper, with major projects in the region approaching completion as well as significant private and public investments into new and traditional sectors. A $62 billion pipeline linked to renewables, green manufacturing, critical minerals and defence, will continue to drive our economy.

Health As the largest employing industry supporting more than 11,500 local jobs, Townsville North Queensland’s health sector is a key pillar for the local economy. It is forecasted that by 2025-26 the healthcare industry will have the highest level of employment growth as the demand for healthcare access continues to increase as regional population grows.

A contract has been awarded for the $530 million expansion at the Townsville University Hospital, providing an additional 143 beds, with an eight-story clinical service building and a new integrated helipad. The Mater Townsville Hospital continues with their 10-year Masterplan to help address the healthcare needs of the community.

Construction is underway on the $29 million maternity and renal redevelopment project which is expected to be completed in 2025.

Tourism Townsville North Queensland’s visitor economy continues to work towards recovery post the 2020 COVID-19 downturn. Data from Tourism Research Australia (TRA) reveals that domestic regional expenditure reached a record high of $1.1 billion year on year March 2023. Whilst total visitation numbers remain below prepandemic levels, there has been an increase in average length of stay from 3.8 to 4.1 nights demonstrating a post COVID recovery of total visitor nights. The region’s visitor type has seen a larger share of holiday travelers, whereas visiting friends and family share has reduced. Accommodation occupancy has increased 3% in the past year to an average of 67.5% aligning with the increase in visitor nights. Townsville Airport saw record passenger numbers in the last quarter of the financial year, with increased capacity from interstate markets and the four new Bonza routes launched.

Townsville Enterprise Annual Report 2022 - 2023

Defence Townsville North Queensland’s largest value adding industry, Defence, contributes more than $1.9 billion to the Gross Regional Product (GRP). Earlier this year Townsville Enterprise provided a submission to the Defence Strategic Review with all major recommendations made in the submission accounted for in the Defence Strategic Review 2023 findings.

The Australian Government has committed $700 million for the renovation of the RAAF Base Townsville to become the future hub for the 29 AH-64 Apaches expected to arrive from 2025. $1.2 billion has been committed to upgrading including Lavarack Barracks and other Northern Australia bases.

Agriculture The agricultural industry has significantly picked up in FY23 with a 46.2% increase in food and live animal exports year-on-year, attributed to increase in cattle exports and stronger sugar prices and production.

Sugar prices increased by 14.4% to the highest level in over 10 years, which supported the 25% increase in the value of sugar exports out of North Queensland. The Port of Townsville is Queensland’s largest livestock exporter and in the FY23 accounted for 18% of Australia’s total live cattle exports. Live cattle exports have nearly doubled in the past year, however, remains below the five-year average. The industry faces labour challenges as well as experiencing large declines in Vietnam imports. It is forecast that exports will continue to rise in the next few years as demand overseas rises as supply increases.

Mining & Manufacturing The announcement that the Queensland Government will construct and operate the CopperString project was pivotal for North Queensland’s mining and resources sector. This project will connect the North West Minerals Province to affordable, renewable energy, opening up one of the world’s richest deposits and unlocking more than $740 billion in critical minerals. This project will also enable major solar and wind projects in the North West region, allowing North Queensland to become a green industrial mining and processing hub. The Queensland Government has also committed $75 million for Australia’s first critical minerals demonstration facility at the Cleveland Bay Industrial Park. The facility will allow prospective miners to produce mineral samples at scale, promoting the development of mining projects. Townsville Enterprise member, Vecco Group also announced plans to establish Australia’s first vanadium electrolyte manufacturing facility with production set to be used in grid-scale vanadium flow battery projects. QPM’s Townsville Energy Chemicals Hub (TECH) project has also advanced well over FY2023, receiving all major government approvals in December 2022. The $2.1 billion project also saw General Motors (GM) acquire an equity stake in the project to secure offtake of nickel and cobalt for electric vehicle production in the US. 15

Energy The CopperString project will connect the nation’s largest renewable energy zone to the national electricity market, playing an important role in achieving Queensland’s renewable energy goals. Townsville North Queensland currently has 472MW operational large scale solar projects, with a further 7.3GW of proposed projects under development. The North West region has some of Australia’s best wind and solar resources. The North-West Queensland energy hub can provide up to 35GW of renewable energy.

The North Queensland Super Hub project is being developed through Fortescue Future Industries (FFI) which will see the Flinders Shire region provide up to 10 GW of renewable energy. The $10B investment will see two proposed wind projects, an 800MW Prairie Wind Farm and the 1GW Wongalee projects. The delivery of CopperString will see the renewable energy generated through these projects feed back into the grid, and will play an important role in decarbonising the North Queensland economy.

Education The education and training industry is the third largest employment sector supporting more than 11,000 jobs locally. The first half of 2023 has seen considerable recovery of international student commencements, up 68% from the same time last year. Construction has begun on the $17.2 million expansion of TAFE Queensland’s Bohle campus. The development of the hydrogen and renewable energy training facility and an advanced manufacturing skills lab will offer more than 20 new qualifications in these industries. Staff shortages in the health sector resulted in Townsville Enterprise advocating for an expansion of medical placements to increase the number of students that the region is producing. The May Federal Budget also confirmed an investment of $4.2million for James Cook University medical placements, as well as 300,000 placements through TAFE.

SCAN ME!

Townsville Enterprise Annual Report 2022 - 2023

Townsville. Photo by Roslyn Budd - Budd Photography

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Townsville Enterprise Annual Report 2022 - 2023

ADVOCACY The Unlock the North Advocacy platform remained front and centre of Townsville Enterprise’s advocacy campaign to State and Federal Government. Projects across the areas of Defence, affordable green energy, water, workforce and affordable housing, health, tourism, and liveablility, featured across delegations held in Brisbane and Canberra, with more than 30 meetings secured with Ministers and Advisors across all key portfolios.

Across the Financial Year more commitments were made across 10 projects equating to an estimated

$6.5 billion in investment for North Queensland. Unfortunately, in the October 2023 Federal Budget, the Albanese Government did not maintain the $5 billion in funding for Hells Gates Dam. Water security remains a top priority for the organisation.

The 2022/23 Financial Year will always be the year that Townsville Enterprise and the leaders of North and North West Queensland secured $5 billion to build CopperString. Marking the end of a 10-year advocacy journey for the organisation. The announcement was made by Premier Annastacia

Palaszczuk on 7 March 2023 at a Townsville Enterprise event with more than 300 business leaders and government representatives present. The critical importance of CopperString to Townsville and the entire North West corridor cannot be understated. Now that CopperString is secured, Townsville Enterprise’s advocacy continues.

The region needs more water, we need more housing, and we need more people to deliver this enabling project and unlock the region’s superpower, not only for the benefit of the state but for the country.

22|23 Highlights DELEGATIONS Across the 2022/23 Financial Year, Townsville Enterprise undertook government budget submission delegations to both Brisbane and Canberra.

Our CEO, Claudia Brumme-Smith also travelled to South Korea with the Premier of Queensland Annastacia Palaszczuk and Townsville City Council Mayor Jenny Hill in October 2022, the first international investment delegation for Townsville Enterprise since COVID-19 border reopening.This delegation centered on the North and North West’s renewable energy capability, particularly in green hydrogen. It was welcomed news to see General Motors announce their investment of $110 million in Townsville Enterprise member Queensland Pacific Metals (QPM’s) TECH Project off the back of this international visit. This offtake agreement and major equity investment was reached to ensure that GM will have a secure supply of nickel and cobalt sulfate for its electric vehicles.

Taking North Queensland advocacy to Queensland Parliament with 150 industry representation

Brisbane delegation 2023

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22|23 Highlights SUBMISSIONS Townsville Enterprise ensured the Townsville North Queensland region had a strong voice and clear policy recommendations across a number of Government enquiries which are intended to address key issues for the local business community. Submissions included: Burdekin Basin Water Plan Submission Townsville Enterprise made a submission to the State Government’s Burdekin Basin Water Plan Review.

The submission is focused on North Queensland needing a water plan that takes a holistic view of the entire Burdekin River System, and water development strategy that allows for North Queensland to plan long-term.

The submission also recommended that the water plan should be actively governed and State Government be informed on vital issues such as changing demand, environmental and social impacts. It is imperative that the Burdekin Basin Water Plan is able to provide North Queensland with a long-term, sustainable, economic, environmental and social future.

National Reconstruction Fund In February, Townsville Enterprise submitted feedback to the Department of Industry, Science and Resources consultation paper on the National Reconstruction Fund (NRF). The Australian Government established the $15 billion NRF to diversify and transform Australia’s industry and economy. The NRF provides finance (including loans, guarantees and equity) to drive investments that add value and develop capability.

Townsville Enterprise provided key recommendations into the scheme’s design, and the region's key enabling projects in these emerging, priority sectors. The major recommendations made in this submission include

supporting greenfield projects in emerging areas, as well as common user infrastructure and governmentowned corporations to also have the opportunity to apply for funding.

Australia’s Tourism and International Education Sectors Townsville Enterprise prepared a joint submission with Study Townsville on the inquiry into Australia’s tourism and education sectors. The submission responded to some of the key issues around workforce and skills shortage, aviation access, insurance affordability and availability. The submission also raised key issues around the learning experience and pathways for international students in Australia.

Battery Submission Townsville Enterprise provided feedback into the Queensland Battery Industry Strategy Discussion Paper, highlighting the region’s advantages as a hub for the vertical integration of the battery industry.

Cyclone Reinsurance Pool Townsville Enterprise also made a submission to the Joint Select Committee on Northern Australia for the Cyclone Reinsurance Pool Inquiry.

This was following the previous submission that Townsville Enterprise had made to the Draft Legislation for the Reinsurance Pool (“The Pool”). The major recommendations included in this submission were establishing a government-backed insurance body and extending the claim coverage of “the Pool” to include flooding events.

Defence Strategic Review Townsville Enterprise made a joint submission with Townsville City Council and Charters Towers Regional Council on the Defence opportunities for North Queensland ahead of the Houston-Smith Review. The submission highlighted North Queensland’s role in supporting a comprehensive range of capability including air, land and maritime based, advanced training ranges, port, logistics and supporting industries. The submission sought to drive targeted Defence investment focused on building resilient, sovereign supply chains.

The recommendations included increasing the scale of ADF logistics capabilities and logistics to support industry growth, centralising army aviation capability in Townsville, concentration of deeper maintenance for Army Aviation and Townsville based armoured vehicles and upgrades to existing Defence common-user infrastructure.

In April, the Albanese Government released the outcomes of the Houston Smith Defence Review. The major recommendations from the report included the Apache and 16th Brigade making Townsville their new home, it also revealed that Townsville as the industry node for Boeing helicopters.

The review supported Townsville Enterprise’s advocacy in targeted Defence and Defence Industry investment which will support resilient and sovereign supply chains.

The Premier’s announcement at the Townsville Enterprise event that the Queensland Government is going to build the CopperString transmission network catapults North and North West Queensland at the forefront of the energy transition for not just Australia but globally. It unlocks our critical minerals and provides vast renewable energy both for the rest of Australia, the East Coast grid but also for the North West Minerals Province.

JOSEPH O’BRIEN, CO-FOUNDER OF COPPERSTRING 2.0.

Townsville Enterprise Annual Report 2022 - 2023

Our biggest advocacy win yet Copperstring Confirmed!

Following a 10-year advocacy campaign, Townsville Enterprise welcomed the announcement by Premier Annastacia Palaszczuk on 7 March 2023 that the Queensland Government will build and own CopperString. A once in a generation, $5 billion commitment that will provide access to the largest renewable energy zone in the country, unlocking 35GW of renewable energy and opening up more than $740 billion in untapped known minerals along the North West Corridor. CopperString is the largest ever economic development project in North Queensland, and the largest expansion to the power grid in Australia.

What does CopperString mean to you?

Access to Affordable Energy

800 direct and 3500 indirect jobs over 6 years Thousands of new jobs in critical minerals mining, manufacturing and construction of renewables

ON THE HORIZON FOR 23/24:

As we move into the 2023/24 Financial Year, advocacy will remain at the top of Townsville Enterprise’s agenda. With a looming State Election, a strong and united voice for North Queensland will be critical to secure the prioities and projects that will unlock and help grow the region. With CopperString confirmed, enabling infrastructure and policy requirements to unlock water, workforce and housing will be essential to ensuring this once in a generation project’s true value is optimisated. Furthermore, to enable population growth for North Queensland, infrastructure that supports enhanced liveability and the visitor economy, will also be an important catalyst for growth in Townsville North Queensland. Moving forward Townsville Enterprise will continue to work with all levels and sides of government, as well as our local partners, members and media, to ensure that we advocate for what is best for North Queensland!

Enabling new wind and solar projects

Flow on investment opportunities for supporting industry

Development of key green industries

Supporting a sustainable and competitive economy for all businesses Hinchinbrook. Photo by Megan MacKinnon

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MEMBERSHIP & EVENTS

24.5% +

MEMBERSHIP GROWTH vs PREVIOUS YEAR

The vision of Townsville Enterprise is to Secure the Future of Townsville North Queensland.

A strong united community delivers strong results. Our members and partners who stand with us are the driving force behind the success of our organisation and region.

Townsville Enterprise exists to support our members and to provide them with opportunities to prosper, grow and flourish with a focus on long-term sustainability for their businesses and our region.

Our advocacy projects are determined by our partners and community needs, our networking events and forums provide opportunities for connectivity and inspirational learnings, and

our marketing initiatives deliver the messaging that puts our region firmly in the consideration set as the best place to live, work, invest and holiday.

Townsville Enterprise delivered a strong calendar of business events including the North Queensland Tourism and Events Awards, Townsville Enterprise Annual General Meeting and Christmas Function, the Queensland Energy and Jobs Plan event with the Queensland

Premier, Tourism Futures Forum, Mining and Resources Industry Forum and Welcome Event, Unlock the Future of North Queensland event held at Queensland Parliament and Budget events with the Treasurer and Shadow Treasurer. We also held multiple Member Mixers, networking events and Business Breakfasts. Over the financial year, Townsville Enterprise delivered 17 events which saw over 1,750 attendees.

22|23 Highlights Our annual member survey provided us with valuable insights. We achieved an NPS score increase of 24.5%, our highest results to date. We are proud of this outcome and we strive to see this rise consistently year on year.

We listened to our members, new and existing, and their needs from us. This led us to remodel our membership structure. We now have Community Members, Connect Members, Strategic Members and Platinum Members. There is a fit for all in this new structure, from individuals to small, medium and large businesses.

Moving forward, our membership

structure is streamlined in regard to our deliverables, ensuring we meet the identified needs of our members, as provided by you, our members.

Our Connect membership levels support our small to medium businesses and individuals that seek to take advantage of our wide range of promotional, networking and introductory opportunities as well as our Tourism and Convention Bureau benefits.

Our strategic membership levels provide member support with additional benefits such as access

to data, input into our advocacy priorities, invitations to special events and road trips, as well as the opportunity to have a seat at our round table events.

We welcomed 63 new members across our membership levels over the past financial year, a 24.5% increase for our network.

We will continue to work together across our region and across our industries to Secure the Future of Townsville North Queensland.

CEO MESSAGE

I want to thank our valued members and partners who we work passionately and collaboratively with across all the industries in our region. We are mighty in numbers. We would not be celebrating the many achievements of this year without your support and dedication.

As a member of Townville Enterprise, we have been provided great support and promotional opportunities. As a small family run operation near Charters Towers, having our business featured locally and nationally is very important to us. MICK, TEXAS LONGHORN TOURS Townsville Enterprise Annual Report 2022 - 2023

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TOURISM DEVELOPMENT Townsville Enterprise worked towards the enhancement of the Tourism and Events sector through a robust program of industry development and capacity building initiatives across the 2022-23 financial year. The core aim of these efforts was to bolster businesses, amplify visibility, and elevate the visitor experience.

Throughout the year, over 60 tourism businesses participated in tailored industry development endeavors. This year Townsville Enterprise, under the guidance of a steering committee also launched Magnetic Island’s first tourism masterplan.

22|23 Highlights Toolkit in June 2023. This selfpaced business development tool for tourism operators covers topics including business essentials, Best of Queensland, social media and marketing, sustainability, accessibility and accreditation. In the first month of launch, the toolkit was viewed more than 300 times. In conjunction with the Toolkit a webinar series was also hosted with 48 businesses attending the four online webinars.

▶ In May 2023 Townsville Enterprise along with 11 operators from across the region attended the Australian Tourism Exchange at the Gold Coast. Over 4 days we met with 100+ international and domestic wholesale and trade partners to promote and increase the awareness of Townsville North Queensland. ▶ In the lead up to the Australian Tourism Exchange (ATE) six local tourism operators completed a Trade Engagement Mentoring Program with Pinnacle Marketing.

Operators received one on one training about the importance of trade partnerships, how to sell their product and the necessary tools required for attending ATE. ▶ Townsville Enterprise launched the new Tourism Development

▶ To continue the promotion of Townsville as Cruising destination in Queensland, Townsville Enterprise hosted the 2022 Australian Cruise Association Conference in 2022. Over 120 attendees from International cruise lines and associated

suppliers converged on our slice of paradise over three days and experienced the authentic and unexpected product available in Townsville North Queensland. ▶ The Magnetic Island Tourism Masterplan underwent an extensive nine-month program of consultation and was created by tourism industry experts under the supervision of Townsville Enterprise with input from a steering committee representing community, industry, and Government. The Magnetic Island Tourism Masterplan identified 26 initiatives to support the Island’s vision and is designed to be a living document monitored and delivered through the Magnetic Island Tourism Masterplan Steering Committee.

Our involvement in the Trade Mentoring Program has been an invaluable experience for our business. The guidance and mentorship provided have helped us navigate challenges and contributed to our growth and success in the industry. Attending the Australian Tourism Exchange with Townsville Enterprise has allowed us to connect with industry partners and explore new horizons. We are grateful for the opportunities and support and look forward to continued collaboration and opportunities for mutual growth.

NADINE HUTH, ADRENALIN SNORKEL AND DIVE

Townsville Enterprise Annual Report 2022 - 2023

NEW BRAND DELIVERED

166%

DESTINATION MARKETING

INCREASE IN AWARENESS

The Townsville North Queensland region continues to grow and evolve, and this trend is ever-present across the tourism and events sector, with the introduction of a number of new, world-class tourism experiences such as the Museum of Underwater Art, hotel redevelopments, as well as several ecotourism experiences.Townsville has also seen increased aviation access from key interstate markets including Sydney and Melbourne, and additional boosts to intra-regional connections with Bonza airlines. Recent consumer research conducted by Townsville Enterprise helped develop a new destination brand platform, which was launched at the beginning of 2023 in one of the biggest campaign activations ever delivered by Townsville Enterprise and is already seeing great advancements across awareness and consideration of Townsville North Queensland as a holiday destination.

22|23 Highlights ▶ Almost 10,000 visitors were brought to the region as a direct result of marketing and campaign activity, contributing $9.6 million in visitor spend and $17.6 million in economic benefit ▶ Paid campaign assets were seen over 34 million times, with hosted media and influencer content reaching over 6 million and attracting an engagement rate of 17.8% - over 150% above industry benchmark

In February 2023, after more than 12-months of consumer research, Townsville Enterprise launched our new destination brand on a national stage to a room full of influential media professionals at the International Media Marketplace (IMM). This was an audience who would help amplify the brand message to sell the best kept secret in North Queensland.

The new tourism brand, Townsville North Queensland: Up for unexpected, was developed following an in-depth research process which analysed over 300,000 datapoints, including online reviews, focus groups, surveys, creative testing, and has been guided by an industry-led committee of marketing experts.

Our research found Townsville North Queensland is full of unexpected experiences – a destination with an unrivalled power to surprise and delight with a unique ability to offer something new to the experiential traveller.

This is exactly what our new brand demonstrates to consumers.

▶ Website users grew by 9.6%, with pageviews and pages viewed per session increasing by 78.3% and 63.9% respectively

SCAN ME!

▶ Website saw 346,892 unique visitors, an increase of 20% YOY ▶ The launch of Townsville North Queensland’s new brand - Up for unexpected

With support from Tourism and Events Queensland, the North Queensland Regional Councils, local media partners and industry, Townsville Enterprise leveraged the development of the new brand to launch into the biggest tourism campaign the region has seen in more

USE OUR NEW DESTINATION BRAND than a decade. The campaign featured across print, television, billboard, digital, social media and outdoor advertising, enticing visitors from our key markets of Brisbane, Sydney, Melbourne, Adelaide and the drive market, to come up and explore Townsville North Queensland.

The launch campaign and new brand exceeded all expectations, with destination awareness up 166% since the campaign launched. Results also saw 70% of people who were exposed to the campaign and advertising materials took action towards booking a holiday.

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ALWAYS-ON MARKETING To increase the destination’s digital presence and enhance searchability from paid campaign activity, Townsville Enterprise delivered an ‘always-on' marketing strategy which consisted of search engine marketing, and content marketing through social media. This strategy has become an important consideration following results from brand uplift studies which suggests paid marketing activity stimulates an increase in consumers’ search

for additional information about the destination as it continues to trigger a reappraisal of the region.

A search engine marketing (SEM) strategy delivered over 78,760 clicks to the website and achieved over 1.9M impressions. Additionally, always-on video content targeted audiences to build retargeting audiences for conversion (sales) messaging. This approach reached over 2.2M people, delivered over 13.6M impressions, and over 13,900 unique clicks.

NAH MATE, THIS IS TOWNSVILLE NORTH QUEENSLAND Prior to the new brand launch, a tailored bridging campaign was delivered off the back of months of consumer insights research, showcasing the region’s world-class tourism offerings and aimed at triggering a reappraisal of the destination. The bridging campaign was designed to test the brand elements in a unique and playful new direction for the region. “Nah Mate… This is Townsville North Queensland” featured NRL great Johnathan Thurston and Netflix star Izzy Bee of Izzy’s Koala World, bringing the new brand positioning territories, a playful tone of voice, and existing visual creative elements to market (as they underwent more rigorous

consumer testing). The campaign ran for three months, and targeted consumers from the key source markets of Brisbane, Sunshine Coast, Gold Coast, Victoria and New South Wales, as well as regional drive markets. Appearing on television, social media, digital and billboard advertising, the campaign delivered a tactical element to also drive bookings through aviation and holiday packaging. A campaign uplift study was conducted off the back of this campaign, which saw a 68% increase in positive sentiment for the destination, and over 61% took action to find more information about Townsville North QUeensland as a holiday destination.

SEYCHELLES?

VILLE TOWNS EENSLAND NORTH QU

MAGNETIC ISLAND

Townsville Enterprise Annual Report 2022 - 2023

There’s a lot to love about the Townsville North Queensland region. We are the authentic heart of regional Queensland.

We’d love to share our hidden treasures, our magical beauty with special people - Curious Explorers, as opposed to ‘fly and floppers’ wanting everything served up to them on a platter.

Yes, we’ve got luxurious pools to laze by and hatted restaurants to graze. But for those seeking new experiences, we have so much just waiting to be explored.

Serendipitous surprises. New stories. Joy. Wonder.

We have a passion for our natural wonders that stretch from Charters Towers to our magnetic coast.

We’re proud of it. We preserve it.

We have a song in us which we’d love to share.

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WOMEN’S STATE OF ORIGIN

AIRLINE CAMPAIGN

A dedicated burst of activity was delivered to drive consideration for Townsville as the host city for the Women’s State of Origin event. In partnership with NRL and Tourism and Events Queensland, this multi-channel campaign delivered over 1.1 million impressions, and over 3,500 clicks to a dedicated landing page on townsvillenorthqueensland. com.au. The event broke previous ticket sales records with over 18,000 attendees in Queensland Country Bank Stadium there to see Queensland win the coveted trophy.

Leveraging awareness driven by supporting marketing activity, Townsville Enterprise and Queensland Airports partnered to deliver several tactical campaigns with airline partners – Jetstar, Virgin Australia, Bonza Airlines, and online travel agency, Webjet. These campaigns drove direct results and increased passenger numbers to the region across all airlines and ports.

DRIVE NORTH QUEENSLAND A collaboration with five regional tourism organisations (Tropical North Queensland [Cairns and surrounds], Whitsundays, Mackay, and Outback Queensland), delivered an always-on campaign specifically targeting the drive market, and working collectively to encourage multi-region driving holiday itineraries. Content partnerships with Australian Geographic and Wheels Media with editorial and social media digital extension campaigns reached over 3 million people, with assets seen over 522,000 times.

Importantly, social media engagement also increased to 4%.

In addition to online content and campaign activity targeting drive holiday-makers, Townsville Enterprise also participated in a number of Caravan and Camping shows across the country. Townsville North Queensland volunteers and representatives from across the Drive North Queensland and Drive Queensland partnership attended shows in Melbourne, Sydney, Brisbane and Cairns, with over 215,000 attendees.

Townsville Enterprise Annual Report 2022 - 2023

MEDIA COVERAGE Activity from the brand launch and campaign activity resulted in dedicated news features across a number of travel and holiday publications – both online and in print. From bespoke media hosting famils alone, Townsville Enterprise secured 14 original stories with a media reach of over 4.7 million. The flow on effect of this content remains with additional editorial pieces organically making their way to top-rated publications like Traveller, Australian Traveller, Escape, Explore and more right across the country.

From Traveller – Sydney Morning Herald

From Australian Traveller

INFLUENCER COVERAGE In addition to dedicated media famils and editorial features, destination promotion also included influencer famil and content across macro and micro content creator channels.

This strategy ensures vision, images and experiences from across our region reach new and engaged audiences – particularly targeting southern interstate markets of Sydney and Melbourne. Through this approach, Townsville Enterprise secured 31 new content pieces, with a total

reach of over 2 million people, importantly securing over 14,400 points of engagement (shares, saves or comments) indicating interest and intent. Breaking all industry benchmarks from this strategy was the engagement rate on this content, averaging over 17% (average is 2-3%) which means the content and experiences from our region resonated strongly with our target audiences.

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70% of audiences who saw the brand launch campaign took action towards booking a holiday in Townsville North Queensland

Townsville Enterprise understands Townsville’s visitor attractions and the priorities of local tourism operators better than anybody else. It’s terrific to see this campaign highlighting North Queensland’s great lifestyle to the world and growing more good tourism jobs for Townsville’s visitor economy.

MINISTER STIRLING HINCHLIFFE, QUEENSLAND GOVERNMENT - DEPARTMENT OF TOURISM

I think its exceptionally impressive for a marketing campaign… You can feel the momentum that is coming from this city.

PATRICIA O’CALLAGHAN, TOURISM AND EVENTS QUEENSLAND

The unexpected campaign is just absolutely amazing, it’s the best thing I’ve seen in a long time, and I love listening to the collaboration between Council and Townsville Enterprise.

CR MARGIE RYDER, TOWNSVILLE CITY COUNCIL

This fresh, dynamic and professional brand has played a pivotal role in highlighting the Townsville North Queensland region as an attractive tourist hotspot. By integrating the Up for unexpected branding with our revamped Sealink national website and Townsville Enterprise attracting significant ongoing events to the region, we have witnessed a remarkable surge in visitor numbers to our exquisite region. Sealink eagerly anticipates further growth for the Townsville North Queensland region and reaffirms our steadfast support as ardent advocates of Up for unexpected.

DARREN SPEARMAN, SEALINK

I’ve just taken a sneak peek and the article has performed incredibly well – it looks like we’ve hit over 30K pageviews! Which is double the benchmark! I know it was our second top performing travel article last week too which is huge.

MEDIA PARTNER

We jumped at the opportunity to work with an iconic destination highlighting the unexpected. This was an opportunity to be part of developing a creative and integrated campaign that did things differently; something that we relish.

SLING & STONE (PR AGENCY)

The success of the Up for unexpected campaign is showing that a good, targeted campaign can draw tourism into the region from Sydney, Melbourne and Brisbane and further afield like we’re seeing now.

BRENDAN COOK, TOWNSVILLE AIRPORT

VISITOR SERVICES Throughout the 22/23 period, Townsville Enterprise has achieved record growth in the Visitor Information Centre along with the introduction of new services for the Townsville North Queensland region. The Tourism Ambassador program has remained strong with the introduction of new volunteer ambassadors and a bolstered training and recognition package.

22|23 Highlights ▶ The Tourism Ambassadors greeted and assisted over 15,645 visitors to the region via the Visitor Information Centre and our Mobile VIC. This is an 119% increase from the previous Financial Year as well as a growth from pre Covid numbers. ▶ The team at the Visitor Information Centre, including both volunteers and staff, supported $135,000 in Bookings and Merchandise Sales. ▶ Our Volunteer program remains strong with a 10% increase in Volunteer numbers and

the expansion of our Tourism Ambassador Training and Recognition Program. Over the 22/23 period the Townsville Enterprise Volunteers worked over 7,500 hours at the Visitor Information Centre services, Cruise Ship welcomes and event activations. ▶ Training and Networking opportunities were a focus for the Tourism Ambassador program and the volunteers attended a number of famils, workshops and industry events to increase their knowledge.

These included the launch of

ON THE HORIZON FOR 23/24:

the Ocean Sentinels trail at John Brewer Reef, arrival of the first BONZA flight, North Queensland Visitor Information Centre Conference and the majority of the Townsville Enterprise events. ▶ In 2023 Townsville Enterprise introduced a trial of a Mobile Visitor Information to leverage and partner with regional events and cruise ship arrivals by providing an enhanced welcome experience for visitors. Over 21 site visits the Volunteers assisted 1,440 visitors who would not normally use a Visitor Information Centre service.

▶ Introduction of Souvenirs and Local Gifts for purchase at the Visitor Information Centre ▶ Welcome Service for 20,000 passengers and crew onboard 18 Cruise Ships

During the Easter School Holidays this year the Townsville Enterprise Volunteers manned a Mobile Information Booth to assist our passengers during one of our busiest periods. Over the 10-day period they greeted over 1200 passengers, which is a testament to the friendly and helpful service provided by them. The Townsville Enterprise tourism volunteers provide world class customer service to our visitors day in and day out. Smiling faces, welcoming personalities, and a passion for our region, they are our best ambassadors.

SEALINK NORTH QUEENSLAND

Townsville Enterprise Annual Report 2022 - 2023

33

REGIONAL DEVELOPMENT & INVESTMENT Despite challenges with increasing interest rates and rising inflation, Townsville North Queensland industries have continued to attract significant private and public investment into upcoming projects.

The announcement of the CopperString project unlocked one of the largest barriers in the North West Minerals Province (high cost of electricity). The excitement about the impact this project will have has spanned across all industries, and now has even extended to international investors and companies looking to North West Queensland. Despite the high levels of interest for renewable energy and critical minerals, our traditional

industries such as health and defence have also performed well over the last year. The Townsville University Hospital’s $530 million upgrade is now underway, with contracts being awarded. Additionally, Townsville was a major hub for the Talisman Sabre exercise, which saw over 34,000 military personnel from 13 nations joined forces across sea, land, air, cyber and space.

To reflect the hive of activity occurring across our industries, Townsville

Enterprise has delivered a suite of investment collateral designed to highlight the opportunities in our region. Townsville Enterprise also updated and continued to monitor our project pipeline, identifing any major barriers that will affect the flow of investment into our region. Currently issues around workforce and housing shortages present the greatest threat to the growth of industry that Townsville North Queensland is experiencing.

OPPORTUNITY TOWNSVILLE NORTH QUEENSLAND (OTNQ) In March 2023 Townsville Enterprise launched the sixth edition of Opportunity Townsville North Queensland (OTNQ), which is the regions primary investment collateral. For the first time the publication was launched outside of Townsville in Brisbane at Parliament House. Over 120 investors, industry partners and government representatives were present with event speakers including Queensland Premier, Hon Annastacia Palaszczuk, Opposition Leader David Crisafulli and Robbie Katter, Member for Traegar.

PROJECT PIPELINE The OTNQ publication included key insights from our project pipeline, which is a collation of all major projects planned and occurring in the North Queensland region. The pipeline tracks the status of the project, expected employment numbers and key information on the project proponents. The project pipeline demonstrated that the value of all proposed, underway and recently constructed projects in the region is approximately $62 billion. The majority of these projects are in the energy sector, highlighting the significant role that renewable energy is expected to play in our economy. The pipeline is also estimated to create more than 50,000 jobs over the next ten years.

Townsville Enterprise Annual Report 2022 - 2023

REGIONAL INDUSTRY GROWTH PLAN In May of 2023, Townsville Enterprise, together with industry, launched the first industry-led Regional Growth Plan for Townsville North Queensland. This five-year plan is a blueprint across sectors and industries to ensure enabling investment, workforce, water and housing planning is done holistically with a strategic focus.

The plan was developed through the insights gained from several industry roundtables with Townsville Enterprise members identifying future threats and opportunities for the region’s. The plan was also developed in collaboration with AEC Group, who provided economic insights and future modelling for population, employment and GRP growth.

The plan focuses on highlighting the regions competitive advantages, explores future economic opportunities and identified the infrastructure policy change, private investment and regional promotion required to enable Townsville North Queensland’s to reach its economic potential.

The plan will be a living document and will be reviewed quarterly by Townsville Enterprise’s Economic Development Strategic Advisory Committee to ensure that the contents remain relevant to North Queensland ever-evolving industry landscape.

This Regional Industry Growth Plan will continually evolve as new industries and projects are unlocked. It is about combining our strengths and highlighting the actions that will capitalise in opportunities.

This region’s economic diversity and the strategic location of North Queensland means we are well-placed for future growth.

RANEE CROSBY, TOWNSVILLE ENTERPRISE EDSAC COMMITTEE CHAIR AND PORT OF TOWNSVILLE CEO

TOWNSVILLE NORTH QUEENSLAND REGION: CRITICAL MINERALS INVESTMENT PROSPECTUS Townsville Enterprise launched the second addition to our suite of investment collateral at this year’s Mining and Resources Forum.

The Critical Minerals Prospectus outlines the types of minerals available in the North West Minerals Province and existing enabling infrastructure. The prospectus reflected the Mining Forum’s themes of the CopperString effect and the emerging importance of critical minerals. The prospectus also included updates on existing mining projects and information on processing plants in the Townsville region. The prospectus is a valuable resource that Townsville Enterprise will utilise when sharing information with external stakeholders about the enormous opportunities available in the North West Queensland region.

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ECONOMIC SNAPSHOT

HOUSING

In August 2022, Townsville Enterprise launched the first online “Economic Snapshot” Dashboard, providing live economic insights to our members.

The dashboards include key data on employment, trade, housing, building approvals, and commodity pricing.

Since the launch, the dashboards have had over 900 site visits.

In response to the housing crisis affecting the Townsville North Queensland region, Townsville City Council engaged Townsville Enterprise to identify a solution to shortage of housing focused on Townsville City.

Property consultancy group Rosel Sherwood were engaged to produce a report on the feasibility of a Buildto-Rent model on the North Rail Yards site. Build-to-Rent is a popular housing solution that provides longterm rental stock with luxury amenities for the premium property market.

KEY INSIGHTS OVER FY23 INCLUDE: ▶ Sugar prices reached their 10 year high of $840 per tonne due to lower than expected output from other nations (China and Thailand). ▶ Rental vacancy rate continues to remain at lows of around 1%, far below the healthy rate of around 3%. ▶ Employment increased by 5.3% to 133,200 (Over FY 23). ▶ Unemployment rate reaches lowest levels since reporting of 2.2%. ▶ Townsville employment region reached more job advertisements than unemployed people in the region. ▶ Australian Thermal Coal peaked at $645 per metric Tonne in September 2022 as buyers sought alternatives to Russian coal and natural gas. By the end of the financial year coal prices cooled to $206 as northern hemisphere countries moved into a summer, however prices still remain historically high.

As part of the feasibility report, a demand analysis for the region was also completed to understand average prices, rental stock and future demand.

The report found that across the Townsville LGA, an additional 9,142 dwellings are expected to be required by 2026. In Townsville’s inner city, an additional 1,574 dwellings are expected to be required by 2026. By 2041, the number of additional dwellings required is expected to grow by 7,163.

The feasibility report for the Buildto-Rent (BTR) model flagged issues such as higher cost of manufactured goods, higher insurance premiums and increased energy costs when compared to costs for BTR projects in the south-east corner.

Housing was a key issue in the Unlock the North delegation, with the request to government reflecting the increased costs of housing projects in North Queensland and to cover the gap to ensure that the project is feasible for future developers.

Townsville City. Photo by Megan MacKinnon

Townsville Enterprise Annual Report 2022 - 2023

DESIGNATED AREA MIGRATION AGREEMENT (DAMA) Workforce and labour shortages were a key issue for our region. Townsville Enterprise is the Designated Area Representative (DAR) for the Townsville North Queensland Designated Area Migration Agreement (TNQ DAMA).

DAMA is a formal agreement between the Australian Government and Townsville Enterprise. It provides business owners who have exhausted local recruitment options access to overseas workers, providing flexibility and responsiveness not available through the standard skilled migration programs.

The TNQ DAMA has 196 positions listed with age, language and experience concessions available on many of these occupations.

2022 - 2023 was the first year of the five-year DAMA agreement with 23 Labour agreements lodged with the Department of Home Affairs, for 60 positions in the region.

NQH2

NORTH QUEENSLAND HYDROGEN CONSORTIUM Led by Townsville Enterprise Limited, the North Queensland Hydrogen Consortium (NQH2) provides concierge and facilitation services to support a complete, end to end, hydrogen ecosystem which will advance North Queensland as a major hydrogen contender in both the domestic and international marketplaces.

The Consortium members include Hydrogen producers, infrastructure providers, supply chain operators and green energy providers.

22|23 Highlights ▶ Secured $70 million of Federal funding for the Hydrogen Hubs Grant Program – Townsville Region. This will facilitate an investment of over $140 million in the region for hydrogen projects. ▶ NQH2 was invited to speak at the H2Q hydrogen summit in September 2022 and the Australian Hydrogen Conference in May 2023, to discuss the projects in our region and the work that NQH2 is undertaking to develop the industry.

THERE ARE FOUR MAIN GOALS FOR THE CONSORTIUM: Build the Hydrogen Industry in North Queensland and encourage and facilitate Small to Medium Enterprise Hydrogen Innovation and Engagement.

Build business capability through connection and collaboration and identify advanced manufacturing opportunities for supply chain resilience.

Create community awareness and positive engagement, as well as facilitating the development of new skills and training opportunities for the North Queensland community.

Advocate for policies and seek all levels of government endorsement and action for the hydrogen industry

Port of Townsville

37

CONVENTION BUREAU Over the past year, the Townsville Enterprise Convention Bureau has remained focused on supporting the attraction and rebuild of business events to the Townsville North Queensland region. The team works closely with its members to provide a tailored service when bidding for business events and has engaged with 7 bids across the financial year.

22|23 Highlights ASIA PACIFIC INCENTIVES & MEETINGS EXPO In February 2023, the Townsville Enterprise Convention Bureau team headed to Melbourne for the Asia Pacific Incentives and Meetings Expo (AIME). This event is the nation’s largest trade expo where the team met with professional conference organisers to attract business events and incentive programs to our region. The team met with over 30 conference organisers from across the country and Asia to showcase all Townsville North Queensland has to offer.

FAMILS Townsville Enterprise Convention Bureau hosted 4 famils across the financial year to showcase Townsville North Queensland as a potential business events destination.

The groups saw business and conferencing venues, dining and restaurants options, off-site venues while enjoying some tours and attractions including Magnetic Island and sporting events at Queensland Country Bank Stadium. Following these famils, the region has submited bid proposals towards 2 events and 1 incentive group.

MARKETING CAMPAIGNS Throughout the year Townsville Enterprise delivered various marketing campaigns to raise awareness of the Townsville Enterprise Convention Bureau.

A new website will be launched in the 23/24 financial year to better showcase and support the promotion of hosting MICE (Meetings, Incentives, Conferences and Expos) in Townsville North Queensland.

I spent a wonderful 3 days with the Townsville Convention Bureau earlier this year getting the low-down on the venues, activities and suppliers for business events in the area. I was surprised at the diversity of what’s on offer in Townsville - an incredible stadium, private sailing boats, a gin micro-distillery and hotels with that signature tropical North Queensland twist. With everything available within a short radius, I can’t wait to bring a conference group back to the region.

KATIE TOMPKINS, ICEBERG EVENTS

Townsville Enterprise Annual Report 2022 - 2023

Mining and Resource Industry Forum 2023. Photo by Roslyn Budd - Budd Photography

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MEMBERSHIP PRINCIPAL PARTNER

MAJOR PARTNER

PLATINUM PARTNER

Our Members as at 30 June 2023 Davco Farming

Honeycombes Property Group

Edify Energy Pty Ltd

Limitless Films

Alison Ferry

GHD Pty Ltd

Orica

Geoffrey Plante

Hurst Constructions Queensland

TAFE Queensland

MMG Limited

Vecco Electric Pty Ltd

Pacific Marine Group

Wilmar Sugar Australia Limited

LIFE MEMBERS

Emeritus Professor Edward Scott AM Greg Peel

SMEC

LEVEL 3

John Bearne

Townsville Hospital and Health Service

Laurence Lancini

Wilson Ryan Grose Lawyers

ARC - The Australian Reinforcing Compan

Tony Mooney

BRONZE

Carey Group

Australian Institute of Marine Science

Colliers Townsville Pty Ltd

BMD Construction

Cowboys Leagues Club Ltd

Cubic Defence Australia Pty Ltd

Cowboys Rugby League Football Limited

MAJOR PARTNER

FGH group

CPB Contractors Pty Ltd

Tourism and Events Queensland

Future Renewable Vision (FRV)

Delta Office Solutions

Townsville Airport Pty Ltd

Gabrielli Construction

Gripfast Consulting Pty Ltd

Gallagher Insurance Brokers

ITHG Pty Ltd

Helix Legal

Keir Steele Waldon Lawyers

Horan & Bird Energy Pty Ltd

KPMG Australia

GOLD

Iberdrola Australia Limited

Lancini Property Group

AEC Group Pty Ltd

Incitec Pivot Limited

North Queensland Gas Pipeline

Flinders Shire Council

Kernow

Peel Valentine Whitehead

Glencore Copper

Lendlease Building Pty Ltd

Post Office Brewing Pty Ltd

James Cook University

Mater Hospital and Health Service

SLR Consulting Australia Pty Ltd

Port of Townsville

Origin Energy

St Hilliers Contracting Pty Ltd

Queensland Electricity Transmission Corporation Limited (Powerlink)

Pacific Biotechnologies

TP Human Capital

Queensland Country Bank

Wulguru Technical Services Pty Ltd

SunCorp

Ravenswood Gold

LEVEL 2

RGM Maintenance

AECOM Australia Pty Ltd

SILVER

SeaLink Queensland Pty Ltd

Energy Queensland

South 32

Aligned Corporate Residences Townsville

Ergon Energy Network

Stadiums Queensland

ALLROADS Pty Ltd

Queensland Pacific Metals Ltd

Vetta Creative

Amaroo on Mandalay

The Ville Resort-Casino

Watpac Construction Pty Ltd

AON Risk Services

Windlab Development Australia Pty Ltd

Aramex

Wulguru Group

ARUP Ltd

PRINCIPAL PARTNER Townsville City Council

PLATINUM Bravus Mining & Resources

Sun Metals Corporation

COPPER A.G. Coombs Pty Ltd ANZ Banking Corporation

LEVEL 4

CuString Pty Ltd

Findex

Townsville Enterprise Annual Report 2022 - 2023

A Touch of Salt Australian Professional Galvanizing

Base Backpackers

Oracle Studio

Built Tough Industries

Brothers Leagues Club Townsville P/L

Ornatas Pty Ltd

Bungalow Bay Koala Village

Burdekin Motors

Cactus Jacks

Burdekin Theatre

Orpheus Island Lodge Resort - Colonial Leisure Group

Castletown Shopping World

Otto’s Fresh Food Market

Campbell Scientific Australia

Cate’s Chemist

O’Regan & Partners Townsville

C Bar Holdings

Cate’s Chemist

Pacific Islands International

Charters Towers Tourist Park

City Vehicle Services

Paronella Park

City Oasis Inn

Commonwealth Bank

Peppers Resort - Magnetic Island

Cleveland Bay Chemical Company

Community Information Centre Townsville Inc

Perc Tucker Regional Gallery

Coconut Glen Van Park

Pickerings Auto Group

Crackajack Sportfishing Adventures

Connolly Suthers Lawyers

Premise

Copiers Excellence (Townsville)

PricewaterhouseCoopers Partnership

CRC for Developing Northern Australia Ltd

Coral Coast Tourist Park

Prizm Engineering Pty Ltd

Dancenorth Australia

Core Developments NQ PTY LTD

Quayside Terminal

Dendra Systems

Coutts Redington Pty Ltd

Quest Townsville on Eyre

Detour Coaches

CQG Consulting

Reef and Rainforest Research Centre

EMU Sportswear

CQ University

Reef HQ Great Barrier Reef Aquarium

Epic Environmental Pty Ltd

Designer Life

Rider Levett Bucknall Qld Pty Ltd

FTEC Electrical Pty Ltd

DEXUS

RMS Engineering & Construction

Get Branded

Discovery Parks Pty Ltd

Rockfield Technologies Australia Pty Ltd

Gold Tower

Ede Events

Rydges Southbank Townsville

Grand Hotel Townsville

Edmund Rice Education Australia

Simon George & Sons

Great Northern Laundry

Faradays Trading Pty Ltd

Skytrans

Green technologies

Finance King

Sunbus Townsville

Herveys Range Heritage Tea Rooms

Goodstart Early Learning

The Digimen

Hidden Valley Cabins

HIF Asia Pacific

The Park Motel

Inland Oasis Motel

Hotel Grand Chancellor

Townsville Auto Group

In Spades Marketing

Iconic Hospitality Pty Ltd

Townsville Sports Precinct

Intheloop Australia

James Cook University

Townsville Stadium

J.A Wilson & P.J Wilson

James Cook University Vet Pty Ltd

Tsv Aboriginal & Islander Health Services

JetSki Hire Magnetic Island

Jet Zero Australia Pty Ltd

TYTO Wetlands Information Centre

Jewellery By Design

Knight Frank Townsville

V8 Supercars Australia Pty Ltd

JKs Deli

Lamont Sign Solutions

Wild Hinchinbrook Adventures

Kordamentha

Magnetic Island Best Bus Tours (Ulendo)

Worley

Magnetic Island Sea Kayaks

Magnetic Island Ferries

Yurika

McGill Family Trust - Arcadia Village

Maidment Development Group Pty Ltd Markwell Group Marsh Advantage Insurance Martin Locke Homes Pty Ltd McDonald’s Parcorp Group Mercure Townsville Minelec Pty Ltd Monte Carlo Motor Inn Morgans Financial Limited Museum of Tropical Queensland Nautilus Aviation - Colonial Leisure Group NGH Consulting Northern Conquest Charters Pty Ltd NPS Corporate Optimise Health & Wellness

LEVEL 1 AAA+ Financial Solutions AB & SJ Hinks T/A Aquascene Charters Absolute North Charters Adrenalin Snorkel and Dive Aquarius on the Beach Australian Airport Lighting Pty Ltd Australian Rural Leadership Foundation Beach House Motel Big Mama Sailing Billabong Sanctuary Brazier Motti Holdings Pty Ltd Breakwater Marina Bridgewater Restaurant Budd Photography

Campaign Edge

Menninger Capital MES SPV Pty Ltd (Mount Elliot Springs) Milupa Pty Ltd MM Consulting QLD Mungalla Aboriginal Corporation Murdering Point Winery NLW Group Pty Ltd Northern Realty NQ Cycle Journeys Oasis Lifestyle Village Pty Ltd Pilgrim Sailing Pty Ltd Pro Dive Magnetic Island Rambutan Raven Tours Regional Economic Advisory

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MEMBERSHIP Relationship Connections Pty Ltd

Crikey Trikey Joy Rides

Ruswin Locksmith & Security

Dolan Hayes

Hinchinbrook Chamber of Commerce Industry & Tourism Inc

Safety Hut Pty Ltd

Drive It NQ

Housing Industry Association

Selina Operation Magnetic Island Pty Ltd

Empower Pty Ltd

Sling & Stone

Grey and Grey

Mount Isa to Townsville Economic Development Zone Inc (MITEZ)

Solar Citizens

Hon Scott Stewart MP

St Patrick’s College Townsville Limited

Joseph O’Brien

Tan Lines Distilling

Magnetic Island Koala Hospital

Texas Longhorn Tours

Michael Spearman

TICS Group

National Trust of Australia

Townsvilel Gateway Holiday Park

Pinnacles Gallery

STAKEHOLDERS

Townsville Catholic Education

Q.I.T.E

Department Education

Townsville Helicopters

Queensland Resources Council

Department of Defence-Army

Townsville Jet Ski and Watercraft

Queensland Trucking Association

Townsville Motor Boat and Yacht Club Ltd

Resolute Legal

Department of Employment, Small Business and Training

Transbulk Logistics

S & S Group

Travel Associates

Scott Verrall

Tropical Palms Resort & 4WD hire

selectability

STRATEGIC - BRONZE

Wambiana Station

Steve Nielsen

HyNQ

Watermark Townsville

Tec-NQ

WIld Local

CONNECT - SMALL

Umbrella Studio

Woollam Constructions

GM Media

YWAM medical Ships

Yongala Dive

Sci Qual International Pty Ltd

Zephenias Healthcare Services

ASSOCIATE

RECIPROCAL

Cathedral School of St James & St Anne

Australian Festival Of Chamber Music

Ayr Chamber of Commerce Inc

Colin Harkness

Cleanaway

Commerce North West Inc

Charters Towers Chamber of Commerce and Mines Inc

Cootharinga North Queensland

Gulf Savannah Development Inc

Russell Boswell

Townsville Enterprise Annual Report 2022 - 2023

Regional Development Australia Townsville & North West Qld Inc The Home Hill Chamber of Commerce The North Queensland Club Townsville Chamber of Commerce

Department of Local Government Racing and Multicultural Affairs Department of Resources

COMMUNITY

FINANCIAL REPORT 22-23 Townsville Enterprise Limited

THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

Townsville Enterprise Annual Report 2022 - 2023

TOWNSVILLE ENTERPRISE LIMITED FINANCIAL REPORT 2022 | 2023 DIRECTORS REPORT The Directors of Townsville Enterprise Limited present their report together with the financial statements of the entity, for the year ended 30 June 2023 and the Independent Audit Report thereon.

DIRECTORS DETAILS The following persons were Directors of Townsville Enterprise Limited during the whole of the financial year and up to the date of this report unless otherwise stated.

Kevin Gill Jenny Hill Simon Biggs Joe Carey Ranee Crosby Kathy Danaher Jamie Fitzpatrick Michael Jones Moya Steele Peter Wheeler

Appointed 26/05/2008 Appointed 25/05/2012 Appointed 23/05/2022 Appointed 11/02/2011 Appointed 15/05/2014 Appointed 28/05/2019 Appointed 19/02/2020 Appointed 20/06/2018 Appointed 21/10/2015 Appointed 10/04/2021

PRINCIPLE ACTIVITIES The company’s principle continuing activities during the year consisted of the promotion of tourism and economic development in North Queensland.

REVIEW OF OPERATIONS Comments on the operations and the results of those operations are set out below: ▶ Operating revenue for the year ended 30 June 2023 $4,352,828 (2022: $12,938,984) ▶ Operating surplus/(deficit) for the year ended 30 June 2023 $142,303 (2022: $261,477)

DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS This financial year Townsville Enterprise was able to move focus and efforts away from the pandemic recovery into strategic projects and advocacy to support the region’s future growth and prosperity. Whilst skills shortages, housing challenges have dominated the conversation throughout the year, the region also experienced some exceptional outcomes with more than $7.49 billion in investment secured, record overnight visitor expenditure and the launch of the region’s first Regional Growth Plan.

This financial year Townsville Enterprise also undertook a community sentiment survey which saw 56% of the respondents aware of Townsville Enterprise and 62% of those believe the organisation was somewhat or very effective in the vision to secure the future of Townsville North Queensland.

ADVOCACY Advocacy remained at the core for the organisation in FY23.

As we welcomed a new Federal Government following the May election, we prepared for the first budget to be handed down. The October budget, saw the $5.4 billion commitment (made by the Morrison Government) to Hells Gates Dam not maintained by the Albanese Government.

During the election campaign we secured $130 million in commitments from the new Government for projects including NQ Spark, Lansdown Eco-Industrial Precinct and the continuing development of our green hydrogen industry.

Following years of virtual delegations, we returned to Canberra and Brisbane in person in March 2023. Together with our NQROC Mayors, we secured more than 30 meetings across the two delegations. Our delegations presented our Unlock the North document which highlights the region’s key priorities to secure its future.

March 7 marked a day in the history books for Townsville Enterprise. The State Government announced in Townsville it would own and build CopperString. This $5 billion transmission line is the enabling infrastructure needed to make North Queensland the green powerhouse of the future. CopperString was the result of a 10 year advocacy journey for Townsville Enterprise and the leaders of North and North West Queensland.

The Federal Government’s Houston Smith Review delivered in Defence investment for Townsville. Townsville Enterprise, together with Townsville City Council and Charters Towers Regional Council made a formal submission to the review in November. Outcomes of the review included the 16th Brigade will make Townsville its new home and Townsville will become an industry node for Boeing helicopters, which is something the organisation strongly advocated for. The review also saw the Federal Government commit $1.2 billion to RAAF Base Townsville and Lavarack Barrack upgrades.

The State Budget handed down in June saw $1 billion committed to CopperString from Queensland’s coal royalties.

We also saw the government commit to $440 million to the Burdekin Dam wall raising and important safety upgrades.

Future-proof water security still remains a key advocacy priority for the organisation. As well as enduring and sustainable solutions to labour force challenges and housing shortages. As we work with Government to see these commitments delivered to the region, we will continue to develop understanding and build relationships with the new Cabinet to ensure the success of our future advocacy campaigning.

Townsville Enterprise has returned a positive financial result, largely due to diversification of revenue generation and the finalisation of the Hells Gates Dam grant acquittal.

45 3

TOURISM AND EVENTS For the Tourism and Events industry, post COVID-19 recovery was well underway, with Overnight Visitor Expenditure recorded at $1 billion for the first time in history, hotel performance increased beyond 2019 results, Townsville Airport reporting the busiest May and June in history, and Sealink reporting the best June in more than 17 years.

The strong rebound of the visitor economy comes off back of the launch of the region’s new destination brand Townsville North Queensland – Up for Unexpected. After more than 12 months of consumer research analysing over 300,000 data points, the new brand was developed and launched by Townsville Enterprise on a national stage at the International Media Marketplace in Sydney. Following the launch, we welcomed the Today Show weather crosses to the region for week long coverage. More than $700,000 in marketing support was provided by Regional Councils, Tourism and Events Queensland and industry partners to deliver the region’s first $1 million marketing campaign – targeting key metropolitan routes in South East Queensland, Sydney, Melbourne and Adelaide and across regional Queensland. All marketing metrics demonstrated the four month campaign was hugely successful exceeding all benchmarks. The brand uplift study completed post launch demonstrated that destination awareness increased by 166% and 70% of audiences who were exposed to the campaign took some form of action towards booking a Townsville North Queensland holiday.

Across the year Townsville Enterprise also undertook several smaller campaigns including supporting the launch of BONZA airlines routes through a tactical campaign, Explore Next Door – encouraging Townsville locals to experience our regional neighbouring areas and the brand bridging campaign Nah Mate, This is Townsville North Queensland which saw 68% of audiences more positive about the destination and 61% taking action following exposure to the campaign creative.

Townsville Enterprise acknowledges its media partners, regional Councils, Townsville Airport and Tourism and Events Queensland for supporting all our marketing and campaign activities. It is through these partnerships Townsville Enterprise was able to further extend our marketing reach.

As well as providing direct benefit to our industry through campaign activity, Townsville Enterprise also completed the Magnetic Island Tourism Masterplan which has been well received across the industry and community.

Townsville Enterprise continued to support the region’s events calendar in the FY23 year, providing marketing and logistical assistance to several events including Women’s State of Origin, Queensland Reds, North Australia Festival of Arts, Magnetic Island Race Week, International Cricket, Day Trip Music Festival and more.

and awareness of the region was a strong focus for Townsville Enterprise. A partnership with the Queensland Regional Tourism Network and Tourism and Events Queensland saw Townsville Enterprise deliver a trade mentoring and coaching program for several operators across the region and resulted in the region having the largest number of internationally ready and commissionable product present at the 2023 Australia Tourism Exchange in more than a decade.

Industry Development remained an area of focus for Townsville Enterprise throughout the year, with a particular emphasis on building capacity within our operators. This saw Townsville Enterprise host the 2023 Tourism Futures Forum, support and facilitate both the Transformational Experiences Mentoring Program and launch the online self-paced Tourism Toolkit, a resource hub designed to help new tourism ventures find their way in the region.

REGIONAL DEVELOPMENT AND INVESTMENT ATTRACTION Investment attraction remained at the forefront of priorities for Townsville Enterprise in FY23. Across the year the organisation supported more than $865 million in private investment across all industry sectors.

In May 2023 Townsville Enterprise launched the region’s peak investment collateral “Opportunity Townsville North Queensland” in Brisbane at Parliament House. More than 100 investor, superfunds and government representatives in attendance at the event. The Critical Minerals Investment Prospectus was also launched within FY23, identifying key opportunities for the sector over the next decade.

In addition to our delegation and investment launch in Brisbane, Townsville Enterprise CEO attended an investment delegation in Korea where green energy and the emerging hydrogen industry was a key point of conversation.

With the pandemic behind us and a refocus on the opportunities for the region in the future, Townsville Enterprise, together with industry, launched the first industry-led Regional Growth Plan for Townsville North Queensland. This five-year plan is a blueprint across sectors and industries to ensure enabling investment, workforce, water, and housing planning is done holistically with a strategic focus. The plan was developed with AEC Group and more than 50 industry representatives and provides key economic insights into the region and projections for Gross Regional Product, population and employment growth with and without investments. The plan will be a living document that will be reviewed quarterly by Townsville Enterprise’s Economic Development Strategic Advisory Committee.

FY23 saw a continued and strengthened partnership with neighbouring regional tourism organisations in the Whitsundays, Mackay, Cairns and the Outback to deliver the Drive North Queensland campaign. This partnership saw trade show appearances in Brisbane, Sydney and Melbourne, and partnered with content creators to deliver tailored drive-focused imagery and video assets.

Acknowledging the region’s critical skills and workforce shortages, Townsville Enterprise continued to facilitate the Designated Area Migration Agreement (DAMA) for the region as the DAR (Designated Area Representative). The Townsville North Queensland DAMA is a formal agreement between the Australian Government and Townsville Enterprise.

It provides business owners who have exhausted local recruitment options access to overseas workers, providing a flexibility and responsiveness not available through the standard skilled migration programs. 28 applications were endorsed, and 13 labour agreements were undertaken.

Townsville North Queensland had a strong presence at several industry events this year including the Australian Tourism Exchange, Meeting Place, Trav Media Conference, Caravan and Camping Expos and DestinationQ. Increasing trade presence

Housing continues to be a challenge for Townsville North Queensland, with rental vacancies remaining below 1%.

To help to address this challenge, Townsville Enterprise in partnership with Townsville City Council undertook a

Townsville Enterprise Annual Report 2022 - 2023

workforce analysis which saw requirements for 40,000 additional jobs over the next decade and 67,000 by 2050. This prompted a Housing Demand Analysis which demonstrated that 1,574 dwelling would be required in Townsville City by 2026. A Housing Feasibility Study for the North Rail Yards was undertaken and identified this location as a prime position for 300 apartments in stage 1. National media engagement has seen interest from potential proponents awaiting the EOI process.

MEMBERSHIP, EVENTS AND BUSINESS DEVELOPMENT Membership has been front and centre of all activities conducted by Townsville Enterprise throughout the FY22-23 year. The Membership Survey returned an 8% increase in the positive Net Promoter Score (+20) on the previous year and outlined key areas of improvement for future years.

New and upgraded members increased this year by $162,745 and cancelled membership totalled $91,815. This led to an overall increase in membership revenue of $70,930. Total membership revenue for FY 22-23 was $980,916 (FY 21-22: $909,986).

Whilst Townsville Enterprise secured additional revenue streams through the FY22-23 year, the stability of Townsville Enterprise’s membership remains critical to our funding model and our ability to represent a consolidated business community to all levels of government.

Townsville Enterprise delivered a strong calendar of business events including the North Queensland Tourism & Events Awards, Townsville Enterprise Annual General Meeting & Christmas Function, the Queensland Energy and Jobs Plan event with the Queensland Premier, Tourism Futures Forum, Mining and Resources Industry Forum and Welcome Event, Unlock the Future of North Queensland

event held at Queensland Parliament and Budget events with the Treasurer and Shadow Treasurer. We also held multiple Member Mixers, networking events and Business Breakfasts. Over the financial year, Townsville Enterprise delivered 17 events which saw over 1750 attendees.

INVESTMENT STRATEGY In February 2023 the Board approved Townsville Enterprise Limited’s Statement of Investment Policy and Objectives.

This document outlines the objectives and principles for the Townsville Enterprise Limited Investment Fund (TIF).

The purpose of the TIF is to invest funds earned form the delivery of the Hells Gates Dam and Irrigation Scheme Business Case with a focus of leaving an enduring legacy of recurring cash income to be utilised to further Townsville Enterprise’s purpose in accordance with its constitution.

The total investment fund is $2.4 million which will be invested in stages in accordance with the policy.

HELLS GATES DAM BUSINESS CASE The $24 million Big Rocks Weir and Hells Gates Dam Business Case was managed by Townsville Enterprise and the final business case was submitted on 6 May 2022.

The final milestone payment from Government and closeout of the project with the two contracted parties (KPMG and SMEC) was finalised in FY 2023. This project is now finished.

CONSTITUTION Townsville Enterprise’s Constitution was over 30 years old. The Board resolved to have the Constitution reviewed and updated to reflect modern standards.

The new Constitution was approved by members at a Special General Meeting held 26 April 2023.

47 5

DIRECTORS REPORT The Directors of Townsville Enterprise Limited present their report together with the financial statements of the entity, for the year ended 30 June 2022 and the Independent Audit Report thereon.

KJ Gill

Director/Secretary – CGP Holdings Pty Ltd

B Com, CA, GAICD

Director/Secretary – CitiLink Precinct 1 Pty Ltd

Chairman 10 years 3 months

Director/Secretary – CitiLink Precinct 2 Pty Ltd

Director 15 years 1 month

Director/Secretary – Coorparoo Debenture Pty Ltd

Member – CopperString Reference Group

Director/Deputy Chairman – Cowboys Leagues Club Limited

Special Responsibilities Member – Finance Audit and Risk Committee

JL Hill

Director/Deputy Chairman – Cowboys Rugby League Football Club Limited Director – Dexat Holdings Pty Ltd Director – Endure Wealth Pty Ltd Director – Hinchinbrook Nominees Pty Ltd

BSc MPHTM, MAICD

Director – Strategic SMSF Pty Ltd

Deputy Chairman 11 years 1 month

Director – The Boardroom CFO Pty Ltd

Mayor – Townsville City Council

Director/Secretary – Wabbitz Pty Ltd

Member – Australian Institute of Company Directors

Director – Yomstar Holdings (Aust) Pty Ltd

Member – Australian Local Government Women’s Association

Director – Yomstar IP Pty Ltd

Board Member and Policy Executive Committee Member – Local Government Association of Queensland Member – North Queensland Regional Organisation of Councils

Special Responsibilities Chairman – Big Rocks Weir | Hells Gates Dam Project Leadership Group Director – Hells Gates Dam Irrigation Scheme Pty Ltd

Deputy Chair – Regional Queensland Council of Mayors Member – Smart Precinct NQ Limited

RL Crosby

Deputy Chair – TCC/Townsville Entertainment & Convention Centre Joint Venture Board

LLB, GAICD

Chairman – Townsville Local Disaster Management Group

Member – Minister’s Advisory Council on Defence Industry and Jobs Chief Executive Officer – Port of Townsville Limited

SR Biggs FREng FTSE Director 1 year 1 month Director – Advance Cairns Council Member – Australian Institute of Marine Science Vice-Chancellor and President – James Cook University

Director 9 years 1 month

Member – Queensland Ministerial Freight Council Chair – Queensland Ports Association Director – Ports Australia Special Responsibilities Chair – Economic Development Strategic Advisory Committee

Council Member – James Cook University

KT Danaher

Director/Chairman – James Cook University Singapore

B.Sci (Hons. Marine Biology, B.Bus (Accounting), Certified Practicing Accountant - CPA

Committee Member – Citizens of the Great Barrier Reef Advisory Board Member – ARC Centre of excellence for Enabling Eco-Efficient Beneficiation of Minerals Director – Smart Precinct NQ Limited

JW Carey

Director 4 years 1 month Vice Chairwoman/Director/Company Secretary/ Public Officer – Ark Energy Corporation Director – Ark Energy H2 Pty Ltd

Director 12 years 4 months

Director/Company Secretary/Public Officer – Ark Energy MacIntyre Pty Ltd Director/Company Secretary – Epuron Holdings Pty Ltd

Director – Bohle Developments Pty Ltd

Director/Company Secretary – Epuron Pty Ltd

Director – Carey Accountants Pty Ltd

Director/Company Secretary – Epuron Projects Pty Ltd

Director – Carey Financial Pty Ltd

Director/Company Secretary – Epuron Solar Pty Ltd

Director/Chairman – Carey Group of Companies

Director/Company Secretary – Bowmans Creek Wind Farm Pty Ltd

B. Com, CPA, Dip FP, GAICD

Director - Carey Group Properties Pty Ltd Director – Carey Group Pty Ltd Director – Carey Holdings (QLD) Pty Ltd

Director/Company Secretary – Rye Park Wind Farm Pty Ltd

Director – Carey Property Group No 2 Pty Ltd

Director – Fulcrum3D Pty Ltd

Director – Carey Property Group Pty Ltd

Director/Company Secretary – Bounder Creek Wind Farm Pty Ltd

Director – Carey Thomson Consulting Pty Ltd Director – Carsenish Nominees Pty Ltd

Townsville Enterprise Annual Report 2022 - 2023

Director/Company Secretary – Yulara Solar Pty Ltd Director/Company Secretary – Katherine Solar Pty Ltd

Director/Company Secretary – Uterne Power Plant Pty Ltd

MA Steele

Director/Company Secretary – TKLN Solar Pty Ltd

BA.LLB, MAICD

Director/Company Secretary – Lotus Creek Wind Farm Pty Ltd

Director 7 years 8 months

Director/Company Secretary – Specimen Hill Wind Farm Pty Ltd

Director – Steele Projects and Advisory Pty Ltd Director – MA Steele Pty Ltd

Director/Company Secretary – Burrendong Wind Farm Pty Ltd Director/Company Secretary – Chalumbin Wind Farm Pty Ltd Director/Company Secretary – Glue Factory Investments Pty Ltd ATF The Glue Factory Super Fund Special Responsibilities Chair – Finance Audit & Risk Committee

Director – MAASK Investments Pty Ltd Consultant – Keir Steele Waldon Lawyers Pty Ltd

P Wheeler Director 2 years 2 months Director – Colliers International (Townsville) Pty Ltd

J Fitzpatrick

Director – Welben Investments Pty Ltd

GAICD

Director – Benwel Pty Ltd, ATF The Peter Wheeler Family Trust

Director 3 year 6 months

Director – Caldwool Pty Ltd, ATF The Caldwool Unit Trust

Director/Secretary – Espyard Pty Ltd

Director – Stufrletch Pty Ltd, ATF The Sturfletch Unit Trust

Director/Secretary – FG Hospitality Pty Ltd

Director – 13 Martinez Avenue Pty Ltd, ATF 13 Martinez Unit Trust

Director/Secretary – Fitzpatrick Strand Property Pty Ltd Director/Secretary – JFNF Pty Ltd Director/Secretary – Kelaidan Pty Ltd

Group Chair – Salvation Army Red Shield Appeal | Townsville Region

Director/Secretary – Rockpool Hospitality Pty Ltd Director/Secretary – Rockpool Property Holdings Pty Ltd Director/Secretary – Strand Property Holdings Pty Ltd Director/Secretary – Strand Stays Pty Ltd

Committee Member – Australian Property Council | Townsville Committee Committee Member – Townsville Advisory Group | Salvation Army

Director/Secretary – Wahoo Hospitality Pty Ltd

Special Responsibilities Co-Chair – Membership Committee

Special Responsibilities Co-Chair – Membership Committee

MD Jones Director 5 years 1 month Chair – AFL Queensland – Townsville Advisory Board Director – Breakwater Island Limited Director – Centralian Car Wash Pty Director – Centralian Property Pty Ltd Sole Director/Secretary – Jonesy Pty Ltd, Acting for the Jones Family Trust Director – Ronald McDonald House Charity – North Australia Charter Special Responsibilities Chair – Tourism and Events Strategic Advisory Committee

49 7

MEETINGS OF DIRECTORS The number of meetings the Company’s Board of Directors (the Board) and of each Board Committee held during the year ended 30 June 2022, and the number of meetings attended by each Director were:

FULL MEETINGS OF DIRECTORS

MEETINGS OF FINANCE AUDIT & RISK COMMITTEE

A

B

A

B

Kevin Gill

7

7

7

7

Jenny Hill

6

7

-

-

Simon Biggs

5

7

-

-

Joe Carey

7

7

-

-

Ranee Crosby

7

7

-

-

Kathy Danaher

4

7

7

7

Jamie Fitzpatrick

6

7

-

-

Michael Jones

6

7

-

-

Moya Steele

5

7

-

-

Peter Wheeler

6

7

-

-

A = Number of meetings attended.

B = Number of meetings held during the time the Director held office or was a member of the Committee during the year.

DIRECTORS BENEFITS

CONTRIBUTIONS ON WINDING UP

Since the end of the previous financial year no Directors have received or become entitled to receive benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors), by reason of a contract made by the Company, or a related corporation with the Director or with a firm they are a member of, or a company in which they have a substantial financial interest to the financial statements.

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the entity.

INSURANCE OF OFFICERS During the financial year, Townsville Enterprise Limited paid a premium to insure the Directors and Secretaries of the Company. Under the arrangement the premium is unable to be disclosed.

The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any officer or auditor of the Company or any related body corporate against a liability incurred as an officer or auditor.

Townsville Enterprise Annual Report 2022 - 2023

ENVIRONMENTAL REGULATIONS No significant environmental regulations apply to the Company.

AUDITORS INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration, as required under section 307c of the Corporations Act 2001, is set out on the next page.

The Directors’ report is signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors

Kevin Gill | Director Townsville, 18/10/2023

AUDITOR’S INDEPENDENCE DECLARATION To the Directors of Townsville Enterprise Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit for Townsville Enterprise Limited, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023, there have been: 1.

No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

2.

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

Crowe Audit Australia

Tracey Mayhew | Partner Townsville, 18/10/2023

51 9

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023 NOTE

2023

2022

$

$

3,839,596

12,765,147

REVENUE AND OTHER INCOME Revenue

3

Other income

3

Total Revenue and other income

513,232

173,837

4,352,828

12,938,984

EXPENSES Employee benefits expense Other expenses

4

Travel

1,783,497

1,885,918

2,053,035

10,490,365

106,978

56,215

Finance costs

40,946

31,702

Administration

111,773

106,873

Depreciation and amortisation expense Total expenses

Surplus / (deficit) for the year attributable to the members of Townsville Enterprise Limited

114,296

106,434

4,210,525

12,677,507

142,303

261,477

Other comprehensive income

(15,162)

-

Total comprehensive income / (loss) for the year

127,141

261,477

This statement should be read in conjunction with the notes to the financial statements

Townsville Enterprise Annual Report 2022 - 2023

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023 NOTE

2023

2022

$

$

ASSETS Current Cash and cash equivalents

5

1,143,704

2,701,887

Trade and other receivables

6

52,812

3,639,036

Financial asset

14

2,405,305

-

Other assets

103,260

63,239

Current assets

3,705,081

6,404,163

324,397

364,146

-

2,503

Non-current Property, plant and equipment

7

Intangibles Right of Use asset

13

Non-current assets Total assets

534,907

603,957

859,304

970,606

4,564,385

7,374,769

127,031

2,944,607

83,847

51,408 151,234

LIABILITIES Current Trade and other payables

8

GST/PAYG payable Employee benefits

9

165,688

Lease liabilities

13

108,583

92,910

Other liabilities

10

432,000

546,582

917,149

3,786,738

9,527

14,894

Current liabilities

Non-current Employee benefits

9

Lease liabilities

13

468,022

530,590

477,549

545,484

Total liabilities

1,394,698

4,332,223

Net assets

3,169,687

3,042,546

735,000

510,725

Non-current liabilities

EQUITY Reserves

(15,162)

-

Retained surplus

Investment reserves

2,449,849

2,531,821

Total equity

3,169,687

3,042,546

This statement should be read in conjunction with the notes to the financial statements

11

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023

Balance at 1 July 2021

RESERVES

INVESTMENT RESERVES

RETAINED SURPLUS

TOTAL EQUITY

$

$

$

$

510,725

-

2,270,344

2,781,069

-

-

-

-

Transfers to/from reserves Surplus/(Deficit) for the year attributable to members

-

-

261,477

261,477

Balance at 30 June 2022

510,725

-

2,531,821

3,042,546

Balance at 1 July 2022

510,725

-

2,531,821

3,042,546

Transfers to/from reserves

224,275

-

(224,275)

-

Other comprehensive income

-

(15,162)

-

(15,162

Surplus/(Deficit) for the year attributable to members

-

-

142,303

142,303

735,000

(15,162)

2,449,849

3,169,687

Balance at 30 June 2023

This statement should be read in conjunction with the notes to the financial statements

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2023 NOTE

2023

2022

$

$

Receipts from members and customers

6,673,533

12,580,407

Receipt of grants

1,089,106

911,448

Payments to suppliers and employees

Operating Activities

(6,896,628)

(12,418,896)

Interest income

18,924

1,455

Net cash provided by operating activities

884,935

1,074,415

(19,827)

(335,033)

Investing activities Purchase of property, plant and equipment Cash used in investments Proceeds from sale of assets Net cash provided by / (used in) investing activities

(2,400,000)

-

13,636

91

(2,406,191)

(334,942)

Financing activities Net repayment of lease liabilities

(36,927)

(40,833)

Net cash from / (used in) financing activities

(36,927)

(40,833)

(1,558,183)

698,640

Net change in cash and cash equivalents Cash and cash equivalents, beginning of the year Cash and cash equivalents, end of year

5

This statement should be read in conjunction with the notes to the financial statements

Townsville Enterprise Annual Report 2022 - 2023

2,701,887

2,003,248

1,143,704

2,701,887

NOTES TO THE FINANCIAL STATEMENTS 1. GENERAL INFORMATION 1.1 BASIS OF PREPARATION These general purpose financial statements have been prepared in accordance with the Corporations Act 2001 and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB) and comply with other requirements of law.

The financial statements comprise the financial statements of Townsville Enterprise Limited (the Company).

For the purposes of preparing the financial statements, the Company is a not-for-profit entity.

Historical cost convention The financial statements have been prepared under the historical cost convention.

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 Company’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 the relevant accounting policies within Note 1 and are based on historical experience and on the various factors, including expectations of future events management believes to be reasonable under the circumstances.

1.2 STATEMENT OF COMPLIANCE The Company does not have ‘public accountability’ as defined by AASB 1053 Application of Tiers of Australian Accounting Standards and is therefore eligible to apply Tier 2 reporting framework under the Australian Accounting Standards.

The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those standards as modified by AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-For-Profit Tier 2 entities and the disclosure requirements in AASB 1060.

Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures.

1.3 INFORMATION ABOUT THE COMPANY Townsville Enterprise Limited is a not-for-profit company limited by guarantee, incorporated under the Corporations Act 2001.

The registered office and principal place of business is as follows: 151 Sturt Street, Townsville QLD 4810 Tel (07) 4726 2728

2. SIGNIFICANT ACCOUNTING POLICIES 2.1 REVENUE Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer.

Membership and Partnership Revenue Membership and Partnership revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income in respect to the period in which it relates. Amounts received in advance of the membership period are recognised in the Statement of Financial Position until the commencement of the membership period.

Grants Grant revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income when the Company satisfies the performance obligations stated within the funding agreements or Grant Deeds. If conditions are attached to the grant which must be satisfied before the Company is eligible to retain the contribution, the grant will be recognised in the Statement of Financial Position as a liability until these conditions are satisfied.

Income recognition from grants received by Townsville Enterprise Limited has been appropriately accounted for under AASB 1058 or AASB 15 based on the assessment performed.

Service Revenue Revenue arising from the rendering of a service is recognised upon the delivery of the service to the clients.

Other Revenue Other revenue (which includes campaign, event and project income) is recognised when it is received or when the right to receive the payment is established.

All revenue is stated net of the amount of goods and services tax (GST).

55 13

2.2 LEASE The company has a lease for the main office of Townsville Enterprise Limited at 151 Sturt Street. This lease is reflected on the balance sheet as a right of use and a lease liability in accordance with AASB 16.

The following table describes the nature of this lease as recognised on the balance sheet: Right of use asset

Term of lease

Extension Options term

Leave commencement date

Lease incentive

Office premises

7 years

5 years

1/10/2021

2 months rental

At lease commencement date the Company recognises a right-of-use assets and a lease liability. The right-ofuse asset is measured at cost and depreciated on a straight-line basis from the lease commencement date to the end of the lease term (including option period). The lease liability is measured at the present value. Subsequent to the initial measurement the liability will be reduced for payments made and increased for interest.

2.3 INCOME TAX The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

2.4 CURRENT AND NON-CURRENT CLASSIFICATIONS 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 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 equivalents 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 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.

2.5 CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and 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 insignificant risk of changes in value. Deposits with maturity dates greater than three months are considered investments.

On initial recognition investments are measured at fair value plus transaction costs and subsequently measured at amortised cost in accordance with AASB 9 Financial Instruments.

2.6 TRADE AND OTHER RECEIVABLES Trade and other receivables are measured at amortised cost, less any allowance for expected credit losses in accordance with AASB 9 Financial Instruments. Trade receivables are generally due for settlement within 30 days.

2.7 PROPERTY, PLANT AND EQUIPMENT Plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset/s.

Depreciation is calculated on a straight line or diminishing value basis to write off the net cost of each item of property, plant or equipment over their expected useful lives as follows: Leasehold Improvements Plant and Equipment Motor Vehicles

10-50% 5-20% 20-25%

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

Leasehold Improvements 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 or equipment is derecognised upon disposal, or when there is no future economic benefit to the Company. Gains and losses between the carrying amount and the disposal amount are distributed to the Statement of Profit or Loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

2.8 INTANGIBLE ASSETS AND SOFTWARE Intangible assets are initially recognised at cost. 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 assets. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption of useful life are accounted for prospectively by changing the amortisation method or period.

Significant costs associated with configuration and customisation of software are deferred and amortised on a straight line basis over the period of their expected benefit, being their finite life of three to five years.

Townsville Enterprise Annual Report 2022 - 2023

2.9 TRADE AND OTHER PAYABLES These amounts represent liabilities for goods and services provided to the Company 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.

2.10 EMPLOYEE BENEFITS Short term employee benefits Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date or where no right to defer settlement exists, are recognised in current liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Long-term employee benefits The liability for long service leave not expected to be settled within 12 months of the reporting date is recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as 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 recognised at the expected cash outflow when the liability is settled. Long term benefits are accounted for employees who have achieved seven years of service with the Company.

2.11 GOODS AND SERVICES TAX (GST) AND OTHER SIMILAR TAXES Revenues, expenses and assets are recognised net of the amount of associated GST, unless GST incurred is not recoverable from the Australian Tax Office (ATO). 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 ATO is included in other receivables or other payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from or payable to the ATO are presented as operating cash flows.

2.12 INVESTMENTS The entity classifies its financial assets in the following measurement category; Those to be measured subsequently at fair value (either through other comprehensive income (OCI) or through the Statement of Comprehensive Income).

For assets measured at fair value, gains and losses will either be recorded in the Statement of Comprehensive Income or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVTOCI).

3. REVENUE 2023

2022

$

$

138,963

126,314

Revenue Campaign & event income Partnership income

1,166,878

792,547

Membership income

980,916

909,986

Contra membership

289,716

221,413

Government grants

1,089,106

911,448

Sponsorship income

174,017

36,773

Project management income

-

9,766,667

3,839,596

12,765,147

18,924

1,455

Misc. staff income

4,732

2,457

Gain on disposal

13,636

91

Other income Interest

Marketing packages

-

10,365

Project income

295,221

102,032

Other income

180,719

57,437

513,232

173,837

4,352,828

12,938,984

57 15

4. OTHER EXPENSES 2023

2022

$

$

Audit and accounting expenses

16,805

14,030

Consultants and contractors

430,615

9,171,205

Facility expenses

77,343

208,299

Web development and maintenance expenses

18,128

5,873

Design printing and reproduction

54,573

14,347

Trade and exhibition

166,968

117,161

Sponsorship and membership expenses

60,005

88,854

Vehicle expenses

6,308

4,587

Advertising expenses

1,002,253

674,860

Employee related expenses

68,441

43,650

Entertainment expenses

8,103

7,460

Information technology expenses

84,358

134,148

Other expenses

59,135

5,892

2,053,035

10,490,365

2023

2022

$

$

5. CASH AND CASH EQUIVALENTS

Cash at bank and on hand Term deposit - QCCU Cash at bank - Hells Gates Credit cards - Balance owed Total cash and cash equivalents

1,161,185

254,362

-

398,680

-

2,055,905

(17,481)

(7,060)

1,143,704

2,701,887

2023

2022

$

$

6. TRADE AND OTHER RECEIVABLES

Current Trade receivables

50,539

3,639,036

Sundry debtors

1,544

-

Total current trade and other receivables

52,083

3,639,036

7. PROPERTY, PLANT AND EQUIPMENT LEASEHOLD IMPROVEMENTS

MOTOR VEHICLES

PLANT & EQUIPMENT

TOTAL

$

$

$

$

Assets at cost

257,618

69,508

289,984

617,110

Accumulated depreciation

(5,674)

(69,508)

(177,783)

(252,965)

Balance 30 June 2022

251,945

-

112,202

364,145

Assets at cost

263,000

34,754

302,641

600,396

Accumulated depreciation

(27,530)

(34,754)

(213,715)

(275,999)

Balance 30 June 2023

235,470

-

88,926

324,396

Townsville Enterprise Annual Report 2022 - 2023

Reconciliation of the written down value at the beginning and end of the current financial year is set out below.

Balance at 1 July 2022 Additions Cost of assets disposed Accumulated depreciation written back

LEASEHOLD IMPROVEMENTS

MOTOR VEHICLES

PLANT & EQUIPMENT

TOTAL

$

$

$

$

251,945

-

112,202

364,145

5,382

-

14,475

19,857

-

(34,574)

(1,818)

(36,392)

-

34,574

1,818

36,392

Depreciation

(21,856)

-

(37,750)

(59,606)

Balance 30 June 2023

235,470

-

88,926

324,396

8. TRADE AND OTHER PAYABLES 2023

2022

$

$

127,031

2,927,189

Current Trade payables Other creditors and accruals Total current trade and other payables

-

17,417

127,031

2,944,607

2023

2022

$

$

93,122

78,950

9. EMPLOYEE BENEFITS

Current Annual leave Long service leave

72,566

72,283

Total current employee benefits

165,688

151,234

Non-current Long service leave

9,527

14,894

Total non-current employee benefits

9,527

14,894

175,215

166,127

2023

2022

$

$

41,228

-

Total current and non-current employee benefits

10. OTHER LIABILITIES

Accrued expenses Contract liabilities

390,772

546,582

Total other liabilities

432,000

546,582

11. RELATED PARTY TRANSACTIONS Townsville Enterprise Limited’s related parties include its key management personnel and related entities as described below.

Townsville Enterprise Limited considers normal course of business transactions to include membership fees, lease payments and other low value payments that occur on normal commercial terms.

11.1 TRANSACTIONS WITH RELATED ENTITIES There were no transactions with related parties during the current and previous financial year outside of the normal course of business.10. Other liabilities

59 17

11.2 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL

Key management personnel compensation

2023

2022

$

$

652,522

624,719

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director of that entity is considered key management personnel. The Board of Directors of Townsville Enterprise Limited are designated key management personnel in accordance with the definition provided.

No Director receives remuneration for their role on the Board. Other management personnel for 2022/23 include Claudia Brumme-Smith (CEO), Tracey Holmes (Director Corporate Services) and Lisa Woolfe (Director Visitor Economy and Marketing) and Martin Gleeson (Director Regional Development and Investment commenced 9 February 2023).

12. CONTINGENCIES There are no contingent liabilities incurred by Townsville Enterprise Limited at 30 June 2022 and 30 June 2023.

13. LEASE COMMITMENTS 2023

2022

$

$

Cost

626,232

658,862

Accumulated depreciation

(91,326)

(54,905)

Net carrying amount

534,907

603,957

Opening net carrying amount

603,957

-

Additions/disposals

(16,864)

658,862

Amortisations

(52,186)

(54,905)

Closing net carrying amount

534,907

603,957

108,583

92,910

Lease liabilities

468,022

511,340

Bank guarantee

-

19,250

LEASE LIABILITIES Current Lease liabilities

Non Current

Total non-current liabilities

576,605

530,590

Total lease liabilities

567,605

623,500

Interest expense on lease liabilities

35,828

24,721

2023

2022

$

$

14. FINANCIAL ASSETS

Current Financial assets

2,405,304

-

Total financial assets

2,405,305

-

Townsville Enterprise Annual Report 2022 - 2023

15. AUDITOR REMUNERATION Fees paid to Townsville Enterprise’s contracted auditors for the period are as follows: COMPANY

DESCRIPTION OF SERVICE

$

Crowe Audit Australia

Interim Audit for year ended 30 June 2023

$5,800

Crowe Audit Australia

Final Fee in relation to Audit year ended 30 June 2022

$8,040

The audit fees quoted by Crowe Audit Australia relating to the 2022-2023 financial statements are $14,500 (2022: $14,740)

16. POST REPORTING DATE EVENTS No matters or circumstances have arisen since 30 June 2023 that has significantly affected, or may significantly affect, the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial years.

17. ECONOMIC DEPENDENCE Townsville Enterprise Limited is dependent upon the ongoing receipt of Local and State Government grants to ensure the ongoing continuance of its programs. At the date of this report, management has no reason to believe that this financial support will not continue.

61 19

DIRECTORS’ DECLARATION In the opinion of the Directors of Townsville Enterprise Limited: a) The financial statements and notes of Townsville Enterprise Limited are in accordance with the Corporations Act 2001, including: I. Giving a true and fair view of its financial position as at 30 June 2023 and of its performance for the financial year ended on that date; and II. Complying with Australian Accounting Simplified Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and b) There are reasonable grounds to believe that Townsville Enterprise Limited will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors

Kevin Gill | Director Townsville, 18/10/2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TOWNSVILLE ENTERPRISE LIMITED OPINION We have audited the financial report of Townsville Enterprise Limited (the Company), which comprises the statement of financial position as at 30 June 2023, the statement of comprehensive income, the statement of changes in equity and the 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 of the Company is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company’s financial position as at 30 June 2023 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards – Simplified Disclosures to the extent described in Note 1 and the Corporations Regulations 2001.

Townsville Enterprise Annual Report 2022 - 2023

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 auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the 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 as at the time of this auditor’s report.

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

RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL REPORT The directors of the Company are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the needs of the members and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related 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.

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 judgement 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 entity’s internal control. ▶ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by those charged with governance. ▶ Conclude on the appropriateness of those charged with governance’s 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 entity’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 the auditor’s report. However, future events or conditions may cause the entity 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 those charged with governance 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 the audit.

Crowe Audit Australia

Tracey Mayhew | Partner Townsville, 18/10/2023

63 21

TOWNSVILLE ENTERPRISE ABN: 58 053 020 536 151 Sturt Street PO Box 1043 Townsville Queensland, 4810 Australia Phone: Email:

+61 7 4726 2728 tel@tel.com.au

townsvilleenterprise.com.au