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Outback Stores Pty Ltd—Report for 2020-21


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508 TONNES OF FRESH FRUIT AND VEGETABLES SOLD IN COMMUNITIES

OUTBACK STORES

87% OF ALL TEAM MEMBERS EMPLOYED IN STORES ARE ABORIGINAL AND TORRES STRAIT ISLANDER

8 TONNES REDUCTION OF SUGAR CONSUMED THROUGH SUGARY DRINKS

WORKING WITH COMMUNITIES

41 STORES ACROSS NORTHERN TERRITORY, WESTERN AUSTRALIA & SOUTH AUSTRALIA

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OUR PURPOSE To be a sustainable business that makes a positive difference in the health, employment and economy of remote Indigenous communities by improving food affordability and availability, nutrition and community services.

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CONTENTS Letter of Transmittal ...................................................... 9

Message from the Chairperson ................................ 10

Message from the CEO .............................................. 12

Health and Nutrition ................................................... 14

Aboriginal and Torres Strait Islander Employment & Training ............................................. 20

Aboriginal and Torres Strait Islander Team Members ........................................................... 22

Store Manager Spotlight ............................................ 26

Good Governance and Sustainable Stores ......... 28

Work Health and Safety ............................................. 38

Store Locations ............................................................ 40

Organisation Structure .............................................. 42

Outback Stores’ Performance .................................. 46

Corporate Governance .............................................. 49

Other Information ........................................................ 54

Index of Annual Report Requirements................... 56

Directors Report ......................................................... 62

Directors Declaration ................................................ 69

Auditors Independence Declaration ..................... 70

Independent Auditors Report .................................. 71

Statement of Comprehensive Income ................... 74

Statement of Financial Position .............................. 76

Statement of Changes in Equity ............................. 78

Statement of Cash Flows ......................................... 78

Photo: Sunrise at Kunawarritji community. Well 33 along the Canning Stock Route.

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3rd of September 2021

The Honourable Ken Wyatt AM The Minister for Indigenous Australians PO Box 6022 House of Representatives Parliament House, Canberra ACT 2600

Dear Minister Wyatt,

In accordance with Section 97 of the Public Governance, Performance and Accountability

Act 2013 (PGPA Act), I submit the Annual Report of Outback Stores Pty Ltd for the year

ended June 2021.

Under section 97 of the PGPA Act, the Directors of Outback Stores are responsible

for producing an Annual Report that includes a Financial Report, Directors Report and

Auditors Report that is required by the Corporations Act 2001, and other additional

information or report required by the Minister for Finance orders under the PGPA Act.

All reports and Audited Financial Statements contained in this Annual Report were made

in accordance with a resolution of Outback Stores Directors on the 2nd September 2021.

Yours Sincerely,

Dr Susan Gordon AM

Chairperson, Board of Directors

LETTER OF TRANSMITTAL

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MESSAGE FROM THE CHAIRPERSON On behalf of the Board, I am pleased to report on Outback Stores’ performance for the 2020-2021 financial year.

The business operated through another tough COVID-19 environment this year, however continued to focus on delivering social outcomes. Fresh produce once again was a big emphasis, with 508 tonnes of fresh fruit and vegetables purchased by customers in the remote community stores we manage. This is another great year for fresh produce volume and comes with the introduction of further pricing strategies that have improved value for our customers.

Each year we continue to make positive improvements to our health and nutrition outcomes. The proportion of sugary drinks sold declined this year by 2.70%; this equates to 8 tonnes less sugar consumed. Total tobacco sales decreased by 9.00%, as this continues to be a focus for Outback Stores and the communities in which we work.

Providing meaningful employment pathways to local staff in communities remains a priority. Across community stores this year, 283 Aboriginal and Torres Strait Islander people were employed, which equates to 87% of all store staff. Twenty-four trainees completed a nationally accredited qualification, with nine of them earning a Certificate IV in Retail, the highest level that Outback Stores offers.

Financial self-sustainability continues to be a goal of the company, and the Board of Directors are delighted with the commercial outcomes this year and thank the Executive Team for their efforts. To that end, the team have implemented sound expense controls, improved the financial returns of cash reserves, as well as increasing store sales.

A new independent advisory group was established by the company this year. The Indigenous Advisory Group comprises seven influential and well-respected Indigenous leaders, and I welcome these first members and look forward to their valuable contribution.

The Board has continued to operate very effectively in guiding the company and offers a wide range of skills relevant to the operation of Outback Stores. This year we welcomed the addition of Mrs Lesley Nelson to the Board, who holds over 25 years’ experience in various executive leadership roles within the Aboriginal health sector. I thank all directors for their contribution over the past 12 months.

I have had the privilege of visiting several stores in the last year and am confident that we continue to deliver a high standard of retail service. I would like to thank everyone employed by and supporting Outback Stores for their contribution; they are the key to our continuing success. We are all united in the pursuit of delivering on Outback Stores’ purpose into the future.

Dr Susan Gordon AM Chairperson

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MESSAGE FROM THE CEO Outback Stores maintains an unwavering commitment to guaranteeing access and improving affordability of food supplies, whilst delivering

the best possible outcomes for the remote communities we serve.

Providing the highest quality retail stores in our remote retail sector is Outback Stores’ contribution towards making a positive difference to the health, employment and economy of remote Aboriginal and Torres Strait Islander c ommunities.

We finished the year with forty-one remote community stores under management, with total sales of $95.8 million. This result reflects our strongest trading period aside from the previous year’s sales, which were also heavily influenced by the COVID-19 pandemic.

Last year Outback Stores delivered a loss of $262,793 for the financial year. This loss aligns with our not-for-profit principles but ensures that we remain on track for our long-term financial sustainability.

We continue to financially support a number of stores that we manage on behalf of communities which are not financially viable, due to small populations and geographical challenges. This year we provided $999,000 of operating funds to support 13 stores, to ensure continuous access to a fresh healthy and affordable food supply. An additional $495,000 was invested on capital improvements for stores that were also unable to support themselves commercially.

We continue to work towards our goal of financial self-sustainability. This financial year we did not require any additional government subsidies and our ongoing aim is to achieve a self-funded Outback Stores that delivers improved social outcomes and support to remote communities. The measure of this target is shown by our adjusted cash outflows each year, with this year’s outflows totalling only $297,000, our best result in recent history.

This wet season was the heaviest in recent years, leading to road closures in several Top End communities for long periods of time. Through this season 42 flights to stores were utilised to ensure communities had sufficient food, costing more than $143,000. Outstanding collaboration and ingenuity between Outback Stores, suppliers and emergency services ensured the communities never ran out of essential supplies.

This year we welcomed Urapunga Store in Arnhem Land, Aputula Store in Central Australia, and Kunawarritji Community in the Pilbara region of Western Australia. In the case of Kunawarritji, not only will Outback Stores oversee the store, but it will also assist with managing the corporation to ensure the smooth delivery of key services. We look forward to a long and prosperous working relationship with these communities.

I would like to welcome to the Senior Leadership Team former employee Anna Murison, who has re-joined the company as Health and Nutrition Manager, and Nicola Pitt as Communications Officer. Both Anna and Nicola bring to the business a wide range of expertise and knowledge in their fields. We also welcome Craig Boxall to the Operations Team, as a Senior Area Manager. Craig joins our business with significant retail experience and will be supporting the business in the district south of Alice Springs.

An inquiry into food pricing and food security in remote Indigenous communities was conducted in 2020 by the House of Representatives Standing Committee on Indigenous Affairs. It found the higher price of groceries in remote communities is reflective of the additional costs involved in operating the stores. One of the recommendations was that the Food Security Working Group established during the COVID-19 pandemic be maintained. We welcomed the opportunity to continue our collaboration with these stakeholders aligned to the working group to further improve access to nutritious foods in remote communities.

The Executive Team is pleased with how the company has commercially navigated the unpredictable conditions of the COVID-19 pandemic, through the constant threat of border closures and lockdowns.

I would like to thank our store managers for their dedication and commitment through this challenging period. Their resilience in trying circumstances has made it possible to continue to service the remote communities we are aligned to.

Our store managers are the backbone of the company, and the entire Outback Stores team recognises and congratulates their efforts.

This year the company has further strengthened its governance controls and risk mitigation strategies, through the stewardship of Director David Evans. An extensive amount of work has been completed in this space, and Outback Stores continues to pride itself on its high level of competence and professionalism.

The Boards engagement, led by Dr Susan Gordon AM, is as always appreciated by the Executive Team. In addition to this, I would like to also thank our Senior Leadership Team and all staff for their unwavering efforts in delivering excellent results through this challenging year.

Finally, I would like to thank the Store Directors / Owners, those respected community leaders for whom we work. It is a privilege to work alongside each of you, in order to deliver the best possible social, nutritional, and economic outcomes for your aligned communities.

Michael Borg Chief Executive Officer

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Reducing sugary drinks Outback Stores is committed to working to reduce the impact of sugary soft drinks on the health and wellbeing of people living in remote Indigenous communities. Outback Stores works closely with leaders in our partnered communities to implement community-led sugar reduction strategies through engagement, that complement and support the Outback Stores Health and Nutrition Policy.

The 2021 financial year saw a 2.70% drop in the proportion of sugary drinks sold (53.26%) in comparable Outback Stores on the previous year (55.96%).

The proportion of water sold increased 2.46% and sugar-free drinks increased 0.25%. This is equal to a reduction of 80,079 litres of sugary drinks or approximately 8 tonnes less sugar from sugary drinks sold in the remote communities in which Outback Stores is operating. This continues an ongoing trend that has seen the proportion of full-sugar drinks fall 23% from 76.5% since 2012.

In 2021 the Engawala community store directors made the decision to implement a maximum pack size of 600ml on sugary soft drinks, encouraging customers to move to the smaller pack size or switch to a no-sugar option, with this change contributing to a massive 15.56% reduction in the share of full-sugar drinks in this store. The Santa Teresa community store directors also decided to implement an additional sugar-free day in their store, contributing to an impressive reduction in the sugary drink share of 12.92%.

It is important to acknowledge the strong leadership being shown in these communities to implement additional strategies to support sugar reduction. These are significant community-led steps to move customers away from purchasing full-sugar soft drinks and is complimented by reduced pricing on diet and sugar-free options.

HEALTH AND NUTRITION Outback Stores encourages healthier purchases through nutrition

promotion and affordable pricing, while not restricting a person’s individual choice. Our positive contribution is measured by the reduction in sales of sugary drinks and tobacco, while increasing the sale of water, fruit and vegetables.

53.26%

26.61%

20.13%

Proportion of total share of drinks sales

water

2012 2013 2014 2015 2016 2017 2018 2019

0%

40%

10%

50%

80%

20%

60%

90%

30%

70%

2020 2021

soft drink diet drink

Market Share Drinks for all stores

TOTAL DRINKS SALES 2021

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Fruit and Vegetables Fresh fruit and vegetable volume growth is a key component of the Outback Stores Healthy Food Strategy. In the 2021 financial year, we saw a fantastic full-year volume of 508 tonnes of fresh fruit and vegetables purchased by our customers.

Outback Stores and the communities with which we work invested further in maintaining value pricing on all fruit and vegetables, to support our customers to be able to regularly purchase healthy fruit and vegetables.

In partnership with the communities where we operate, Outback Stores continued to implement modern and efficient display gondolas and refrigerated display cases to support the sale of fresh fruit and vegetables. In 2020 the Barlmarrk supermarket invested in both modern new display gondolas and efficient new refrigerated display cases which help to push sales volumes of fresh fruit and vegetables up to 50 tonnes for this store in 2021.

Tobacco Tobacco reduction continues to be a focus for Outback Stores and the communities in which we work. In the 2021 financial year, we saw a drop of 9.00% in the volume of tobacco sold in comparable Outback Stores managed stores.

Outback Stores maintains a consistent approach in relation to reducing tobacco consumption. Tobacco consumption data and results are presented at store directors meetings to engage and inform the store owners. Our nutrition team continue to engage with communities in relation to tobacco reduction, ensuring that all Quit Campaign strategies and state-based legislation are fully implemented in all stores.

Outback Stores encourages and works with the community stores directors to implement smoke-free areas around their store, to protect their communities, and particularly children, from passive smoking outside the entry areas.

Affordability Outback Stores, in partnership with community store directors, remains focused on improving affordability on healthy and nutritious foods, along with everyday needed products. Further to this, we continue to seek opportunities to provide promotional pricing on a broad range of products including food and general merchandise lines.

Fresh fruit and vegetable pricing is maintained at levels as close as possible to major metropolitan retailers with special-buy pricing on volume and in-season lines consistently implemented at or below major retailers pricing across the year.

In the 2021 financial year Outback Stores have continued to expand our Staple Line Program by including a range of health and nutrition products across our stores. We remain committed to working with suppliers to reduce the cost of goods including hygiene and personal care items such as face washers, towels, toothbrushes, and toothpaste. This Staple Line list has steadily grown to cover over 80 lines of everyday items to ensure we continue to deliver everyday value pricing for stores and remote communities.

Photo: Stewart Beasley & Warrick Miller at Ali Curung Store

Photo: Beswick fresh produce

SALES OF FRUIT AND VEGETABLES IN COMPARABLE COMMUNITY STORES

150

350

500

550

200

400

250

450

300

2012

225

2013

292

2014

377

2015

414

2016

415

2017

408

2018

430

2019

459

2020 2021

527 508

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School Nutrition Programme Outback Stores have continued to support the Australian Government’s commitment to providing meals to school children in the Northern Territory through the School Nutrition Program (SNP). The SNP provides the opportunity to improve attendance and engagement with learning by providing healthy and nutritious meals for children whilst at school.

Over the past year Outback Stores has continued to provide meals as part of the SNP to a total of nine remote communities: Willowra, Engawala, Nyirripi, Ali Curung, Epenarra, Nitjpurru, Papunya, Alpirakina and Mt Liebig.

The SNP provides healthy and nutritious meals for school children, additional employment, and education for local community members on the importance of healthy nutritious meals being readily available.

Partnerships MONASH UNIVERSITY STUDENTS

Outback Stores collaborated with Arnhem Land Progress Aboriginal Corporation (ALPA) and Monash University to host three Master of Nutrition and Dietetics students completing their final year, for a seven-week placement. The students continued developing the Remote Store Nutrition Activity Guide which had been initially created by previous Griffith University students. This guide aimed to support Aboriginal and Torres Strait Islander peoples living in remote communities to consume more fruit and vegetables and consume less sugary drinks, discretionary foods, and foods with added sugar. It was a great opportunity for the students to provide a guide to help build capacity for public health nutritionists to deliver relevant and culturally appropriate education material to remote Aboriginal and Torres Strait Islander people in remote communities.

INDIGENOUS EYE HEALTH

The University of Melbourne and Outback Stores have partnered together to work towards improving eye health and hygiene within Indigenous communities. Outback Stores has included more hygiene and cleaning products into the staple lines and includes these products in their quarterly promotions in stores.

HEALTHY STORiES = GOOD FOOD

Outback Stores was part of a national working group organised by Monash University to highlight innovative approaches to the challenge of providing a healthy food supply in remote communities.

Photo: Cynthia Smith filmed for HEALTHY STORiES = GOOD FOOD series (Ali Curung community).

HEALTHY STORiES = GOOD FOOD included a series of short films as part of an online webinar series. The videos were included in the Food Summit in Alice Springs, organised by the Aboriginal Medical Services Alliance Northern Territory (AMSANT). Outback Stores contributed content for four of these videos.

HEALTHY FOOD, STRONG FUTURE FOR KIDS PROJECT

The University of Queensland and the Central Australian Aboriginal Congress Aboriginal Corporation are leading a study that evaluates the impact of discounting a range of healthy foods for eligible women, infants and children on purchasing and diet quality in two Cape York communities and another two in Central Australia: Santa Teresa and Yuendumu. Outback Stores will continue to support this project and collaborate with the University Queensland and Central Australian Aboriginal Congress Aboriginal Corporation.

37,968 MEALS PROVIDED TO SCHOOL CHILDREN

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EMPLOYMENT AND TRAINING Outback Stores remains committed to providing meaningful employment, career pathways and an opportunity to complete nationally accredited training for local people whilst remaining on country.

ABORIGINAL AND TORRES STRAIT ISLANDER

We finished the year with 87% of team members employed in community stores identifying as Aboriginal and Torres Strait Islander (ATSI). This equates to 283 people in remote communities engaged in real jobs.

Identifying and supporting aspiring leaders by building career pathways to management through Vocational Education and Training (VET) remains a core objective.

To assist with the recovery from the impact of COVID-19, the Australian Government is providing wage subsidies for 12 months to all employers who engage a new Australian apprentice or trainee between 5 October 2020 and 31 March 2022. This initiative has been well received and encouraged strong participation from store and support office staff.

This year 24 trainees completed a nationally accredited retail qualification. Nine of these qualifications were Certificate IV in Retail Management, the highest level that Outback Stores offers as a recognised training organisation. All nine trainees had previously completed either a Certificate II, III, or both. This highlights a positive trend of engaged and committed staff in remote communities creating a career pathway through on-the-job learning and VET.

We continue to lead our industry in providing a relevant, interactive and

culturally appropriate learning experience for our team. This year we internally promoted Alma Ngalmi as the first Indigenous retail trainer at Outback Stores with fantastic results. Alma has been formally recognised as a finalist in the 2021 NT Training Awards - ATSI Student of the Year.

We are working towards more Indigenous people being able to train and mentor others living in remote communities. To that end, Dotty Repu from Maningrida has gained accreditation as a qualified retail trainer and is also now working in this capacity.

We continue to work with partner organisations such as Charles Darwin University by placing graduates into work placements and permanent employment opportunities in our Darwin Support Office. A trial of school-based retail traineeships will take place in 2022 across Ngukurr, Santa Teresa, and Ali Curung communities. This will see a select number of students complete a Certificate I in Retail as part of their high school education with the goal of transitioning into employment post-graduation.

Photo: Fiona Cooper receiving her Certificate III in Retail Services from Miriam-Rose Ungunmerr-Baumann (second from left) alongside Outback Stores team Wayne Martin, Alma Ngalmi, Harika Akula and Saikiran Girkati (Nauiyu Nambiyu Store, Daly River).

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TEAM MEMBERS Outback Stores strives to provide clear and obtainable career pathways

for aspiring staff.

ABORIGINAL AND TORRES STRAIT ISLANDER

Audrey was born and raised in Engawala, a small community 180km north-east of Alice Springs.

She speaks Arrernte, Western Arrernte, Alyawarr/Anmatyerr, as well as English.

Audrey has worked at the store for six years, and last year joined the store’s board of directors, who this year have been tackling the problem of diabetes in the community.

The directors decided to reduce soft drink bottles to a maximum of 600ml, as well as introduce ‘Sugar-Free Wednesdays’ to the store.

She was interviewed about this sugar-reduction strategy for a video series by Monash University called HEALTHY STORiES = GOOD FOOD.

“At first people didn’t like it, but as store workers, we told them it’s better for our health, so they understood,” said Audrey.

On the occasions when the store manager is called away from the community, Audrey steps into the role of store supervisor.

“Audrey can keep the store running if I am away, including ensuring that the school nutrition programme meals are done, opening and closing the store, and the daily reporting requirements,” said Emma Skyba, current store manager at Engawala.

This year Audrey completed her Certificate IV in Retail Management and is hoping to one day take on the role of store manager, with the help of the local women in the community.

Audrey has a three-year-old daughter and says “I want my daughter growing up to see that working is better than sitting at home all day, bored”.

Photo: Audrey Inkamala interviewed for HEALTHY STORiES = GOOD FOOD webinar series.

Audrey Inkamala

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Liam George

This year Liam George celebrated his tenth anniversary working at the Gulin Gulin Store, located 300km north-east of Katherine.

He was born and raised there but spent his high school years at Kormilda College in Darwin. He grew up speaking Kriol and Rembarnga with his family but learned English at school, which was one of his favourite subjects. After graduating high school he returned home and shortly afterwards got a job at the store.

Now, ten years later, Liam is the longest-serving member of the current store staff, and the one to whom new store managers often turn when they come to the community. At 29 years of age, Liam is the youngest member of the Gulin Gulin Store board of directors and is also its chairperson. He was proud to be nominated for the position and is happy to contribute to store decisions that benefit the health of the community.

Liam’s favourite task is working at the cash registers because it is a chance to connect with everyone as they pass through the store. He is a hard-working member of the team, who works 5 to 6 days a week.

He values his job at the store because of the independence that saving his money allows. This year he bought a car and is studying for his learner’s driver’s licence.

Cynthia is the chairperson of the Mirnirri Store board of directors in Ali Curung, and at 27 years of age is also its youngest member.

Originally from Balgo in Western Australia, she has worked at the Ali Curung store since arriving in the community in 2013.

At first, she was hesitant about taking on the role of chairperson, but now she enjoys the opportunity to lead the health and nutrition strategies of the store board.

Cynthia represented the Mirnirri Store board of directors at the Food Summit held in Alice Springs in June, organised by the Aboriginal Medical Services Alliance Northern Territory (AMSANT).

“I enjoyed hearing all the different ideas at the conference on how communities can eat healthier food,” said Cynthia, who was excited to meet Outback Stores director Bess Price at the AMSANT Food Summit.

Cynthia enjoys cooking and recently showed Mirnirri Store managers, Rob and Helen Delugar, how to prepare a

kangaroo tail stew, which proved to be so popular it sold out the moment they were put on sale.

Cynthia hopes to see more young people employed in the communities because it is through working that they find out what talents they possess and grow in self-confidence. She thinks that the community store is an ideal learning environment for young people, in part thanks to the qualities of the current store managers.

“They are good to work with. They help when somebody is struggling. They are very patient and kind to everyone. And always happy,” said Cynthia about Mirnirri Store managers Rob and Helen Delugar.

Cynthia is looking forward to developing her formal training by learning more about governance so that she can bring new skills to her role as chairperson of the Mirnirri Store board.

Liam makes the most of the opportunity to get certified training through his job and is currently working on his Certificate III in Retail Services. In 2016 Liam was awarded “Young Citizen of the Year” by Roper Gulf Regional Council. “Liam has a great work ethic and is proud of the shop. He will be a great leader for the community,” said Mark Crilly.

Liam enjoys the friendly banter in the store and says of the current store managers Sharon and Mark Crilly, “They are fun to work with and respectful of the community members”.

When he is not working, Liam spends time fishing for barramundi, watching the Sydney Swans play footy and going for long walks with his dogs.

Photo: Liam George holding his Certificate of Recognition, celebrating 10 years of employment at Outback Stores.

Cynthia Smith

Photo: Cynthia Smith (middle) at the AMSANT Food Summit with Sid Vashist (Business Development Manager, left) and Bess Price (Outback Stores director, right).

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STORE MANAGER SPOTLIGHT

Photo: Matt and Shkarra

Shkarra was working as a duty manager at IGA in her hometown of Ballina when a colleague told her about the roles that were available in remote Indigenous community stores.

That night she came home and mentioned it to her partner, Matt, who had worked as a store manager at Kmart but was currently working in car sales. He applied to Outback Stores the very next day, and less than two weeks later they both had job offers.

Although not usually ones to make big spontaneous decisions, they both decided to seize the opportunity. They had been feeling that their lives were in a rut, and they wanted something different.

One month later they had packed up the house, sold their car and boat, and were flying to Darwin to begin their induction.

Their first experience of community life was in Beswick, where they spent two weeks in training and were warmly welcomed by the community.

“Once we arrived in Beswick we had people not wanting us to leave. We were invited to footy games. It was an easy transition,” said Shkarra.

Then they spent eight months as co-managers of the store in Ngukurr, a larger but more remote community, located on the banks of the Roper River in southern Arnhem Land.

“We had a lot of fun with the locals, made good friends and did a lot of fishing,” said Matt.

The couple is now enjoying the desert landscapes of Central Australia, where they have been working for over a year in Santa Teresa, 85km south-east

of Alice Springs.

They both agree that remote community work has taught them a lot about adaptability and that the role would suit those willing to try new things.

“You need to learn how to let go, and not sweat the small stuff,” said Shkarra.

On the weekends, Matt and Shkarra often explore the desert on their motorbikes or sleep under the stars in

their camper trailer.

“The luxury of living remote is that you can drive ten minutes anywhere and have a cup of tea under the stars. It’s pretty picturesque anywhere you go around here,” said Matt.

“WE HAD A LOT OF FUN WITH THE LOCALS, MADE GOOD FRIENDS AND DID A LOT OF FISHING

SANTA TERESA’S ICONIC CROSS IS A LEGACY FROM ITS BEGINNINGS AS A CATHOLIC MISSION IN 1953.

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SUSTAINABLE RETAIL STORES Outback Stores provides a structured and sustainable approach to improving the local economy of remote communities. The past 12 months have seen three new community partnerships, as well as the establishment of an Indigenous Advisory Group.

GOOD GOVERNANCE AND

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This year the Beswick Store board of directors approved its largest-ever social development distribution to the community, worth $150,000.

Peter Lindsay is the chairperson of Wuduluk Progress Aboriginal Corporation and is proud of what the community has achieved.

“Thirteen years ago we didn’t have any food on the shelves and the store was in debt. It has been an amazing journey with Outback Stores to get to this point. I got goosebumps seeing all this going out to our community. It was the talk of the town,” Mr Lindsay said.

BESWICK STORE

GIVES BACK TO COMMUNITY

Each of the 75 houses in the community received a white goods package including a fridge/freezer, microwave, electric frypan, rice cooker, kettle, toaster and a choice of a TV or chest freezer.

Beswick community members now have a 14-seater commuter bus to drive them around the community free of charge. The ongoing maintenance of the bus and wage of the driver will be paid by Wuduluk Progress Aboriginal Corporation, owners of the Beswick Store.

Wugularr Primary School received a $20,000 cheque to support improved school attendance efforts.

“The school is grateful for the money, which we’ll spend on extra equipment for our re-engagement program.

We’re looking at purchasing our own 4WD vehicle, and more pool tables or other equipment, to encourage school attendance,” said Stephen Hill, Principal of Wugularr Primary School.

Outback Stores started providing retail services to Beswick in 2008 when, at first, the store was recording losses. The past 13 years have seen the store rise out of administration and build up its financial position each year to allow this year’s distribution.

“The community can see that when you buy from the store, this is what you get in return. It’s your store. You own it,” Mr Lindsay said.

Further projects to be funded by store profits this year include another community bus specifically for women, landscaping for the community cemetery, and renovations to the community club. Photos [L] Beswick story in the Katherine Times. [R] Beswick Store Bus

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WORKING TOGETHER

APUTULA AND OUTBACK STORES Every year on the Queen’s Birthday long weekend in June, hundreds of motorbikes, cars, quad bikes and buggies descend on the small and remote community of Aputula.

It is known as the Finke Desert Race and is a multi-terrain, two-day race through desert country from Alice Springs to the small Aputula (Finke) Community. It attracts around 600 competitors from all over the country and is one of the biggest annual sporting events in the Northern Territory. With a football carnival also held that same weekend, it is an exciting time of year for the community of Aputula, which normally has a population of fewer than two hundred people.

This year the Aputula Aboriginal Corporation engaged Outback Stores to work with the store managers ahead of the onset of racing and football visitors. Although COVID-19 restrictions resulted in reduced visitors this year, the corporation directors were pleased with the initial phase of improvements made in preparation.

“In February Outback Stores started working with us and already we have seen upgrades to the store layout, new fridges and shelving, and very competitive prices of food, fresh fruit & vegetables. We welcome the ongoing support we have received for our store. It’s been long overdue and the community is very happy, appreciative and thankful for the support,” said Susan Doolan, Chairperson of the Aputula Aboriginal Corporation.

Outback Stores have lowered the costs of fuel for the community and reduced the average price of groceries by 10 per cent. Initial improvements were made to the store layout and a 24-hour self-service fuel system was installed.

The design process is well underway and the Aputula community are looking forward to next year welcoming their racing and football visitors to a fully refurbished store.

Photo: Aputula Finke upgrade

“WE WELCOME THE ONGOING SUPPORT WE HAVE RECEIVED FOR OUR STORE.

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INDIGENOUS ADVISORY GROUP This year Outback Stores established a new, independent advisory group to assist the company in achieving its purpose

and strategic priorities.

The Indigenous Advisory Group’s members are influential and well-respected Indigenous leaders that provide expertise, cultural knowledge, and lived experience from remote communities.

George Lee Wilson lives in Balgo, Western Australia and is a qualified interpreter, as well as a board member of the Wirramanu Aboriginal Corporation. He has first-hand experience of working alongside Outback Stores in the management of a community store and brings his unique experience of navigating complex community relationships and interests.

“I am happy to be on this committee because I know how important it is to each community that their stores are managed well,” said George.

Prospective members are identified by the Outback Stores Executive Team and appointed by the Board for a term of two years.

The current members represent the wide geographic footprint that is serviced by Outback Stores:

• Mary O’Reeri (West Kimberley)

• Michael Liddle (East MacDonnell Ranges)

• Bobby Nunggumajbarr (Yugul Mangi)

• George Lee Wilson (Tanami)

• Peter Lindsay (Nyirranggulung)

• Rex Tjami (Anangu Pitjantjatjara Yankunytjatjara Lands)

• Dalton Macdonald (West MacDonnell Ranges)

“We welcome these first members of the Indigenous Advisory Group to the Outback Stores team and look forward to the valuable contribution of these community leaders”, said Outback Stores Chairperson Dr Susan Gordon.

The Indigenous Advisory Group is classified as a non-statutory, independent, skills-based group that provides advice to the Board through the Outback Stores Chairperson and the Chief Executive Officer.

Peter Lindsay Mary O’Reeri

Dalton Macdonald

Rex Tjami

Bobby Nunggumajbarr

George Lee Wilson

Michael Liddle

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FOOD SECURITY IN URAPUNGA Urapunga, also known as Rittarangu, is a remote community situated 600km south-east of Darwin, on the southern edge of Arnhem Land.

Normally, the community is home to around 100 people, but that population had almost halved due to housing issues and a lack of food security. For several months in 2019, the community store was closed due to mismanagement and debt, leaving the residents to travel to the neighbouring community of Ngukurr for essential items. During the wet season, this road can become impassable, which contributed to the urgency to resolve the store’s financial problems.

Outback Stores was first approached by Urapunga Aboriginal Corporation to manage its store after yet another service provider withdrew from the community.

“We needed support because as a small community it was really hard for us to maintain the store,” said James Woods, board member of Urapunga Aboriginal Corporation.

In consultation with the corporation, it was decided that debt management was a priority, along with the installation of a full range of products and a total store refurbishment at a cost of over $174,000.

Today, the store is in a much better financial standing and has been transformed by brand new fixtures and fittings, a fresh coat of paint, a built-in fridge and freezer section, as well as an electrical and IT infrastructure upgrade.

“The shop looks much better. There’s lots more food on the shelves, the products are worth buying and the prices are cheaper too,” said James Woods, director of Urapunga Aboriginal Corporation.

This year, the community is looking forward to replacing the ceiling fans by enclosing the store and installing air conditioners, providing much-needed respite from the tropical Top End weather.

“WE NEEDED SUPPORT BECAUSE AS A SMALL COMMUNITY IT WAS REALLY HARD FOR US TO MAINTAIN THE STORE

BEFORE OUTBACK STORES

WITH

OUTBACK STORES

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WORK HEALTH & SAFETY Outback Stores continues to engage

our team with key safety messages through education, consultation and implementing relevant procedures.

The Outback Stores Safe Work Practices (SWP’s) and relevant Work Health and Safety (WHS) training have been reviewed and transferred over to the new Human Resources (HR) Platform, ELMO (Electronic Learning Modular Objects). This platform has allowed for a more modern approach to safety training for the business.

The ‘Outback Stores Travel Restrictions Plan’ document has been established within the business. Regular updates are sent to all employees when changes are made to Covid-19 restrictions which include Outback Stores’ additional measures for support offices or those who may travel to communities.

The stores continue to maintain Covid-19 Management Plans and engage the local community members on how to stay safe during the pandemic. All Outback Stores managed locations have adapted to the contact tracing requirements as required by the state governments including QR codes and the manual contact tracing registers.

Another key focus for the business has been the review of the WHS Risk Assessment Register. The register captures and assesses the risk of the current SWP’s, including any other tasks or safety risks identified by the business.

We continually look at ways of improving and advancing our food safety awareness within the stores we manage. To ensure continued focus and commitment to food safety standards in stores, the team have aligned the Food Safety Training (SIRRFSA001 Handle Food Safely in a retail environment) with the OBS training team internally to ensure the supervision of the training is at a high standard.

Safety incident reporting and investigation continues to be a primary focus for the team. Over the last twelve months, we have seen a reduction of incidents reported versus the previous year. All incidents, near misses and hazards have been investigated and actions have been taken where required to ensure the safety of our team members. Statistical data gathered through the iAuditor Safety Culture App continues to assist in reducing risks across all Outback Stores managed locations.

Under the Work Health and Safety Act 2011 Part 3 there has been one notifiable incident reported during this period; no permanent injuries were sustained.

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STORE LOCATIONS

WESTERN AUSTRALIA 13 Stores

Beagle Bay 1

Jigalong 18

Kalumburu 3

Kiwirrkurra 41

Kunawarritji 20

Mulan 19

Noonkanbah 17

One Arm Point 2

Ringer Soak 21

Tjuntjuntjara 40

Wungkul 15

Warmun 14

Yiyili 16

SOUTH AUSTRALIA 3 Stores

Mimili 37

Oak Valley 38

Yalata 39

NORTHERN TERRITORY 25 Stores

Ali Curung 32

Aputula 28

Beswick 10

Bickerton Island 8

Bulman 7

Canteen Creek 31

Daly River 13

Engawala 33

Epenarra 30

Imanpa 36

Jilkminggan 12

Maningrida 5

Maningrida Wild Foods 6

Mt Liebig 26

Ngukurr 9

Nyirripi 25

Papunya 27

Pigeon Hole 22

Titjikala 35

Santa Teresa 34

Urapunga 11

Willowra 23

Wurrumiyanga (Club) 4

Yuelamu 29

Yuendumu 24

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ORGANISATION STRUCTURE

COO

Evan Ralph

CFO

Jayveer Rathore

Commercial Manager Troy Criddle

Store Managers (85)

Special Projects & Sage Support

Senior

Accounting Officer

Trainee

Accounting Officer

Corporate Accountant

Outback Stores Finance Officer

Finance Manager Stores Megan Baker

Business Development Manager Sid Vashist

Communications Officer Nicola Pitt

Business Development Manager Andrew Johanson

Operations Manager North Matt Pawelski

Operations Manager South Nelson Tavares

Operations Support Coordinator

Chairperson Board of Directors Dr Susan Gordon AM

CEO

Michael Borg

Group Merchandise & IT Manager Richard Mead

Administration & Reception

Executive Assistant to CEO Ellen Fisher

Training & Engagement Manager Adam Wells

Health & Nutrition Manager Anna Murison

Merchandise Manager Jason Dienelt IT Manager Hup Ming Lye

WHS

Coordinator Karla O’Brien

Area Managers (6)

Human Resources Coordinator

Training Officers (2)

Space and Range Manager

Senior ICT Technical Support Officer

Senior Group Controller

ICT Technical Support Officers (2)

Training Administration & Compliance Officer

Merchandise Assistants (2)

Assistant Accountants (2)

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Male Female

Fulltime

Part Time

Casual Fulltime Part Time Casual Total

NT 59 - 1 56 1 1 118

WA 13 - - 4 - - 17

SA 4 - - 3 - - 7

QLD - - - 1 - - 1

Total 76 - 1 64 1 1 143

OUR ORGANISATION PURPOSE

To be a sustainable business that makes a positive difference in

the health, employment and economy of remote Indigenous communities by improving food affordability and availability, nutrition and community services.

LOCATION

Outback Stores Darwin Support Office 67 Pruen Rd, Berrimah NT 0828

WORKPLACE PROFILE - SUPPORT OFFICE AND STORE MANAGERS

All Ongoing Employees Current Report Period (2020-21)

*As of 30 June 2021 Outback Stores did not employ any non-ongoing team members

Male Female

Fulltime

Part Time

Casual Fulltime Part Time Casual Total

NT 8 29 61 7 43 72 220

WA 2 4 25 4 6 49 90

SA 0 1 6 0 4 3 14

Total 10 34 92 11 53 124 324

Male Female

Fulltime

Part Time

Casual Fulltime Part Time Casual Total

NT 2 29 51 2 51 60 195

WA 0 4 21 0 7 44 76

SA 0 1 4 0 3 4 12

Total 2 34 76 2 61 108 283

*As of 30 June 2021, stores did not have any non-ongoing team members employed

Workplace Profile - Employees in 41 community stores managed by Outback Stores (2020-21)

87% of all team members employed in stores identified as Aboriginal or Torres Strait Islander consisting of:

SENIOR LEADERSHIP TEAM

The Senior Leadership Team (SLT) is led by the Chief Executive Officer. The group is responsible for leading the strategic direction of the business and ensuring key objectives are delivered. The team meets on a weekly basis to discuss progress and review performance. Further details of the SLT can be found on the organisational chart on pages 40-41.

LEARNING AND DEVELOPMENT

Outback Stores is a Registered Training Organisation (RTO) offering nationally recognised qualifications in retail services. We offer Certificate II, III and IV in Retail to all eligible store staff and store managers.

SUBSIDIARIES

Outback Stores no longer has any subsidiaries.

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OUTBACK STORES’ PERFORMANCE PERFORMANCE SUMMARY

The company has been working towards achieving the following strategic priorities over the past financial year.

1. Strive to provide best practice in remote retail management

2. Focus on improving the health and nutrition outcomes for Indigenous Australians

3. Deliver positive economic results for remote communities

4. Deliver employment, training and personal development opportunities for local community members

5. Always work with commercial principles to support the longevity of the Outback Stores business

STRATEGIC PRIORITIES OBJECTIVES SOCIAL

CULTURAL

COMMERCIAL

CORPORATE PERFORMANCE INDICATORS MEASURES

2.

HEALTH AND NUTRITION

Ensure continuous monitoring and improvement of our existing Health and Nutrition Policy

Reduce the comparative purchase of full-sugar soft drinks in community stores

Reduce the comparative amount of tobacco sticks being purchased in community stores

2.5% reduction annually

5% reduction annually

Increase communication of key social benefits to all stakeholders, regarding health and nutrition outcomes

Partner with industry stakeholders to increase our contribution in assisting with broader health outcomes in remote communities

3.

ECONOMIC RESULTS

Work with supported and managed stores to reinvest profits from their organisations back into their businesses, in line with their objectives

Deliver financial outcomes as agreed and approved by store board/directors in community stores

85% stores

Develop and offer financial services tailored for remote community organisations to assist with record-keeping and governance

4. EMPLOYMENT, TRAINING AND PERSONAL DEVELOPMENT

Maintain “RTO” status with the view to expand our qualifications on scope and jurisdiction

Employment of local Indigenous team members in remote retail stores in community stores

Permanent Indigenous employees enrolled in accredited training programmes

85% of the total staffing

60%

Continue to provide store employees with career development opportunities, to ensure the growth of leadership potential within remote communities

5. COMMERCIAL PRINCIPLES

Seek financial investment opportunities that will maximise commercial benefits for our business Deliver budgeted outcomes

Exceed or meet operating profit/loss number

Continually improve business processes with a further view of being more efficient to reduce operating costs

CORPORATE PERFORMANCE INDICATORS

In line with the organisation’s Corporate Plan, our corporate performance indicators (CPIs) and measures of success relate to our broader strategic priorities and provide a clear way to remain focused on our strategy and track outcomes.

STRATEGIC PRIORITIES OBJECTIVES SOCIAL

CULTURAL

COMMERCIAL

CORPORATE PERFORMANCE INDICATORS MEASURES

1.

BEST PRACTICE

Continue to develop effective pricing strategies to ensure we lead the remote retail industry in affordability Engage and

assist new remote communities in retail management

Lead pricing affordability in remote community stores

Three new stores annually

Relevant Basket check

Provide a safe and secure work environment for both Outback Stores’ and non-Outback Stores’ employees, as well as external stakeholders

Develop a culturally connected workforce within our organisation that resonates with the retail stores we support and manage

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CORPORATE GOVERNANCE INTRODUCTION

Outback Stores is a wholly-owned Commonwealth company and is currently under the Prime Minister and Cabinet Portfolio. The Minister responsible for the 2020-21 reporting period was the Hon Ken Wyatt AM MP, Minister for Indigenous Australians. Outback Stores was required to fulfil the requirements of the Corporations Act 2001 and Public Governance, Performance and Accountability Act 2013 (PGPA Act) for the full financial year.

CORPORATE GOVERNANCE STATEMENT

Unless otherwise disclosed below, the company has followed the best practice guide on corporate governance principles, as published by the Australian National Audit Office, for the entire financial year ended 30th June 2021.

BOARD COMPOSITION

The skills, experience and expertise relevant to the position of each director who is in office at the date of the Annual Report and their term of office are detailed in the director’s report on page 62.

Outback Stores directors are appointed by the Minister for Indigenous Australians. All directors are non-executive.

ETHICAL STANDARDS

The board acknowledges and emphasises the importance of directors and employees maintaining the highest standard of corporate governance practice and ethical conduct.

BOARD DEVELOPMENT AND REVIEW

New board members undertake a formal induction into their role, including a meeting with the Chair and other Directors. They are given an induction pack that includes the Board Governance Charter. Directors are required to pursue their own development and continuously update their knowledge to attain and maintain the levels of competence demanded of them. Directors are expected to undertake ongoing professional development that is relevant, required and commensurate with Outback Stores’ requirements.

REMUNERATION

Outback Stores directors are entitled to remuneration and allowances in accordance with Remuneration Tribunal determinations. Details of directors’ remuneration and interests are set out in the financial statements.

GOVERNMENT PRIORITIES OUTBACK STORES’ CONTRIBUTION

Outback Stores works towards improving the health and employment of Indigenous Australians. This directly relates to three of the Australian Government’s Closing the Gap targets. These are:

⊲ Close the gap in life expectancy within a generation.

Outback Stores is committed to providing access to good quality food at an affordable price, leading to better health outcomes for current and future generations. Having access to a broad range of fresh fruit and vegetables not only improves the quality of life, but studies consistently show that diets plentiful in fruits and vegetables help people maintain a healthy weight and protect against cardiovascular disease. This would directly impact closing the gap in life expectancy within a generation.

⊲ Halve the gap in mortality rates for Indigenous children under five within

a decade.

We work with a number of stores, communities, schools, health care providers and non-government organisations, to promote healthy food and drink choices at a young age. We assist in providing education to help increase community awareness and knowledge about health and nutrition, specifically to make healthy choices easier. Stores have a healthy food policy in place with the goals of reducing the sales of sugary drinks, increasing the sales of fruit and vegetables and increasing healthy takeaway options. Investing in such activities supports community members to make well-informed decisions for their young families and helps young children understand healthier options in life.

⊲ Halve the gap in employment outcomes between Indigenous and

non-Indigenous Australians.

Our focus on providing employment opportunities for Indigenous Australians since 2006 has been one of our cornerstone objectives. As at 30th of June 2021, we had 283 Indigenous staff employed in OBS managed stores. Outback Stores is a Registered Training Organisation (RTO), offering nationally recognised qualifications in retail services. This opportunity allows Indigenous Australians to gain accredited qualifications and opens doors for a range of new employment opportunities.

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KEY MANAGEMENT PERSONNEL (KMP) REMUNERATION INFORMATION

Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019, Schedule 3—Information about executive remuneration.

Remuneration Policy

It is a requirement to agree any remuneration package and wage contract of senior management with the Chairperson. Board approval is required to change the remuneration package of the Chief Executive Officer.

Key factors in determining executive remuneration are the specific skills required to perform the role and the contribution to the company’s outcomes. Remuneration components are fixed.

Non-executive remuneration is in accordance with the applicable Part Time Office Bearer determination from the Remuneration Tribunal.

Information about remuneration for key management personnel

For the purposes of subsections 17CA(3) and 28EA(3), information about remuneration for key management personnel is below.

Short-term benefits

Post-

employment benefits

Other

long-term benefits Termination benefits

Total

remuneration

Name Position Title

Base Salary and Annual Leave Bonuses

Other benefits & allowances

Super-annuation Contributions

Long Service Leave

Other long-term benefits

Mr. M. Borg CEO $309,775 - $585 $26,847 $4,186 - - $341,394

Mr J. Rathore CFO $240,838 - $225 $20,873 $4,657 - - $266,592

Mr E. Ralph COO $229,159 - $1,125 $19,860 $3,095 - - $253,238

Mr R. Mead

Group Merchandise & IT Manager

$206,026 - $315 $17,856 $2,624 - - $226,821

Dr S. Gordon AM Chairperson (non-executive)

$77,620 - $0 $7,390 $0 - - $85,010

Mr G. Cook AAM Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Ms S. Cleveland Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Mr S. Bate

Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Ms S . Eades Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Ms B. Price

Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Mr D. Evans

Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Mr D. Bourchier Director (non-executive)

$38,810 - $0 $3,687 $0 - - $42,497

Ms L. Nelson

Director (non-executive)

$19,405 - $0 $1,843 $0 - - $21,248

Total $1,354,494 - $2,250 $120,478 $14,561 - - $1,491,782

INDEMNITY AND INSURANCE

Outback Stores indemnifies current and former directors and staff members against any liability or costs incurred in connection with any claim brought against them as a result of, or in connection with, their appointment to any office or position in Outback Stores or a related entity. Outback Stores holds directors’ and officers’ liability insurance coverage through Comcover, the Australian

MEETINGS HELD DURING THE YEAR AND ATTENDANCE

The Board of Directors meet quarterly or as required, this includes any emergency meetings that may be necessary. Further details on director’s meetings can be found on page 66.

PERFORMANCE EVALUATION

The performance evaluation of the Board of Directors is conducted yearly. The Chairperson discusses with relevant parties whether they feel the board are performing well and if any feedback is required. The Chairperson then discusses the outcomes at the next board meeting to identify appropriate action to remedy any identified shortcomings, to continue to perform effectively.

Government’s self-managed fund. As part of its annual insurance renewal process, Outback Stores reviewed its insurance coverage in the 2020-21 financial year to ensure it remained appropriate for its operations. The cost of directors’ and officers’ indemnity insurance for the 2020-21 financial year was $32,082.78.

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AUDIT AND RISK COMMITTEE

The Audit and Risk Committee was established in 2007 and meets quarterly or as required. The Company is required to have an Audit Committee under section 45 of the PGPA Act.

The committee charter is to consider any matter relating to the financial reporting, internal control structure (Including director reimbursement), internal risk management systems and external audit function of Outback Stores and any of its controlled entities.

The functions of the committee include:

a. Helping the Company and its Directors to comply with obligations under the Public Governance, Performance and Accountability Act 2013 and the Corporations Act 2001.

b. Providing a forum for communication between the directors, the senior management, and the external auditors of the Company.

The performance evaluation of the committee is conducted yearly and follows the same process as the board evaluation.

Committee members for the reporting period:

⊲ David Evans 1/7/2020 - 30/6/2021 (Chair)

⊲ Sophie Cleveland 1/7/2020 - 30/6/2021

⊲ Stephen Bate 1/7/2019 - 30/06/2021

⊲ Lesley Nelson 3/6/2021 - 30/6/2021

Information detailing the qualifications, knowledge, skills or experience of the committee members can be found in the directors report on page 62 and 63.

There was no remuneration provided to the Audit and Risk Committee for service during the reporting period.

Further details of the Audit and Risk Committee Charter can be found on https://outbackstores.com.au/wp-content/ uploads/2021/10/OBS-Audit-Risk.pdf

SOCIAL OUTCOMES COMMITTEE

The board established the Social Outcomes Committee in 2013 and meetings are held quarterly or as required. Its Charter is to consider any matter relating to social outcomes in individual Indigenous communities; including nutrition, employment, community engagement and economic development.

The functions of the committee include:

a. Developing strategies with management on;

i. Health and nutrition

ii. Indigenous employment

iii. Community engagement and

iv. Economic development in communities

b. Monitor and review progress against approved strategies.

c. Review and approve formal working partnerships with other agencies in nutrition, Indigenous employment, community engagement and economic development.

STORE ASSESSMENT COMMITTEE

The Store Assessment Committee continued with the responsibilities delegated last financial year. The board established the Store Assessment Committee in 2007 and meetings are held monthly or as required. Its Charter is to consider any matter relating to store management in individual Indigenous communities; including strategy, agreements, termination, expenditure, capital loans and underpinning.

The functions of the committee include:

a. Consider management proposals for store acquisitions under management agreements, leases or purchases.

b. Consider management proposals to discontinue management services.

c. To authorise requested operational underpinning by management for unviable stores.

d. To authorise requested capital underpinning by management for unviable stores.

e. To authorise commercial loans to stores under company management.

f. To ensure robust procedures are implemented and followed for the use of public funds to support remote stores under company management.

INDIGENOUS ADVISORY GROUP

In 2020 the board established a new, independent advisory group to assist Outback Stores with achieving its purpose and strategic priorities.

The Indigenous Advisory Group is classified as a non-statutory, independent, skills-based group that provides advice to Outback Stores Chairperson and CEO. The Group is a non-decision-making body that is not governed by legislation.

The functions of the committee include:

a. Development and maintenance of Outback Stores Brand reputation and perception.

b. Assisting with establishing management agreements with new communities.

c. Assisting with retention of existing management agreements.

d. Feedback mechanism to measure stakeholder satisfaction.

e. Developing relationships with key stakeholders including community leaders and land councils.

MEETING ATTENDANCE

Further details on committee meeting attendance can be found on page 66.

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OTHER INFORMATION ENVIRONMENTAL PERFORMANCE AND ECOLOGICALLY SUSTAINABLE DEVELOPMENT

Section 516A of the Environmental Protection and Biodiversity Conservation Act 1999 {EPBC Act) requires Australian Government organisations-including authorities such as Outback Stores to include in their Annual Report a section detailing their environmental performance and their contribution to Ecologically Sustainable Development {ESD). In doing this, Outback Stores is committed to the principles of ESD as detailed in section 3A of the EPBC Act.

The following table details Outback Stores’ ESD activities in accordance with section 516A{6) of the EPBC Act 1999.

Activity How it accords with the principles

How it furthers or advances ESD principles

Recycling plan

Integrating both long- and short-term economic, environmental considerations.

Implementing and maintaining a recycling plan in the national office to reduce waste.

Store refrigeration Recognising and considering the environmental impacts of actions and policies.

Refrigeration in stores is upgraded accordingly to reduce power consumption and swapping to more efficient refrigerant gas in new equipment.

Lighting for stores and housing

Recognising and considering the environmental impacts of actions and policies

Remote stores and manager housing are fitted with energy- efficient lighting, where possible, to reduce power consumption.

Hot water for stores and housing

Recognising and considering the environmental impacts of actions and policies

Solar hot water systems are installed in stores and housing, where possible.

Sale of white goods Maintaining company competitiveness in an environmentally sound manner

Considering all environmental impacts when purchasing all new equipment.

Purchasing new equipment

Integrating both long and short-term economic, environmental considerations.

Considering all environmental impacts when purchasing all new equipment.

Capital improvement programs

Integrating both long and short-term economic, environmental considerations.

Considering all environmental impacts as part of the process of identifying capital improvement programs.

Upgrading computers Recognising and considering the environmental impacts of actions and policies.

Computers are upgraded accordingly.

OUTBACK STORES’ APPROACH TO IMPLEMENTING ESD PRINCIPLES

Outback Stores was established to improve access to affordable healthy food in remote Indigenous communities - our primary focus is on economic and social outcomes, rather than environmental outcomes.

We have continued our efforts to reduce Outback Stores’ carbon footprint through various measures such as implementing more sustainable energy practices, water management and waste management.

We are continuing the development of programs at our national office and remote stores to reduce environmental impacts and although we are yet to develop metrics to monitor our carbon footprint, we are committed to continual improvement in environmental performance management.

RISK MANAGEMENT

The Outback Stores Risk Management process is a structured approach to the management of risk, ensuring to establish systems for the ongoing monitoring and review of business risks.

This process also ensures that Outback Stores’ approach to risk management is centred on continuous improvement in the risk management systems and processes the organisation adopts.

The business’ risk register is reviewed quarterly by the Senior Leadership Team and the Audit and Risk Committee, providing assurance and overview of risk management to the Board.

SIGNIFICANT ACTIVITIES AND CHANGES AFFECTING THE COMPANY

There were no significant activities and changes affecting the Company in the 2020-2021 Financial year.

DISCLOSURE REQUIREMENTS FOR GOVERNMENT BUSINESS ENTERPRISES

Outback Stores is not currently a government business enterprise and hence has no reporting requirement for this Annual Report relating to changes in financial conditions and community service obligations or information that is commercially prejudicial.

MINISTERIAL DIRECTIONS AND GENERAL POLICY ORDERS

There have been no Ministerial Directions, General Policies or General Policy Orders issued to Outback Stores.

JUDICIAL DECISIONS AND REVIEWS BY OUTSIDE BODIES

There were no judicial decisions or decisions of administrative tribunals that had a significant effect on Outback Stores’ operations during 2020-21. The Commonwealth Ombudsman received no complaints regarding Outback Stores.

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PGPA RULE REFERENCE PART OF REPORT

DESCRIPTION

REQUIRE-MENT

28E Contents of annual report

28E(a) Page 44

The purposes of the company as included in the company’s corporate plan for the reporting period Mandatory

28E(b) Page 49

The names of the persons holding the position of responsible Minister or responsible Ministers during the reporting period, and the titles of those responsible Ministers Mandatory

28E(c) Page 55

Any directions given to the entity by a Minister under the company’s constitution, an Act or an instrument during the reporting period

If applicable, mandatory

28E(d) Page 55

Any government policy order that applied in relation to the company during the reporting period under section 93 of the Act

If applicable, mandatory

28E(e) NA

Particulars of non-compliance with: a. a direction given to the entity by the Minister under the company’s constitution, an Act or instrument during the reporting period; or

b. a government policy order that applied in relation to the company during the reporting period under section 93 of the Act

If applicable, mandatory

28E(f) Page 62

Information on each director of the company during the reporting period Mandatory

28E(g) Page 42

An outline of the organisational structure of the company (including any subsidiaries of the company) Mandatory

28E(ga) Page 44

Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following: a. statistics on full-time employees; b. statistics on part-time employees;

c. statistics on gender; d. statistics on staff location

Mandatory

28E(h)

Pages 40 & 41

An outline of the location (whether or not in Australia) of major activities or facilities of the company Mandatory

28E(i) Page 49

Information in relation to the main corporate governance practices used by the company during the reporting period Mandatory

INDEX The below table is a requirement for Commonwealth companies’ annual reports under Schedule 2B of the PGPA Rule. Section 28E(p).

28E(j), 28E(k) Page 115

For transactions with a related Commonwealth entity or related company where the value of the transaction, or if there is more than one transaction, the aggregate of those transactions, is more than $10,000 (inclusive of GST):

a. the decision-making process undertaken by the directors of the company for making a decision to approve the company paying for a good or service from, or providing a grant to, the related Commonwealth entity or related company; and

b. the value of the transaction, or if there is more than one transaction, the number of transactions and the aggregate of value of the transactions

If applicable, mandatory

28E(l) Page 55

Any significant activities or changes that affected the operations or structure of the company during the reporting period

If applicable, mandatory

28E(m) NA

Particulars of judicial decisions or decisions of administrative tribunals that may have a significant effect on the operations of the company

If applicable, mandatory

28E(n) NA

Particulars of any reports on the company given by: a. the Auditor-General, or b. a Parliamentary Committee, or c. the Commonwealth Ombudsman; or d. the Office of the Australian Information Commissioner;

or

e. the Australian Securities and Investments Commission

If applicable, mandatory

28E(o) NA

An explanation of information not obtained from a subsidiary of the company and the effect of not having the information on the annual report

If applicable, mandatory

28E(oa) Page 50 Information about executive remuneration Mandatory

28E(ob) Page 52

Particulars about the Audit Committee for the Company: a. a direct electronic address of the charter determining the functions of the audit committee; b. the name of each member of the audit committee; c. the qualifications, knowledge, skills or experience of

each member of the audit committee; d. information about each member’s attendance at meetings of the audit committee; e. the remuneration of each member of the audit committee

Mandatory

28F Disclosure requirements for government business enterprises

28F(1)(a)(i) Page 55

An assessment of significant changes in the company’s overall financial structure and financial conditions If applicable, mandatory

28F(1)(a)(ii) Page 130

An assessment of any events or risks that could cause financial information that is reported not to be indicative of future operations or financial condition

If applicable, mandatory

28F(1)(b) Page 67 Information on dividends paid or recommended If applicable, mandatory

28F(1)(c) NA

Details of any community service obligations the government business enterprise has including: a. an outline of actions taken to fulfil those obligations; and b. an assessment of the cost of fulfilling those obligations

If applicable, mandatory

28F(2) NA

A statement regarding the exclusion of information on the grounds that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise

If applicable, mandatory

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© Commonwealth of Australia 2021

ISSN: 2204-0692 (Print)

ISSN: 2204-0706 (Online)

With the exception of the Coat of Arms, this publication

is licensed under a Creative Commons Attribution 3.0

Australia Licence.

With the exception of the Commonwealth Coat of Arms

and where otherwise noted, all material presented in

this document is provided under a Creative Commons

licence. The details of the relevant licence conditions

are available on the Creative Commons website at

www.creativecommons.org/licenses/by/3.0/au/legalcode

and www.creativecommons.org/licenses/by/3.0/au

This document must be attributed as the Outback Stores

Pty Ltd Annual Report 2020-2021.

OUTBACK STORES PTY LTD

ABN: 63 120 661 234

general purpose financial statements for the year ended 30 June 2021

FINANCIAL STATEMENTS

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Directors’ Report ............................................................................................................................................. 62

Directors’ Declaration ..................................................................................................................................... 69

Auditor’s Independence Declaration ........................................................................................................70

Independent Auditor’s Report ..................................................................................................................... 7 1

Annual Financial Statements

Statement of Profit and Loss and Other Comprehensive Income .................................. 74

Statement of Financial Position ....................................................................................................76

Statement of Changes in Equity .................................................................................................78

Statement of Cash Flows ..............................................................................................................78

Notes to and forming part of the financial statements - Index ..................................... 80-81

Note 1: General information .......................................................................................... 82

Note 2: Application of new and revised account standards ............................... 82

Note 3: Revenue ............................................................................................................... 95

Note 4: Expenses ............................................................................................................. 97

Note 5: Income tax expense .......................................................................................1 01

Note 6: Assets ..................................................................................................................104

Note 7: Non-financial assets ........................................................................................ 108

Note 8: Liabilities .............................................................................................................112

Note 9: Issued capital ....................................................................................................113

Note 1O: Cash flow reconciliation .............................................................................. 114

Note 11: Related party disclosures ..............................................................................115

Note 12: Key management personnel remuneration ...........................................116

Note 13: Financial instruments ......................................................................................117

Note 14: Parent entity disclosures .............................................................................. 122

Note 15: Contingent liabilities and contingent assets ......................................... 123

Note 16: Subsequent events ........................................................................................ 123

Note 17: Discontinued operations .............................................................................. 123

Note 18: Aggregate assets and liabilities ................................................................ 124

Table of Contents

Outback Stores Pty Ltd

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The directors of Outback Stores Pty Ltd (the Company or Outback Stores) submit herewith the annual financial statements of Outback Stores for the year ended 30 June 2021. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Information about the directors

The names and particulars of the directors of the Company during or since the end of the financial year are:

Name Particulars

Mr G. Cook Joined the Board on 16 September 2015 in a non-executive capacity. Mr. Cook has a strong background in retail, enterprise development, consultancy, training and tourism. Mr Cook has worked with both mainstream and indigenous enterprises.

Ms S. Cleveland Joined the Board on 1 September 2016 in a non-executive capacity. Ms. Cleveland is the partner in charge of the commercial disputes resolution team in the Darwin office of a national law firm, she is an experienced and pragmatic litigator specialising in the areas of construction, employment, and aboriginal land disputes.

Mr S. Bate Joined the Board on 1 September 2016 in a non-executive capacity. Mr Bate has extensive experience in retailing, having worked for Woolworths for 37 years. Mr. Bate was part of the Woolworths Senior Management Team, and has experience in both buying and operations at senior executive level.

Prof. S. Eades Joined the Board on 1 September 2016 in a non-executive capacity. Professor Eades completed her medical degree in 1990 and after working as a general practitioner began her career in health research at the Telethon Institute for Child Health Research where her focus was on the epidemiology of Indigenous child health in Australia.

Ms B. Price Joined the Board on 30 November 2017. Ms. Price has worked in education and training, public administration, the media, community development, interpreting, translating language, teaching and has experience in small business management. In 2008 the Northern Territory Labor Government appointed Ms. Price as Chairperson of its Indigenous Affairs Advisory Council (IAAC). She was elected as a Country Liberal Party member of the Northern Territory Legislative Assembly from 2012 to 2016, and was appointed Minister for Housing, Community Services, Parks and Wildlife, Local Government, Statehood and Women’s Policy in the Northern Territory Government. Ms. Price currently works in cross cultural awareness training, community liaison and Warlpiri language services.

Dr S. Gordon AM Joined the Board on 26 October 2018. Dr Gordon AM is a Ngoonooru Wadjari woman from the Yamatji people. A retired magistrate who served for 20 years on the bench of the Children’s Court of Western Australia, Dr Gordon AM has had a long and distinguished career, with extensive senior leadership experience. She has worked in the area of Indigenous employment, was a member of the first board of the Aboriginal and Torres Strait Islander Commission, chaired the National Indigenous Council, and led the Gordon Inquiry and the Northern Territory Emergency Response Taskforce. She has a Bachelor of Laws Degree from the University of Western Australia (UWA), an Honorary Degree of Doctor of Letters from UWA, Order of Australia - Australia Medal, Centenary Medal, Defence Service Medal, and was named Senior Woman Lawyer of the Year 2014 by the Women’s Lawyers of WA Inc.

cont.

Directors’ Report

Outback Stores Pty Ltd

Mr D. Bourchier Joined the Board on 16 March 2019. Mr. Dan Bourchier is a multi-award winning multi-platform journalist. He has reported across the country and around the world for close to 20 years. Dan has worked as a newspaper reporter, video journalist, foreign correspondent, political reporter, and social commentator. He grew up in the remote Northern Territory town of Tennant Creek, where he was mentored by elders from around the region, while coming to understand his own Indigenous heritage from his mother’s side of the family in coastal and inland parts of Victoria.

Mr D. Evans Joined the Board on 24 September 2019. Mr Evans has over 30 years’ experience in banking and finance in Australia and the Asia-Pacific and is also a consultant and facilitator for the Australian Institute of Company Directors. Mr Evans contributes in various governance roles in the public and private sectors. He is also a recipient of the Centenary Medal for his services to the health industry through the National Heart Foundation.

Ms L. Nelson Joined the board on 1 March 2021. Ms. Nelson is a proud Noongar woman from the Balladong and Whadjuk clans who holds over 25 years’ experience in various executive leadership roles within the Aboriginal health sector, the most recent being her current role as CEO of the South West Aboriginal Medical Service. Ms. Nelson brings a wealth of strategic governance experience to several Board director positions. Lesley’s bias for innovation and action is further strengthened with post graduate qualifications in Business and Epidemiology.

The above named directors held office during the whole of the financial year except for:

⊲ Ms L. Nelson

Shares options granted to directors and senior management

No share options were granted or authorised to directors and senior management.

Company secretary

Dr B. Orme continued to hold the position of company secretary of the Company.

Principal activities

The Company’s principal activities are management services provided to remote Indigenous community stores across Australia and commercial loans and other financial support to unviable remote community stores through the support of the National Indigenous Australians Agency.

Directors’ Report

Outback Stores Pty Ltd

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Review of operations

Outback Stores managed 41 stores at the end of the financial year. Combined store turnover for the financial year was over $95.8million.

The remote retail industry continued to face supply and logistical challenges in relation to the COVID-19 pandemic, whilst also recognising positive impacts on sales due to biosecurity bubbles and availability of additional income through stimulus packages. Outback Stores maintains its lead on the affordability of staple products and fresh produce, furthering the promotion of healthy food choices.

The business of managing retail stores in remote communities continues to be challenging, due to the ongoing high operating costs for both the stores and for the company. This was also reflected in the report by the House of Representatives Standing Committee on Indigenous Affairs, which addressed the issue of food pricing and security in remote Indigenous communities. Outback Stores continues to work to reduce costs to the consumer and become more efficient in the way we manage them. The company still manages a large number of stores that are not viable due to small populations and geographical difficulties.

2021 2020

$ $

(Loss)/Profit for the year from continuing operations (212,798) (538,798)

Add back: Income tax (benefit)/expense (88,516) (260,660)

(Loss)/Profit before income tax from continuing operations (301,314) (799,458)

Less: Adjustments for non-operating profit

Revenue from Government grants 1,610,541 1,309,592

Net gain/loss on disposal of fixed assets 1,236 134,491

Store grant expenditure (underpinning) (1,493,754) (1,156,452)

Other grant expenditure (116,789) (153,140)

Total non-operating profit from continuing operations 1,234 134,491

Total operating (loss)/profit from from continuing operations (302,548) (933,949)

Total loss from discontinued operations - (365,424)

Plus: Income tax benefit on loss from discontinued operations - 119,578

Total operating loss from discontinued operations - (245,846)

Total operating (loss) / profit (302,548) (1,179,795)

Directors’ Report

Outback Stores Pty Ltd

Directors’ Report

Outback Stores Pty Ltd

Change in state of affairs

The Cardwell Supermarket was sold during the previous financial year on 11 March 2020. Refer to Note 17 to the financial statements for additional information regarding the sale of the business. Therefore, Outback Stores present standalone financial statements for the current year. There was no other significant change in the state of affairs of the Company during the financial year.

Subsequent events

There has not been any matter or circumstance occurring subsequent to the year end that has significantly affected, or may significantly affect, the operations of Outback Stores, the results of its operations, or the state of affairs of the Company other than those matters outlined in Note 16 to the financial statements.

Future developments

Outback Stores will continue to grow through expanding their services to other Indigenous community stores across Australia.

Dividends

No dividends have been paid or declared since the start of the financial year and the directors have not recommended the payment of a dividend for the current financial year’s performance.

Indemnification of officers

During the financial year, the Company paid a premium in respect of a contract insuring the directors of the Company (as named above) and all executive officers of the Company against a liability incurred as such a director or executive officer to the extent permitted by the Corporations Act 2001.

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

Auditor’s independence declaration

The auditor’s independence declaration is included on page 70.

Remuneration report This remuneration report, which forms part of the directors’ report, sets out information about the remuneration of the Company’s directors and its senior management for the financial year ended 30 June 2021. The prescribed details for each person covered by this report are detailed below under the following headings:

⊲ Director and senior management details

⊲ Directors’ meetings

⊲ Remuneration policy

⊲ Remuneration of directors and senior management

⊲ Key terms of employment contracts

cont.

66 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 67

Director and senior management details

The following persons acted as directors of the company during or since the end of the financial year:

Non-executive Directors ⊲ Dr S. Gordon AM (Chairperson) ⊲ Mr G. Cook ⊲ Mr D. Bourchier

⊲ Ms S. Cleveland ⊲ Mr S. Bate ⊲ Ms L. Nelson ⊲ Prof. S. Eades

⊲ Ms B. Price

⊲ Mr D. Evans

Executive Officers ⊲ Mr M. Borg (Chief Executive Officer) ⊲ Mr J. Rathore (Chief Financial Officer) ⊲ Mr E. Ralph (Chief Operating Officer)

⊲ Mr R. Mead (Group Merchandise and IT Manager)

The term ‘senior management’ is used in this remuneration report to refer to the following persons that have the authority and responsibility for planning, directing and controlling the activities of the company. Except as noted below, the named persons held their current position for the whole of the financial year and since the end of the financial year.

Directors’ meetings The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). During the financial year, 4 board meetings, 6 store assessment committee meetings, 4 audit and risk committee meetings, and 5 investment committee meeting were held.

Directors

Board of directors Store Assessment Audit and risk committee Investment

committee

Held Attended Held Attended Held Attended Held Attended

Mr G. Cook 4 4 6 6

Ms S. Cleveland 4 4 5 3 4 3

Mr S. Bate 4 4 6 6 4 4 5 5

Ms L. Nelson 2 2

Prof. S. Eades 4 4

Ms B. Price 4 4

Dr S. Gordon AM 4 4

Mr D. Bourchier 4 4 2 1

Mr D. Evans 4 4 4 4 5 5

Directors’ Report

Outback Stores Pty Ltd

Remuneration policy

It is a requirement to agree any remuneration package and wage contract of senior management with the Chairperson. Board approval is required to change the remuneration package of the Chief Executive Officer.

Remuneration for employees is based on employment contracts that are linked to the individual’s and Company performance.

The Company’s earnings are reported under the Statement of profit or loss and other comprehensive income.

Remuneration of directors and senior management

Non-executive

Remuneration has been paid to non-executive directors during the financial year.

2021 2020

$ $

Short term 368,695 366,945

Post employment 35,042 33,198

Total remuneration: 403,737 400,143

Executive officers

Short term 988,049 988,742

Long term employment 14,561 21,125

Post employment 85,436 85,378

Total remuneration: 1,088,045 1,095,245

Directors’ Report

Outback Stores Pty Ltd

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Bonuses and share-based payments granted as compensation for the current financial year

Bonuses

Bonuses to senior management are provided for based on their individual employee contracts and are based on Company performance and at the Board’s discretion.

Employee share option plan

None.

Key terms of employment contracts

Employment contracts are negotiated on a per person basis and include the following details. Unless noted otherwise, the termination notice required to terminate the contract is four weeks.

⊲ Mr M. Borg (Chief Executive Officer) - position commencing 24 October 2016, with a required termination period of 3 months.

⊲ Mr J. Rathore (Chief Financial Officer) - Position commencing 1 July 2015.

⊲ Mr E. Ralph (Chief Operating Officer) - Position commencing 19 December 2016.

⊲ Mr R. Mead (Group Merchandise and IT Manager) - Position commencing 15 January 2018.

.

Directors’ Report

Outback Stores Pty Ltd

In the opinion of the Directors of Outback Stores Pty Ltd:

a. The financial statements and notes of Outback Stores Pty Ltd is in accordance with the Corporations Act 2001, including:

i. Giving a true and fair view of its financial position as at 30 June 2021 and of its performance for the financial year ended on that date; and

ii. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

b. There are reasonable grounds to believe that Outback Stores Pty Ltd will be able to pays its debts as and when they become due and payable.

Note 2 confirms that the financial statements also comply with International Financial Reporting Standards.

Signed in accordance with a resolution of the Directors:

Directors’ Declaration

Outback Stores Pty Ltd

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74 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 75

Consolidated

2021 2020

Notes $ $

Revenue

Revenue from government grants 3.1 1,610,541 1,309,592

Rendering of services 3.2 4,068,911 3,966,477

Interest income 3.3 192,072 350,651

Distributions received 3.4 - 547,278

Investment income 3.5 716,325 39,552

Rental income 3.6 - 962

Store recoveries and charges 3.7 7,900,961 8,437,023

Rebates 3.8 2,178,008 2,726,666

Other revenue 3.9 1,303,281 736,150

Gain on disposal of fixed assets 3.10 1,236 134,491

Fair value gain on financial instruments at fair value through profit and loss 3.11 1,209,241 20,658

Total Revenue 19,180,576 18,269,500

Expenses

Consulting expenditure 4.1 469,359 397,980

Depreciation and amortisation 4.2 711,444 761,162

Employee benefits expense 4.3 12,732,321 12,847,254

Loss on disposal of fixed assets 4.4 235,478 -

Rental expenses 4.5 15,719 22,080

Store grant expenditure (underpinning) 4.6 1,493,754 1,156,452

Administrative expenditure 4.7 3,436,889 3,291,452

Other grant expenditure 4.8 116,789 153,140

Finance costs 4.9 93,105 83,426

Fair value loss on financial instrument at fair value through profit and loss 4.10 - 354,973

Loss on sale of investments 4.11 - 1,039

Total Expenses 19,304,858 19,068,958

Loss before income tax from continuing operations (124,282) (799,458)

Income tax benefit /(expense) 5.1 (88,516) 260,660

Loss after income tax from continuing operations (212,798) (538,798)

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 30 June 2021

Outback Stores Pty Ltd

cont.

Consolidated

2021 2020

Notes $ $

Loss before income tax for the year from discontinued operations

- (365,424)

Income tax benefit from discontinued operations - 119,578

Loss for the year from discontinued operations - (245,846)

Other comprehensive income - -

Total comprehensive loss (212,798) (784,644)

Loss for the year attributable to:

Owners of the Company

(212,798) (784,644)

Total comprehensive loss for the year attributable to:

Owners of the Company

(212,798) (784,644)

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME, CONT.

Outback Stores Pty Ltd

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Consolidated

2021 2020

Notes $ $

ASSETS

Current assets

Cash and cash equivalents 6.1 9,718,058 13,689,597

Trade and other receivables 6.2 2,069,912 2,433,992

Financial assets 6.3 35,883,107 32,185,585

Other current assets 6.4 66,448 58,008

Current tax assets 5.3 16,810 12,046

Total current assets 47,754,335 48,379,228

Assets classified as held for sale 17.1 - 12,950

Non-current assets

Housing 7.1 70,789 848,222

Furniture and fittings 7.1 27,695 29,721

Leasehold improvements 7.1 14,418 18,355

Motor vehicle and components 7.1 516,345 156,133

IT equipment 7.1 411,242 600,555

IT software 7.1 114,179 54,893

Right-of-use assets 7.2 2,053,433 1,119,266

Deferred tax assets 5.5 1,595,450 1,112,689

Financial assets 6.3 686,417 812,220

Total non-current assets 5,489,968 4,752,054

Total Assets 53,244,303 53,144,232

LIABILITIES

Current liabilities Trade and other payables 8.1 1,433,721 1,104,874

Deferred revenue - government grants 8.2 6,110,511 7,756,277

Lease liabilities 8.3 165,770 146,016

Employee provisions 8.4 1,376,915 1,228,210

Total current liabilities 9,086,917 10,235,377

STATEMENT OF FINANCIAL POSITION for the year ended 30 June 2021

Outback Stores Pty Ltd

cont.

Consolidated

2021 2020

Notes $ $

Non-current liabilities

Lease liabilities 8.3 1,960,229 1,009,297

Employee provisions 8.4 342,361 408,004

Deferred tax liabilities 5.5 947,623 371,583

Total non-current liabilities 3,250,213 1,788,884

Total Liabilities 12,337,130 12,024,261

40,90

Net Assets 40,907,173 41,119,971

EQUITY

Issued capital 9 40,000,001 40,000,001

Retained earnings 907,172 1,119,970

Total Equity 40,907,173 41,119,971

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF FINANCIAL POSITION, CONT.

Outback Stores Pty Ltd

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Issued Capital

Retained Earnings

Total Equity

$ $ $

Balance at 1 July 2019 40,000,001 1,904,614 41,904,615

Loss for the year - (784,644) (784,644)

Total comprehensive loss for the year - (784,644) (784,644)

Balance at 30 June 2020 40,000,001 1,119,970 41,119,971

Balance at 1 July 2020 40,000,001 1,119,970 41,119,971

Loss for the year - (212,798) (212,798)

Total comprehensive loss for the year - (212,798) (212,798)

Balance at 30 June 2021 40,000,001 907,172 40,907,173

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2021

Outback Stores Pty Ltd

STATEMENT OF CASH FLOWS for the year ended 30 June 2021

2021 2020

Notes $ $

OPERATING ACTIVITIES

Cash received

Receipts from customers 15,738,940 18,953,652

Grants received - 97,296

Total cash received 15,738,940 19,050,948

Cash used

Payments to suppliers and employees (16,271,924) (19,913,196)

Income taxes paid - (83,832)

Interest payments on lease liabilities (93,105) (83,426)

Total cash used (16,365,029) (20,080,454)

Net cash used in operating activities 10.1 (626,089) (1,029,506)

cont.

2021 2020

Notes $ $

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 572,479 143,976

Proceeds from disposal of assets classified as held for sale

- 554,041

Amounts received from stores under commercial loans 101,935 821,560

Bond deposits received - 523,415

Proceeds from fixed term deposits 9,840,000 -

Distributions and income received from managed investments 716,325 547,278

Interest received 272,225 312,254

Total cash received 11,502,964 2,902,524

Cash used

Payments for property, plant and equipment (773,831) (372,761)

Investment in managed funds (12,304,413) (2,599,837)

Bond deposits payments (3,787) -

Investment in fixed term deposits - (18,835,000)

Underpinning payments for stores and other grants (1,610,543) (1,294,556)

Total cash used (14,692,574) (23,102,154)

Net cash used in investing activities (3,189,610) (20,199,630)

FINANCING ACTIVITIES

Cash used

Principal payments of lease liabilities (155,840) (136,148)

Payments to stores under commercial loans - (59,850)

Total cash used (155,840) (195,998)

Net cash used in financing activities (155,840) (195,998)

Net decrease in cash and cash equivalents (3,971,539) (21,425,134)

Cash and cash equivalents at the beginning of the reporting period 13,689,597 35,114,732

Less : Cash and cash equivalents relating to discontinued operations

- (1)

Cash and cash equivalents at the end of the year from continuing operations 6.1 9,718,058 13,689,597

STATEMENT OF CASH FLOWS, CONT.

Outback Stores Pty Ltd

The statements in these tables should be read in conjunction with the accompanying notes.

80 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 81

1. General information .......................................................................................................... 82

2. Application of new and revised accounting standards .............................................. 82

2.1 Amendments to AASBs and the new interpretations that are mandatorily effective for the current year ........................................................................................................................... 82

2.2 Significant accounting policies ..................................................................................................... 82

2.3 Critical accounting judgements and key sources of estimation uncertainty ..................93

3. Revenue ............................................................................................................................... 95

3.1 Revenue from government grants .............................................................................................. 95

3.2 Rendering of services ...................................................................................................................... 95

3.3 Interest income .................................................................................................................................. 95

3.4 Distributions received...................................................................................................................... 95

3.5 Investment income ........................................................................................................................... 95

3.6 Rental income .................................................................................................................................... 96

3.7 Store recoveries and charges ...................................................................................................... 96

3.8 Rebates ................................................................................................................................................ 96

3.9 Other revenue .................................................................................................................................... 96

3.10 Gain on disposal of fixed assets .................................................................................................. 96

3.11 Fair value gain on financial instruments at fair value through profit and loss ............... 96

4. Expenses .............................................................................................................................. 97

4.1 Consulting expenditure .................................................................................................................. 97

4.2 Depreciation and amortisation ..................................................................................................... 97

4.3 Employee benefits expense ......................................................................................................... 97

4.4 Loss on disposal of fixed assets .................................................................................................. 97

4.5 Rental expenses ................................................................................................................................ 97

4.6 Store grant expenditure (underpinning) .................................................................................... 98

4.7 Administrative expenditure ............................................................................................................ 99

4.8 Other grant expenditure ................................................................................................................100

4.9 Finance costs ....................................................................................................................................100

4.10 Fair value loss on financial instruments at fair value through profit or loss .................. 100

4.11 Loss on sale of investments .........................................................................................................100

4.12 Auditors’ remuneration ..................................................................................................................100

5. Income tax expense .......................................................................................................... 101

5.1 Income tax recognised in profit or loss ..................................................................................... 101

5.2 Franking credits ................................................................................................................................. 101

5.3 Current tax assets ............................................................................................................................. 101

5.4 Deferred tax balances ....................................................................................................................102

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2021

Outback Stores Pty Ltd

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS, CONT.

Outback Stores Pty Ltd

6. Assets .................................................................................................................................. 104

6.1 Cash and cash equivalents...........................................................................................................104

6.2 Trade receivables ............................................................................................................................105

6.3 Financial assets ................................................................................................................................106

6.4 Other current assets .......................................................................................................................106

7. Non-financial assets ......................................................................................................... 108

7.1 Reconciliation of property, plant and equipment and intangibles for 2021 ..................108

7.2 Reconciliation of property, plant and equipment and intangibles for 2020 .................. 110

7.3 Reconciliation of property, plant and equipment that are subject to leases .................. 111

8. Liabilities .............................................................................................................................. 112

8.1 Trade and other payables .............................................................................................................. 112

8.2 Deferred revenue - Government grants.................................................................................... 112

8.3 Lease liabilities................................................................................................................................... 113

8.4 Employee provisions ....................................................................................................................... 113

9. Issued Capital ..................................................................................................................... 113

10. Cash Flow Reconciliation ................................................................................................. 114

10.1 Cash flow ............................................................................................................................................. 114

11. Related Party Disclosures ................................................................................................. 115

12. Key Management Personnel Remuneration ................................................................. 116

13. Financial Instruments ........................................................................................................ 117

13.1 Categories of financial instruments ..............................................................................................117

13.2 Financial risk management objectives....................................................................................... 118

13.3 Fair value of financial instruments ............................................................................................... 121

14. Parent entity disclosures ................................................................................................. 122

15. Contingent liabilities and contingent assets ................................................................ 123

16. Subsequent events ........................................................................................................... 123

17. Discontinued operations ................................................................................................. 123

18. Aggregate assets and liabilties ...................................................................................... 124

82 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 83

1. General information

Outback Stores Pty Ltd (Outback Stores or the Company) is a proprietary company limited by shares, incorporated and domiciled in Australia. The Company’s principal activities are to provide retail management and support services to remote Indigenous community stores across Australia and provide financial support to unviable remote community stores to maintain the food security.

The Company’s registered office and principal place of business are as follows:

67 Pruen Road, Berrimah Darwin NT 0828

For the previous financial year Outback Stores presented consolidated financial statements due to its control over the Cardwell Supermarket. The Cardwell Supermarket was sold during the previous financial year on 11 March 2020. Refer to Note 17 to the financial statements for additional information regarding the sale of the business and Note 14 for Parent entity disclosures. Therefore, Outback Stores present standalone financial statements for the current year.

Note 2: Application of new and revised accounting standards 2.1 Amendments to AASBs and the new interpretation that are mandatorily effective for the current year

The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 July 2020.

The following standards became effective from 1 July 2020, which had no impact on the Company:

⊲ AASB 1059 Service Concession Arrangements: Grantors

⊲ AASB 2019-1 Amendments to Australian Accounting Standards - References to the Conceptual Framework

⊲ AASB 2018-6 Amendments to Australian Accounting Standards - Definition of a Business

⊲ AASB 2018-7 Amendments to Australian Accounting Standards - Definition of Material

2.2 Significant accounting policies

(a) Statement of compliance

These financial statements are general purpose financial statements which have been prepared in accordance with the requirements of the Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards, the Corporations Act 2001, and other requirements of the law.

The Company is a for-profit entity.

Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Company comply with International Financial Reporting Standards (‘IFRS’).

The financial statements for the year ended 30 June 2021 were approved and authorised for issue by the Board of Directors on 2nd September 2021.

(b) Basis of preparation

The financial statements have been prepared on the historical cost basis, except for financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 1: General information

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Historical cost is generally based on the fair values of the consideration given in exchange for goods and services. All amounts are presented in Australian dollars, unless otherwise noted.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of AASB 2, leasing transactions that are within the scope of AASB 16, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in AASB 102 ‘Inventories’ or value in use in AASB 136 ‘Impairment of Assets’.

The principal accounting policies adopted are set out below.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

− Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

− Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

− Level 3 inputs are unobservable inputs for the asset or liability.

(c) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(d) Cash and cash equivalents

Cash comprises cash on hand and on demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. The Company did not have an overdraft during the financial period.

(e) Employee benefits

Short-term and long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required, and they are capable of being measured reliably.

Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Liabilities recognised in respect of long-term employee benefits are measured as the present value of the estimated future cash outflows to be made by the Company in respect of services provided by employees up to reporting date.

Note 2: Application of new and revised accounting standards (cont)

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Impairment of financial assets

The Company recognises a loss allowance for expected credit losses (ECL) on investments in debt instruments that are measured at amortised cost and trade receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Company always recognises lifetime ECL for trade receivables. The ECL on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Company recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

Derecognition of financial assets

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.

Financial liabilities and equity

Classification of debt and equity instruments

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs. Movements in equity instruments in the Company during the reporting period are outlined in the statement of changes in equity and note 9.

The Company recognises a loss allowance for expected credit losses (ECL) on investments in debt instruments that are measured at amortised cost and trade receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

Note 2: Application of new and revised accounting standards (cont)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

(e) Employee benefits, cont.

Termination benefit

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

(f) Financial instruments

Financial assets and financial liabilities are recognised in the statement of financial position when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

Classification of financial assets

i. Debt instruments that meet the following conditions are measured subsequently at amortised cost:

− the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

− the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. Interest income is recognised in profit or loss and is included in the “interest income” line item.

ii. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).

iii. Despite the foregoing, the Company may make the following irrevocable election/designation at initial recognition of a financial asset:

− the Company may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met (see (iii) below); and

− the Company may irrevocably designate a debt investment that meets the amortised cost or fair value through other comprehensive income (FVTOCI) criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.

Note 2: Application of new and revised accounting standards (cont)

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Financial liabilities

All financial liabilities are measured subsequently at amortised cost using the effective interest method.

Financial liabilities measured subsequently at amortised cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. When the Company exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

(g) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

− where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

− for receivables and payables which are recognised inclusive of GST, the net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the statement of cash flow on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(h) Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognised in profit or loss in the period in which they become receivable.

The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates. Government assistance which does not have conditions attached specifically relating to the operating activities of the entity is recognised in accordance with the accounting policies above.

(i) Impairment of assets

At each reporting date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease and to the extent that the impairment loss is greater than the related revaluation surplus, the excess impairment loss is recognised in profit or loss.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years.

A reversal of an impairment loss is recognised immediately in profit or loss to the extent that it eliminates the impairment loss which has been recognised for the asset in prior years. Any increase in excess of this amount is treated as a revaluation increase.

( j) Intangible assets

Patents, trademarks and licences

Patents, trademarks and licences are recorded at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

IT software

IT software is recorded at cost less accumulated amortisation and impairment. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 2: Application of new and revised accounting standards (cont) Note 2: Application of new and revised accounting standards (cont)

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Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Estimated useful lives are:

Class of intangible assets 2021 2020

Trademarks 10 years 10 years

IT software 3 years 3 years

(k) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

(l) Leased assets

Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Company as lessor

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Company’s net investment in the leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

The Company as lessee

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones).

For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

− Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

− Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

− The amount expected to be payable by the lessee under residual value guarantees;

− The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

− Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the statement of financial position.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 2: Application of new and revised accounting standards (cont) Note 2: Application of new and revised accounting standards (cont)

90 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 91

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

− The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

− The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

− A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.

The lease of Company’s headquarters was accounted for as a lease modification during the current financial year, resulting in the lease liability being remeasured, using the revised lease payments, term and discount rate at the date of modification.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and initial direct costs less any lease incentives received. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in non-current assets in the consolidated statement of financial position.

The Company applies AASB 136 ‘Impairment of Assets’ to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘Property, Plant and Equipment’ policy per note 2(m).

(m) Property, plant and equipment

Property represents land, portable housing and fixtures in remote communities and are stated at cost less accumulated depreciation and accounting impairment losses. Land is not depreciated and recorded at cost.

Depreciation on buildings is charged to profit or loss.

Furniture and fittings, containers, leasehold improvements, motor vehicles and components and equipment under finance lease are stated at cost less accumulated depreciation and accumulated impairment loss. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.

Depreciation is provided on property, plant and equipment, including freehold buildings. Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value.

Leasehold improvements and equipment under finance lease are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis. Assets acquired under $1,000 are written off immediately for financial accounting purposes.

The following depreciation rates were used for each class of asset:

Consolidated

Class of Property, Plant and Equipment 2021 2020

Containers 20% 20%

Furniture and Fittings 20% 20%

Housing 10% 10%

IT Equipment 25% - 66.67% 10% - 66.67%

Leasehold improvements 2.50% 2.50%

Motor vehicles and components 20% - 33.33% 20% - 33.33%

Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

No changes were made in estimates for the Company.

(n) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

(o) Revenue

Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue which it transfers control of a product or service to a customer.

Revenue from the sale of goods is recognised when the control has been transferred to the buyer, being at the time when the customer purchases the goods at the store.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 2: Application of new and revised accounting standards (cont) Note 2: Application of new and revised accounting standards (cont)

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The following is a description of principal activities from which the Company generates its revenue:

Rendering of services

Revenue from a contract to provide services is recognised as performance obligation is satisfied over time.

Rental income

The Company’s policy for recognition from operating leases is described in note 2(l).

Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Government grants

Government grants are recognised in accordance with the accounting policy outlined in note 2(h).

Dividends received

Dividends received on investments are recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Dividends are included in the ‘distributions received’ line in the Statement of profit or loss and other comprehensive income.

Rebate income

Rebate income from suppliers is recognised when it is probable that economic benefits will flow to the Company and the amount of revenue can be measured reliably.

Store recoveries and charges

Store recoveries and charges are recognised in accordance with AASB 15 over time as the performance obligations have been satisfied.

The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

2.3 Critical accounting judgments and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying accounting policies

The following are the critical judgements, apart from those involving estimations that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Useful lives of property, plant and equipment

As described in note 2(m), the Company reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. No changes were made to the useful lives for existing assets.

Employee entitlements

Management judgement is applied in determining the following key assumptions used in the calculation of long service leave:

− future increases in wage and salaries;

− future on cost rates; and

− experience of employee departures and period of service.

The potential effect of a change in these assumptions is not expected to be material.

Intangible assets

Useful lives for trademarks are based on contractual life for trademark registrations. In determining the estimated useful lives for IT Software, management relies on guidance provided by the Australian Taxation Office. The potential effect of a change in these estimates is not expected to be material.

Calculation of loss allowance

When measuring ECL the Company uses reasonable and supportable forward-looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit enhancements.

Recovery of deferred tax assets

Deferred tax assets have been recognised as assets in the Statement of Financial Position as management expects the Company to generate future taxable profits in excess of profits arising from the reversal of existing taxable temporary differences for the foreseeable future. Tax losses have been recognised to the extent of net timing differences.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 2: Application of new and revised accounting standards (cont) Note 2: Application of new and revised accounting standards (cont)

94 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 95

Lease term

When determining the lease term of the operating lease recognised in the Statement of Financial Position and set out in note 8.3, management made the judgement that the Company would be likely to renew the lease for a further 5 years ending 31 December 2033.

Incremental borrowing rate

The operating lease recognised in the Statement of Financial Position was initially measured using the incremental borrowing rate of 6.87%. This was determined based on the Commonwealth Bank variable base rate other than the residential security as the rate implicit in the lease cannot be readily determined. The lease modification incremental borrowing rate was determined to be 5.04%.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 2: Application of new and revised accounting standards (cont)

Consolidated

2021 2020

$ $

Note 3.1 Revenue from government grants

Grants from Australian Government entities:

Department of Social Services - Food grant 661,241 555,863

Department of Social Services - Food security 834,211 602,239

National Indigenous Australians Agency - Nutrition grant 115,089 151,490

Total revenue from government grants 1,610,541 1,309,592

Timing of transfer of goods and services:

Over time - -

Point in time 1,610,541 1,309,592

1,610,541 1,309,592

Note 3.2: Rendering of services

Management fees 2,266,445 2,144,793

Accounting fees 1,802,466 1,821,684

Total rendering of services 4,068,911 3,966,477

Timing of transfer of goods and services:

Over time 4,068,911 3,966,477

Point in time - -

4,068,911 3,966,477

Note 3.3: Interest income

Loans to Stores 87,538 67,397

Term Deposits 104,534 283,254

Total interest income 192,072 350,651

Revenue from notes 3.3, 3.4, 3.5, 3.6; 3.10 and 3.11 are recognised in accordance with their respective accounting standard and not AASB 15.

Note 3.4: Distributions received

Managed investments and listed securities - 547,278

Total distributions received - 547,278

Note 3.5: Investment income

Investment income 716,325 39,552

Total investment income 716,325 39,552

Note 3: Revenue

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

96 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 97

Consolidated

2021 2020

$ $

Note 3.6: Rental income

Operating lease:

Residential housing - 962

Total rental income - 962

Note 3.7: Store recoveries and charges

Managers Services on-charged 6,570,857 6,912,128

Recoveries from managed stores 1,330,104 1,524,895

Total store recoveries and charges 7,900,961 8,437,023

Store recoveries and charges are recognised over time in accordance with AASB 15.

Note 3.8: Rebates

Rebates received 2,178,008 2,726,666

Total rebates 2,178,008 2,726,666

Rebates are recognised over time in accordance with AASB 15.

Note 3.9: Other revenue

Consultancy fees 455,405 278,883

Sundry income 487,507 337,062

Training government subsidy 360,369 120,205

Total other revenue 1,303,281 736,150

Other revenue is recognised over time in accordance with AASB 15.

Note 3.10: Gain on disposal of fixed assets

Gain on disposal of fixed assets 1,236 134,491

Total gain on disposal of fixed assets 1,236 134,491

Note 3.11: Fair value gain on financial instruments at fair value through profit and loss

Change in fair value through profit or loss on loans * - 20,658

Change in fair value through profit or loss on investments 1,209,241 -

Total fair value gain on financial instruments 1,209,241 20,658

* Gains related to the reversal of the change in fair value of the Bardi Ardyaloon loan, which was repaid in the previous financial year.

Note 3: Revenue (cont)

Consolidated

2021 2020

Notes $ $

Note 4.1: Consulting expenditure

Consultancy fees 149,013 97,404

Legal fees 320,346 300,576

Total consulting expenditure 469,359 397,980

Note 4.2: Depreciation and amortisation

Amortisation on intangibles 13,619 26,613

Depreciation of property, plant and equipment 505,466 562,354

519,085 588,967

Depreciation on right-of-use assets 192,359 172,195

Total depreciation and amortisation 711,444 761,162

Note 4.3: Employee benefits expense

Wages and salaries 11,505,784 11,456,852

Travel and other allowances 125,689 106,384

Superannuation contributions - defined contribution plans 1,003,234 1,008,731

Staff incentive provision 14,550 12,041

Leave and other entitlements 83,064 263,246

Total employee benefit 12,732,321 12,847,254

Note 4.4: Loss on disposal of fixed assets

Loss on disposal of fixed assets 235,478 -

Total loss on disposal 235,478 -

Note 4.5: Rental expenses

Short term / low value leases 15,719 22,080

Total rental expenses 15,719 22,080

The Company has short-term lease commitments of $294,800 as at 30 June 2021 (2020: $240,908).

Note 4: Expenses

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Consolidated

2021 2020

$ $

Note 4.6: Store grant expenditure (underpinning)

Alpirakina Store Aboriginal Corporation t/as Yuelamu Store 44,500 60,000

Ngarlan Store Indigenous Corporation t/as Beagle Bay Community Store 4,754 -

The Trustee for Jigalong Community Unit Trust t/as Illawarra Store 9,091 32,032

Canteen Creek Store Charitable Trust t/as Canteen Creek Community Store 48,945 13,980

Ntjaminya General Store Aboriginal Corporation t/as Engawala Store 24,664 34,407

Wetenngerr Aboriginal Corporation t/as Wetenngerr Store 133,509 108,411

Imanpa General Store Anangu Aboriginal Corporation t/as Imanpa General Store 171,635 98,372

Dungalan Aboriginal Corporation t/as Dungalan Store 3,235 2,116

Lagulalya Aboriginal Corporation t/as Lagulalya Store 162,428 150,378

Mulan Community Store t/as Mulan Community Store 65,210 213,337

Nitjpurru Community Store 39,000 294

Nyirripi Aboriginal Corporation t/as Nyrripi Community Store 58,901 14,936

Oak Valley (Maralinga) Aboriginal Corporation t/as Oak Valley Community Store 64,418 50,000

Kundat Djaru Community Store Aboriginal Corporation t/as Kundat Djaru Community Store 123,797 71,876

Kunawarritji Aboriginal Corporation t/as Kunawarritji Community 77,257 -

Titjikala Community Store Aboriginal Corporation t/as Titjikala Store 50,580 89,780

Anmatjere Community Store Aboriginal Corporation t/as Ti Tree Food Store

- 87,289

Kiwirrkurra Council Aboriginal Corporation t/as Kiwirrkurra Roadhouse and Community Store - 45,000

Paupiyala Tjarutja Aboriginal Corporation t/as Tjuntjuntjara Community Store 62,104 25,899

Yiyili Store Indigenous Corporation t/as Yiyili Community Store 61,736 51,339

Urapunga Aboriginal Corporation t/as Urapunga Store 287,990 7,006

Total store grant expenditure (underpinning) 1,493,754 1,156,452

Note 4: Expenses (cont)

Consolidated

2021 2020

$ $

Note 4.7: Administrative expenditure

Travel and accommodation 326,517 340,257

Bad debts - 940

Information technology 297,062 290,451

Recruitment costs 80,768 29,308

Insurance 467,762 398,692

Accountancy fees 48,339 43,013

Audit fees 54,850 51,000

Management fees 65,879 50,694

Motor vehicle 249,774 242,465

Fringe benefit and payroll tax 719,167 721,835

Training 271,193 147,231

Communication 48,931 60,931

Board expenses 452,000 486,291

Outsourced payroll fees 77,423 52,691

Electricity 39,696 51,111

Other expenses 237,528 324,542

Total administrative expenditure 3,436,889 3,291,452

Note 4: Expenses (cont)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Consolidated

2021 2020

$ $

Note 4.8: Other grant expenditure

Expenditure of grants received from Australian Government entities:

Department of Social Services - Food security 1,700 1,650

National Indigenous Australians Agency - Nutrition grant 115,089 151,490

Total other grant expenditure 116,789 153,140

Note 4.9: Finance costs

Interest on lease liabilities 93,105 83,426

Total finance costs 93,105 83,426

Note 4.10: Fair value loss on financial instruments at fair value through profit or loss

Fair value loss on financial instrument at fair value through profit and loss - 354,973

Total fair value loss on financial instruments at fair value through profit and loss - 354,973

Note 4.11: Loss on sale of investments

Loss on sale of investments - 1,039

Total loss on sale of investments - 1,039

Note 4.12: Auditors’ remuneration

Amounts paid or payable in respect of the audit or review of the financial statements:

Australian National Audit Office 54,850 51,000

Total auditors’ remuneration 54,850 51,000

Note 4: Expenses (cont) Note 5: Income tax expense

Consolidated

2021 2020

$ $

Note 5.1: Income tax recognised in profit or loss

Tax expense comprises:

Current tax (benefit)/expense in respect of the current year - continuing operations (206,170) (92,339)

Current tax expense in respect of the current year - discontinued operations - (122,669)

Current tax (206,170) (215,008)

Deferred tax (benefit)/expense relating to the origination and reversal of temporary differences - continuing operations 294,686 (168,321)

Deferred tax expense/(benefit) relating to the origination and reversal of temporary differences - discontinued operations - 3,091

Total income tax (benefit)/expense 88,516 (380,238)

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense / (benefit) in the financial statements as follows:

(Loss)/profit before income tax (124,276) (1,164,883)

Income tax (benefit)/expense calculated at 30% (2020: 30%) (37,283) (349,465)

Effect of expenses that are not deductible in determining taxable profit 3,097 -

Effect of income that is deductible in determining taxable profit - (2,946)

Franking credit benefit (7,825) (7,627)

Prior year adjustment (10,939) (20,200)

Derecognition of capital loss on sale of asset 141,466 -

Income tax (benefit)/expense in statement of comprehensive income 88,516 (380,238)

Note 5.2: Franking Credits

Opening balance 2,617,343 2,507,663

Tax paid - 83,833

Franked distribution received 21,597 25,847

Closing balance 2,638,940 2,617,343

Note 5.3: Current tax assets

Income tax receivable 16,810 12,046

Total current tax asset 16,810 12,046

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Opening Balance Charged to Income

Recognised directly in profit or loss

Recognised directly in equity Total

2021 $ $ $ $ $

Temporary differences

Investments 43,112 - (367,190) - (324,078)

Prepayments (4,895) - (48) - (4,943)

Property, plant & equipment and Intangible assets 11,932 - 11,570 - 23,502

Other assets (26,145) - 29,400 - 3,255

Accrued expenses 7,976 - 1,707 - 9,683

Employee benefits 490,864 - 24,919 - 515,783

Provision for audit fees 15,300 - 1,155 - 16,455

Fringe benefit and payroll tax - - 3,802 - 3,802

Total 538,144 - (294,685) - 243,459

Tax loss current year 404,368

Presented on the statement of financial position as follows:

Deferred tax liability attributable to continuing operations 947,623

Deferred tax liability attributable to discontinued operations 1 -

947,623

Deferred tax asset attributable to continuing operations 1,191,082

Deferred tax asset attributable to discontinued operations -

Deferred tax asset attributable to tax loss1 404,368

1,595,450

1 The net deferred tax asset of $647,827 calculated above is as a result of AASB 16 Leases.

Opening Balance Charged to Income

Recognised directly in profit or loss

Recognised directly in equity Total

2020 $ $ $ $ $

Temporary differences

Investments (58,616) - 101,728 - 43,112

Prepayments (4,535) - (360) - (4,895)

Property, plant & equipment and Intangible assets 3,076 - 8,856 - 11,932

Other assets (2,849) - (23,296) - (26,145)

Accrued expenses 6,428 - 1,548 - 7,976

Employee benefits 411,890 - 78,974 - 490,864

Provision for audit fees 14,430 - 870 - 15,300

Fringe benefit and payroll tax - - - - -

Discontinued operations 3,091 - (3,091) - -

Total 372,915 - 165,229 - 538,144

Tax loss current year 202,962

Presented on the statement of financial position as follows:

Deferred tax liability attributable to continuing operations 371,583

Deferred tax liability attributable to discontinued operations -

371,583

Deferred tax asset attributable to continuing operations 909,727

Deferred tax asset attributable to tax loss 202,962

1,112,689

Note 5: Income tax expense (cont)

Note 5.4: Deferred tax balances

Note 5: Income tax expense (cont)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

cont.

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Note 6: Assets

Consolidated

2021 2020

$ $

Note 6.1: Cash and cash equivalents

Cash on hand 6,718,058 8,689,597

Short term deposits 3,000,000 5,000,000

Total cash and cash equivalents 9,718,058 13,689,597

The effective interest rate on short term deposits was 0.34% (2020: 0.95%).

Note 6.2: Trade receivables

Trade and other receivables

Goods and services receivables 1,979,630 2,117,927

Total trade and other receivables 1,979,630 2,117,927

Other receivables

Accrued interest 13,075 93,228

Bonds 18,453 14,666

Sundry receivables 63,255 214,317

Total other receivables 94,783 322,211

Total trade and other receivables (gross) 2,074,413 2,440,138

Less expected credit loss allowance 1 (4,501) (6,081)

Total trade and other receivables (net) 2,069,912 2,434,057

Trade and other receivables (net) expected to be recovered

Not overdue 112,761 373,204

Overdue:

30 to 60 days 1,945,767 2,024,884

60 to 90 days 11,384 27,283

More than 90 days - 8,621

Total trade and other receivables (net) 2,069,912 2,433,992

Reconciliation of the expected credit loss allowance account movements in relation to Goods and services

Opening balance 6,081 6,327

Provision decrease recognised in net surplus (1,580) (246)

Closing balance 4,501 6,081

1

Credit terms for goods and services were within 7 days from invoice date (2020: 7 days). No interest is charged on outstanding debtor balances. An allowance has been made for irrecoverable amounts determined from liquidity review of individuals stores and management views. Debtor days is not viewed as an accurate measurement of impairment of receivables.

Note 6: Assets (cont)

Consolidated

2021 2020

$ $

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Note 6.3: Financial assets

Loans to other entities 1 851,000 952,935

Investment in managed funds 2 26,723,524 13,209,870

Fixed term deposits 3 8,995,000 18,835,000

Total other financial assets 36,569,524 32,997,805

Financial assets expected to be recovered

No more than 12 months 35,883,107 32,185,585

More than 12 months 686,417 812,220

Total financial assets 36,569,524 32,997,805

1

Loans to other entities measured at amortised cost represents unsecured commercial loans to community stores, repayable over the loan agreement period, being between 1 to 15 years. Interest is charged between 5 - 7%.

2

Investment in managed funds represents the investment in Macquarie Investment’s custodial accounts. The Company’s investment in various funds is held at fair value through profit or loss. The Company has recorded a fair value loss in the previous financial year of $354,973.

3

Fixed term deposits measured at amortised cost represent the deposits held under the Company’s investment in Macquarie Investment’s custodial accounts. The weighted average interest rate is 0.95%.

Note 6.4: Other current assets

Prepayments 66,448 58,008

Total other current assets 66,448 58,008

Other non-financial assets expected to be recovered

No more than 12 months 66,448 58,008

More than 12 months - -

Total other non-financial assets 66,448 58,008

No indicators of impairment were found for other non-financial assets.

Note 6: Assets (cont)

Consolidated

2021 2020

$ $

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Note 7: Non-financial assets

Housing Containers Furniture and fittings

Leasehold Improve- ments

Motor Vehicle and components

IT

Equipment Trademarks

IT

Software

Total

$ $ $ $ $ $ $ $ $

As at 1 July 2020

Gross book value 1,530,523 73,024 209,716 176,330 2,261,451 2,859,613 16,177 654,419 7,781,253

Accumulated depreciation, amortisation and impairment

(682,301) (73,024) (179,995) (157,975) (2,105,318) (2,259,058) (16,177) (599,526) (6,073,374)

Net book value 1 July 2020

848,222 - 29,721 18,355 156,133 600,555 - 54,893 1,707,879

Additions - - 15,208 - 545,681 140,037 - 72,905 773,831

Transfer (45) - - - 45 - -

Depreciation and amortisation

(31,421) - (17,234) (3,937) (168,212) (284,662) - (13,619) (519,085)

Disposals (745,967) - - - (17,257) (44,733) - - (807,957)

Net book value 30 June 2021

(777,433) - (2,026) (3,937) 360,212 (189,313) - 59,286 (553,211)

Net book value at 30 June 2021 represented by:

Gross book value 784,556 73,024 224,924 176,330 2,789,875 2,954,917 16,177 727,324 7,747,127

Accumulated depreciation, amorisation and impairment

(713,767) (73,024) (197,229) (161,912) (2,273,530) (2,543,675) (16,177) (613,145) (6,592,459)

Total as at 30 June 2021

70,789 - 27,695 14,418 516,345 411,242 - 114,179 1,154,668

Note 7.1: Reconciliation of property, plant and equipment and intangibles for 2021.

Land and buildings for the Ti Tree Store of $858,782 was disposed of during the year.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 7: Non-financial assets (cont)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Note 7: Non-financial assets (cont) Note 7: Non-financial assets (cont)

Note 7.2: Reconciliation of property, plant and equipment and intangibles for 2020

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Consolidated

2021 2020

$

Opening Balance 1,291,461 -

Gross book value (172,195) -

Accumulated depreciation, amortisation and impairment

1,119,266 -

Net book value 1 July - 1,291,461

Recognition of right of use asset on initial application of AASB 16 1,119,266 1,291,461

Adjusted total as at 1 July 1,130,858 -

Depreciation on right-of-use assets

(196,691) (172,195)

Net book value 30 June

2,053,433 1,119,266

Net book value at 30 June represented by:

Gross book value 2,422,319 1,291,461

Accumulated depreciation, amortisation and impairment (368,886) (172,195)

Total as at 30 June

2,053,433 1,119,266

Carrying amount of right-of-use assets

2,053,433 1,119,266

Note 7.3: Reconciliation of property, plant and equipment that are subject to operating leases.

Housing Containers Furniture and fittings

Leasehold Improve- ments

Motor Vehicle and components

IT

Equipment Trademarks

IT

Software

Total

$ $ $ $ $ $ $ $ $

As at 1 July 2019

Gross book value 2,035,255 73,024 1,083,193 176,330 3,078,143 2,724,250 16,177 665,668 9,852,040

Accumulated depreciation and impairment (1,138,883) (73,024) (413,987) (154,029) (2,706,602) (2,125,883) (16,177) (647,451) (7,276,036)

Less: Reclassified as assets held for sale

- - {631,065} - {5,158} {6,212} - - {642,435}

Net book value 1 July 2019

896,372 - 38,141 22,301 366,383 592,155 - 18,217 1,933,569

Additions - - 5,129 - 52,686 251,657 - 63,289 372,761

Depreciation and amortisation

(48,150) - (13,549) (3,946) (253,559) (243,150) - (26,613) (588,967)

Disposals -- - - {9,377} {107} - - {9,484}

Net book value 30 June 2020

848,222 - 29,721 18,355 156,133 600,555 - 54,893 1,707,879

Net book value at 30 June 2020 represented by:

Gross book value 1,530,523 73,024 209,716 176,330 2,261,451 2,859,613 16,177 654,419 7,781,253

Accumulated depreciation, amorisation and impairment

(682,301) (73,024) (179,995) (157,975) (2,105,318) (2,259,058) (16,177) (599,526) (6,073,374)

Less: Reclassified as assets held for sale

- - - - - - - - -

Total as at 30 June 2020

848,222 - 29,721 18,355 156,133 600,555 - 54,893 1,707,879

112 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 113

Consolidated

2021 2020

$ $

Note 8.1: Trade and other payables

Trade payables 468,615 205,584

Goods and services tax payable 302,509 346,180

Accrued expenses 526,078 363,064

Audit fees 54,850 51,000

Fringe benefit and payroll taxes 81,669 84,119

Other liabilities - 54,927

Total trade and other payables 1,433,721 1,104,874

Trade and other payables expected to be settled

No more than 12 months 1,433,721 1,104,874

More than 12 months - -

Total trade and other payables 1,433,721 1,104,874

The average credit period on purchases of goods is 1 month. No interest is charged on the trade payables for outstanding balances. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

Note 8.2: Deferred revenue - Government grants

Unexpended grants - Parent entity

Indigenous Business Australia - Northern Territory Emergency Relief Funding (NTER) 263,659 924,900

Department of Social Services Food Grant 2,210,674 2,210,674

Unexpended grants - Other

Governance and training grant funding 3,636,178 4,620,703

Total grants 6,110,511 7,756,277

Grants expected to be settled

No more than 12 months 6,110,511 7,756,277

Total grants 6,110,511 7,756,277

Note 8: Liabilities

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 8: Liabilities (cont)

Consolidated

2021 2020

$ $

Note 8.3: Lease liabilties

Operating leases 2,125,999 1,155,313

Total lease liabilities 2,125,999 1,155,313

Maturity analysis - contractual undiscounted cash flows

Within 1 year 165,770 146,016

Between 1 to 5 years 654,843 695,399

More than 5 years 1,305,386 313,898

Total leases 2,125,999 1,155,313

Total cash outflow for leases for the year ended 30 June 2021 was $248,945 (2020 $219,574).

Outback Stores in its capacity as lessee held a lease agreement for the office located in Darwin which was entered into on 1 January 2015, with monthly lease payments increasing annually in line with CPI. The contract had a renewal option for a further 6 years on 1 January 2020 which management has determined that the Company was likely to exercise. In December 2020, a new lease for the Darwin office was entered into by Outback Stores for the same property. The lease is for a period of 8 years and contains a renewal option for a further 5 years which management has determined that the Company is likely to exercise. The scope of the contract remained consistent with the prior lease and therefore this was accounted for as a lease modification. The incremental borrowing rate of 5.04% (2020: 6.87%) was used to discount the present value of the lease payments that are not paid and the lease liability was adjusted accordingly.

Note 8.4: Employee provisions

Employee benefit - Current 1,376,915 1,228,210

Employee benefit - Non-current 342,361 408,004

Total provisions 1,719,276 1,636,214

Employee provisions expected to be settled

No more than 12 months 1,376,915 1,228,210

More than 12 months 342,361 408,004

Total provisions 1,719,276 1,636,214

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 9: Issued capital

Authorised and issued shares:

40,000,001 fully paid ordinary shares 40,000,001 40,000,001

Total issued capital 40,000,001 40,000,001

114 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 115

Consolidated

2021 2020

$ $

Note 10.1 Cash flow

Reconciliation of cash and cash equivalents at the end of the reporting period

Cash flow statement 9,718,058 13,689,597

Statement of financial position 9,718,058 13,689,597

Discrepancy - -

Reconciliation of (loss)/profit to cash flows from operating activities

Loss for the year after income tax (212,798) (784,644)

Items classified as investing activities:

Interest received (192,072) (312,254)

Distributions received on managed investments (716,325) (547,278)

Food security, nutrition and store expenditure grants 1,610,543 1,294,556

Non-cash flows in profit

Depreciation and amortisation 711,444 761,162

Reversal of prior year fair value adjustment - (20,658)

Net loss/(gain) on financial instrument at fair value through profit and loss (1,209,241) 354,973

Gain/(loss) on disposal of fixed assets 235,478 (134,491)

Losses from sale of assets from discontinued operations - 376,660

Loss on investments made - 1,039

Changes in net assets and liabilities:

(Increase)/decrease in assets:

Trade and other receivables 279,339 (591,894)

Inventories - 252,737

Other non-financial assets - (11,514)

Current tax assets (16,875) (12,046)

Deferred tax assets (761,516) (658,992)

Note 10: Cash flow reconciliation

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 10: Cash flow reconciliation (cont)

Related Party relationships:

The immediate parent and ultimate controlling party of the Company is the National Indigenous Australians Agency (NIAA), on behalf of the Commonwealth of Australia. Other related parties are the Directors and other Key Management Personnel.

Balances and transactions between the company and its subsidiary, which is a related party of the Company, have been eliminated on consolidation and are not disclosed in this note.

The Company did not receive Grant funding during the year from the NIAA. There were no other related party transactions during the year.

Terms and conditions

Majority of the Point of Sale systems are owned by Outback Stores and rented to stores managed by Outback Stores.

Note 11: Related party disclosures

Consolidated

2021 2020

$ $

Note 10.1 Cash flow, cont.

Increase/(decrease) in liabilities:

Trade and other payables 341,797 (188,892)

Deferred revenue- Government grants (1,645,766) (1,212,296)

Employee provisions 83,062 197,358

Current tax liabilities - (83,833)

Deferred tax liabilities 866,841 290,801

Net cash from operating activities (626,089) (1,029,506)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

116 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 117

The aggregate compensation made to directors and other members of key management personnel of the Company is set out below:

Consolidated

2021 2020

$ $

Non-Executive Short Term Employment Benefits 368,695 366,945

Non-Executive Post Employment Benefits 35,042 33,198

Short Term Employment Benefits 988,049 988,742

Long Term Employment Benefits 14,561 21,125

Post Employment Benefits 85,436 85,378

Total 1,491,783 1,495,388

The total number of key management personnel that are included in the above table are 13 (2020: 13).

Details of key management personnel:

The directors and other members of key management personnel of the Group during the year were:

Mr M. Borg Chief Executive Officer (appointed 24 October 2016)

Mr E. Ralph Chief Operating Officer (appointed 19 December 2016)

Mr J. Rathore Chief Financial Officer (appointed 1 July 2015)

Mr R. Mead Group Merchandise and IT Manager (appointed 15 January 2018)

Dr S. Gordon AM Chairperson (appointed on 26 October 2018)

Mr G. Cook Director (appointed 16 September 2015)

Ms S. Cleveland Director (appointed 1 September 2016)

Mr S. Bate Director (appointed 1 September 2016)

Prof S. Eades Director (appointed 1 September 2016)

Ms B. Price Director (appointed 30 November 2017)

Ms L. Nelson Director (appointed 1 March 2021)

Mr D. Bourchier Director (appointed 16 March 2019)

Mr D. Evans Director (appointed 24 September 2019)

Note 12: Key management personnel renumeration

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Consolidated

2021 2020

Notes $ $

13.1 Categories of financial instruments

Financial assets at amortised cost

Cash and cash equivalents 6.1 9,718,058 13,689,597

Trade and other receivables 6.2 2,069,912 2,434,057

Other financial assets - loans, bond deposits and fixed term deposits 6.3 9,846,000 19,787,935

Total financial assets at amortised cost 21,633,970 35,911,589

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss 6.1 26,723,524 13,209,870

Total financial assets at fair value through profit or loss 26,723,524 13,209,870

Total financial assets 48,357,494 49,121,459

Financial Liabilities

Financial liabilities measured at amortised cost

Trade and other payables 1,049,543 674,575

Deferred Revenue - Government Grants 6,110,511 7,756,277

Total financial liabilities measured at amortised cost 7,160,054 8,430,852

Net gains or losses on financial assets

Financial assets at amortised cost

Investment income 716,325 39,552

Interest income 192,072 350,651

Net gains on financial assets at amortised cost 908,397 390,203

Financial assets at fair value through profit or loss

Distributions received - 547,278

Fair value (loss)/gain 1,209,241 (354,973)

Net gains on financial assets at fair value through profit or loss 1,209,241 192,305

Note 13: Financial instruments

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

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Note 13: Financial instruments (cont)

13.2 Financial risk management objectives

Capital management

The Company manages its capital to ensure that it will be able to continue as a going concern while meeting its social responsibility for food security through the optimisation of debt and grant funding.

The capital structure of the Company consists of issued share capital and retained earnings as disclosed in the statement of changes in equity.

The Company is not subject to externally imposed capital requirements. Operating cash flows are used to operate and expand operations as well as to make routine outflows of tax.

The nature of services provided contribute to the high liquidity risk underlying the financial instruments. The Company is dependent on ongoing government support to provide food security and quality stores within remote communities.

The Company has formalised risk management processes in place. A risk register is kept updated for all risks identified for the Company. It lends money to stores that it manages on approval from the Stores Assessment Committee, which is a subcommittee of the Board of Directors. Loans are provided at a discounted rate of interest.

The Store Assessment Committee’s purpose is to review the viability of new stores proposed for management agreements to evaluate required establishment and support funds. This committee assists in mitigating liquidity risk prior to entering into a new contract. In some instances, the stores are unable to repay the loans and these amounts are then funded from grant income received from the Company’s immediate parent and ultimate parent entity, the Australian Government.

The capital structure of the Company consists of debt and unexpended grant funding in note 8.2.

Market Risk

Other price risk

The Company is exposed to equity price risk arising from equity investments. The Company invested in portfolio which are held for trading purpose. The management has considered the impact of the price changes on its investment to be minimal.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company only deals with stores that it manages, related parties, funding bodies or credit worthy counter parties such as Metcash. Metcash supply inventory to Outback Stores. It therefore is in a position to ensure that it minimises its exposure to credit risk. As at 30 June 2021, the Company’s maximum exposure to credit risk without taking into account any collateral or other credit enhancements is equivalent to the carrying amount of the respective recognised financial assets as stated in the statement of financial position and maximum amount the entity would have to pay if the financial guarantee is called upon irrespective of the likelihood of the guarantee being exercised.

Foreign currency risk management

The Company has minimum foreign exchange exposure and does not manage any implicit risk.

Interest rate risk

The Company’s activities expose it to the financial risks of changes in interest rates. The Company has a treasury function policy and interest rate risks are managed by investing in short term interest bearing deposits, and lending to stores using varied maturity periods. Periods include up to ten years and are provided to stores at a discounted rate of interest.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

There has been no change to the Company’s exposure to market risks except for the exposure to the price risk related to the investment in financial assets at fair value through profit or loss. The manner in which the risk is measured and managed are detailed below.

Note 13: Financial instruments (cont)

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Interest rate risk management

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to interest rate risk from term deposits and loans provided to remote community stores. Currently there is a treasury function policy and interest rate risk is managed by investing in short term interest bearing deposits and lending to stores over the period of agreed management contracts. Term deposits and trading accounts are held in pre-approved financial institutions only.

The following table illustrates the maturities for interest bearing financial assets subject to interest rate risk.

Weighted Average effective interest

rate

Less than 1 month Between 1-3 months

Between 3 months to 1 year

Between 1 to 5

years

More than 5 years

Total

% $ $ $ $ $ $

2021

Short term deposits (fixed interest rate) 0.34% 3,000,000 - - - - 3,000,000

Other cash & cash equivalents (variable interest) 0.15% 6,718,059 - - - - 6,718,059

Store loans (fixed interest rate)

5.85% 13,352 26,898 124,333 686,417 - 851,000

9,731,411 26,898 124,333 686,417 - 10,569,059

Consolidated

2020

Short term deposits (fixed interest rate) 0.95% - 5,000,000 18,835,000 - - 23,835,000

Other cash & cash equivalents (variable interest) 0.15% - - 8,689,597 - - 8,689,597

Store loans (fixed interest rate)

5.85% - - 140,715 812,220 - 952,935

- 5,000,000 27,665,312 812,220 - 33,477,532

120 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 121

Note 13: Financial instruments (cont)

Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due. Ultimate responsibility for liquidity risk management exists with the Board of Directors.

The Company manages liquidity risk by maintaining adequate reserves and banking facilities (term deposits) to meet forecast cash flows taking into account maturity profiles of financial assets and liabilities.

The following table illustrates the maturities for financial liabilities attributable to liquidity risk. The tables have been drawn based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.

Less than 1 month Between 1-3 months

Between 3 months to

1 year

Between 1 to 5

years

More than 5 years

Total

$ $ $ $ $ $

2021

Trade and other payables - 1,049,543 - - - 1,049,543

Deferred revenue - - 6,110,511 - - 6,110,511

- 1,049,543 6,110,511 - - 7,160,054

Consolidated

2020

Trade and other payables - 674,575 - - - 674,575

Deferred revenue - - 7,756,277 - - 7,756,277

- 674,575 7,756,277 - - 8,430,852

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 13: Financial instruments (cont)

13.3 Fair value of financial instruments

The fair values of financial assets and financial liabilities are determined as follows:

The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices.

The fair value of other financial assets and liabilities is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions.

Unless where otherwise stated, the directors consider the financial assets and financial liability carrying amount to also be its fair value.

Fair value hierarchy as at 30 June 2021

Financial assets

Level 1 $

Level 2 $

Level 3 $

Total $

Financial assets at fair value through profit or loss

Investment in managed funds 26,723,524 - - 26,723,524

Total 26,723,524 - - 26,723,524

Consolidated

Fair value hierarchy as at 30 June 2020

Financial assets

Level 1 $

Level 2 $

Level 3 $

Total $

Financial assets at fair value through profit or loss

Investment in managed funds 13,209,870 - - 13,209,870

Total 13,209,870 - - 13,209,870

The categorisation of fair value measurements into the different levels of the fair value hierarchy depends on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement. Level 3 inputs are unobservable inputs for the asset and liability.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

122 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 123

Company

2021 2020

Financial position $ $

Assets:

Current assets 40,099,814 48,379,228

Non-current assets 13,144,489 4,752,054

Total assets 53,244,303 53,131,282

Liabilities

Current liabilities 9,086,917 10,235,377

Non-current Liabilities 3,250,213 1,788,884

Total liabilities 12,337,130 12,024,261

Equity

Issued capital 40,000,001 40,000,001

Retained earnings 907,172 1,107,020

Total equity 40,907,173 41,107,021

Comprehensive loss

Loss for the year (212,798) (1,540,016)

Total comprehensive loss (212,798) (1,540,016)

Note 14: Parent entity disclosures

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

Note 15: Contingent liabilities and contingent assets There were no contingent liabilities and contingent assets at balance date that required reporting.

Note 16: Subsequent events There is no subsequent event at the reporting date which impact the financial statements of the entity.

Note 17: Discontinued operations In the previous financial year, the Cardwell Supermarket operations was disposed on 11 March 2020 at $300,000 plus stock-in-trade estimated to be $300,000. The disposal is consistent with Outback Stores’ focus on the long-term objective of managing remote community stores.

The results of the discontinued operations (i.e. Cardwell Supermarket) included in the prior year profit or loss is set out below.

2020

$

Revenue 3,551,838

Expenses (3,542,535)

Other non-operating income 1,933

Losses from sale of assets (376,660)

Loss before tax (365,424)

Attributable income tax benefit 119,578

Loss for the year from discontinued operations (245,846)

Trade receivables 12,949

Cash 1

Net assets of disposal group 12,950

The Cardwell Supermarket was sold during the previous financial year on 11 March 2020, therefore prior year information presented represents a consolidation, whereas current year numbers are standalone information for Outback Stores.

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

124 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 125

Consolidated

2021 2020

$ $

Assets expected to be recovered in:

No more than 12 months 47,754,335 48,392,178

More than 12 months 5,489,968 4,752,054

Total assets 53,244,303 53,144,232

Liabilities expected to be settled in:

No more than 12 months 9,086,917 10,235,377

More than 12 months 3,250,213 1,788,884

Total liabilities 12,337,130 12,024,261

Note 18: Aggregate assets and liabilities

Notes to and forming part of the financial statements for the year ended 30 June 2021

Outback Stores Pty Ltd

NOTES

126 | Outback Stores Annual Report 2020 - 2021 Outback Stores Annual Report 2020 - 2021 | 127

NOTES NOTES

PO Box 1953

Berrimah NT | 0828

Outback Stores 67 Pruen Road Berrimah NT 0828

P: (08) 8982 1900

E: info@outbackstores.com.au Contact Officer: Nicola Pitt

outbackstores.com.au