www.racingaustralia.horse ANNUAL REPORT 2023 Financial Year Ended 30 June 2023
2 RACING AUSTRALIA ANNUAL REPORT 2023 Photo courtesy of Racing Photos.
RACING AUSTRALIA ANNUAL REPORT 2023 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 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 Service Standard Performance Report 14 Racing Australia Events 20 Financial Report Directors’ Report 29 Auditor’s Independence Declaration 33 Statement of Profit or Loss and Other Comprehensive Income 34 Statement of Financial Position 35 Statement of Changes of Equity 36 Statement of Cash Flows 36 Notes to the Financial Statements 37 Director’s Declaration 49 Independent Auditor’s Report 50
2 RACING AUSTRALIA ANNUAL REPORT 2023 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 – Andrew Jones 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 – Jason Scott 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 2023 3 BOARD OF DIRECTORS 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 – Vaughn Lynch COLIN HOLT Racing WA Nominated Director Appointed: 21/04/2022 Current positions • Director, Racing WA • 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 NICOLLE RANTANEN REYNOLDS Thoroughbred Racing NT Nominated Director Appointed: 21/06/2023 Current positions • Deputy Chair, Thoroughbred Racing NT • President, The Grange Golf Club • Director, Credit Union SA Ltd • Director, University of South Australia • Director, Cancer Council SA • Director, Clayton Church Homes • Chief Executive, The Public Trustee, Attorney Generals Department SA • Local Government SA • State Government SA • Medical Research Institute • Institute of Company Directors Previous positions • Advisory Board SA/NT CPA Australia • Director, Harness Racing SA Alternate Director – Andrew O’Toole
4 RACING AUSTRALIA ANNUAL REPORT 2023 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 New South Wales • Racing Victoria • Racing Queensland • Racing South Australia • Racing Western Australia • Tasracing • Thoroughbred Racing Northern Territory • Canberra Racing Club The Thoroughbred 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 Australia Limited represents the business operations for: I. The Australian Rules of Racing II. The Australian Stud Book III. The Equine Genetics Research Centre The primary functions that Racing Australia performs are based on the encouragement and promotion of horse races, which includes but is not limited to the following activities: a. conducting national consolidated Racing Materials and information services business to service the Australian horse racing industry and other users of horse Racing Materials, including: 1. 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 and data cleansing costs, with respect to all Racing Materials collected, processed and disseminated in the conduct of such a system; b. adopting, administering and altering the Australian Rules of Racing and the Rules of the Australian Stud Book; c. ensuring the integrity of Thoroughbred breeding in Australia 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. maintaining 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. the 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 Principal Racing Authorities. • Racing Australia regulates the Australian Thoroughbred Breeding and Racing Industry by the administration and emendation 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. • Racing 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. • Racing 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. • Racing 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. • Racing Australia is a content management and licensing company via the compilation of content, provision of systems to manage the content and the Copyright Licensing and Supply of Racing and Breeding Materials content. Racing Australia Operations
RACING AUSTRALIA ANNUAL REPORT 2023 5 OUR SHAREHOLDERS 4.5% 1% 18% 35% 35% 1% 4.5% Sydney 1% ACT Canberra Scone (EGRC) Melbourne Shareholder Breakdown % Racing Australia offices Principal Racing Authorities Racing New South Wales racingnsw.com.au Racing South Australia racingsa.com.au Racing Victoria racingvictoria.com.au Tasracing tasracing.com.au Racing Queensland racingqueensland.com.au Canberra Racing Club thoroughbredpark.com.au Racing Western Australia racingwa.com.au Thoroughbred Racing Northern Territory trnt.org.au
6 RACING AUSTRALIA ANNUAL REPORT 2023 The 2023 Financial Year was one of significant change for Racing Australia as we continued to recover from the impacts of COVID-19 and staff changes. During the year a number of new staff were appointed to fill key vacancies. I joined the business in September 2022 with Mr Con Horaitis appointed as Chief Information Officer in October 2022 and Mr Peter Kite appointed as General Counsel in March 2023. During the period we have continued our focus • To support the operations of the Thoroughbred Industry (racing and breeding) • To support the maintenance of employment within the industry • To ensure equine welfare retained prominence I take this opportunity to congratulate and thank all Racing Australia staff who have continued to provide uninterrupted services to the Australian Racing and Breeding Industries over this period of change. FINANCIAL RESULTS The 30 June 2023 consolidated result inclusive of depreciation, amortisation and impairment expense was a surplus of $2.136 million compared to a surplus of $2.184 million the previous financial year 30 June 2022. Exclusive of depreciation, amortisation and impairment expenses the consolidated result for 30 June 2023 was $5.025 million versus $5.653 million at 30 June 2022. The decrease of $628k was driven by a reduction in consolidated revenue along with an increase in employee costs and legal and consulting fees as consulting support services engaged to bridge vacant roles were filled and Racing Australia transitioned back to direct employment. Consolidated revenue fell $45k from $15.991 million at 30 June 2022 to $15.946 million at 30 June 2023. This was driven by revenue from Racing Australia services increasing $371k due to increases in the volume of services delivered to the industry along with increased interest revenue, offset by the one off recognition in the 2022 financial year of $487k of New Zealand Thoroughbred Racing SNS Project revenue. Consolidated expenses remained stable at $13.810 million as at 30 June 2023 versus $13.807 million at 30 June 2022. Cash reserves increased from $10.495 million at 30 June 2022 to $10.784 million at 30 June 2023. OPERATIONS Racing Australia continued to invest in its internal systems and the ongoing development of systems to support the industry. Specific projects that were completed or commenced in the period targeted improvements to the stability, reliability and security of Racing Australia’s systems and include: • Finalisation of the renewal of all equipment that the core Racing Australia systems operate on to deliver improved performance and reliability. • Implementation of a cyber security system to protect Racing Australia systems (and data) from attack from hackers and data corruption/encryption fraud. • Implementation of cloud based communications systems to provide reliable work anywhere capabilities for all staff. • Implementation of managed upgrade services to ensure all Racing Australia systems operate on current technology that delivers secure and reliable service. CHIEF EXECUTIVE OFFICER’S REPORT During the 2022 – 2023 year Racing Australia has laid the foundations for significant changes in future service delivery that will deliver benefits to the racing and breeding industry.
RACING AUSTRALIA ANNUAL REPORT 2023 7 • Implementation of system development standards and formal quality control processes to ensure all development work is carried out to a high and repeatable standard. • Implementation of new processes to manage ongoing development requests from each of the Principal Racing Authorities (PRAs). The steps that have been taken over the 2022 – 2023 year have commenced the development of a solid base on which to effectively and efficiently manage the ongoing development of Racing Australia’s systems. In relation to the New Zealand Thoroughbred Racing (NZTR) Single National System (SNS) project, development on the project was paused in February 2023 whilst a review of its capabilities was undertaken by both Racing Australia and NZTR. The development team that was dedicated to that work was redeployed to other improvement projects that include: Mobile Application – to deliver an improved and reliable tool to allow identification of horses and update their location through a scanner linked to a mobile phone application. The updated application is due for initial release to PRAs in January 2024. Redevelopment of the My Horse Racing (MHR) system – Racing Australia has identified a number of issues with the MHR system in relation to functionality and ease of use. To address these issues, we have undertaken a complete rebuild of the system with a focus on ease of use and an ability to undertake multiple transactions at the same time. The first part of the updated system for owners is scheduled for release in June / July 2024 with further development planned to update the trainer functionality with a targeted completion of December 2024. Upgraded Stable Returns – to deliver standardised and integrated reporting of horse statuses thus improving traceability. Improved integration between the Australian Stud Book, Registrar of Racehorses and SNS – a key project to deliver improved data integrity and remove impediments to the traceability of horses. WELFARE AND SAFETY During the period Racing Australia commenced a review of jockey safety vests contracting Dr Andrew McIntosh to deliver a scoping report. This will be discussed by the Board to assess further actions in 2024. In December 2022, Racing Australia engaged with the PRAs to deliver a consensus position response to the Federal Government request for consultation on land transport under the Australian Animal Welfare Standards and Guidelines for Livestock Land Transport. We are awaiting an eventual outcome of this work however we are extremely happy with the collaboration from all parties and the positive feedback from Government. During the period Racing Australia participated in the National Horse Traceability Working Group with a national agreement reached on a recommended National Horse Traceability System for all horses. In December 2022, the State Agriculture Ministers endorsed the Working Group’s recommended approach to development of a horse traceability system. A National Horse Traceability Implementation Taskforce is being formed to oversee the implementation and operation of the traceability system with work due to begin early 2024. RESEARCH AND DEVELOPMENT The Equine Genetics Research Centre (EGRC) continues to expand the offering to the equine industry for genetics, DNA and disease control. 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. In 2022 – 2023, the initial pilot study was expanded to include some of the pathogens that commonly cause respiratory symptoms and abortions, alongside the original menu of Klebsiella pneumoniae capsule serotypes 1, 2, and 5, and Pseudomonas aeruginosa as the pre-breeding panel. REPORT INTO ONLINE GAMBLING During the year Racing Australia, in conjunction with the PRAs, engaged with the Federal Government to provide feedback on the 31 recommendations outlined in the Report into Online Gambling entitled “Inquiry into online gambling and its impacts on those experiencing gambling harm”. The changes outlined in this report have the potential to significantly impact the industry and jeopardise the livelihoods of the national 79k full time equivalent racing related jobs as well as the 12,700 breeding related jobs. Specific responses were put forward on advertising, inducements and definitions for exemptions. We look forward to further engagement with the Department of Communications on this matter over the coming months as it is a critical issue for Industry. AUSTRALIAN RULES OF RACING Throughout the year the Australian Rules of Racing were amended to strengthen welfare. The key amendments include: AR 88A and AR 88AA - Bisphosphonates Bisphosphonates are drugs that inhibit the normal biological mechanism for bone maintenance/repair, which can lead to an accumulation of micro-damage and bone fragility. In addition, they can also cause retention of calcified growth cartilage in skeletally immature animals, leading to developmental orthopaedic disease. Bisphosphonates are also potent analgesics and may disguise the signs of underlying serious orthopaedic injuries such as stress fractures in young animals. For these reasons, bisphosphonates should never be used in young, skeletally immature, athletic horses. Racing Australia has implemented rules to adopt the position:
8 RACING AUSTRALIA ANNUAL REPORT 2023 • to ban the administration of bisphosphonates to horses under the age of 4; • to deem a horse ineligible to participate for 12 months from the date of the administration of bisphosphonates and not permit to race until 1 August of the year the horse turns 4. • for horses over the age of 4, a horse cannot be subject to the administration of bisphosphonates on any of the 30 clear days before the day of the race in which the horse is declared to run. AR 88B, AR 78, AR 297 Racing Australia has introduced nationally consistent policies to address the following issues: 1. Horses that have not started in a race for 12 months or longer – returning to training and racing; 2. Horses that have experienced a cardiac arrhythmia after a race – returning to training and racing; 3. Horses that have suffered a major fracture and/or undergone major orthopaedic surgery – mandatory reporting and returning to training and racing; 4. Horses aged 12 years – pre and post-race veterinary inspections; and 5. Horses that have been retired from racing – reinstatement for training and racing. Each of these rules seek to improve horse welfare outcomes by clearly defining the protocols that must be adhered to when a horse is returning to training/racing after an extended period or serious injury. These rules are given force under the Australian Rules of Racing as Racing Australia Codes of Practice. While participants have general obligations to comply with such Codes and may be penalised for non-compliance (see AR 16 and AR 233), new rules have been introduced to impose specific obligations regarding participants’ compliance with these new Codes, as follows: • New AR 88B in Part 5 – Eligibility of horses to race, Division 2 – Restrictions/ exclusions in relation to participation of horses in races etc for points 1-3 above; • Amendments to AR 78 for point 4 above; and • Amendments to AR 297 for point 5 above. A further 10 rules have been under consideration since March 2023 and these were approved by the Board at its November 2023 meeting to come into effect 1 February 2024. These rules cover: 1. Adoption of Asian Screening Limit (ASL) for Dexamethasone. 2. Adoption of International Screening Limit (ISL) for Procaine (in plasma) and Asian Screening Limit (ASL) for Procaine (in urine). 3. Australian Residue Limits (ARL) and Definition (Rule) & Preamble. 4. Cannabinoids – addition to Prohibited List A. 5. Selective Androgen Receptor Modulators (SARMs) – amendment to AR248, AR17, AR 253, AR 286 & Definition for SARMs Clearing Certificate. 6. Eligibility to Race (Horse) - Specified Prohibited Practices (new rules) – Division 2 – AR88C & AR88D. Chemical Castration & Blistering. 7. Bleeder Rule – AR79 – amendment. 8. National Equipment Register – Stirrup Irons (Step Stirrups). 9. National Equipment Register – VIPA III Safety Vest. 10. Race Riding Boots with embedded lead – AR186 amendments to ban. These rules represent the racing industries commitment to continual review and improvement of horse welfare, health and safety. RESEARCH AND AGRIFUTURES Racing Australia has communicated with Agrifutures to re-engage on specific racing related research projects. These projects will be specifically aimed at horse and participant welfare and safety. Projects will be evaluated on an ongoing basis for positive outcomes. At present Racing Australia is investigating funding specific research into predicting catastrophic bone fatigue to reduce equine injuries. RACING AUSTRALIA BOARD During the year Racing Australia farewelled with thanks Ms Robyn Whishaw and Mr Dave Garnier of Tasracing who were the nominated Director for Canberra Race Club, Thoroughbred Racing NT and Tasracing and welcomed Ms Nicolle Rantanen Reynolds from Thoroughbred Racing NT who replaced them as the nominated director for Canberra Race Club, Thoroughbred Racing NT and Tasracing. CONCLUSION Whilst the 2022 – 2023 year has been challenging from a point of view of change in staff, systems and projects, Racing Australia staff have worked tirelessly to ensure the necessary services continue to be provided to support the racing industry. The work that has been carried out has laid the foundations for significant changes in future service delivery that will deliver benefits to the racing and breeding industry. The next 12 months will see work commencing on a new SNS design that utilises a single view of the horse from registration through to retirement to: • better support traceability; • reduce paper forms and move towards full digital transacting; • reduce the complexity of systems; • improve reliability and performance; • development of alternative additional revenue streams.
RACING AUSTRALIA ANNUAL REPORT 2023 9 I take this opportunity to acknowledge and thank the Directors and staff of Racing Australia, Principal Racing Authority CEO’s and staff, Industry participants and all involved in racing for their support and engagement. Thoroughbred racing is a unique and resilient industry full of dedicated, passionate and committed individuals, I look forward, as does all of Racing Australia, to continue to support the operation and growth of the industry. Paul Eriksson Chief Executive Officer Photo courtesy of Bradley Photographers.
10 RACING AUSTRALIA ANNUAL REPORT 2023 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. Together 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 Syndicates of owners • the regulation of licensed promoters (Syndicators) STUDY IDENTIFIES A CONTINUED ACCEPTABLE INBREEDING LEVEL IN AUSTRALIAN THOROUGHBREDS Inbreeding can be defined as breeding related animals. It is an essential part of selective breeding that has been carried out for hundreds of years and is a consequence of breeding closed stud book populations. Inbreeding has both positive and negative effects. It increases the accumulation of favourable genes, and when performed slowly, purges naturally occurring harmful variants from a population. However, inbreeding can lead to the accumulation of harmful gene variants. This results in the emergence of genetic disorders, which whilst rare, are frequently fatal. Fast inbreeding can also reduce performance traits and reproductive success. For these reasons, many Stud Books now monitor inbreeding levels in their populations. Racing Australia has been working on upgrading the Portal over the past twelve months and plan to launch V2 in the coming year which will streamline processes and applications currently available. OWNER AND BREEDER SERVICES REPORT A recent Australian Stud Book commissioned pedigree analysis found that the average level of inbreeding for Australian Thoroughbreds born in 2019 is 14.95%. This has increased 0.8% when compared to the last inbreeding study, which was in 2007 on the 2005 foal crop. It is advisable to restrict the rate of inbreeding to <1% per generation. In Thoroughbreds, this equates to an increase in inbreeding of approximately 1% every 10 years, so the current increase is within the range of what is considered acceptable among domestic species. RACING AUSTRALIA RESEARCH AND DEVELOPMENT FUND Racing Australia continues to support research and development directly associated with the Thoroughbred with $20 from each Registration application allocated to the Racing Australia Research and Development Fund. The Research and Development Grant Assessment panel review submissions and recommendations on funding to the Racing Australia Board. Assessment criteria requires research to be innovative with clear hypothesis and methodology to produce tangible outcomes for the health, welfare and performance of the Thoroughbred in Australia.
RACING AUSTRALIA ANNUAL REPORT 2023 11 Racing Australia Research and Development Fund 2022-2023 Balance ROR Research Fund 30/06/2022 $634,331 Approved project expenditure $50,000 Actual ROR Research Fund Revenue $222,998 Forecast Balance ROR Research Fund 30/06/2023 $807,329 AGRIFUTURES THOROUGHBRED HORSE PROGRAM Commencing in the 2017-18 financial year, the Research and Development Levy saw 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 2023, the Stud Book has collected $2,399,540 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 MYHORSERACING PORTAL Launched in April 2019, the Online system was designed to provide a more efficient system to submit paper-based 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% 2022/23 27.06% +1.26% Racing Australia has been working on upgrading the Portal over the past twelve months and plan to launch V2 in the coming year which will streamline processes and applications currently available. Jacqueline Stewart Keeper of the Australian Stud Book Photo courtesy of Winx ownership group.
12 RACING AUSTRALIA ANNUAL REPORT 2023 The Equine Genetics Research Centre (EGRC) is performs parentage verification of Thoroughbreds and for 23 other breed associations, alongside testing for 40 different genetic disorders, coat colours and patterns. EQUINE GENETICS RESEARCH CENTRE REPORT The EGRC is an internationally recognised equine genetics testing laboratory which is responsible for parentage verification of all registered Thoroughbreds born in Australia. In the 2022 - 2023 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 23 nonThoroughbred 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 currently tests for 17 genetic diseases and 23 coat colours and 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 discarded needles for integrity purposes, and positively identifying 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. This uses a DNA identification method called PCR to detect the agents that cause disease (pathogens) in horses, just like PCR has been used to identify people infected with coronavirus. In 2022 – 2023, the original pilot study was expanded to include some of the pathogens that commonly cause respiratory symptoms and abortions, alongside the original menu of Klebsiella pneumoniae capsule serotypes 1, 2, and 5, and Pseudomonas aeruginosa as the pre-breeding panel. Internationally, the EGRC has maintained its reputation as a world leader in the field of equine gene doping detection with the Director continuing her position as the Chair of the International Federation of Horseracing Authorities (IFHA) Gene Doping Control Sub-Committee and the International Horse Sports Confederation (IHSC)’s Gene Doping Expert Committee (GDEC). She is also a member of the World Anti-Doping Agency (WADA’s) Gene and Cell Doping Expert Advisory Group, the IFHA Advisory Council on Prohibited Substances and Practices, and the International Stud Book Genetics Sub-committee. Dr. Natasha Hamilton Equine Genetics Research Centre Director
RACING AUSTRALIA ANNUAL REPORT 2023 13 Photo courtesy of Yulong Stud. Australian Thoroughbreds parentage verified 12,390 Imported and local Thoroughbreds DNA profiled for identity purposes 1,522 Non-Thoroughbred parentage verification or DNA profiled 5,646 Non-Thoroughbred genetic testing number of horses 1,943 Non-Thoroughbred genetic testing number of tests 5,936 Total DNA tests performed 25,494 Average turnaround time for DNA profiling tests 4.4 days Average turnaround time for genetic tests 2.4 days Number of tests processed in the 2022 - 2023 financial year
14 RACING AUSTRALIA ANNUAL REPORT 2023 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 2022 – 2023 and subsequently retired. Raced and deceased indicates a horse has actively participated in a race during race season2022 – 2023 and subsequently retired. Karen Day General Manager Equine Welfare and Traceability WELFARE AND TRACEABILITY REPORT
RACING AUSTRALIA ANNUAL REPORT 2023 15 RACED IN SEASON 2022/23 AND DIED Injury 56% Illness 25% Other 16% Abattoir/Knackery 3% HORSES THAT DID NOT RACE IN SEASON 2022/23 AND DIED Other 50% Injury 30% Illness 18% Abattoir/Knackery 2% RACED AND RETIRED IN SEASON 2022/23 Equestrian 67% Breeding 22% Official PRA Program 9% Other 2% HORSES THAT DID NOT RACE IN SEASON 2022/23 AND RETIRED Equestrian 63% Breeding 27% Other 6% Official PRA Program 4% *this includes retired horses and breeding horses. Photo courtesy of Coolmore Stud.
16 RACING AUSTRALIA ANNUAL REPORT 2023 SERVICE STANDARD PERFORMANCE REPORT Monthly Calculation Target Standard Actual Standard Variation Traffic Light Total Annual Monthly Average Registration Applications completed within 5 business days of receipt 90% 91.78% +1.78% 9,489 791 DNA kits dispatched within 3 business days, including imports 100% 100% Nil 14,341 1,195 DNA ID Forms processed/ID card dispatched within 2 business days of receipt, including imports 100% 100% Nil 13,610 1,134 New Breeder, Brand and Veterinarian applications processed within 2 business days 100% 100% Nil 938 78 Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Monthly Calculation Total Annual Monthly Average Registration Applications received and completed 10,388 866 Registration Applications received in the month where all information was not provided and could not be completed (further follow-up required) 937 78 Total Registration Applications received & completed in 2022/23 10,388 Received Monthly Average Received Processed Monthly Average Processed Horse Registrations 11,266 939 10,957 913 Change of Name 96 8 96 8 Total Horse Registrations processed in 2022/23 10,957
RACING AUSTRALIA ANNUAL REPORT 2023 17 SERVICE STANDARD PERFORMANCE REPORT COMMUNICATIONS SENT Total Monthly Average SMS 1,684,155 140,346 Email 2,793,192 232,766 Total Emails sent in 2022/23 2,793,192 Photo courtesy of Greg Irvine on behalf of TRNT.
18 RACING AUSTRALIA ANNUAL REPORT 2023 SERVICE STANDARD PERFORMANCE REPORT Phase of Service Service Standard Average Monthly Calculation Target Standard Actual Annual Variation Traffic Light Nominations RA Nominations to be Released within no more than 10 minutes of official close 98% 94.46% -3.54% Riders RA Riders to be Released within no more than 18 minutes of official close 98% 99.11% 1.11% Acceptances PRA Acceptances to be Released within no more than 15 minutes of official close 98% 99.19% 1.19% Scratchings RA Final Scratchings to be released within no more than: 15 minutes of official close with no Emergencies 98% 99.64% 1.64% 15 minutes of official close with Emergencies 98% 99.96% 1.96% Meeting Service Standard Within negative 1% of Service Standard Below Service Standard TRAINER AND RACING SERVICES Total Monthly Average Online 445,688 85.22% Phone 77,237 14.78% TOTAL 522,925 43,577 Total calls answered in 2022/23 150,550 TRAINER AND RACING SERVICES ONLINE TRANSACTIONS 85.22% TELEPHONE TRANSACTIONS 14.78%
RACING AUSTRALIA ANNUAL REPORT 2023 19 SERVICE STANDARD PERFORMANCE REPORT 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% +0.10% Stable Assist 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% REINS ASB System (Merge with SNS being reviewed) 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% Racing Australia Website 0 minutes unplanned downtime for year 525,600 minutes in year 100% 100% +0.00% Racing Australia Private Label Websites 0 minutes unplanned downtime for year 525,600 minutes in year 100% 100% +0.00% Stud Book Website 0 minutes unplanned downtime for year 525,600 minutes in year 100% 100% +0.00% SMS & Email 0 minutes unplanned downtime for year 525,600 minutes in year 99.93% 100% +0.07% Office Local Area Network 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% Server Internal Network 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% Telco and Data Network 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% PABX 0 minutes unplanned downtime for year 525,600 minutes in year 99.90% 100% +0.10% Meeting Service Standard Within negative 1% of Service Standard Below Service Standard
20 RACING AUSTRALIA ANNUAL REPORT 2023 Category Average Target Turnaround Time Average Actual Turnaround Time Traffic Light Thoroughbreds Parentage Verification 14 days 4.41 days DNA Self-comparison 14 days 4.47 days DNA Profiled Only 14 days 3.33 days Maternity Testing 14 days 3.56 days Paternity Testing 14 days 4.02 days Total Annual Monthly Average Thoroughbred Parentage Testing Samples 11,760 980 Thoroughbred DNA Self Comparison Samples 1,463 122 Other Breeds DNA Profiling Samples 5,589 466 Other Breeds Diagnostic Samples 5,930 494 Total Thoroughbred Parentage Testing Samples in 2022/23 11,760 SERVICE STANDARD PERFORMANCE REPORT Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Photo courtesy of Magic Millions. Photo courtesy of Magic Millions.
RACING AUSTRALIA ANNUAL REPORT 2023 21 Photo courtesy of Western RacePix. Photo courtesy of Tasracing & Sharon Lee Chapman. Photo courtesy of Racing QLD.
22 RACING AUSTRALIA ANNUAL REPORT 2023 RACING AUSTRALIA EVENTS AUSTRALIAN STUD AND STABLE STAFF AWARDS Supported by: Godolphin and Racing Australia. Sponsored by: The Australian Turf Club, the Melbourne Racing Club Foundation, Magic Millions, Inglis, the Victoria Racing Club, Marcus Oldham College, Thoroughbred Industry Careers and Racing Queensland. Media Partners: Racing Post ANZ Bloodstock, Racing.com, RSN, Sky Racing, TDN and 7 Horse Racing. Presented by: Godolphin. Hosted by: Gold Coast Turf Club. Location: Gold Coast Turf Club Function Room (Racecourse). Date: 24 May 2023 WINNERS OF AUSTRALIAN STUD AND STABLE STAFF AWARDS Award for Thoroughbred Excellence John Brady Gai Waterhouse & Adrian Bott Racing Sponsor: Godolphin Dedication to Racing John Brady Gai Waterhouse & Adrian Bott Racing Sponsor: Australian Turf Club Dedication to Breeding Kayleigh Walsh Fernrigg Farm Sponsor: Magic Millions Horsemanship Emile Fredericks Widden Stud Sponsor: Inglis Leadership Sean Keogh Godolphin Sponsor: Victoria Racing Club Thoroughbred Care and Welfare Louise Abey Abey Performance Horses Sponsor: Racing Queensland Newcomer James Green Armidale Stud Sponsor: Thoroughbred Industry Careers & Marcus Oldham Administration & Ancillary Services Mary O’Neill Newgate Farm 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.
RACING AUSTRALIA ANNUAL REPORT 2023 23 Recognising and rewarding the hard work and dedication of stud and stable staff across Australia. 1. John Brady 2. Louise Abey 3. Kayleigh Walsh 4. Emile Fredericks 5. Sean Keogh 6. James Green 7. Mary O’Neill All images courtesy of Godolphin. 1 6 7 5 3 4 2
24 RACING AUSTRALIA ANNUAL REPORT 2023 RACING AUSTRALIA EVENTS AUSTRALIAN RACEHORSE OF THE YEAR 2022/23 Supported by: Racing Australia Hosted by: Racing WA Location: Optus Stadium in Perth Date: 23 November 2023 AUSTRALIAN RACEHORSE OF THE YEAR CATEGORY WINNERS Australian Racehorse of the Year Anamoe 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 Shinzo Champion Three-Year-Old (F) In Secret Champion Three-Year-Old (M) Giga Kick Champion Sprinter Giga Kick Champion Middle Distance Anamoe Champion Stayer Gold Trip Champion Jumper* Stern Idol * Champion Jumper of the season is voted by Victorian 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 AUSTRALIA ANNUAL REPORT 2023 25 RACING AUSTRALIA ANNUAL REPORT 2022 25 ANAMOE Photo courtesy of Racing Photos.
26 RACING AUSTRALIA ANNUAL REPORT 2023 CHRIS WALLER Photo courtesy of Racing Photos. I AM INVINCIBLE Photo courtesy of Yarraman Park Stud. JAMES MCDONALD Photo courtesy of Racing Photos. GOLD TRIP Photo courtesy of Racing Photos.
RACING AUSTRALIA ANNUAL REPORT 2023 27 SHINZO Photo courtesy of www.bradleyphotos.com.au. STERN IDOL Photo courtesy of Racing Photos. GIGA KICK Photo courtesy of www.bradleyphotos.com.au. IN SECRET Photo courtesy of Racing Photos.
28 RACING AUSTRALIA ANNUAL REPORT 2023 RACING AUSTRALIA EVENTS THE AUSTRALIAN RACING HALL OF FAME Supported by: Racing Australia Hosted by: Racing WA Location: Optus Stadium in Perth Date: 23 November 2023 THE AUSTRALIAN RACING HALL OF FAME INDUCTEES Legend Gabriel Marie (Gai) Waterhouse Associate Robert John (Bob) Peters Horses Miss Andretti Emancipation Baguette Jockey Frank Treen Trainer Clarence Edward (Clarry) Conners Spirit of Racing Award Rod Kemp LEGEND - Gabriel Marie (Gai) Waterhouse Photo courtesy of Britta Campion Newspix.
RACING AUSTRALIA ANNUAL REPORT 2023 29 RACING AUSTRALIA ANNUAL REPORT 2022 JOCKEY - Frank Treen Photo courtesy of Australia Racing Museum TRAINER - Clarence Edward (Clarry) Conners Photo courtesy of Racing and Sports. ASSOCIATE - Robert John (Bob) Peters Photo courtesy of Nic Ellis - The West Australian. HORSE - Miss Andretti Photo courtesy of Nine Media. HORSE - Baguette Photo courtesy of Bradley Photographers. HORSE - Emancipation Photo courtesy of Bradley Photographers.
30 RACING AUSTRALIA ANNUAL REPORT 2023 FINANCIAL REPORT CONTENTS Directors’ Report 29 Auditor’s Independence Declaration 33 Statement of Profit or Loss and Other Comprehensive Income 34 Statement of Financial Position 35 Statement of Changes of Equity 36 Statement of Cash Flows 36 Notes to the Financial Statements 37 Director’s Declaration 49 Independent Auditor’s Report 50 Financial Report
RACING AUSTRALIA ANNUAL REPORT 2023 31 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2023 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 2023. DIRECTORS The following persons were directors during the whole of the financial year and up to the date of this report, unless otherwise stated: Racing NSW Nominated Director Russell Balding AO Peter V’landys AM – Alternate Director Racing Victoria Nominated Director Greg Nichols Brian Kruger – Alternate Director (Resigned 14/12/2022) Andrew Jones – Alternate Director (Appointed 15/12/2022) Racing Queensland Nominated Director Graham Quirk Brendan Parnell – Alternate Director (Resigned 30/03/2023) Adam Wallish – Alternate Director (Appointed 31/03/2023) (Resigned 02/05/2023) Jason Scott – Alternate Director (Appointed 03/05/2023) Racing WA Nominated Director Colin Holt Ian Edwards – Alternate Director Racing South Australia Nominated Director Robert Rorrison Nicholas Redin – Alternate Director (Resigned 18/11/2022) Vaughn Lynch – Alternate Director (Appointed 01/12/2022) Thoroughbred Racing Northern Territory / Canberra Racing Club Incorporated / Tasracing Pty Ltd Nominated Director Nicolle Rantanen Reynolds (Appointed 21/06/2023) David Garnier (Appointed 28/02/2023) (Resigned 20/06/2023) Robyn Whishaw (Resigned 31/01/2023) Paul Eriksson – Alternate Director (Resigned 07/07/2022) Andrew Jenkins – Alternate Director (Appointed 28/07/2022) (Resigned 20/06/2023) Andrew O’Toole – Alternate Director (Appointed 10/07/2023) 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). DIVIDENDS There were no dividends paid, recommended, or declared during the current or previous year. REVIEW OF OPERATIONS The surplus of the consolidated entity for the financial year amounted to $2,136,351 (2022: $2,184,399 surplus). During the year the consolidated entity continued to engage in its principal activity, the results of which are disclosed in the attached financial statements. The Thoroughbred Trainers Service Centre Limited operates based on a letter of financial support from Racing Australia Limited until such time as it becomes cash positive. A new letter of financial support in conjunction with a Deed of Subordination between ASIC, Racing Australia Limited and the Thoroughbred Trainers Service Centre Limited was executed for a further two (2) years commencing 1 July 2022. The Thoroughbred Trainers Service Centre Limited trades as a separately registered company as the holder of an Australian Financial Services Licence.
32 RACING AUSTRALIA ANNUAL REPORT 2023 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 website. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the consolidated entity during the financial year. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS Likely developments in the operations of the consolidated entity and the expected results of those operations have not been included in this report as the directors believe, on reasonable grounds, that the inclusion of such information would result in unreasonable prejudice to the consolidated entity. ENVIRONMENTAL REGULATIONS The consolidated entities operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. INFORMATION ON DIRECTORS Russell Balding AO – Director Chairman, Racing New South Wales, Chairman, NSW Racing Pty Ltd T/A Racingcorp, Chairman, ComfortDelGro Corporation Australia Pty Ltd, Director, ComfortDelGro Corporation Limited (Singapore), Deputy Chairman of Destination NSW, Director, The Trust Company (Sydney Airport) Limited. 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. Qualifications: Dip Tech (Com) / B Bus / FCPA / MAICD / SID Peter V’landys AM – Alternate Director to Russell Balding AO Chief Executive Officer, Racing New South Wales, 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, DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2023
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