www.racingaustralia.horse ANNUAL REPORT 2024 Financial Year Ended 30 June 2024
2 RACING AUSTRALIA ANNUAL REPORT 2024 Photo courtesy of Yarraman Park Stud
RACING AUSTRALIA ANNUAL REPORT 2024 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 12 Equine Genetics Research Centre Report 14 Welfare And Traceability Report 16 Service Standard Performance Report 18 Racing Australia Events 24 Financial Report Directors’ Report 33 Lead Auditor’s Independence Declaration 37 Statement of Profit or Loss and Other Comprehensive Income 38 Statement of Financial Position 39 Statement of Changes of Equity 40 Statement of Cash Flows 40 Notes to the Financial Statements 41 Consolidated Entity Disclosure Statement 52 Director’s Declaration 53 Independent Auditor’s Report 54
2 RACING AUSTRALIA ANNUAL REPORT 2024 BOARD OF DIRECTORS TIM EDDY Racing Victoria Nominated Director Appointed: 16/07/2024 Current positions • Chaimain, Racing Victoria Limited. • Non-Executive Director, Western Sydney Airport. • Chairman, The Red Fox Group. • Chairman, Rennie Advisory • Chair, BIO101. Previous positions • Managing Partner Operations – Oceania, Ernst & Young. • Global Vice Chair – Ernst & Young Global Services. Alternate Director – Aaron Morrison Appointed: 17/06/2022 Current positions • Director, Racing Queensland. • Director, Unity Water. • Director, Graham Quirk Auctions Pty Ltd. • Board of Governors, International Institute of Business and Technology. • Consultant, Grace Education and Migration. • Consultant, Honest Grace Legal. • Proprietor, Peak Plains Thoroughbreds. • Executive Consultant PolicyWonks. 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 & Paralympic Games from 2015-2019. • Elected Representative Brisbane City Council 1985-2019. Alternate Director – Jason Scott GRAHAM QUIRK Racing Queensland Nominated Director PETER V’LANDYS AM Racing NSW Nominated Director Appointed: 18/12/2023 Current positions • Director, Racing New South Wales. • Chief Executive Officer, Racing New South Wales. • Chairman, Australian Rugby League Commission. • Member NSW Arts & Culture Advisory Committee. • Secretary, Racing Appeal 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. Previous positions • Director, Racing Information Services Australia. • Executive Member, Australian Racing Board. Alternate Director – Peter Sweney
RACING AUSTRALIA ANNUAL REPORT 2024 3 BOARD OF DIRECTORS ROB RORRISON Racing SA Nominated Director Appointed: 30/04/2021 Current positions • Chairman, Racing SA Limited. • Chairman, Racing & Wagering SA Limited. • Executive Chairman, Climate Capital Pty Ltd and associated entities. • Senior Consultant, Taylor Collison Limited. • Senior Advisor, Capital Markets, Orion Minerals Limited. Previous positions • Chairman Resources Asia, Macquarie Capital Limited. • Executive Director, Macquarie Capital Limited. • Non-Executive Director, Baiyin International Investments Limited. • Chairman, Twenty Seven Co. Limited. Alternate Director – Vaughn Lynch COLIN HOLT Racing and Wagering Western Australia Nominated Director Appointed: 21/04/2022 Current positions • Director Racing WA. • Deputy Chairperson, Western Australia Voluntary Assisted Dying Board. • Director Western Australia Country Health Service. Previous positions • Member of the WA Legislative Council for the Southwest from 2009-2021. • Former State Government Minister Housing and Racing and Gaming. Alternate Director – Ian Edwards NICOLLE RANTANEN REYNOLDS Thoroughbred Racing NT Nominated Director Appointed: 21/06/2023 Current positions • Chair, Thoroughbred Racing NT. • President, The Grange Golf Club. • Director, Clayton Church Homes. • Council Member, Adelaide University. • Council, Institute of Company Directors SA. • Director, Greyhound Racing SA. • Board Member Golf Australia. • Director, LLL Australia. • Various Committees including, Local Government SA, State Government SA. Previous positions • Advisory Board SA/NT CPA Australia. • Director, Harness Racing SA. • Director Credit Union SA Ltd. • Director, University of South Australia. • Director, Cancer Council SA. • Chief Executive, The Public Trustee, Attorney Generals Department SA. Alternate Director – Andrew O’Toole
4 RACING AUSTRALIA ANNUAL REPORT 2024 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 and Wagering 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 2024 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 and Wagering Western Australia racingwa.com.au Thoroughbred Racing Northern Territory trnt.org.au
6 RACING AUSTRALIA ANNUAL REPORT 2024 The 2024 Financial Year was one of continuing change for Racing Australia as we focussed on improvements in traceability, data integrity and improvements in cyber security. Our IT team significantly reduced backlogs around existing system development and enhancements and moved closer to the re-release of the MHR Owners system. 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, especially the senior management team, who have worked hard to ensure we continue to provide uninterrupted services to the Australian Racing and Breeding Industries. FINANCIAL RESULTS The 30 June 2024 consolidated result inclusive of depreciation, amortisation and impairment expense was a deficit of $0.259 million compared to a surplus of $2.136 million the previous financial year 30 June 2023. This deficit was primarily driven by the recognition of the $2.356 million impairment against the carrying value of the New Zealand development work. Exclusive of depreciation, amortisation and impairment expenses the consolidated result for 30 June 2024 was $4.667 million versus $5.025 million at 30 June 2023. The decrease of $358k was predominantly driven by an increase in consolidated revenue of $64k offset by an increase in employee costs due to the filling of vacant roles during the year of $247k, an increase in administrative costs of $228k and an increase in equine testing costs of $57k. All other expenses remained static with the exception of Legal and consulting fees which decreased by $125k. Consolidated revenue rose $64k from $15.946 million at 30 June 2023 to $16.010 million at 30 June 2024. Consolidated expenses excluding the impairment against the carrying value of the New Zealand development work increased $103k to $13.913 million as at 30 June 2024 versus $13.810 million at 30 June 2023. Cash reserves increased from $10.784 million at 30 June 2023 to $13.416 million at 30 June 2024. 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: • Upgrade of all core operating systems to current standards to deliver improved performance, reliability and security. • Continued development of the cyber security system, following the outcomes of an independent Cyber Security Review, to protect Racing Australia systems (and data) from attack from hackers and data corruption/encryption fraud. • Improvements to Business Continuity and Disaster Recovery Systems following a test of the Disaster Recovery System to ensure any failures have minimal impact on the operation of racing. CHIEF EXECUTIVE OFFICER’S REPORT During the 2023 - 2024 year, Racing Australia focused on strengthening traceability, data integrity, and cyber security, while advancing system enhancements like the MHR Owners portal and supporting equine welfare and industry employment.
RACING AUSTRALIA ANNUAL REPORT 2024 7 The steps that continue to be taken over the 2023 – 2024 year have further solidified the base on which we effectively and efficiently manage the ongoing development of Racing Australia’s systems. As reported last year, development on the New Zealand Thoroughbred Racing (NZTR) Single National System (SNS) project was paused in February 2023 whilst a review of its capabilities was undertaken by both Racing Australia and NZTR. It was subsequently decided to close the project down leading to Racing Australia recognising a $2.356 million impairment on the investment. The development team that was dedicated to that work was rationalised and 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 was successfully released in Q3 of 2024 to PRAs. It is currently undergoing further enhancements to provide additional functionality 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 undertook a complete review 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 was planned for release in June / July 2024 with further development planned to update the trainer functionality with a targeted completion of December 2024. These targets have not able to be achieved due to complexities in the existing code. MHR Owners is now scheduled to be delivered April 2025 with MHR Trainers to follow shortly after. The MHR Breeders application (planned for 2021 but never developed) will follow the re-release of the MHR Trainers system. 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 was successfully delivered paving the way for the replacement of the Australian Stud Book systems. Late Foal Ownership Declarations – a key project to close a gap in the traceability of the horse and to enforce the Australian Rules of Racing 285, 286, 287. Transfers in Progress – a key project for improving communications regarding the status of changes in ownership of horses to ensure that the correct owners receive their prizemoney payments. Sales House API – an ongoing project to automate the transfer of data between Racing Australia systems and the sales houses to reduce data entry requirements for changes of ownership due to sales. A major project that has been commenced and will continue over the next 12 months is the validation and verification of ASB, RoR and SNS users. This project is a critical component of standardising the access to and control of Racing Australia systems and is a necessary first step to the ultimate objective of being able to transact digitally. Further information will be provided to Industry as the Project progresses. In relation to Racing Australia’s role as a source of Racing Materials to Wagering Operators and Commercial users we have finalised a Wholesaler Agreement which will see Racing Australia move to a wholesale model with the appointment of 4 (or more) wholesalers to provide racing materials. This will allow Racing Australia to focus on compliance and pursue those organisations who use Australian Racing Materials without recompense to the industry. The transition to this new model is expected to be complete by June 2025. WELFARE AND SAFETY As noted last year Racing Australia engaged with the PRAs to deliver a consensus position response to the Federal Government on the Australian Animal Welfare Standards and Guidelines for Livestock Land Transport. We have recently been able to review a draft standards document which appears to incorporate all Racing Australia’s feedback. Whilst there are still a number of steps to go before the standards and guidelines are adopted, we are happy with the outcome to date. In December 2022, the State Agriculture Ministers endorsed the National Horse Traceability Working Group’s recommended approach to development of a National Horse Traceability System. Racing Australia has continued involvement in this project through its role on the National Horse Traceability Implementation Taskforce. Racing Australia has maintained the position that the traceability systems in use by the Thoroughbred Industry are more than adequate and any national equine traceability system implemented should work within these existing traceability systems. Racing Australia strongly rejects any levy imposed on the Thoroughbred Industry to fund any new traceability systems. As part of the continuous improvements in equine welfare and traceability we have improved mandatory documentation relating to equine deaths and retirements. Racing Australia has provided for distribution, 1,400 jockey helmets that comply with the ARB HS2012 standard. These helmets have been made available to jockeys through the state PRAs at no cost. Following the delivery of the jockey safety vests scoping report, Racing Australia commenced an investigation into actions being taken to evaluate vests in international jurisdictions. The results of this investigation are currently being evaluated.
8 RACING AUSTRALIA ANNUAL REPORT 2024 RESEARCH AND DEVELOPMENT The Equine Genetics Research Centre (EGRC) continues to expand the offering to the equine industry for DNA based identification, genetic testing and disease control. The EGRC is one of only a few equine genetics laboratories internationally that offer pathogen testing alongside traditional genetic testing. In 2022 – 2023, a 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. In 2023 – 2024 the pilot program transformed into a standard offering for breeders along with an expansion of testing in infectious causes of abortions. This service is provided as a next business day turnaround allowing stud managers and horse owners to make timely quarantine and horse management decisions. INTERACTION WITH GOVERNMENT Racing Australia, in conjunction with the PRAs, engaged with the Federal Government to provide positive representation on a number of issues. We have engaged the services of the Diplomacy lobby group to increase effectiveness in this area. In relation to the 31 recommendations outlined in the Report into Online Gambling - Win Some, Lose More, Racing Australia has extensively engaged with both sides of Federal Parliament to explain and educate Ministers on the impacts to the racing Industry regarding Recommendation 16 Inducements and Recommendation 26 Advertising. Wagering is an intrinsic part of racing and exists in a symbiotic relationship with wagering providing over 85% of the funding for racing nationally. We have provided extensive information and examples of how minors and at risk individuals could be protected to achieve harm minimisation. As part of this engagement Racing Australia established the Parliamentary Group “Friends of Thoroughbred Racing” and held a successful inaugural event at Parliament House in early October 2024. In relation to visas and Core Sills Occupation List Changes Racing Australia has been reasonably successful in explaining the challenges faced by the racing and breeding industry in relation to recruiting key roles locally. We have been successful in working with government on a number of visa issues. Over the last 12 months we have engaged with the Jobs Skills Council Stakeholder Forum and will continue to do so, looking at ways to promote careers within the industry. For the first time in a number of years Racing Australia was asked to address the National State Racing Ministers Conference held in Sydney. We were able to present our positions on: • Point of Consumption Tax • Win Some, Lose More – online gambling review • The need for a skilled workforce • Improvements in Integrity and Welfare • Improvements in Traceability We look forward to engaging with the National State Racing Ministers at their next Conference. AUSTRALIAN RULES OF RACING Throughout the year the Australian Rules of Racing were amended to strengthen welfare and integrity matters. The key amendments include: 1. Adoption of Asian Screening Limit (ASL) for Dexamethasone. Dexamethasone is used in horses as an antiinflammatory corticosteroid muscle relaxant. This amendment brings Australia into line with the Asian Screening Limits. 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. AR2 and AR257B. This amendment recognises Residue Limits which are in effect screening limits for substances of environmental origin or those that may be found naturally occurring in a horse’s diet. 4. Cannabinoids – addition to Prohibited List A. This addition was put in place to deal with a loophole created following TGA approval of a new cannabidiol substance. 5. Selective Androgen Receptor Modulators (SARMs) – amendment to AR248, AR17, AR253, AR286 and Definition for SARM’s Clearing Certificate. Interest in SARM’s has increased following in vitro and in vivo studies showing these compounds to be effective anabolic agonists, without side-effects often associated with anabolic-androgenic steroids. The persistent threat of SARM misuse necessitated a review the Rules of Racing, specifically AR248 Administration of anabolic androgenic steroids, to ensure that the principle to control the long-term effects of anabolic substances is applied to SARM’s and maintain integrity and welfare. 6. Eligibility to Race (Horse) - Specified Prohibited Practices • Blistering - AR88C • Chemical - Castration AR88D • Bloodletting - AR88E The above where deemed prohibited practices from a welfare, treatment effectiveness and integrity perspective. In proven cases the ineligibility to race is 12 months.
RACING AUSTRALIA ANNUAL REPORT 2024 9 7. Bleeder Rule – AR79 – amendment. Following advice from experts, this amendment to put a 2 month blanket ban on exercise following a first attack of bleeding was brought in for horse welfare and rider safety. 8. National Equipment Register Updates • Inclusion of STEP Stirrup Irons – stainless steel version • Inclusion of VIPA III Safety vets following confirmation of conformity to EN13158:2018 9. Race Riding Boots with embedded lead banned – AR186 amendments. This amendment was made to improve integrity and clarify AR186 as to where weight could be carried. 10. Trainer conclusively treated as representative of the owner for the purposes of procedural fairness and natural justice - AR109A and AR223. AR109A addresses the principles of procedural fairness and natural justice under the Rules of Racing for a horse owner to be given notice of, and an opportunity to be heard at, an investigation or stewards’ inquiry with the notice being given to the trainer or trainer’s representative. The amendment to AR223 clarifies that any relevant investigation or inquiry is not required to have commenced for prizemoney to be withheld. 11. Care and Welfare of horses - AR231 amendment. This amendment is in response to a September 2020 Victorian Supreme Court decision in the matter of Jody Thompson which limited the ambit of AR 231(1) (b). Following extensive consultation, the amendments were made to reverse the precedent established in that case. It is considered these amendments are necessary for the promotion and championing of equine welfare 12. Prohibited Practices – AR88C, AR88D, AR88E, AR85 amendments. Specific amendments were introduced to explicitly prohibit persons from these practices, bringing the rules into alignment with AR86, AR87, AR254 and AR254A. These rules represent the racing industries commitment to continual review and improvement of horse welfare, health and safety. Racing Australia in conjunction with the PRAs will continue to review and, if appropriate, introduce rules that promote and improve racing. RESEARCH Racing Australia maintains a research and development fund specifically aimed at horse and participant welfare and safety. Projects are evaluated on an ongoing basis for their ability to deliver positive outcomes for welfare and safety. At present Racing Australia is in the final stages of evaluating a critical research project into predicting catastrophic bone fatigue to reduce equine injuries. Further announcements regarding this project are expected in the near future. RACING AUSTRALIA BOARD During the year Racing Australia farewelled with thanks Board Members Mr Russell Balding AO, and Mr Greg Nichols and welcomed Mr Peter V’landys AM and Mr Tim Eddy. Racing Australia farewelled Alternate Director Mr Andrew Jones and welcomed Alternate Directors Mr Pete Sweney and Mr Aaron Morrison. INTERNATIONAL REPRESENTATION Racing Australia is a member of the following International Horse Racing Organisations: • Asian Racing Federation • International Federation Horseracing Authorities and has representation on the following International Committees: • Asian Racing Federation Executive Committee • Asian Racing Federation Drug Control Committee (DCC) • Asian Racing Federation Asian Pattern Committee • International Federation Horseracing Authorities Executive Committee • International Federation Horseracing Authorities Gene Council on Anti-Illegal Betting and Related Financial Crime (AIBRFC) • International Federation Horseracing Authorities Gene Doping Control Subcommittee • International Federation Horseracing Authorities Advisory Council on Equine Prohibited Substances & Practices (ACEPSP) • International Federation Horseracing Authorities Horse Welfare Committee (HWC) • International Federation Horseracing Authorities International Grading and Race Planning Advisory Committee (IRPAC) • International Federation Horseracing Authorities International Harmonisation of Racing Rules Committee (IHRRC) • International Federation Horseracing Authorities International Movement of Horses Committee (IMHC) • International Federation Horseracing Authorities Technical Advisory Council (TAC) • International Stud Book Committee • Asia and Oceania Stud Book Committee
10 RACING AUSTRALIA ANNUAL REPORT 2024 • International Stud Book Thoroughbred Breeding Welfare Standards Working Group • IHSC Gene Doping Expert Committee Participation in these organisations and Committees is imperative to ensure Australian Thoroughbred Racing stays abreast of improvements and developments in all aspects of racing and breeding as well as providing contributions and a voice as one of the largest racing jurisdictions in the world. CONCLUSION Whilst the 2023/24 year has continued to be challenging, 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 and continues laying 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 the continuation of work on the new SNS design, specifically the Australian Stud Book and Register of Racehorses, 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; 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 industries operation and growth. Paul Eriksson Chief Executive Officer Photo courtesy of www.bradleyphotos.com.au
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12 RACING AUSTRALIA ANNUAL REPORT 2024 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). INTERNATIONAL THOROUGHBRED INBREEDING WORKING GROUP The Australian Stud Book is a founding member of the International Stud Book Committee (ISBC), comprising nine world Stud Book authorities, which has met annually since 1976 to ensure the relativity of rules and expedite the international movement of horses. The ISBC members are also responsible for monitoring and preserving the genetic fitness of the Thoroughbred for the future of the breed through its member countries. Several members of the ISBC have or are conducting studies on the levels of inbreeding in their population, namely, the United States, Australia, France, Japan, Britain, and Ireland. The ISBC have recently reaffirmed that more scientific papers are being published which reinforce previously published papers pointing to high levels of inbreeding The Australian Stud Book is a founding member of the International Stud Book Committee (ISBC), comprising nine world Stud Book authorities, which has met annually since 1976 to ensure the relativity of rules and expedite the international movement of horses. OWNER AND BREEDER SERVICES REPORT within the Thoroughbred breed globally, compared to other inbreeding-monitored equine breeds, and the challenges that this is, and is likely to continue, to present to the breed in the relatively short-term future. The committee is establishing an ISBC inbreeding working group (TIWG) to: • consider the published scientific evidence on increased and increasing levels of inbreeding in the Thoroughbred and the evidenced current and potential challenges presented by this research; and • consult and encourage constructive debate on the topic with all stakeholder groups including policy makers and breeders worldwide; and • formulate workable solutions, led by the data rather than opinions. 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 require 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 2024 13 Racing Australia Research and Development Fund 2023-2024 Balance ROR Research Fund 30/06/2023 $807,329 Approved project expenditure 2023/2024 $0 ROR Research Fund Revenue 2023/2024 $219,312 Balance ROR Research Fund 30/06/2024 $1,026,641 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 2024, the Stud Book has collected $2,775,260 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 Jacqueline Stewart Keeper of the Australian Stud Book Photo courtesy of Inglis ISBC REGIONAL FOAL REGISTRATION 2023 Asia & Oceania 29,040 (34%) Northern America & the Caribbean 18,956 (22%) Europe & Africa 25,154 (30%) South America 11,747 (14%) ISBC REGIONAL THOROUGHBRED FOAL REGISTRATIONS 2013 - 2023 35000 30000 25000 20000 15000 10000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Asia & Oceania Northern America & the Caribbean Europe & Africa South America
14 RACING AUSTRALIA ANNUAL REPORT 2024 The EGRC is the equine genetics testing laboratory which is responsible for parentage verification of all registered Thoroughbreds born in Australia. In the 2023 - 2024 season, we maintained an average turnaround time of less than a week for the Australian Stud Book, alongside providing DNA profiling and genetic testing services for 25 non-Thoroughbred Stud Books. EQUINE GENETICS RESEARCH CENTRE REPORT The services to non-Thoroughbred breed associations include DNA profiling, parentage verification, and testing for DNA mutations that cause genetic disorders or specific coat colours and patterns. The EGRC currently tests for 17 genetic diseases, 23 coat colours and patterns, and one gait marker. Testing for the non-Thoroughbred associations increased in the last financial year by over 30% for both numbers of horses tested and actual tests performed. We perform standard DNA analysis in horses on hair cells, found at the pulled ends of mane or tail hairs. The EGRC also offers DNA testing of non-standard samples including blood, semen and muscle, in addition to forensic analysis of samples for integrity purposes, such as positively identifying stolen horses. The EGRC is one of only a few equine genetics laboratories internationally that offers pathogen testing alongside traditional genetic testing. This uses a DNA identification method called PCR to detect agents that cause disease (pathogens) in horses. In 2023 – 2024 this service included pathogens that commonly cause respiratory symptoms and abortions, alongside the original menu of Klebsiella pneumoniae (serotypes 1, 2, and 5), and Pseudomonas aeruginosa in the pre-breeding panel. Pathogen testing has a same day turnaround on weekdays if submitted before 10am, allowing farms to make informed management and treatment decisions more quickly. 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). Members of the EGRC have presented at the International Conference of Racing Analysts & Veterinarians and attended the International Society of Animal Genetics conference to ensure we keep up to date with developments in all areas of equine genetics research. Dr. Natasha Hamilton Equine Genetics Research Centre Director
RACING AUSTRALIA ANNUAL REPORT 2024 15 Number of tests processed in the 2023 - 2024 financial year Australian Thoroughbreds parentage verified 11,221 Imported and local Thoroughbreds DNA profiled for identity purposes 1,199 Non-Thoroughbred parentage verification or DNA profiled 5,718 Non-Thoroughbred genetic testing number of horses 2,533 Number of tests processed in the 2023 - 2024 financial year Non-Thoroughbred genetic testing number of tests 7,820 Total DNA tests performed 28,491 Average turnaround time for DNA profiling tests 4.5 days Average turnaround time for genetic tests 3.1 days Photo courtesy of Racing Photos
16 RACING AUSTRALIA ANNUAL REPORT 2024 Racing Australia and the Australian Stud Book provides the technical infrastructure to support the Thoroughbred Industry in its day-to-day activities. Equine welfare and traceability are key components of those activities. Each season horses retire and experience end of life outcomes. Racing Australia, The Australian Stud Book, and the Principal Racing Authorities (PRAS) have dedicated teams who are responsible for ensuring industry participants comply with their obligations, regarding providing timely and accurate retirement information for the first home once leaving the racing industry, end of life outcomes and reasons behind those decisions. In 2022 a review was undertaken regarding the information collected at the time of retirement or end of life and what could be improved to provide valuable information regarding outcomes for horses. The review led to a consensus decision by the PRAs to expand the survey in regards to deceased, transferred and retirement notifications. The expansion of details required applied to: • horses going through auctions. • the reasons why a horse maybe transferred out of a trainer’s stable to allow for effective monitoring of horses who may not return to training. • the reasons for retirement at the time of exiting racing. • the reasons for retirement at the time of exiting breeding. • the reasons contributing to the end-of-life outcomes including identifying if the incident happened in training, track work, jump outs, trial and race day. The changes above were implemented in March 2024 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. To implement the recommendations Racing Australia invested significant resources to enable the process to be successful and the following activities where undertaken. 1. A complete data audit to review and reduce the combination surrounding Horses Status across more than 400,000 records. 2. A review and subsequent update of our systems to ensure effective mechanisms between the various environments utlised by Racing Australia. 3. Implementation of updated business processes across all platforms in March 2024 4. Expanded automated reporting to allow for consistent reviewing of the data including automatic communications platforms. The full impacts of the updates will be assessed at the end of racing season 2024/25 (31 July, 2025). Karen Day General Manager Equine Welfare and Traceability WELFARE AND TRACEABILITY REPORT Photo courtesy of Racing SA
RACING AUSTRALIA ANNUAL REPORT 2024 17 DECEASED HORSES IN TRAINING 2023/2024 Euthanasia 70% Died 22% Abattoir 8% Other 0% REASON FOR END OF LIFE FOR HORSES IN TRAINING 2023/2024 Catastrophic Limb Injury 13% Condition/Illness/Disease 19% Injury (other) 42% Sudden Collapse 2% Other 21% Unsuitable for rehoming 3% • Training are those horses that had an active stable return at the point the notification was processed and/or participated in racing during the 2023 – 2024 season. • Racing NSW, Racing Victoria Ltd and Racing and Wagering Western Australia have local rules in place regarding the use of knackeries, abattoirs, and transporting horses for the purpose of slaughter. RETIREMENT PATHWAY FOR HORSES IN TRAINING 2023/2024 Assited Rehoming 4% Auction 1% Breeding 19% Equestrian 63% Non-Equestrian 9% Private Sale 3% Other 1% REASON FOR RETIREMENT FOR HORSES IN TRAINING 2023/2024 Action by Racing Regulator 0% Age 3% Breeding (proactive) 9% Condition 3% Injury 15% Other 3% Owners 46% Uncompetitive 18% Unsuitable 0% Retired Horse Update 3%
18 RACING AUSTRALIA ANNUAL REPORT 2024 SERVICE STANDARD PERFORMANCE REPORT Monthly Calculation Target Standard Actual Standard Variation Traffic Light Total Volume Total Average Registration Applications completed within 5 business days of receipt 90.00% 91.17% +1.17% 9,505 792.08 DNA kits dispatched within 3 business days, including imports 100.00% 100.00% Nil 13,470 1,122.50 DNA ID Forms processed/ID card dispatched within 2 business days of receipt, including imports 100.00% 100.00% Nil 12,971 1,080.92 New Breeder, Brand and Veterinarian applications processed within 2 business days 100.00% 100.00% Nil 802 66.83 Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Monthly Calculation Total Annual Total Average Registration Applications received and completed 10,427 868.92 Registration Applications received in the month where all information was not provided and could not be completed (further follow-up required) 651 54.25 Total Registration Applications received & completed in 2023/24 10,427 Received Monthly Average Received Processed Monthly Average Processed Horse Registrations 11,184 932.00 11,128 927.33 Change of Name 93 7.75 93 7.75 Total Horse Registrations processed in 2023/24 11,184
RACING AUSTRALIA ANNUAL REPORT 2024 19 SERVICE STANDARD PERFORMANCE REPORT COMMUNICATIONS SENT Total Volume Total Average SMS 1,775,840 147,986 Email 3,083,910 256,992 Total Volume Emails sent in 2023/24 3,083,910 Photo courtesy of Western Racepix
20 RACING AUSTRALIA ANNUAL REPORT 2024 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% 96.21% -1.79% Riders RA Riders to be Released within no more than 18 minutes of official close 98% 98.40% 0.40% Acceptances PRA Acceptances to be Released within no more than 15 minutes of official close 98% 97.05% -0.95% Scratchings RA Final Scratchings to be released within no more than: 15 minutes of official close with no Emergencies 98% 99.19% 1.19% 15 minutes of official close with Emergencies 98% 99.45% 1.45% Meeting Service Standard Within negative 1% of Service Standard Below Service Standard TRAINER AND RACING SERVICES Total Total Average Online 522,925 79.93% Phone 131,313 20.07% TOTAL 654,283 100.00% Total calls answered in 2023/24 131,313 TRAINER AND RACING SERVICES ONLINE TRANSACTIONS 79.93% TELEPHONE TRANSACTIONS 20.07%
RACING AUSTRALIA ANNUAL REPORT 2024 21 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 527,040 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 527,040 minutes in year 99.90% 100.00% +0.10% Racing Australia Website 223 minutes unplanned downtime for year 527,040 minutes in year 100.00% 99.95% -0.05% Racing Australia Private Label Websites 0 minutes unplanned downtime for year 527,040 minutes in year 100.00% 100.00% 0.00% Stud Book Website 0 minutes unplanned downtime for year 527,040 minutes in year 100.00%100.00% 0.00% SMS & Email 0 minutes unplanned downtime for year 527,040 minutes in year 99.93% 100.00% +0.07% Office Local Area Network 0 minutes unplanned downtime for year 527,040 minutes in year 99.93% 100.00% +0.07% Server Internal Network 0 minutes unplanned downtime for year 527,040 minutes in year 99.90% 100.00% +0.10% Telco and Data Network 0 minutes unplanned downtime for year 527,040 minutes in year 99.90% 100.00% +0.10% PABX 4,920 minutes unplanned downtime for year 527,040 minutes in year 99.90% 99.08% +0.08% Meeting Service Standard Within negative 1% of Service Standard Below Service Standard
22 RACING AUSTRALIA ANNUAL REPORT 2024 Category Average Target Turnaround Time Average Actual Turnaround Time Traffic Light Thoroughbreds Parentage Verification 14 days 4.65 days DNA Self-comparison 14 days 4.64 days DNA Profiled Only 14 days 4.29 days Total Annual Monthly Average Thoroughbred Parentage Testing Samples 11,524 960.33 Thoroughbred DNA Self Comparison Samples 1,338 111.50 Other Breeds DNA Profiling Samples 6,000 500.00 Other Breeds Diagnostic Samples 7,900 658.33 Total Thoroughbred Parentage Testing Samples in 2023/24 11,524 SERVICE STANDARD PERFORMANCE REPORT Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Photo courtesy of Inglis
RACING AUSTRALIA ANNUAL REPORT 2024 23 Photo courtesy of Yulong Stud Photo courtesy of Yulong Stud Photo courtesy of Yulong Stud
24 RACING AUSTRALIA ANNUAL REPORT 2024 RACING AUSTRALIA EVENTS AUSTRALIAN STUD AND STABLE STAFF AWARDS Partners: Racing Australia & Thoroughbred Breeders Australia. Supported by: Godolphin. Award Category Sponsors: Thoroughbred Breeders Australia, Victoria Racing Club, Inglis, Magic Millions, Australian Turf Club, MRC Foundation, Queensland Off-The-Track, Marcus Oldham and Thoroughbred Industry Careers. Media Partners: Racing Post ANZ Bloodstock; Racing.com; The Thoroughbred Report Australia and New Zealand; Sky Racing. Hosted by: Ally Mosley & James Tzaferis. Location: The Star at the Gold Coast. Date: 29 May 2024 WINNERS OF AUSTRALIAN STUD AND STABLE STAFF AWARDS Thoroughbred Excellence Hazel Fertier Freelance Trackrider Sponsors: Godolphin & Racing Australia Dedication to Racing Trudie Clarke Thoroughbred Racing Northern Territory Sponsor: Australian Turf Club Dedication to Breeding Ngyrie Gonzalez Alwyn Park Stud Sponsor: Magic Millions Horsemanship Hazel Fertier Freelance Trackrider Sponsor: Inglis Leadership Finn McCarthy McEvoy Mitchell Racing Sponsor: Victoria Racing Club Thoroughbred Care & Welfare Nicole Mutimer Northern Territory Institude of Equestrian Sport Sponsor: Queensland Off-The-Track Newcomer Isabelle Toole Vinery Stud Sponsors: Marcus Oldham & Thoroughbred Industry Careers Administration & Ancillary Services Emma Cully Star Thoroughbreds Sponsor: Melbourne Racing Club Foundation Celebrating its 10th anniversary, the Stud and Stable Staff awards recognise the 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. Photo courtesy of Godolphin Photo courtesy of Godolphin
RACING AUSTRALIA ANNUAL REPORT 2024 25 Recognising and rewarding the hard work and dedication of stud and stable staff across Australia. RACING AUSTRALIA ANNUAL REPORT 2024 Hazel Fertier – Winner of Horsemanship & the overall Thoroughbred Excellence Award. Photo courtesy of Godolphin Paul Eriksson, Hon Grace Grace QLD Minister for State Development & Infrastructure, IR, & Racing & Tom Reilly. Photo courtesy of Godolphin All category winners from Left to Right - Newcomer, Isabelle Toole (Vinery Stud); Dedication to Racing, Trudie Clarke (TRNT); Admin & Ancillary Services; Emma Cully (Star Thoroughbred); Hazel Fertier; Dedication to Breeding, Ngyrie Gonzalez (Alwyn Park Stud); Thoroughbred Care & Welfare, Nicole Mutimer (NT Institute of Equestrian Sport); Leadership, Finn McCarthy (McEvoy Mitchell Racing). Photo courtesy of Godolphin
26 RACING AUSTRALIA ANNUAL REPORT 2024 RACING AUSTRALIA EVENTS AUSTRALIAN RACEHORSE OF THE YEAR 2023/24 Supported by: Racing Australia Hosted by: Racing SA Location: Morphettville Racecourse - Wolf Blass Event Centre Date: 8 October 2024 AUSTRALIAN RACEHORSE OF THE YEAR CATEGORY WINNERS Australian Racehorse of the Year Pride of Jenni 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 Broadsiding Champion Three-Year-Old (F) Stefi Magnetica Champion Three-Year-Old (M) Riff Rocket Champion Sprinter Imperatriz Champion Middle Distance Pride of Jenni Champion Stayer Without A Fight 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. Photo courtesy of AtkinsPhotography.com.au
RACING AUSTRALIA ANNUAL REPORT 2024 27 RACING AUSTRALIA ANNUAL REPORT 2022 27 Pride of Jenni Photo courtesy of Racing Photos
28 RACING AUSTRALIA ANNUAL REPORT 2024 CHRIS WALLER Photo courtesy of AtkinsPhotography.com.au I AM INVINCIBLE Photo courtesy of Yarraman Park Stud JAMES MCDONALD Photo courtesy of www.bradleyphotos.com.au
RACING AUSTRALIA ANNUAL REPORT 2024 29 Broadsiding Photo courtesy of Racing Queensland Imperatriz Photo courtesy of Magic Millions Riff Rocket Photo courtesy of Racing Photos
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