LAND DEVELOPMENT AGENCY
Objectives
The Land Development Agency, established by the Planning and Land Act 2002, will
commence on 1 July 2003. The object of this Act is to provide a planning and land system
that contributes to the orderly and sustainable development of the ACT, consistent with the
social, environmental and economic aspirations of the people of the ACT and in accordance
with sound financial principles.
The Land Development Agency has the following functions:

to develop land;

to carry out works for the development and enhancement of land; and

to carry out strategic or complex urban development projects.
The Land Development Agency may exercise its functions alone, through subsidiaries, joint
ventures or trusts or by holding shares in, or other securities of, corporations.
The Land Development Agency through its land development and land sales program
supports the Government’s vision of Canberra as a strong, confident and prosperous
community. The Agency will incorporate functions of the former Land Agency within Urban
Services, Kingston Foreshore Development Authority and the Gungahlin Development
Authority.
The Agency will work to ensure that the development and sale of ACT land is orderly, viable,
self-supporting and delivers significant beneficial economic, social and environmental
outcomes to the Territory. It will provide greater choice for home buyers in the ACT by
offering flexibility to those wanting to choose their own block and builder. The Agency will
apply due commercial rigour in the undertaking of its operations. The commercial objective
is to deliver a return to the Territory on its investment commensurate with relevant industry
benchmarks.
2003-04 Highlights
Strategic and operational issues to be pursued in 2003-04 include:

delivering a land release program that aims to provide for 3,394 dwellings consistent with
the englobo release framework, including 1,000 dwellings from redevelopment, through a
variety of mechanisms;

establishing the Land Development Agency;

developing land in the Government’s 2003-04 Land Release Program either
independently or through partnership with the private sector;

facilitating further commercial development in, and ongoing management of, the
Gungahlin Town Centre which will contribute to the level of amenity in the Town Centre
for the Gungahlin community;
2003-04 Budget Paper No.4
405
Land Development Agency

completing the public sector land development pilot project at Yerrabi stage 2; and

managing the development of the Kingston Foreshore area with due regard to the interests
of the community in which it operates and in accordance with Government directions. In
2003-04, a number of residential units will be sold, the servicing of sites and the
construction of the harbour will commence and the construction of the Eco-pond,
Common Parklands and Sewer Pumping Station will be completed.
Budgeted Financial Targets
Section 54 of the Financial Management Act 1996 (FMA) advises that Chief Executives are
responsible for achievement of financial results. For the purpose of Section 54 of the FMA,
key budgeted results are specified in the Budget Papers to improve accountability. An
outcome of the increased accountability will be the requirement for Chief Executives to
explain material variances from specified budgeted results.
In accordance with Section 54 of the FMA, following are the key budgeted results for the
Land Development Agency.

Operating Result ($99.520m surplus) – this measure focuses on the financial
performance of the Agency, and will measure its success in managing expenditure levels
within government funding and own-source revenue limitations.

Current Ratio (2.6 to 1) – the current ratio is an indication of the ability to fund short
term liabilities from short term assets. This ratio demonstrates that the Agency is able to
more than sufficiently cover its short term liabilities from short term assets.

Dividends to Government ($131.190m) – this measure focuses on the Agency’s ability to
provide an adequate return to the Territory.

Total Assets ($160.221m) – this measure focuses on the Agency’s ability to manage its
asset base including cash, receivables, investments, inventories and property, plant and
equipment.

Total Liabilities ($70.512m) – this measure focuses on maintaining prudent levels of
liabilities as required by Section 11 of the FMA. The majority of the Agency’s liabilities
relate to trade creditors, other creditors, ACT Government borrowings, employee
provisions, revenue received in advance and infrastructure liabilities, employee
provisions and creditors.
2003-04 Budget Paper No.4
406
Land Development Agency
Land Development Agency
Statement of Financial Performance
2002-03
Budget
$'000
2002-03
Est.Outcome
$'000
2003-04
Budget
$'000
Var
%
2004-05
Estimate
$'000
2005-06
Estimate
$'000
2006-07
Estimate
$'000
0
73
#
0
0
0
46
0
-100
0
0
0
674
2 763
1 938
5 942
188
115
1 506
0
1 546
0
1 546
0
98 992
0
185 067
0
87
-
126 632
8 938
138 610
12 432
116 164
8 736
102 475
193 020
88
137 076
152 588
126 446
1 971
316
4 581
295
14
1 470
36 656
1 030
2 813
496
5 329
235
931
22 353
61 343
0
43
57
16
-20
#
#
67
-100
2 813
514
3 040
172
580
30 975
22 586
0
2 851
532
2 819
172
23
38 793
41 883
0
2 533
498
2 568
73
0
23 052
42 309
0
Revenue
0
0
519
2 302
80 736
0
83 557
User Charges - Non ACT
Government
User Charges - ACT
Government
Interest
Revenue of Associates and
Joint Ventures
Other Revenue
Resources Received free of
charge
Total Ordinary Revenue
Expenses
1 836
324
4 816
120
25
0
34 300
100
Employee Expenses
Superannuation Expenses
Supplies and Services
Depreciation and Amortisation
Borrowing Costs
Cost of Goods Sold
Other Expenses
Expenses of Associates and
Joint Ventures
41 521
Total Ordinary Expenses
46 333
93 500
102
60 680
87 073
71 033
42 036
Operating Result
56 142
99 520
77
76 396
65 515
55 413
0
Increase/(Decrease) in asset
revaluation reserve
0
44 411
#
0
0
0
0
Change In Equity Other Than
Those Resulting From
Transactions With Owners
As Owners
0
44 411
#
0
0
0
0
Total Equity From Start of
Period
0
67 390
#
89 709
113 220
115 330
1 845
-1 125
99 996
2 978
0
6 600
61
100
-93
0
0
0
0
0
0
0
0
0
-89 468
-131 190
-47
-52 885
-63 405
-63 705
67 390
89 709
33
113 220
115 330
107 038
1 845
0
78 506
-54 151
68 236
Capital Injections
Distributions to Government
Inc/Dec in Net Assets from
Admin Restructure
Dividend Declared
Total Equity At The End of
Period
2003-04 Budget Paper No.4
407
Land Development Agency
Land Development Agency
Statement of Financial Position
Budget
as at 30/6/03
$'000
Est.Outcome
Planned
as at 30/6/03 as at 30/6/04
$'000
$'000
Planned
Planned
Planned
Var as at 30/6/05 as at 30/6/06 as at 30/6/07
%
$'000
$'000
$'000
Current Assets
923
25 174
3 199
5 200
0
34 496
Cash
Receivables
Investments
Inventories
Other
Total Current Assets
594
16 768
1 847
6 547
31
2
32
17
59
28
600
078
400
788
456
338
91
842
813
#
2
27
17
63
8
600
881
400
772
920
2
24
17
65
6
600
802
400
594
015
2
22
17
61
5
600
003
400
195
592
25 787
140 322
444
120 573
116 411
108 790
41 051
0
5 105
26
10 281
8 940
678
0
-75
#
-87
-100
3 551
9 512
505
0
51
12 410
333
0
51
9 837
260
0
Non Current Assets
37 565
500
4 769
0
Receivables
Inventories
Property, Plant and Equipment
Capital Works in Progress
42 834
Total Non Current Assets
46 182
19 899
-57
13 568
12 794
10 148
77 330
TOTAL ASSETS
71 969
160 221
123
134 141
129 205
118 938
790
0
168
469
0
2 693
13 517
12 000
0
464
0
28 805
#
#
-100
-1
970
3 231
1 421
0
462
0
9 269
5 201
0
0
461
0
6 364
3 844
0
0
461
0
5 941
4 120
54 786
1 230
14 383
12 026
10 246
Current Liabilities
6 353
0
0
324
104
1 400
8 181
Payables
Interest Bearing Liabilities
Finance Leases
Employee Benefits
Other Provisions
Other
Total Current Liabilities
Non Current Liabilities
0
500
0
413
Payables
Interest Bearing Liabilities
Finance Leases
Employee Benefits
0
0
11
448
13 676
1 421
0
629
#
#
-100
40
5 896
0
0
642
1 196
0
0
653
1 000
0
0
654
913
Total Non Current Liabilities
459
15 726
#
6 538
1 849
1 654
4 579
70 512
#
20 921
13 875
11 900
67 390
89 709
33
113 220
115 330
107 038
67 390
0
45 298
44 411
-33
#
68 809
44 411
70 919
44 411
62 627
44 411
67 390
89 709
33
113 220
115 330
107 038
9 094
68 236
TOTAL LIABILITIES
NET ASSETS
REPRESENTED BY FUNDS
EMPLOYED
68 236
0
68 236
Accumulated Funds
Reserves
TOTAL FUNDS
EMPLOYED
2003-04 Budget Paper No.4
408
Land Development Agency
Land Development Agency
Statement of Cashflows
2002-03
Budget
$'000
2002-03
Est.Outcome
$'000
2003-04
Budget
$'000
Var
%
2004-05
Estimate
$'000
2005-06
Estimate
$'000
2006-07
Estimate
$'000
CASH FLOWS FROM
OPERATING ACTIVITIES
Receipts
0
597
58 745
User Charges
Interest Received
Other Revenue
49
858
100 856
67
1 938
194 894
37
126
93
0
1 506
122 080
0
1 546
139 460
0
1 546
116 228
59 342
Operating Receipts
101 763
196 899
93
123 586
141 006
117 774
2 137
5 256
3 230
5 186
51
-1
3 312
2 960
3 341
2 700
2 998
2 449
14
7 772
931
51 425
#
562
580
51 849
23
70 115
0
48 623
Operating Payments
15 179
60 772
300
58 701
76 179
54 070
NET CASH
INFLOW/(OUTFLOW)
FROM OPERATING
ACTIVITIES
86 584
136 127
57
64 885
64 827
63 704
22
4 462
#
0
0
0
22
4 462
#
0
0
0
3 665
13 178
260
0
0
0
3 665
13 178
260
0
0
0
-3 643
-8 716
-139
0
0
0
1 845
2 978
61
0
0
0
10
18 478
0
18 435
-100
..
0
0
0
0
0
0
20 333
21 413
5
0
0
0
Payments
2 180
4 316
25
572
7 093
52 249
Related to Employees
Related to Supplies and
Services
Borrowing Costs
Other
CASH FLOWS FROM
INVESTING ACTIVITIES
Receipts
101
101
Proceeds from Sale of
Property, Plant & Equipment
Investing Receipts
Payments
1 845
1 845
-1 744
Purchase of Property, Plant
and Equipment
Investing Payments
NET CASH
INFLOW/(OUTFLOW)
FROM INVESTING
ACTIVITIES
CASH FLOWS FROM
FINANCING ACTIVITIES
Receipts
1 845
0
6 132
7 977
Capital Injection from
Government
Borrowings Received
Receipt of Transferred Cash
Balances
Financing Receipts
2003-04 Budget Paper No.4
409
Land Development Agency
Land Development Agency
Statement of Cashflows
2002-03
Budget
$'000
2002-03
Est.Outcome
$'000
2003-04
Budget
$'000
Var
%
2004-05
Estimate
$'000
2005-06
Estimate
$'000
2006-07
Estimate
$'000
1 125
96 668
10
30
3 000
0
131 265
0
0
0
-100
36
-100
-100
-100
0
52 885
12 000
0
0
0
63 406
1 421
0
0
0
63 704
0
0
0
Financing Payments
100 833
131 265
30
64 885
64 827
63 704
NET CASH
INFLOW/(OUTFLOW)
FROM FINANCING
ACTIVITIES
-80 500
-109 852
-36
-64 885
-64 827
-63 704
Payments
0
54 151
0
209
0
54 360
-46 383
Distributions to Government
Dividends to Government
Repayment of Borrowings
Repayment of Finance Lease
Payments of Transferred Cash
Balances
4 122
NET
INCREASE/(DECREASE)
IN CASH HELD
2 441
17 559
619
0
0
0
0
CASH AT BEGINNING OF
REPORTING PERIOD
0
2 441
#
20 000
20 000
20 000
2 441
20 000
719
20 000
20 000
20 000
4 122
CASH AT THE END OF
THE REPORTING
PERIOD
Notes to the Budget Statements
The Land Development Agency will commence operations on 1 July 2003. The Agency
comprises the land development and land sale functions of the former Land Agency, the
functions of the former Kingston Foreshore Development Authority (KFDA) and the former
Gungahlin Development Authority (GDA). The estimated outcome for 2002-03 is the
outcome of the former Land agency, however, the budget for 2003-04 is that of the Land
Development Agency. The significant variations are due to the incorporation of the three
entities into the Land Development Agency.
Significant variations are as follows:
Statement of Financial Performance

user charges – ACT Government: the increase of $0.046m in the 2002-03 estimated
outcome from the original budget reflects rent from Totalcare for their accommodation in
Fyshwick. In June 2002, the property was transferred from Totalcare for sale by auction
later in the year. Pending sale of the property, Totalcare pays rent net of expenses to the
Land Agency. This was not anticipated at budget time;

interest: the increase of $0.155m in the 2002-03 estimated outcome from the original
budget is due to investment of receipts from higher than anticipated land sales;

revenue of associates and joint ventures: the increase of $0.461m in the 2002-03
estimated outcome from the original budget results from the sale of land through joint
2003-04 Budget Paper No.4
410
Land Development Agency
ventures which achieved higher than predicted sale prices not anticipated during budget
preparation;

other revenue: the increase of $18.256m in the 2002-03 estimated outcome from the
original budget is due mainly to higher than predicted sale prices at auctions. The
increased infrastructure revenue has a corresponding effect on ‘other expenses’ below;

employee expenses: the increase of $0.135m in the 2002-03 estimated outcome from the
original budget is due to wage increases;

supplies and services: the decrease of $0.235m in the 2002-03 estimated outcome from
the original budget relates to the re-classification of some of these expenses from ‘cost of
goods sold’;

depreciation and amortisation: the increase of $0.175m in the 2002-03 estimated
outcome from the original budget is due mainly to depreciation of Gold Creek Country
Club asset;

cost of goods sold: the increase of $1.470m in the 2002-03 estimated outcome from the
original budget reflects the expenses of the Gold Creek Country Club and from the
preparation of additional land to replace those withdrawn from the land release program.
This is slightly offset by the re-classification of expenses from supplies and services
referred to previously;

other expenses: the increase of $2.356m in the 2002-03 estimated outcome from the
original budget is due mainly to increased infrastructure transfer expenses resulting from
the completion of infrastructure in response to the increased demand for land; and

expenses of joint ventures: the increase of $0.930m in the 2002-03 estimated outcome
from the original budget reflects the expensing of work in progress and the costs for the
wind down of all joint ventures in 2002-03.
Statement of Financial Position

current assets: the decrease of $8.709m in the 2002-03 estimated outcome from the
original budget mainly reflects the reduction in receivables as much of the land originally
designated for the June 2003 auction was brought forward to March 2003;

non current assets: the increase of $3.348m in the 2002-03 estimated outcome from the
original budget reflects the receivables from land rental debtors being higher than
anticipated when the budget was originally prepared;

current liabilities: the decrease of $4.061m in the 2002-03 estimated outcome from the
original budget is due mainly to overestimation of payables at the time of preparation of
the budget; and

non current liabilities: the decrease of $0.454m in the 2002-03 estimated outcome from
the original budget mainly reflects a loan for a joint venture which did not eventuate.
2003-04 Budget Paper No.4
411
Land Development Agency
Statement of Cashflows

the decrease of $1.899m in cash flows from investing activities in the 2002-03 estimated
outcome from the original budget mainly reflects the increased payments for capital
works related to land sales, works in progress and the fitout of office accommodation in
Dame Pattie Menzies building; and

the decrease of $34.117m in cash flows from financing activities in the 2002-03 estimated
outcome from the original budget reflects the transfer of $3.0m of cash balance held as
working capital for the Property unit transferred from Land Agency as a result of an
Administrative Arrangement Order at the start of the year and the increase in dividends to
Government from the higher than predicted land revenue, offset by increased capital
distributions for the final repayment of capital from the Dunlop 1 Joint Venture.
2003-04 Budget Paper No.4
412
Land Development Agency
Capital Works
Departmental
Estimated
Total Cost
Estimated
Expenditure
2003-04
$’000
2003-04
Financing
$’000
Expenditure
previous
years
$’000
Expected
completion
date
1 000
0
1 000
1 000
June 2004
800
0
800
800
June 2004
1 200
0
1 200
1 200
June 2004
200
0
200
200
June 2004
Valley Ave Extension Stage 2
2 100
0
2 100
2 100
June 2004
Homemakers Precinct Stage 2
1 900
0
1 900
1 900
June 2004
Gungaderra Catchment Infrastructure
Stage 1
3 000
0
3 000
3 000
June 2004
10 200
0
10 200
10 200
3 800
822
2 978
2 978
3 800
822
2 978
2 978
14 000
822
13 178
13 178
$’000
New Capital Works
Belconnen Section 87 water main &
gross pollutant trap
Phillip Parramatta Street Extension
Belconnen Lathlain Street Extension
and Intersection
Minor new works –general site
preparation
Total New Capital Works1
Works in Progress:
Anthony Rolfe Avenue2 extension
(stage 3)
Total Works In Progress3
Total Departmental Capital Works
June 2004
Notes:
(1)
(2)
(3)
The capital works have been approved as part of the Capital Works Program and will be funded by the Land Development
Agency from its own source revenue.
GDA originally had funding of $3.8m approved in 2002-03 for the extension of Anthony Rolfe Avenue (stage 3) to be completed
in 2003-04.
Capital works for KFDA were previously agreed by Government and not included in the program above. KFDA will spend $19m
on commencing the construction of a harbour and completing the construction of the Eco Pond, Common Parklands and Sewer
Pumping Station in Kingston.
2003-04 Budget Paper No.4
413
Land Development Agency
2003-04 Discontinued Output Class and Output
OUTPUT CLASS 1: LAND
PRINCIPAL MEASURES
OUTPUT 1.1: LAND
Description:
To ensure sustainable land use and sale of land for the best return to the community.
Measures
Quantity
Land
Number of residential units and commercial blocks sold 1
Number of Land Rental Properties managed
Preparation of a Land Release Strategy
Quality/Effectiveness
The average cash return on greenfields sales is greater than
Government funded physical infrastructure costs per block
Timeliness
Achievement of the published land release program 1
Land release through auction
Cost
Profit Margin
TOTAL COST ($’000) 2
2002-03
Targets
2002-03
Estimated
Outcome
2003-04
Targets
985
425
1
802
399
1
-
>1
>1
-
100%
At least once
every
quarter
93%
Four
times/year
-
>15%
$41 521.0
55%
$46 333.0
-
This output will cease due to the creation of the Land Development Agency (LDA) from the former Land agency, the Gungahlin
Development Authority (GDA) and the Kingston Foreshore Development Authority (KFDA), due to commence operations on
1 July 2003.
Notes:
(1)
(2)
In 2002-03 the estimated outcome is lower than target due to the need to balance the over-budget increase in land release by the GDA
and the fact that North Watson and East O’Malley were deferred to 2003-04.
Increased costs reflect increased asset transfers due to the completion of infrastructure to meet increased demand.
2003-04 Budget Paper No.4
414
Land Development Agency