www.racingaustralia.horse ANNUAL REPORT 2022 Financial Year Ended 30 June 2022
RACING AUSTRALIA ANNUAL REPORT 2022 1 CONTENTS VISION • To be Australia’s favourite sport • To conduct the world’s best races • To be the world’s leading Thoroughbred Racing Industry CORE FUNCTIONS • National Rules • National Integrity • National and International Advocacy • National Coordination • National Research and Analysis • Identify and Maximise Best Practice • National Efficiency/Back Office • Recognise and reward excellence in the industry • Communicate our role • Seek to identify emerging issues including Animal Welfare and provide leadership via a common policy approach including minimum standards CORE OBJECTIVE • Leverage existing assets further and identify new commercial opportunities Inside Cover: No Compromise winner of the Group 3 Queen’s Cup, held on 2022 Golden Slipper Day, March 19, at Rosehill Gardens. (Photo courtesy of www.bradleyphotos.com.au). Cover images: Main: Photo courtesy of Racing Photos. Lower Left: Photo courtesy of Rosemont Stud. Lower Right: Yarraman Park Stud. Board of Directors 2 About Racing Australia 4 Our Shareholders 5 Chief Executive Officer’s Report 6 Owner and Breeder Services Report 8 Equine Genetics Research Centre Report 10 Welfare And Traceability Report 12 Operations And Service Standards 14 Events – Stud And Stable Staff Awards 18 Events – Australian Racehorse of the Year Awards 20 Financial Report Directors’ Report 25 Auditor’s Independence Declaration 29 Statement of Profit or Loss and Other Comprehensive Income 30 Statement of Financial Position 31 Statement of Changes of Equity 32 Statement of Cash Flows 33 Notes to the Financial Statements 34 Director’s Declaration 46 Independent Auditor’s Report 47
2 RACING AUSTRALIA ANNUAL REPORT 2022 BOARD OF DIRECTORS GREG NICHOLS Racing Victoria Nominated Director Appointed: 31/12/2016 Current positions • Director, Racing Victoria • Director & Principal, Vision Racing & Sport • Director, International Federation of Horseracing Authorities • Vice Chairman, Asian Racing Federation • Member, International Race Planning Committee • Member, Asian Pattern Committee • Member, Australian Pattern Committee Previous positions • Chairman, Racing Australia • Managing Director, Sporting Affairs, Betfair Group Limited • Chairman & Non-Executive Director, Timeform • Non-Executive Director, Betfair Australasia • Chief Executive & Executive Director, British Horseracing Board • General Manager – Industry Racing, Racing Victoria • Chief Executive, South Australian Thoroughbred Racing Authority Alternate Director – Brian Kruger Appointed: 17/06/2022 Current positions • Director, Racing Queensland (Thoroughbred Representative). • Director, Infrastructure Australia. • Director, Graham Quirk Auctions P/L. • Chairman, Lockyer Valley /Somerset Water Collaborative. • Chief Executive Officer, Grace Education and Migration Services. • Proprietor, Peak Plains Thoroughbreds. Previous positions • Lord Mayor of Brisbane 2011-2019. • Chairman Council of Mayors (South East Queensland). • Oversaw the Pre Feasibility and Full Feasibility Studies for the 2032 Olympic and Paralympic Games from 2015-2019. • Elected Representative Brisbane City Council 1985-2019. Alternate Director – Brendan Parnell GRAHAM QUIRK Racing Queensland Nominated Director RUSSELL BALDING AO Racing NSW Nominated Director Appointed: 01/01/2017 Current positions • Chairman, Racing NSW • Deputy Chairman of Destination NSW • Director, The Trust Company (Sydney Airport Ltd) Previous positions • Deputy Chairman, Racing Australia • Chairman of Cabcharge Australia Limited • Director, ComfortDelGro Cabcharge Pty Ltd • Director, CityFleet Networks Ltd (UK) • Chairman of the Visitor Economy Taskforce • Chief Executive Officer of the Sydney Airport Corporation • Managing Director of the Australian Broadcasting Corporation (ABC) • Director of Funding and Support Services and CFO of the Australian Broadcasting Corporation (ABC) • Director of Finance at the NSW Roads and Traffic Authority Awarded Officer of the Order of Australia in 2007 for service to the Australian broadcasting industry, particularly through initiatives in the areas of service delivery, advanced technology and financial management, and to the accounting profession through CPA Australia. Alternate Director – Peter V’landys AM
RACING AUSTRALIA ANNUAL REPORT 2022 3 ROB RORRISON Racing SA Nominated Director Appointed: 30/04/2021 Current positions • Executive Chairman, Climate Capital Pty Ltd • Senior Advisor, Taylor Collison Limited • Non-Executive Director, Baiyin International Investments Limited • Chairman, Racing SA Limited Previous positions • Chairman Resources Asia, Macquarie Capital Limited • Executive Director, Macquarie Capital Limited • Non-Executive Director, Banro Corporation Limited • Chairman, Twenty Seven Co. Limited Background in Corporate Finance and held a number of Australian and international private and public company Board positions. Alternate Director – Nick Redin COLIN HOLT Racing and Wagering Western Australia Nominated Director Appointed: 21/04/2022 Current positions • Director, Racing & Wagering Western Australia. • Deputy Chairperson, Western Australian Voluntary Assisted Dying Board. • Foundation Partner ARID, Improving Regional Communities, Industries & Leadership. Previous positions • Parliamentary Secretary, Minister for Regional Development, Water, Forestry, Sport & Recreation. • Member of the WA Legislative Council for the Southwest from 2009 to 2021. • Former State Government Minister & Racing and Gaming. Colin is a Bachelor of Science (Zoology) Graduate from the University of Western Australia, and a Graduate of the Australian Institute of Company Directors. Colin is driven to continue using his knowledge, work background and parliamentary service to contribute to the people and society of Western Australia. Colin lives and raised a family in country WA and he has worked in every region of the state. He has worked across Australia and established wide-ranging networks in community, business and political arenas. Alternate Director – Ian Edwards ROBYN WHISHAW Tasracing, Canberra Racing Club and Thoroughbred Racing NT Nominated Director Appointed: 21/06/2021 Current positions • Non-Executive Director (Thoroughbred), Tasracing • Director, Armidale Pty Ltd • Member, Tasmanian Turf Club • Life Member, Thoroughbred Breeders Tasmania • Member, Tasmanian Racehorse Owners Association Previous positions • Chair, Tasmanian Thoroughbred Advisory Network • Director, Scotch Oakburn College • Member, Tasmanian Racing Industry Working Group Alternate Director – Andrew Jenkins
4 RACING AUSTRALIA ANNUAL REPORT 2022 ABOUT RACING AUSTRALIA RACING AUSTRALIA LIMITED – THE COMPANY Racing Australia (RA) is the national body comprising Australia’s eight State and Territory Principal Racing Authorities (PRAs) which regulate the Thoroughbred racing and breeding industry. Racing NSW racingnsw.com.au Racing Victoria racingvictoria.com.au Racing Queensland racingqueensland.com.au Racing & Wagering Western Australia rwwa.com.au Racing SA racingsa.com.au Tasracing tasracing.com.au Canberra Racing Club thoroughbredpark.com.au Thoroughbred Racing NT trnt.org.au Our industry is one of the iconic industries of the nation with a long and proud history of achievement. As an industry, our economic contribution is around $9.5 billion with 51 per cent (or $4.8 billion) of economic activity generated in regional Australia. We provide jobs for approximately 75,000 Australians and nearly 160,000 participate in the Thoroughbred racing industry as a participant, employee or volunteer – 63 per cent of whom reside in regional areas. This includes 21,425 volunteers who assist and support racing clubs and participants. No industry or sport covers the breadth of our nation like Thoroughbred Racing. Racing Information Services Australia Pty Ltd (RISA) purchased the assets of the Australian Stud Book (ASB) in September 2014. Subsequently on 13 April 2015, RISA along with its assets merged with the Australian Racing Board (ARB) to form one entity named Racing Australia Pty Ltd. On 18 September 2015, Racing Australia Pty Ltd ultimately converted from a proprietary company to a public company named Racing Australia Limited. The primary objective for which Racing Australia was established is for the encouragement and promotion of horse races, by, amongst other things: a) e stablishing and conducting a national consolidated Racing Materials and information services business to service the Australian horse racing industry and other users of horse Racing Materials, including: 1. developing a consolidated national uniform and standard system for the collection, processing, storage, dissemination and protection of Racing Materials; 2. establishing and maintaining participation in such a consolidated national uniform and standard Racing Materials system by the Principal Racing Authorities and all others integral to the successful conduct of such system; and 3. developing procedures to maximise the integrity, and minimise duplication on and data cleansing costs, with respect to all Racing Materials collected, processed and disseminated in the conduct of such a system; b) a dopting, administering and altering the Australian Rules of Racing and the Rules of the Australian Stud Book; c) e nsuring the integrity of Thoroughbred breeding in Australia including by maintaining the officially published records of Thoroughbred bloodlines in Australia in the form of the Australian Stud Book complemented by the Australian Rules of Racing; d) m aintaining information regarding the ownership and identity of Thoroughbred racehorses for racing in Australia and for export including by acting as the Registrar of Racehorses complemented by the Australian Rules of Racing; e) to conduct an efficient low-cost operation; f ) t he allocation of surplus funds by way of grants, subventions, subsidies or other financial assistance to the Principal Racing Authorities in accordance with the principles of allocation set out in the Constitution for the purposes of encouraging and promoting horse racing in each of the states and territories of Australia under the control of the various Principal Racing Authorities.
RACING AUSTRALIA ANNUAL REPORT 2022 5 Racing Australia offices 35% 35% 1% 1% 1% 4.5% 4.5% 18% Sydney Scone (Equine Genetics Research Centre) Melbourne OUR SHAREHOLDERS Shareholder Breakdown % RACING AUSTRALIA OPERATIONS • R acing Australia regulates the Australian Thoroughbred Breeding and Racing Industry by the administration and amending of the Australian Rules of Racing and the Rules of the Australian Stud Book in adherence to world's best practice standards of integrity and animal welfare. • R acing Australia provides services to the Thoroughbred Industry and the broader Australia Horse Community via the Equine Genetics Research Centre that has three main pillars: genetic testing, integrity services, and research and development. • R acing Australia is a Software and Service company building and hosting in a private cloud the Single National System for the Australian Thoroughbred Racing Industry. Every core transaction of the industry on a national basis is now powered by the Single National System. • R acing Australia is a Bureau Services company delivering over the top of the Single National System a diverse range of services which fully manage the processing and management of industry functions. • R acing Australia is a content management and licencing company via the compilation of content, provision of systems to manage the content and the Copyright Licencing and Supply of Racing and Breeding Materials content.
6 RACING AUSTRALIA ANNUAL REPORT 2022 COVID-19 Pandemic The Racing and Breeding Industry, along with the Racing Australia team, was confronted with the challenges associated with the global COVID-19 pandemic and its impact on our professional and personal lives in 2021/2022. Throughout the year, Racing Australia’s focus has continued to be: • To keep racing and breeding going. • To maintain employment within our industry of up to 75,000 full time positions. • To ensure Equine Welfare retained prominence. Through extended periods of lock down and significant disruption, the Racing Australia team delivered on the above by continuing to ensure uninterrupted services to the Australian Racing and Breeding industry nationally. Financial Results The 30 June 2022 consolidated result inclusive of depreciation, amortisation and impairment expense was a surplus of $2,184,399 compared to a deficit of ($264,168) the previous financial year 30 June 2021. Exclusive of depreciation, amortisation and impairment expense (and non-repayable grants - 30 June 2021 only) the consolidated result for 30 June 2022 was $5,653,819 versus $5,681,743 for the 30 June 2021 financial year. Overall consolidated revenue of $16,544,475 for the financial year 30 June 2022 increased by $162,089 versus consolidated revenue of $16,382,386 for the 30 June 2021 financial year. Overall exclusive consolidated expenses of $10,891,157 increased by $190,514 versus the consolidated expenses of $10,700,643 for the 30 June 2021 financial year. The impairment of the Jockey Helmets increased from ($562,500) for 30 June 2021 to ($1,500,000) for 30 June 2022, the net movement being an impairment expense of $937,500 for the 30 June 2022 financial year. Cash reserves increased from $8.342 million at 30 June 2021 to $10.495 million at 30 June 2022. Operational Ongoing investment and development of Racing Australia’s Single National System continued with a focus on supporting and enhancing the operations and priorities of the industry. This included the release of enhanced Traceability and Reporting tools, developed in conjunction with the Equine Welfare teams of the Principal Racing Authorities, to support the significant investment being made nationally on traceability and equine welfare. On behalf of the industry, Racing Australia played a leading role in consultation with government in the response to the outbreak of Japanese Encephalitis (JE) and education of the industry via the development and launch of a national JE information portal. The ongoing enhancement and expansion of Racing Australia’s Bureau Services to the industry continued with the extension, and additions, of service agreements. Amendments to Australian Rules of Racing Throughout the year the Australian Rules of Racing were amended to strengthen integrity. Some highlights include: CHIEF EXECUTIVE OFFICER’S REPORT The Racing Australia Board has committed to ensuring the company is appropriately resourced to support the Principal Racing Authorities and the wider Industry to grow thoroughbred breeding and racing.
RACING AUSTRALIA ANNUAL REPORT 2022 7 TOR Rule 6 Ownership restrictions on persons the subject of an Enforcement Action Application Racing Australia has approved amendments to the Trainer and Owner Reform (TOR) Rule 6, such that where a defaulting owner is the subject of a current Enforcement Action Application (EAA), he or she will be prohibited from entering the ownership of any other horse. Only once the EAA is lifted (i.e.by payment of the training debt or through agreement with the trainer) will such an owner be permitted to acquire and register ownership interests in other horses. AR 99 Disqualification of Wrong Horse Which Competed in Race or Trial Under AR 234, PRAs/Stewards may disqualify a horse entered or run in any race under a fraudulently false description or in connection with any other improper or dishonourable action or practice. This rule was designed to deal with matters which generally, involve an element of misconduct. However, there is no rule which expressly provides for disqualification where the wrong horse competes and misconduct is not present, such as the wrong horse running as a result of trainer error. Recent cases have highlighted that such offences would be better dealt with under a specific rule, rather than relying on AR 234. Racing Australia has also introduced a specific rule – AR 99(2) – which gives PRAs/Stewards the express power to disqualify the wrong horse which competed in a race or official trial (for example, due to neglect or carelessness). Under the rule, there is no need to establish that the wrong horse competing was the result of fraudulent or improper practice or dishonourable action before disqualifying the horse. AR 36A & AR 36B Fitness and propriety of owners The introduction of new rules covering the fitness and propriety of owners has been under consideration since February 2021. Following extensive consultation, Principal Racing Authorities unanimously supported the introduction of these new rules which were subsequently endorsed by the Racing Australia Board. Challenges have previously been faced when seeking to restrict certain persons from being owners in order to protect racing’s integrity. Express ownership restrictions are now to be included in the Rules which cover all aspects of ownership and leasehold of horses including ownerships within trust or equitable holdings. Further, ownership restrictions will be imposed on undischarged bankrupts (and other similar persons, eg, those entering into a personal insolvency agreement), to protect trainers and co-owners from issues resulting from non-payment of training fees. In order to ensure individual circumstances can be taken into account, the ownership restrictions for persons with criminal offences or animal cruelty offences and undischarged bankrupts would be subject to the discretion of racing authorities to allow such persons to be owners. The introduction of these rules ensures racing authorities have a line of sight to all persons that could possibly have an interest in a horse. Racing Australia Board & CEO During the year the Racing Australia Board farewelled, with thanks, Steve Wilson AM, Racing Queensland’s Nominated Director, Jeff Ovens, Racing and Wagering Western Australia’s nominated Director and Independent Director and Chair John Messara AM. The Board then welcomed Graham Quirk who replaced Steve Wilson AM and Colin Holt who replaced Jeff Ovens. The Board also bid farewell to former CEO, Myles Foreman. After 16 years with Racing Information Services Australia (RISA) as the founding CEO, Myles guided RISA through its merger with the Australian Racing Board and the acquisition of the Australian Stud Book to form Racing Australia. On behalf of the Board, I would like to acknowledge and thank Myles for his long-standing service and dedication and wish him well for the future. Conclusion Whilst 2021/22 was a challenging year the Racing Australia staff worked tirelessly to deliver the services needed for a successful racing and breeding industry I take this opportunity to thank them all for their hard work. Looking forward, Racing Australia is embarking on the next stage of its evolution. The Racing Australia Board has committed to ensuring the company is appropriately resourced to support the Principal Racing Authorities and the wider Industry to grow thoroughbred breeding and racing. The appointment of a Chief Information Officer and forthcoming appointment of a Chief Operations Officer will ensure we are well placed to answer the demands of growth and increased scrutiny and ensure we are represented strongly both nationally and internationally. I take this opportunity to acknowledge and thank the Directors and staff of Racing Australia, Principal Racing Authority CEOs and staff, and the countless industry participants we have had the privilege of supporting. Your dedication, commitment, and passion for the community of the Racing and Breeding industry is its greatest strength. Paul Eriksson Chief Executive Officer
8 RACING AUSTRALIA ANNUAL REPORT 2022 The principal activity of Owners and Breeders Services is to operate the Australian Stud Book ensuring the integrity of Thoroughbred breeding in Australia in accordance with the Rules of the Australian Stud Book. Combined with a Registrar’s role, it also records the initial registration, ownership, and naming of all Thoroughbreds in accordance with the Australian Rules of Racing. In addition, each Principal Racing Authority (PRA) employs a Deputy Registrar. The Deputy Registrar is responsible for: • subsequent changes in racehorse ownership (Transfer or Lease) of horses based in their respective states • registration of racing colours (silks) • registration of owner Syndicates • the regulation of licensed promoters (Syndicators) BREEDING The Australian breeding industry has continued to show resilience in difficult times through droughts, fires, the Equine Influenza disaster and the Global Financial Crisis, and the numbers from the last season together with record spend at yearling sales has cemented their commitment to continue to grow our industry. Coverings for the 2021 covering season are currently 2.2% higher than the same period for the 2020 coverings (449 more mares mated). As with all Stud Book figures and past experience with late submissions, the number of coverings is expected to increase to the 2018 figures over time. It is estimated that the 2022 foal crop will continue to remain stable with the 2019 and 2020 crops of slightly over 13,000. The Australian breeding industry has continued to show resilience in difficult times… the numbers from the last season together with record spend at yearling sales has cemented their commitment to continue to grow our industry. OWNER AND BREEDER SERVICES REPORT AGRIFUTURES THOROUGHBRED HORSE PROGRAM Commencing in the 2017-18 financial year, the Research and Development Levy has seen the establishment of the AgriFutures (formally RIRDC) Thoroughbred Horses Levy, supporting priority research, development, and extension activities to address Thoroughbred industry challenges and opportunities. The Australian Stud Book was appointed the official Levy Collection Officer by the Australian Government and collects Statutory Levy contributions of $10 per mare return lodged by breeders and $10 per mare covered paid by the stallion owner. From 1 September 2017 to 30 June 2022, the Stud Book has collected $1,998,890 on behalf of breeders to be matched by the Federal Government on eligible Thoroughbred research. To learn more about the AgriFutures Thoroughbred Horses projects, please visit the website agrifutures. com.au/thoroughbred-horses. Racing Australia Research and Development Fund 2021-2022 Balance ROR Research Fund 30/06/2021 $420,463 Approved project expenditure ($17,814) Actual ROR Research Fund Revenue $245,222 Forecast Balance R&D Research Fund 30/06/2022 $647,871
RACING AUSTRALIA ANNUAL REPORT 2022 9 (Photo courtesy of Rosemont Stud). MYHORSERACING PORTAL Launched in April 2019, the Online system was designed to provide a more efficient system to submit paperbased functions. Some of the features include: • Horse Registrations • Unnamed and Named Transfers & Leases • Syndicate Renewals • Jockey Silk Renewals • Retirement and Death Notifications Applications submitted via myhorseracing Year % submitted in Portal % Increase from previous year 2019/20 17.87% - 2020/21 22.55% +4.68% 2021/22 25.80% +3.25% Over the next twelve months Racing Australia will be revising and updating the myhorseracing website based on feedback from industry. Jacqueline Stewart Keeper of the Australian Stud Book AUSTRALIAN BREEDING FIGURES 2020/21 Mares Covered 19,695 Mares returned 18,755 Live Foals 12,666 Stallions Returned 524 Live Foals / Mares Returned % 67.53%
10 RACING AUSTRALIA ANNUAL REPORT 2022 The EGRC is internationally renowned equine genetics testing laboratory which is responsible for parentage verification of all registered Thoroughbreds born in Australia. In the 2021 - 2022 season, we averaged turnaround times of less than a week for our main client, the Australian Stud Book, alongside providing DNA profiling and genetic testing services for around twentysix non-Thoroughbred Stud Books. The services to non-Thoroughbred breed associations included DNA profiling, parentage verification, and testing for DNA mutations that cause genetic diseases or are related to specific coat colours and patterns. The EGRC has expanded the variety of genetic tests offered to include sixteen genetic diseases and twenty-two colour patterns. Standard DNA analysis in horses is usually performed on hair cells, found at the pulled ends of mane or tail hairs. The EGRC also offers DNA testing of non-standard samples including equine blood, semen, and muscle. Forensic services include analysis of samples such as blood clots and plasma for integrity purposes. This service has been used to successfully identify stolen horses. In the 2021 breeding season, the EGRC became one of only a few equine genetics laboratories internationally that offer pathogen testing alongside traditional genetic testing. A pilot study was trialled to adapt a commonly used DNA identification method called PCR to detect bacteria that cause disease (pathogens) in horses. This method allows same day turnaround on results when the sample is dropped at the laboratory before 10am. PCR is highly sensitive and specific, allowing the identification of pathogen fragments even when the pathogen is no longer viable. The accurate and expeditious identification of the cause of infectious The EquineGenetics Research Centre (EGRC) performs parentage verification of Thoroughbreds &more than 25 other breed associations, alongside testing for 38 genetic disorders, coat colours & patterns. EQUINE GENETICS RESEARCH CENTRE REPORT disease allows managers to select the most suitable treatments for that disease. In turn, this will reduce the unnecessary use of antibiotics and slow the emergence of antibiotic resistant pathogens. The pilot menu of Klebsiella pneumoniae capsule serotypes 1, 2, and 5, and Pseudomonas aeruginosa will be expanded in the 2022 breeding season. Internationally, the EGRC has maintained its reputation as a world leader in the field of equine gene doping detection with the Director maintaining their positions as the Chair of the International Federation of Horseracing Authorities (IFHA) Gene Doping Control Sub-Committee and the International Horse Sports Confederation (IHSC) Gene Doping Expert Committee (GDEC). The AgriFutures funded project PRJ011777 “Science fact not fiction: Detecting gene edited racehorses” was completed in May. The Director also attended and presented at the International Horse Genome Workshop Conference in July. Dr. Natasha Hamilton Equine Genetics Research Centre Director
RACING AUSTRALIA ANNUAL REPORT 2022 11 Number of tests processed in the 2021 - 2022 year Australian Thoroughbreds parentage verified 11,773 Imported and local Thoroughbreds DNA profiled for identity purposes 1,338 Non-Thoroughbred parentage verification or DNA profiled 4,781 Non-Thoroughbred genetic testing number of horses 1,589 Non-Thoroughbred genetic testing number of tests 4,576 Total DNA tests performed 22,468 Average turnaround time for DNA profiling tests 4 days Average turnaround time for genetic tests 3.9 days (Photo courtesy of Racing Photos).
12 RACING AUSTRALIA ANNUAL REPORT 2022 Each season horses retire and experience end of life outcomes. Racing Australia, The Australian Stud Book and the Principal Racing Authorities have dedicated teams who are responsible for ensuring industry participants comply with their obligations, regarding providing timely and accurate retirement information. This includes details about a Thoroughbreds second career, location, and the responsible person. To provide end of life notifications for all horses that are in an industry participant’s care whether they are an active racehorse, an unnamed Thoroughbred who has yet to enter training including foals, a Thoroughbred who has entered breeding or a retired Thoroughbred having a second career. The Thoroughbred Industry is actively encouraged to provide historical notifications for horses that were born prior to the establishment of retirement and death notification protocols that became Australian Rules of Racing in March 2019 and prior to the integration across the Australian Thoroughbred Industry of the Traceability rules which require regular updates on a horse’s location and responsible person until the horse moves into the care of a non-industry participant. Racing Australia, The Australian Studbook and the Principal Racing Authorities also encourage any nonindustry participants caring for a Thoroughbred to provide contact information and location of horses within their care to support Australia’s biosecurity efforts. This is described as second career updates, and includes change of carers, career, or location changes. End of life notifications are also encouraged. At all points of a Thoroughbreds life journey Racing Australia, the Australian Studbook and the Principal Racing Authorities actively encourage industry and non-industry participants to share information. Definitions: Breeding refers to Thoroughbreds that leave the industry for Thoroughbred breeding purposes Equestrian refers to Thoroughbreds that leave the industry for second ridden careers Official PRA Program is any initiative funded by the Principal Racing Authorities Other refers to Thoroughbreds who have been sent to a livestock sale, or where their official status is unknown or has been incorrectly categorised through the selfreporting system Deceased refers to Thoroughbreds that have died because of accidental or natural causes euthanised due to an injury or illness, unsafe to be rehomed or unable to be placed in a home. It includes euthanasia via veterinary surgeon and knackery/abattoir (except in NSW where Local Rule 114 prohibits Thoroughbreds going to knackeries or abattoirs). Other is where the official status is unknown or has been incorrectly categorised through the self-reporting system. Raced and retired indicates a horse has actively participated in a race during race season 2021/22 and subsequently retired. Raced and deceased indicates a horse has actively participated in a race during race season 2021/22 and subsequently retired. Karen Day General Manager Equine Welfare and Traceability WELFARE AND TRACEABILITY REPORT
RACING AUSTRALIA ANNUAL REPORT 2022 13 RACED AND DECEASED IN SEASON 2021/22 Injury 56% Illness 25% Other 16% Abattoir/Knackery 3% RETIRED PRIOR TO SEASON 2021/22 AND DECEASED IN SEASON 2021/22 Other 50% Injury 30% Illness 15% Abattoir/Knackery 5% RACED AND RETIRED IN SEASON 2021/22 Equestrian 68% Breeding 27% Official PRA Program 3% Other 2% HISTORICAL RETIREMENTS SEASON 2021/22 Equestrian 62% Breeding 26% Other 9% Official PRA Program 3% 12.61% of 35,103 Active Racehorses retired during the 2021/22 Racing Season. 1.59% of 35,103 Active Racehorses were reported as deceased in Racing Season 2021/22. Note: Data is self-reported and has not been independently verified.
14 RACING AUSTRALIA ANNUAL REPORT 2022 OPERATIONS AND SERVICE STANDARDS Monthly Calculation Target Standard Actual Standard Variation Traffic Light Total Annual Monthly Average Registration Applications completed within 5 business days of receipt 90% 91.71% +1.71% 9,495 791.25 DNA kits dispatched within 3 business days, including imports 100% 100% - 13,653 1,137.75 DNA ID Forms processed/ID card dispatched within 2 business days of receipt, including imports 100% 100% - 13,623 1,135.25 New Breeder, Brand and Veterinarian applications processed within 2 business days 100% 100% - 1,548 129.00 Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Racing Australia has established standards for service performance monitoring and reporting across the organisation. These standards are incorporated into the training of Racing Australia’s staff and structured into Racing Australia’s systems. Service Performance reports are published on a monthly basis on the Racing Australia website providing confidence of service delivery and transparency of the investment in Racing Australia. Monthly Calculation Total Annual Monthly Average Registration Applications received and completed 10,362 863.50 Registration Applications received in the month where not all information was provided and could not be completed (further follow-up required) 1,172 97.67 Total Registration Applications received and completed in 2021/22 10,362 Received Monthly Average Received Processed Monthly Average Processed Horse Registrations 11,571 964.25 11,197 933.08 Change of Name 116 9.67 116 9.67 Total Horse Registrations processed in 2021/22 11,197
RACING AUSTRALIA ANNUAL REPORT 2022 15 TOTAL SMS & EMAIL COMMUNICATIONS Total SMSs Monthly Average Total Emails Monthly Average SMS – Sent by RA 1,792,662 149,388.50 - - Email – Sent by RA - - 2,737,494 228,124.50 Total Emails sent in 2021/22 2,737,494 (Photo courtesy of Magic Millions).
16 RACING AUSTRALIA ANNUAL REPORT 2022 Average Uptime Availability (or Mean Availability) System Monthly Calculation Target Uptime Actual Uptime Variation Traffic Light Single National System 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100.00% +0.10% Stable Assist 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100.00% +0.10% REINS ASB System (Merge with SNS being reviewed) 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100.00% +0.10% Racing Australia Website 30 minutes unplanned downtime for year 525,600 minutes in year 100% 99.99% -0.01% Racing Australia Private Label Websites 0 minutes unplanned downtime for year 525,600 minutes in year 100% 100.00% +0.00% Stud Book Website 0 minutes unplanned downtime for year 525,600 minutes in year 100% 100.00% +0.00% SMS & Email 0 minutes unplanned downtime for year 525,600 minutes in year 99.93% 100.00% +0.07% Office Local Area Network 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100.00% +0.10% Server Internal Network 360 minutes unplanned downtime for year 525,600 minutes in year 99.90% 99.93% +0.03% Telco and Data Network 180 minutes unplanned downtime for year 525,600 minutes in year 99.90% 99.97% +0.07% PABX 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100.00% +0.10% OPERATIONS AND SERVICE STANDARDS Meeting Service Standard Within negative 1% of Service Standard Below Service Standard
RACING AUSTRALIA ANNUAL REPORT 2022 17 Total Annual Monthly Average Thoroughbred Parentage Testing Samples 11,981 998.42 Thoroughbred DNA Self Comparison Samples 1,392 116.00 Other Breeds DNA Profiling Samples 4,923 410.25 Other Breeds Diagnostic Samples 4,685 390.42 Category Average Target Turnaround Time Average Actual Turnaround Time Traffic Light Thoroughbreds Parentage verification 14 days 3.94 days DNA self-comparison 14 days 3.69 days DNA profiled only 14 days 4.21 days Total Thoroughbred Parentage Testing Samples in 2021/22 11,981 (Photo courtesy of Magic Millions).
18 RACING AUSTRALIA ANNUAL REPORT 2022 EVENTS – STUD AND STABLE STAFF AWARDS AUSTRALIAN STUD AND STABLE STAFF AWARDS Supported by: Godolphin, Racing Australia and Thoroughbred Breeders Australia with sponsorship from Racing Queensland, the Australian Turf Club, the Victoria Racing Club, Inglis, Magic Millions, Thoroughbred Industry Careers, Marcus Oldham College and the Melbourne Racing Club Foundation. Presented by: Godolphin. Hosted by: Gold Coast Turf Club. Location: Gold Coast Turf Club Function Room (Racecourse). Date: April 25th, 2022 WINNERS OF AUSTRALIAN STUD AND STABLE STAFF AWARDS Award for Thoroughbred Excellence Reg Fleming Godolphin Australia, VIC Sponsor: Godolphin Dedication to Racing Reg Fleming Godolphin Australia, VIC Sponsor: Australian Turf Club Dedication to Breeding Kelly Frost Godolphin Australia, VIC Sponsor: Magic Millions Horsemanship Adam Shankley Arrowfield Stud, NSW Sponsor: Inglis Leadership Liesl Baumann Cressfield Stud, NSW Sponsor: Victoria Racing Club Thoroughbred Care and Welfare Fiona McIntyre McIntryre & Lumsden Equestrian, VIC Sponsor: Racing Queensland Newcomer Sacha Roberts Michael Kent Racing, VIC Sponsor: Thoroughbred Industry Careers & Marcus Oldham Administration & Ancillary Jess Hood Arrowfield Stud, NSW Sponsor: Melbourne Racing Club Foundation These winners represent thousands of mostly unseen, often unsung and thoroughly essential members of Australia’s racing and breeding industry. The Stud and Stable Staff Awards celebrates those who have dedicated their lives to the Thoroughbred and provides a chance for the winners and runners-up to share in $100,000 worth of prizes in recognition of all that they do.
Recognising and rewarding the hard work and dedication of stud and stable staff across Australia. 1. Reg Fleming, Sheralee Patterson (nominator & rehomer of Hartnell), Vin Cox & James Cummings, Godolphin Australia 2. Adam Shankley, Arrowfield Stud, NSW 3. Reg Fleming, Godolphin Australia, VIC 4. Kelly Frost, Godolphin Australia, VIC 5. Liesl Baumann, Cressfield Stud, NSW 6. Jess Hood, Arrowfield Stud, NSW 7. Sacha Roberts, Michael Kent Racing, VIC 8. Fiona McIntyre & Jonathan Lumsden, McIntryre & Lumsden Equestrian, VIC All images courtesy of Godolphin. 1 6 8 7 5 3 4 2 RACING AUSTRALIA ANNUAL REPORT 2022 19
20 RACING AUSTRALIA ANNUAL REPORT 2022 EVENTS–AUSTRALIANRACEHORSEOFTHEYEARAWARDS AUSTRALIAN RACEHORSE OF THE YEAR Supported by: Racing Australia 2021/2022 Season Hosted by: Racing Victoria Limited Location: Q by Metropolis, 123 Queen Street, Melbourne. Date: September 3rd, 2022 AUSTRALIAN RACEHORSE OF THE YEAR CATEGORY WINNERS Australian Racehorse of the Year Nature Strip Champion Group 1 Jockey James McDonald The Bart Cummings Award (Champion Group 1 Trainer) Chris Waller Champion Sire of the Season I Am Invincible Champion Two-Year-Old Fireburn Champion Three-Year-Old (F) Gypsy Goddess (NZ) Champion Three-Year-Old (M) Anamoe Champion Sprinter Nature Strip Champion Middle Distance Zaaki (GB) Champion Stayer Verry Elleegant (NZ) Champion Jumper* Saunter Boy (FR) * Champion Jumper of the season is voted upon by Victorian and South Australian representatives only. Voting is carried out on a 3-2-1 basis by a select panel of media/ handicappers/stewards and administrators from each State and Territory. Racing Victoria Limited, Chief Executive Officer, Andrew Jones with the Bart Cummings Award (Champion Group 1 Trainer) victor, Chris Waller. 03-Sep-2022. (Photo courtesy of Racing Photos).
RACING AUSTRALIA ANNUAL REPORT 2022 21 Australian Horse of the Year - Nature Strip. (Photo courtesy of Racing Photos). Champion Group 1 Jockey - James McDonald. (Photo courtesy of Racing Photos). I Am Invincible - Champion Sire of the 2021/22 Season. (Photo courtesy of Yarraman Park Stud).
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RACING AUSTRALIA ANNUAL REPORT 2022 23 1. Nature Strip, Champion Sprinter. (Photo courtesy of Racing Photos). 2. Verry Elleegant, Champion Stayer. (Photo courtesy of Racing Photos). 3. Gypsy Goddess, Champion 3YO (Filly). (Photo courtesy of Michael McInally Photography (Racing Qld). 4. Fireburn, Champion Two-Year-Old. (Photo: www.bradleyphotos.com.au). 5. Nature Strip’s Managing Owner, Mr. Rod Lyons accepts the Champion Sprinter trophy from Mr. Greg Carpenter. (Photo courtesy of Racing Photos). 6. Zaaki, Champion Middle Distance. (Photo courtesy of Racing Photos). 7. Anamoe, Champion Three-Year-Old (Male). (Photo courtesy of Racing Photos). 8. Saunter Boy, Champion Jumper. (Photo courtesy of Racing Photos). 8 5 6 7
24 RACING AUSTRALIA ANNUAL REPORT 2022 FINANCIAL REPORT CONTENTS Directors’ Report 25 Auditor’s Independence Declaration 29 Statement of Profit or Loss and Other Comprehensive Income 30 Statement of Financial Position 31 Statement of Changes of Equity 32 Statement of Cash Flows 33 Notes to the Financial Statements 34 Director’s Declaration 46 Independent Auditor’s Report 47
RACING AUSTRALIA ANNUAL REPORT 2022 25 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022 Your directors present their report, together with the financial statements on the consolidated entity (referred to hereafter as the ‘consolidated entity’) consisting of Racing Australia Limited (referred to hereafter as the ‘company’ or ‘parent entity’) and the entities it controlled at the end of or during the year ended 30 June 2022. DIRECTORS The names of each person who has been a Director during the year and to the date of this report are: DIRECTORS Independent Director & Chairman John Messara AM (Resigned 30/03/2022) RNSW Nominated Director Russell Balding AO Peter V’landys AM – Alternate Director RV Nominated Director Greg Nichols Brian Kruger – Alternate Director RQ Nominated Director Steven Wilson AM (Resigned 17/06/2022) Graham Quirk (Appointed 17/06/2022) Brendan Parnell – Alternate Director RWWA Nominated Director Jefferey Ovens (Resigned 21/04/2022) Colin Holt (Appointed 21/04/2022) Ian Edwards – Alternate Director Racing SA Nominated Director Robert Rorrison Nicholas Redin – Alternate Director (Resigned 18/11/2022) TRNT/CRC/TR Nominated Director Robyn Whishaw Paul Eriksson – Alternate Director (Appointed 28/07/2021) (Resigned 07/07/2022) Andrew Jenkins – Alternate Director (Appointed 28/07/2022) Company Secretary Matthew Orr (Resigned 04/04/2022) David Connell (Appointed 04/04/2022) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. PRINCIPAL ACTIVITIES The consolidated entities principal activity in the course of the financial year was the provision of racing materials, services and products to the state based Principal Racing Authorities and race clubs of Australia, the supply of field and form products to Racing Australia’s commercial and retail customers, officially recording the ownership details and naming of Thoroughbred racehorses for racing in Australia and for export, the maintenance, accuracy, quality and integrity of the Australian Stud Book, and the administration of the Australian Rules of racing and the rules of the Australian Stud Book. The Thoroughbred Trainers Service Centre Limited provides low-cost industry-based horse syndication services under the conditions of an Australian Financial Services Licence (AFSL). SHORT TERM AND LONG-TERM OBJECTIVES Racing Australia’s Vision • To be Australia’s favourite sport. • To conduct the world’s best races. • To be the world’s leading Thoroughbred Racing Industry. Core objective • Leverage existing assets further and identify new commercial opportunities Core functions • National Rules • National Integrity • National and International Advocacy • National Coordination • National Research and Analysis • Identify and Maximise Best Practice • National Efficiency/Back Office • Recognise and reward excellence in the industry • Communicate our role • Seek to identify emerging issues including Animal Welfare and provide leadership via a common policy approach including minimum standards KEY PERFORMANCE MEASURES The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the company’s short-term and long-term objectives are being achieved. This includes the publication of service standard performance reports monthly on the Racing Australia web site. DIVIDENDS There were no dividends paid, recommended, or declared during the current or previous year. .
26 RACING AUSTRALIA ANNUAL REPORT 2022 INFORMATION ON DIRECTORS Russell Balding AO – Director Chairman, Racing New South Wales, Deputy Chairman of Destination NSW, Director, The Trust Company (Sydney Airport) Limited and a Director, ComfortDelGro Corporation Limited (Singapore). Racing Australia Committees: Member, Australian Pattern & Development Committee. Former: Chairman of Cabcharge Australia Limited, Director, ComfortDelGro Cabcharge Pty Ltd, Director, CityFleet Networks Ltd (UK), Chairman of the Visitor Economy Taskforce, Member of The NSW Crown Land Taskforce, Chief Executive Officer of the Sydney Airport Corporation, Managing Director of the Australian Broadcasting Corporation (ABC), Director of Funding, Finance and Support Services and CFO of the Australian Broadcasting Corporation (ABC), Director of Finance at the NSW Roads and Traffic Authority. Awarded Officer of the Order of Australia in 2007 for service to the Australian broadcasting industry, particularly through initiatives in the areas of service delivery, advanced technology, and financial management, and to the accounting profession through CPA Australia. Peter V’landys AM – Alternate Director to Russell Balding AO Chief Executive Officer, Racing NSW, Chairman, Australian Rugby League Commission, NSW Arts & Culture Advisory Committee, Secretary, Racing Appeals Tribunal, Secretary, Racing NSW Appeal Panel, Chairman, Racing Product Committee, Chairman, Racing NSW Animal Care and Ethics Committee, Member, Product Supply Advisory Group, Chairman, National Jockeys Safety Committee, Director, RacingCorp Pty Ltd, Chairman, Australian Racing and Equine Academy. Racing Australia Committees: Chair, Australian Classifications Committee, Chair, Finance, Governance & Remuneration Committee, Member, Riding Protocols Committee. Former: Director, Racing Information Services Australia, Executive Member, Australian Racing Board. Awarded Member of the Order of Australia in the Australia Day honours for services to the Racing Industry in 2014. Greg Nichols – Director Director, Racing Victoria, Director & Principal Vision Racing & Sport, Member, International Race Planning Committee, Member, Asian Pattern Committee, NonExecutive Director, Racing & Sports. Racing Australia Committees: Member, Australian Pattern & Development Committee, Member, Equine Welfare Committee, Member, Jockey & Industry Participants Committee. Former: Betfair Group Limited, The Sporting Exchange, Managing Director, Sporting Affairs, Chairman & NonExecutive Director, Timeform, Non-Executive Director, Betfair Australasia, Chief Executive Director, British Horseracing Board, General Manager – Industry Racing Victoria, Chief Executive, South Australian Thoroughbred Racing Authority. Brian Kruger – Alternate Director to Greg Nichols Chair, Racing Victoria Limited, Chair, Racing Victoria OHS Sub-Committee, Chair, Racing Victoria Member Consultative Committee, Member, Racing Victoria & Country Racing Victoria Steering Committee, Alternate Director, Racing Australia Board, Chair, Incitec Pivot Limited. Former: Managing Director - Toll Holdings, Chief Financial Officer - Toll Holdings, Partner – Greenstone Partners, President - North America, Corporate Strategy and Innovation – BlueScope Steel, President - Australian Manufacturing Markets - BlueScope Steel, Chief Financial Officer – BlueScope Steel, Vice Chairman and Treasurer, Moonee Valley Racing Club. Graham Quirk – Director Director, Racing Queensland (Thoroughbred Representative), Director, Infrastructure Australia, Director, Graham Quirk Auctions Pty Ltd, Chairman, Lockyer Valley/Somerset Water Collaborative, CEO, Grace Education & Migration Services, Proprietor, Peak Plains Thoroughbreds. Former: Lord Mayor of Brisbane 2011-2019, Chairman Council of Mayors (South-East Queensland), Oversaw the Pre-Feasibility and Full Feasibility Studies for the 2032 Olympic & Paralympic Games from 2015-2019, Elected Representative Brisbane City Council 1985-2019. Brendan Parnell – Alternate Director to Graham Quirk Chief Executive Officer, Racing Queensland. Racing Australia Committees: Member, Jockey & Industry Participants Committee, Member, Riding Protocols Committee, Chair, Australian Racing Hall of Fame. Former: Chief Operating Officer, Wagering, Tatts Group, Managing Director International, Tabcorp, Chief Operating Officer Media & International Tabcorp, General Manager Broadcasting, Sky Channel, Network Sports Editor/Presenter, Seven Network Queensland. DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022
RACING AUSTRALIA ANNUAL REPORT 2022 27 Colin Holt – Director Director Racing & Wagering WA, Deputy Chairperson, Western Australia Voluntary Assisted Dying Board, Director WA Country Health Service, Foundation Partner ARID, a Community Development Company. Former: Western Australian State Government Minister for Racing & Gaming; Housing. Parliamentary Secretary, Minister for Regional Development, Water, Forestry, Sport & Recreation, Member of the WA Legislative Council for the Southwest from 2009-2021. Ian Edwards – Alternate Director to Colin Holt CEO Racing & Wagering WA (RWWA), Non-Executive Director Palmerston Association Inc. Former: Chief Financial Officer RWWA, Chief Financial Officer Community News Group, Senior Manager (Group Finance) Bankwest. Robert Rorrison – Director Chair, Racing SA Limited, Executive Chairman, Climate Capital Pty Ltd, Senior Advisor, Taylor Collison Limited. Racing Australia Committees: Chair, Jockey & Industry Participants Committee, Chair, Jockey & Industry Participants Committee Concussion Panel, Chair, Jockeys Insurance Committee. Former: Chairman Resources Asia, Macquarie Capital Limited, Executive Director, Macquarie Capital Limited, Non-Executive Director, Baiyin International Investments Limited, Chairman, Twenty Seven Co. Limited. Background in Corporate Finance and held a number of Australian and international private and public company Board positions. Nicholas Redin – Alternate Director to Robert Rorrison Racing SA Chief Executive Officer, Board Member Palliative Care SA Inc. Racing Australia Committees: Member, Integrity Committee, Member, Jockey & Industry Participants Committee, Chair Veterinarian and Analytical Advisory Group, Member, Riding Protocols Committee, Chair, Chairmen of Stewards Committee. Former: Racing SA Chief Operating Officer, Former Director Racing Information Services Australia, Former Commercial Manager T&R Group (now Thomas Foods International). Robyn Whishaw – Director Non-Executive Director (Thoroughbred), Tasracing, Director, Armidale Pty Ltd, Member, Tasmanian Turf Club, Life Member, Thoroughbred Breeders Tasmania, Member, Tasmanian Racehorse Owners Association. Former: Chair, Tasmanian Thoroughbred Advisory Network, Director, Scotch Oakburn College, Member, Tasmanian Racing Industry Working Group. Paul Eriksson – Alternate Director to Robyn Whishaw CEO Tasracing Pty Limited. Former: Acting CEO & Group Chief Financial Officer, Cronulla Sharks Rugby League Football Club/Cronulla Sutherland Leagues Club, Chief Financial Officer, GWS Giants, General Manager Finance & IT, Racing NSW. David Connell – Company Secretary General Manager – Finance & Commercial DIRECTORS’ MEETINGS During the financial year, 4 meetings of the directors were held. Attendances by each director were as follows: Directors’ Meetings Eligible to Attend Attended Directors John Messara AM 2 2 Russell Balding AO 4 4 Greg Nichols 4 4 Steven Wilson AM 3 2 Graham Quirk 1 1 Jefferey Ovens 2 2 Colin Holt 2 2 Robert Rorrison 4 3 Robyn Whishaw 4 3 Company Secretary Matthew Orr 2 2 David Connell 2 2 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2022