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Hearing Australia—Report for 2020-21


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Annual Report 2020 - 2021 Providing world leading research and hearing services for the wellbeing of

all Australians

hearing.com.au

Contents Letter to the Minister 1

Acknowledgement of Country 3

Message from the Chair 4

Message from the Managing Director 6

Delivering excellent client outcomes 8

Providing great value to Government and partners 18

A high performing organisation 23

Organisational structure and governance 27

Annual Performance Statement 35

Financial Statements 37

Compliance Index 72

Glossary 75

Appendices 77

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Letter to the Minister Senator the Hon Linda Reynolds CSC Minister for the National Disability Insurance Scheme Minister for Government Services Parliament House CANBERRA ACT 2600

Dear Minister,

I have the pleasure of presenting Hearing Australia’s Annual Report for the year ending 30 June 2021.

The Report has been prepared in accordance with the requirements of the Public Governance, Performance and Accountability Act 2013 and relevant regulatory guidelines.

The Report outlines the achievements and milestones of Hearing Australia during 2020-21.

Yours sincerely,

Dr Peta Seaton AM Chair 9 September 2021

Hearing Australia ABN 80 308 797 003 Level 5 16 University Avenue

MACQUARIE UNIVERSITY NSW 2109

(02) 9412 6800 hearing.com.au

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Artwork created by Davinder Hart who is an Aboriginal artist born in Perth, Western Australia. His family roots connect from Bibbulmun and Katanning in the south west region of the Noongar people.

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Acknowledgement of Country Hearing Australia acknowledges the Aboriginal and Torres Strait Islander peoples - the traditional custodians of the lands across Australia on which we work, live and learn. We pay our respects to ancestors and Elders past, present and emerging.

Hearing Australia is committed to honouring Aboriginal and Torres Strait Islander peoples’ unique cultural and spiritual relationships to the land, waters and seas and their rich contribution to society.

We are committed to a future in which Aboriginal and Torres Strait Islander people take up their rightful opportunities; grow strong in their identity, culture and language; and in which ear and hearing problems do not alter the trajectory of Aboriginal and Torres Strait Islander peoples’ lives.

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Message from the Chair

As Chair of the Board of Hearing Australia, I am pleased to report that, despite the ongoing impacts of the COVID-19 pandemic, Hearing Australia had a strong 2020-21 financial year and continued the transformation of its services, the modernisation of its legacy ICT systems and its agenda to prevent avoidable hearing loss.

In 2020-21 Hearing Australia provided care for some 290,000 clients - a new record, including over 72,000 Community Service Obligations (CSO) program clients - also a new record.

Our network of 170 hearing centres and over 300 visiting sites remained open throughout the year, providing help to some 2,500 clients each business day. Our clients remained highly satisfied with our services, reporting satisfaction rates of between 84-86 per cent throughout the year.

Hearing Australia also made progress with the transformation of its services to make it easier, faster and better for our clients to get the help they need through improvements to its booking systems, online services and experiences within our hearing centres. This will continue in the year ahead.

During 2020-21 Hearing Australia continued to work closely with the Department of Health and the National Disability Insurance Agency to support over ten families each week get rapid access to early intervention services. These services are critical to the development of children with hearing loss.

Hearing Australia also made progress on its agenda to prevent avoidable hearing loss. With the support of Government, Hearing Australia commenced work on a strategy to improve the hearing health of First Nations children in collaboration with multiple Commonwealth, State and Territory partners. Hearing Australia also established a Prevention Unit to lead and coordinate the organisation’s goal to reduce avoidable hearing loss in Australia.

A highlight for 2020-21 was the expansion of the Hearing Assessment Program - Early Ears (HAPEE) to include metropolitan areas. HAPEE is funded by the Australian Government to improve the hearing health of Aboriginal and Torres Strait Islander children aged 0-6.

During 2020-21 Hearing Australia assessed over 10,500 First Nations children in over 240 locations, with some one third of them found to have an undiagnosed hearing loss, and

Hearing Australia exceeded its operational and financial targets for 2020-21 and helped almost 290,000 clients during the year, a new record, while maintaining 84-86 per cent satisfaction rates.

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25 per cent requiring referral to specialist clinical pathways. HAPEE is changing the lives of many of these children by helping them get the help they need. Hearing Australia is also working with Aboriginal and Torres Strait Islander health organisations across Australia to build hearing health awareness and capabilities within their communities.

Hearing Australia’s research arm, the National Acoustic Laboratories (NAL), also made progress in 2020-21 through evidence based innovation and research to improve the lives of people with hearing difficulties. This included the publication of clinical guidance to help people with hearing aids deal with the impact of people wearing a mask while communicating with them. NAL researchers also teamed up with Hearing Australia’s audiologists to improve the way Hearing Australia delivers its telehealth appointments to ensure clinical outcomes are fully met.

During 2020-21 Hearing Australia also continued to invest in the transformation of its people and its legacy ICT systems. These continue to be high priorities for the organisation.

Our thanks On behalf of Hearing Australia, I would like to thank Senator the Hon. Linda Reynolds CSC, Minister for the National Disability Insurance Scheme and Minister for Government Services, for her support.

I also thank our former Minister, the Hon. Stuart Robert MP, for his support. Hearing Australia looks forward to working closely with Minister Reynolds and the Government over the year ahead.

I would also like to thank our many partners. Your insights, support and collaboration are essential to our collective efforts to prevent avoidable hearing loss; and to deliver better outcomes to people with hearing loss and to their families and communities.

I also thank current and past members of the Board of Hearing Australia for their contribution over the past year. Your guidance has been critical and highly valued.

Finally, on behalf of the Board, I want to thank Hearing Australia’s management team and staff for your resilience and commitment. I am proud of the way Hearing Australia’s management team has led the organisation over the past year while maintaining the safety and security of our people and clients.

Our people have also stood up across the nation, and I thank them for the resilience and caring they bring to their work every day, especially in the face of the pandemic and the associated health restrictions and lockdowns.

Dr Peta Seaton AM Chair Hearing Australia

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Message from the Managing Director

In 2020-21 we helped some 290,000 clients across Australia through our national network of permanent and visiting hearing centres, visits to over 240 regional and remote communities, many thousands of home visits and through our website and call centre.

We have remained open since the start of the pandemic, with our operations continuing under COVIDSafe plans in alignment with government requirements across Australia. Over 95 per cent of our people have turned up to work every day, including during State and Territory lockdowns, with some 85 per cent of our people located in hearing centres in the community.

We also continued the innovation of our telehealth services to help our clients during lockdowns and in remote communities.

In 2020-21 we maintained our strong commitment to preventing avoidable hearing loss, especially in Aboriginal and Torres Strait Islander communities.

We established a coalition to develop a National Strategy for the prevention of hearing loss, work which is continuing into 2021-22. We also undertook research into the accessibility and availability of hearing and ear health services for Aboriginal and Torres Strait Islander children in urban areas, with the findings being used to inform better practice and service delivery. In addition, our PLUM and HATS1 screening tools, which assist to identify hearing loss in young Aboriginal and Torres Strait Islander children, continue to be improved and expanded for use across a variety of primary health services.

During the year, we worked closely with the Department of Health to implement the Government’s 2020 Budget investments on hearing health initiatives. We also contributed to the Government’s independent review of the Hearing Services Program (HSP) and assessments of the impact of the Royal Commission into Aged Care Quality and Safety and a gap analysis of the training needs for the residential aged care workforce.

Our mission is to provide world leading research and hearing services for the wellbeing of all Australians. Our clients are at the heart of everything we do, and we have a clear responsibility to deliver the best possible care, particularly in times of crisis when staying connected is so important.

1. The PLUM (Parent-evaluated Listening & Understanding Measure) tool has 10 questions and screens for listening problems. The HATS (Hearing and Talking Scale) tool has 5 questions and screens for communication problems.

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I also want to thank and acknowledge the many people within Hearing Australia that are leading and supporting the transformation of our services, systems and processes and ensuring that we meet in full our financial, governance, risk management and compliance responsibilities. Your work is critical to Hearing Australia’s success and is highly valued.

I would also like to thank Senator the Hon Linda Reynolds CSC, Minister for the National Disability Insurance Scheme and Minister for Government Services, and our former Minister the Hon. Stuart Robert MP for their support, as well as the Board of Hearing Australia, our partners in Government and across the hearing sector, and my leadership team, for their support over the past year.

I feel very privileged to lead an organisation so committed to delivering the best possible outcomes for our clients and the communities we serve.

Kim Terrell Managing Director Hearing Australia

And our research arm - National Acoustic Laboratories - made significant contributions to government policy making and the delivery of research to improve the lives of people with hearing loss.

Hearing Australia operates in an increasingly competitive sector. Despite the ongoing challenges of the pandemic, we achieved a solid financial result in 2020-21, with total revenue of $274.5 million and a profit before tax of $12.0 million.

These results place the organisation in a sound position to face the headwinds of the ongoing pandemic and associated lockdowns, coupled with an expected reduction in revenue from HSP clients as a result of changes to the program from 1 July 2021.

I am exceptionally proud of the continuing commitment and resilience of our people, who bring to work each day a strong and unwavering passion to improve the hearing health of our community. Despite the considerable challenges of the past 12 months, our people have provided dedicated and compassionate care to our clients. They deserve particular thanks for their determination and endurance.

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We provide Australians with a wide range of information, education, research and clinical services, including the fitting of hearing devices and follow-up services. This includes providing Government funded hearing services to:

pension concession card holders

recipients of Centrelink sickness allowance

holders of a Department of Veterans’ Affairs Gold and White card

National Disability Insurance Scheme (NDIS) participants

children and young adults under the age of 26 years

adults with complex hearing needs

Aboriginal and Torres Strait Islander adults aged over 50 years or who are participating in Community Development Programs.

During 2020-21, we provided Government supported hearing services to 72,716 clients under the Community Service Obligations (CSO) Program and 154,900 clients through the Hearing Services Program (HSP). This was an almost three per cent increase on the number of CSO clients seen in 2019-20.

Delivering excellent client outcomes Our clients are at the heart of everything we do. We help anyone who needs us, regardless of their financial circumstances, age or location, and this was particularly important during 2020-21.

We also provided hearing services to 39,507 self-funded clients, in line with our commitment to help anyone who needs us, regardless of their financial circumstances, age or location.

The prevention of avoidable hearing loss Hearing Australia is deeply committed to the prevention of avoidable hearing loss, particularly in Aboriginal and Torres Strait Islander children.

It is estimated that some 3.6 million Australians have hearing loss and that this number will double by 20602.

Critically some 49 per cent of childhood hearing loss is estimated to be preventable, as is 37 per cent of adult loss3. This represents a major economic and social challenge which will grow as our population ages.

If not addressed early, hearing loss can influence the way children speak, learn and interact with others, leading to longer term speech and language challenges in their education and employment.

During 2020-21 Hearing Australia established a Prevention Unit to support the organisation improve the hearing health of high risk communities and

2. Deloitte Access Economics (2017). The social and economic cost of hearing loss in Australia. http://www.hcia.com.au/ hcia-wp/wp-content/uploads/2015/05/Social-and-Economic-Cost-of-Hearing-Health-in-Australia_June-2017.pdf

3. Hearing Care Industry Association (2017) The Social and Economic Cost of Hearing Loss in Australia - Final report by Deloitte Access Economics http://www.hcia.com.au/hcia-wp/wp-content/uploads/2015/05/Social-and-Economic-Cost-of-Hearing-Health-in-Australia_June-2017.pdf

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reduce the incidence of avoidable hearing loss in Australia.

Hearing Australia also established a coalition of partners to develop a National Strategy for the Prevention of Hearing loss. This group includes senior representatives of a wide range of hearing sector organisations including the Commonwealth Department of Health, The Shepherd Centre, the Royal Institute for Deaf and Blind Children, Macquarie University, Western Sydney University, Cochlear, the Menzies School of Health Research, Telethon Speech and Hearing, WSAudiology, Sonova Phonak, Hear For You, the Deafness Forum, Queensland Health and the National Aboriginal Community Controlled Health Organisation (NACCHO). We thank the organisations for their support for this initiative and will progress work on the strategy this year.

During 2020-21, Hearing Australia undertook research into the accessibility and availability of hearing and ear health services for Aboriginal and Torres Strait Islander children in urban areas. Key insights from the research highlighted the importance of culturally safe primary health services in promoting access to services, the need for joined up systems and integrated care pathways, and for a stronger focus on raising awareness of ear disease and how to prevent its long-term impacts.

In addition, our PLUM and HATS screening tools to identify hearing loss in young Aboriginal and Torres Strait Islander children continued to be improved and expanded for use across a variety of settings, including primary health services. We also partnered with NSW TAFE Digital to include a PLUM and HATS learning module in the Commonwealth Government funded

Ear Train program, a free online course for primary health care professionals to better identify and treat otitis media and other hearing loss related conditions in Aboriginal and Torres Strait Islander communities.

Hearing Assessment Program - Early Ears Hearing Australia’s Hearing Assessment Program - Early Ears (HAPEE), funded by the Australian Government, is improving the hearing health of young Aboriginal and Torres Strait Islander children before they start fulltime school.

The Program initially focussed on remote and very remote locations and, due to its success, was expanded to metropolitan and regional areas during 2020-21 to ensure that all young First Nations children have access to free hearing assessments, no matter where they live. The program is also upskilling Aboriginal and Torres Strait Islander primary health care services so they can better detect and manage ear disease and to improve community awareness of the importance of hearing health.

During 2020-21 HAPEE assessed 10,518 First Nations children in some 240 communities across Australia. Some 30 per cent of these children were found to have undiagnosed middle ear infections and some 25 per cent had some form of undiagnosed hearing loss and required referral to clinical specialists. Without HAPEE, the identification and referral of these children would not have occurred, or would have been delayed.

Funding for HAPEE concludes at the end of 2021-22. Hearing Australia will explore opportunities to obtain additional funding for the Program, given the benefits it is delivering for young First Nations children and their families and communities.

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HAPEE - A program changing lives The HAPEE program was developed with Aboriginal Community Controlled Health Services representatives and First Nations hearing health practitioners and is funded by the Australian Government.

Young children with ear disease often don’t show any signs of trouble; however, their hearing loss can lead to delayed speech and educational development and prevent them from fully participating in life.

HAPEE provides free community based diagnostic hearing assessments by trained audiologists and follow up treatment to children aged 0-6 years. The Program focuses on the early detection and treatment of otitis media as a first step towards preventing avoidable hearing loss.

Through HAPEE, Hearing Australia provides ongoing support to parents while building awareness and hearing health capabilities within communities.

“The HAPEE program is great because we have been able to help our children who have hearing problems. With the support of the program, our children now have the ongoing hearing help they need.” - Little Murguwans Aboriginal Cultural Playgroup

Since the 2019 launch of HAPEE, over 10,500 children have had free hearing assessments in 240 communities across Australia.

Hearing Australia is also actively promoting HAPEE in communities across Australia with the support of two spokespeople - singer and songwriter, mum and Gumbaynggirr, Dhungatti, Yamatji and Bibbulman woman, Emma Donovan; and Wiradjuri man, acclaimed actor and father, Luke Carroll.

HAPEE spokespeople: Emma Donovan with her daughter, Jirriga, and Luke Carroll with his son, Enzo.

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Community Service Obligations Program The CSO Program is funded through the HSP and provides Government subsidised hearing services (assessments, hearing devices and ongoing support) for children, young adults, eligible adults with complex needs, and Aboriginal and Torres Strait Islander people.

Hearing Australia delivers this Program under an Agreement with the Department of Health. During 2020-21 this Agreement was extended for three years from 1 July 2021.

During 2020-21, Hearing Australia provided CSO services to 72,716 CSO clients - a 2.9 per cent increase compared with the previous financial year and the highest number of clients seen in any year to date. Client satisfaction rates were high, at around 90 per cent.

All of the Key Performance Indicators for the CSO Program were achieved during 2020-21, despite the impact of the pandemic and State and Territory lockdowns and travel restrictions; highlighting Hearing Australia’s commitment to provide timely access to services for those who needed them, regardless of where they live in Australia.

During 2020-21 Hearing Australia also launched a new edition of our highly popular Choices publication - a resource for parents of children newly diagnosed with hearing loss. This publication is available to families at no cost and was developed in partnership with Aussie Deaf Kids, Usherkids, Parents of Deaf Children (NSW), Deaf Society and Deaf Services NSW and the National Disability Insurance Agency. Hearing Australia thanks these organisations for their support in producing the publication.

Services for babies, children and young people up to age 26 In 2020-2021, Hearing Australia provided services to 30,482 young Australians under the age of 21. We also provided services to 4,812 young adults between 21 and 26 years of age.

During the year, 5,195 remote microphone systems were fitted to children and young adults. Remote microphone systems are used in addition to hearing aids and cochlear implants to overcome the adverse effects of distance, background noise and reverberation on hearing quality. They can be particularly useful in a classroom environment.

We also provided 660 speech processors through the Cochlear Implant Speech Processor Upgrade and Replacement Program. Hearing Australia is working with the Department of Health on options to meet high levels of demand for this program.

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Case study - Paediatric Services Hearing Australia uses a range of strategies to ensure that young people nationwide are provided with high quality hearing services.

Our Specialist Clinical Services team develops and regularly reviews clinical protocols to ensure they support the highest quality services. Our clinicians work closely with our National Acoustic Laboratories (NAL) scientists, enabling research evidence to be translated promptly into clinical practice, and providing a pathway for contemporary clinical issues to inform NAL’s research priorities. Our specialist clinical coaches and clinical leaders support staff development and quality assurance; through training, mentoring and a regular audit program.

Our clinicians work with children with all degrees of hearing loss, abilities and ages; and have undertaken close to 120 hours of formal training and supervision in paediatric audiology, in addition to their university qualifications. They provide services through our permanent Hearing Centres; visits to specialist schools and early intervention programs; outreach to urban, regional

and remote Aboriginal and Torres Strait Islander communities; and through participation in multi-disciplinary hospital clinics.

Our Principal Audiologists, Clinical Leaders, Coaches and Paediatric Audiologists further contribute to the progress of paediatric audiology locally and around the world by participating in research; contributing to professional publications; presenting at conferences; delivering University lectures; and providing in-services support to educators and families.

Our paediatric services also recognise the expertise that families bring to the table, moving away from historical clinician driven service models towards contemporary child and family centred services.

As part of our commitment to support and educate families, in 2020 Hearing Australia collaborated with parent representatives to produce the esteemed Choices publication, a resource that helps families navigate their child’s hearing journey from the early days of diagnosis through to schooling and beyond.

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Services for Aboriginal and Torres Strait Islander children and young adults In 2020-21, we saw a total of 4,007 Aboriginal and Torres Strait Islander children and young adults aged under 26 years through the CSO program. This represents 13 per cent of the total number of children and young adults who received our services during the year.

Our focus on providing earlier care for Aboriginal and Torres Strait Islander children who have persistent hearing impairments is resulting in visible impacts. Between 2008 to 2020, the peak age of first fitting of a hearing aid for Aboriginal and Torres Strait Islander children has dropped from eight to four years of age, with a threefold increase in the proportion of children aided by the time they turn four years old. The age of first fitting is a key indicator of the accessibility and effectiveness of hearing assistance pathways from newborn hearing screening or primary health services through to Hearing Australia.

Services for Aboriginal and Torres Strait Islander Adults In 2020-2021 Hearing Australia provided services to 6,976 Aboriginal and Torres Strait Islander adults - a 10.6 per cent increase compared with the previous year. Over the past five years, this client group has increased by an average of 10.2 per cent annually. Sixty three per cent of these clients chose to receive hearing services at one of our Hearing Centres or Visiting sites, with 37 per cent receiving services at a community location through our Outreach program. We worked closely with Aboriginal and Torres Strait Islander communities to provide hearing services in urban, regional and remote locations, providing an average of 4.7 visits to each of 226 communities.

Services for adults with complex hearing rehabilitation needs In 2020-21, we provided services to 30,040 adults with complex hearing needs. The majority of these adults have a severe or profound hearing loss or a poor understanding of speech - this group of clients requires much more than just a well fitted hearing aid to participate fully in life. Other clients in this group may have hearing loss and an additional disability which impacts their communication. Some 79 per cent of adults with complex needs seen by Hearing Australia were provided with a specialised communication assessment and individual training programs to maximise their communication ability and to assist them in continuing to take part in activities they enjoy.

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Delivery of services under the NDIS Hearing Australia is an approved provider of services under the National Disability Insurance Scheme (NDIS). During the financial year, Hearing Australia provided hearing services to 667 NDIS participants who were not otherwise eligible for the HSP. These services included hearing device fittings, provision of remote microphone systems and assistive listening devices.

Hearing Australia also maintained the NDIS early intervention pathway for children with hearing loss aged 0-6 years, which provides expedited access to NDIS services for this group. In 2020-21 we helped 621 families to access this pathway and gain the support they need for their children.

Commercial Hearing Services Hearing Australia provides commercial hearing services to pensioners and veterans who are eligible for Government funded services through the HSP and to self-funded clients who meet the cost of their own services.

During 2020-21, we provided services to 154,000 to HSP clients. This was a 10 per cent decrease on the 2019-20 financial year, largely due to decreased demand associated with the pandemic. We also provided services to 39,507 self-funded clients during 2020-21.

Client feedback remained highly positive during the year, with client satisfaction at over 86 per cent.

Business Transformation Our business transformation agenda continued in 2020-21. We made good progress with our program to replace our legacy ICT systems and this work will be completed in 2021-22. This is a key pillar in the organisation’s

transformation agenda and will see the replacement of our core client and financial management systems. We also commenced an ICT Modernisation Program during the financial year to improve the organisation’s telephony, cyber security and service management capabilities and upgrade the Hearing Australia website. These changes will support further enhancements to our digital services for our clients.

Work also continued on our Strategic People Agenda. We identified the core competencies our audiologists will need for the future success of our organisation and commenced a review of our learning and development strategy to ensure alignment of our learning and development initiatives with our Corporate Plan commitments and our broader business transformation agenda.

During the year we also commenced work on a new Reconciliation Action Plan (RAP) for the organisation. Hearing Australia is committed to a future in which Aboriginal and Torres Strait Islander peoples take up their rightful opportunities, grow strong in their identity, culture and language; and in which ear and hearing problems do not alter the trajectory of their lives. Our vision for reconciliation is to walk and work together with Aboriginal and Torres Strait Islander peoples in respectful and meaningful partnerships towards this future. We empower our people to share knowledge and we encourage and provide opportunities for our organisation to learn, celebrate and understand First Nations cultures and history. Our new RAP will be launched in 2021-22.

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To support effective operation of the HAPEE Program, Hearing Australia audiologist Jacqui Peck, with the support of CIO Mike Brett and Hearing Australia’s ICT team, developed an app to streamline processes, improve program accessibility and ensure effective data collection, to deliver better hearing health outcomes for the community.

The HAPEE Program’s Community Engagement Officers are Hearing Australia team members with Aboriginal and Torres Strait Islander heritage who work with local communities to ensure that the care HAPEE provides meets community needs and is delivered in a way which is culturally safe.

Much of the information that Community Engagement Officers collect to ensure the effectiveness of the Program was new to Hearing Australia, and so wasn’t easily captured in existing systems.

Jacqui used PowerApps to create a system to collect and manage data for HAPEE. This app, called the HAPEE Operation Hub provides a single location for all HAPEE’s operational and business data, including information relating to the Program’s community awareness raising and capability building activities. The app allows most data to be entered on a desktop computer, with relevant information able to be accessed using mobile devices while out working on the road and in remote communities.

The breakthrough nature of the app has been recognised, winning the Australian Information Industry Association’s ACT Division Government and Public Sector Solution of the Year Award and it is also a finalist for the national awards.

An Outreach Mobile app is also currently under development. This app is being developed specifically for use on mobile devices and will provide clinicians with links to training materials and will link HAPEE Program information with broader Hearing Australia information, providing an easy way to access all relevant information, anytime and anywhere.

There are also plans underway to pilot a secure portal which will allow third parties, such as the suppliers of equipment used in HAPEE, to facilitate collaboration with HAPEE data, improving communication and workflows to better support Aboriginal medical centres and HAPEE with equipment monitoring - all with strict controls over access to this information.

Case Study - Development of the HAPEE App

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Telehealth We have continued to increase our use of telehealth services and digital touchpoints to provide seamless and streamlined end-to-end journeys for our clients and to improve client access to our services. This also helped us to support clients during COVID lockdowns, so that clients could get the help they needed without leaving their home.

To ensure we continue to deliver high quality care, regardless of the channel used and to best meet our clients’ needs, NAL researchers teamed up

with Hearing Australia’s audiologists to contact over 100 clients to review clinical outcomes following either remote or face-to-face appointments. This research provided strong evidence that remote follow-up appointments are just as effective as in-person appointments in terms of client outcomes and care.

We will continue to explore ways that teleaudiology and digitally enabled services can support the delivery of high quality hearing services to the community, regardless of age, location and income status.

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Case Study - Telehealth Maintaining community access to hearing services during the pandemic has been a high priority for Hearing Australia over the past 12 months.

Hearing Australia’s free online hearing screening assessment was developed by National Acoustic Laboratories (NAL) and is available on our website. It takes some five minutes to complete, and the results indicate whether a person has a hearing loss and, if so, provides information on how to book an appointment with a Hearing Australia audiologist.

Hearing Australia provides telehealth services though a number of methods including telephone and video appointments with clients, family members, nursing home staff, or doctors. Certain hearing devices are also able to be programmed and adjusted remotely.

Research undertaken by NAL indicates that clinical outcomes from telehealth appointments can deliver the same clinical outcomes as those delivered in-person.

For Hearing Australia clients, like 68 year old Christopher, telehealth services were a ‘lifeline’ during lockdown and have now become a convenient way of staying connected.

“I was impressed with the way in which my local Hearing Australia centre had programmed my hearing aid remotely in line with my latest hearing test results. I was self-isolating when COVID-19 hit and my audiologist was there to help at every step along the way, online and on the phone. So, all I needed to do was arrive and collect my hearing aid without having an appointment,” says Christopher.

“I’m back talking to my daughter and grandkids on FaceTime, I can also enjoy listening to music and keep up to date with the latest news,” adds Christopher.

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Providing great value to Government and partners The Australian Hearing Services Act

Hearing Australia is established under the AHS Act, the purpose of which is to establish the authority and provide for its functions.

The functions attributed to Australian Hearing Services (trading as Hearing Australia) are in Part 2 Section 8 of the AHS Act:

(a) to provide hearing services to voucher holders in accordance with an agreement entered into by the authority under Part 3 of the Hearing Services Administration Act 1997:

to provide declared hearing services to young Australians

to provide declared hearing services to referred Comcare clients

to provide declared hearing services to referred Commonwealth employees

to provide declared hearing services to designated persons.

Minister for Government Services

Hearing Australia reports to and is accountable to the Minister for Government Services

Senator the Hon. Linda Reynolds CSC, the Minister for the National Disability Insurance Scheme and Minister for Government Services, is responsible for administering the Australian Hearing Services Act 1991 (AHS Act), except to the extent that the AHS Act is administered by the Minister for Health, the Hon. Greg Hunt MP. Prior to the appointment of Senator Reynolds to this role on 30 March 2021, the Hon. Stuart Robert MP was the Minister for the National Disability Insurance Scheme and Minister for Government Services, and therefore was previously the Minister responsible for Hearing Australia.

The Department of Social Services (the Department) works closely with Hearing Australia, providing advice to the Minister in relation the Minister’s responsibilities regarding Hearing Australia.

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(b) to carry out research and development (including co-operative research with other institutions) into:

assessment of hearing

hearing aids and procedures for fitting hearing aids

hearing rehabilitation

hearing loss prevention

the effects of noise on the community.

(c) to enter into arrangements for research, design and development of hearing services

(d) to enter into arrangements for supply of hearing services

(e) to provide, as appropriate, for the training and education of persons or bodies (including overseas bodies) providing hearing services

(f) to provide advice on, and to conduct public education programs in relation to, hearing services provided by the authority

(g) to develop standards in relation to noise levels in the community that are acceptable in connection with the prevention of hearing loss

(h) to provide consultancy services relating to any of the matters referred to in this subsection

(i) to promote the establishment of export markets for Australian hearing services

(j) to operate special acoustic facilities for acoustic measurement and research

(k) such other functions as are conferred on the authority by the Act

(l) any functions incidental to any of the foregoing functions.

Providing value to Government and Partners Hearing Australia’s large national footprint coupled with our research capabilities; expertise in paediatric services; and working with Aboriginal and Torres Strait Islander communities, adults with complex needs and pensioners and veterans; means we are uniquely placed to deliver exceptional value to Government and our partners across our community services and our commercial operations.

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The National Acoustic Laboratories made considerable progress in 2020-21 towards its mission to lead the world in hearing research and evidence based innovation to improve hearing health and transform the lives of people with hearing difficulties.

During 2020-21, NAL commenced 17 new projects, including several rapidly developed projects to address problems faced by people with hearing loss and by audiologists due to the global pandemic. These include the publication of research and clinical guidance to help people with hearing aids better manage the impact of people wearing a mask while communicating with them. This information is now being used by clinicians within Australia and overseas. NAL also successfully piloted a technology that allows unaided people with hearing loss to better understand a talker in a clinical environment.

In 2020-21, highlights included:

working closely with the Department of Health on implementing the Government’s Budget investment of $21.2 million on key initiatives in the Roadmap for Hearing Health.

continuing to contribute to Government policy by responding to, and supporting, the Review of the Hearing Services Program (HSP); advising on impacts of the Royal Commission into Aged Care Quality and Safety; and contributing to a gap analysis of training needs for the residential aged care workforce.

progressing several pilot projects with Cochlear, NextSense, The Shepherd Centre and the NSW Departments of Education and Health.

developing a research alliance with Macquarie University.

forming a new partnership with the Australian Society of Otolaryngology, Head & Neck Surgery (ASOHNS) and the Australian Healthcare and Hospitals Association (AHHA) and being jointly successful in securing a $700,000 grant to improve access and pathways to care for Aboriginal and Torres Strait Islander children with middle ear related disease.

partnering with Macquarie University, the Poche Centre for Indigenous Health, The Shepherd Centre, NextSense and a number of Aboriginal Medical Services, and being jointly successful in securing a grant to improve access and pathways for young Aboriginal and Torres Strait Islander children to early intensive listening, language and communication support services.

We also hosted a visit by the then Minister for Regional Health, Regional Communications and Local Government to the Australian Hearing Hub in December 2020, including a first hand view of work in our Macquarie Park headquarters and meetings with other key stakeholders.

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Additionally, NAL addressed the emerging use of telehealth by conducting research to understand the impact of remote services on clinical outcomes. The resulting data provided strong evidence that telehealth appointments are just as effective as in-person appointments in supporting the outcomes of clients.

NAL also completed a number of research projects funded by the Department of Health and Hearing Australia, including research on Defining Outcomes for the HSP. This work is supporting the development of improvements to the HSP and of broader clinical, technology and service delivery standards.

NAL delivered two reports on research commissioned by the Department of Health, both related to key priorities in the 2019 Roadmap for Hearing Health. One report, Making a noise about hearing: Factors to consider when developing hearing health awareness messages for Australians, highlights how a national hearing awareness campaign would help to address several long standing systemic issues in hearing health, and includes recommended awareness messages and strategies for seven key target groups. The other - Defining outcomes for the Hearing Services Program - provides recommendations for the outcomes which should be used to measure the success of hearing rehabilitation, developed in conjunction with over 70 stakeholders including clinicians, consumers, device manufacturers, professional organisations, and client advocacy groups.

NAL initiated two further new projects commissioned by the Department of Health. One is to provide evidence

on the benefits of upgrading cochlear implant processors. The other is to provide evidence based recommendations for eligibility for hearing devices in the HSP.

During 2020-21, the Department of Health also committed to financial support for the Longitudinal Outcomes of Children with Hearing Impairment (LOCHI) study for the next five years with a special purpose grant - evidence of the value that LOCHI insights bring to health care policy. This grant will also help fund the creation of a longitudinal study on the impact of otitis media on Aboriginal and Torres Strait Islander children - the beginning of a First Nations LOCHI study.

To ensure that NAL’s focus continues to be at the leading edge of hearing research, in 2020-21 it undertook a review of its strategy, including examination of major trends in hearing healthcare and views from leaders and experts in the industry worldwide. NAL’s research priorities going forward will address several key challenges in hearing healthcare, including:

Making hearing services using connected health technologies more accessible, acceptable and personalised

Improving diagnosis, management and ongoing support for people with hearing loss using big data to help develop artificial intelligence tools

Understanding and addressing behaviours related to ear and hearing health awareness and healthcare uptake in Aboriginal and Torres Strait Islander communities

Developing targeted solutions for different groups with speech-in-noise listening difficulties.

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During 2020-21, NAL was an active contributor to the Department of Health’s review of the HSP, developing the report Defining Outcomes for the Hearing Services Program.

To assess the effectiveness of hearing interventions for participants and their communication partners, it is essential to have appropriate outcomes measures. There are currently few measures which are widely used and accepted as a ‘gold standard’, and no national guidelines on what outcomes should be used, and for which patient populations.

NAL’s study aimed to seek views and consensus from a range of stakeholders to define which standardised outcome measures should be used for the HSP; and to identify current and future potential mechanisms and systems to standardise the collection of data and reporting of outcomes. The study also aimed to identify how the outcomes for the program should be modified for specific populations such as Aboriginal and Torres Strait Islander peoples; adults with specialist hearing needs; and young people.

The study found that the Program should focus on a client’s communication ability, including communication with family and in groups, using the Glasgow Hearing Aid Benefit Profiles. The report also recommended that the general wellbeing of program participants be measured, plus the quality of a participant’s personal relationships and their participation in society - with these measures offering insights into the impact of hearing rehabilitation efforts and facilitating comparison between program participants and the broader community. The study also indicated that measures should be taken at, or before, the fitting of hearing devices, plus at three months after fitting, to see how hearing has improved.

The study found that the measures recommended for general participants under the HSP ‘Voucher’ scheme are unlikely to be applicable to specific participant groups, and further consultation with stakeholders should be undertaken to get a clearer view on how to appropriately apply outcomes measures to these groups.

Case Study - NAL contribution to the review of the Hearing Services Program

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A high performing organisation Our People Our people are the key to Hearing

Australia’s success. Our Strategic People Agenda has focussed on identifying the core competencies our people will need for the future success of the organisation and ensuring the ongoing safety and wellbeing of our staff in the context of the pandemic.

Safety and Wellbeing

Keeping our people and our clients safe is our number one priority. During 2020-21 Hearing Australia has continued to maintain a strong focus on providing a safe and healthy workplace for staff, clients and visitors, with a particular focus in managing the challenges of the pandemic.

Additional Work Health and Safety measures were maintained to ensure the continued wellbeing of staff and clients. These measures included providing frequent guidance to staff on evolving State and Territory Government requirements; the use of additional personal protective and cleaning equipment; enhanced staff support under our Employee Assistance Program; additional learning and development support for managers to lead their staff in a changing environment; continuing our operations under a COVIDSafe plan which complies with relevant State and Territory requirements; the maintenance of related guidelines and procedures for our people; and providing our people with up to date information on the Government’s Vaccination Program.

Achieving high performance Hearing Australia aspires to be a high performing organisation which is financially sustainable, highly reputable and successful in pursuing its strategic objectives. Our focus in 2020-21 has included:

Optimising operational efficiency and effectiveness across people, processes, research and technology, including progressing the replacement of our legacy ICT systems to underpin our digital transformation.

Maintaining the health, safety and wellbeing of our people and clients in the context of the pandemic.

Increasing our use of data to better inform service design, customer experience and organisational performance.

Developing our leadership, people and research; instilling the right culture and inspiring new ways of working and thinking throughout the organisation.

Conscious and deliberate consideration of risk and compliance.

Sustainably growing commercial revenue and profits in line with our vision and objectives.

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We are continuously improving our performance in this area and striving to make our workplace injury free whilst meeting our obligations under the Work Health and Safety Act 2011 and the Safety, Rehabilitation and Compensation Act 1988.

We promote health and wellbeing awareness among employees, and in 2020-21, our staff had access to:

Workplace assessments and ergonomic equipment

Influenza vaccinations

Flexible working arrangements, including home-based work

Role specific work health and safety training at key stages in the employee lifecycle.

Our workers compensation performance is above average in comparison with that of other Commonwealth entities.

There were no notifiable incidents and Hearing Australia was not issued any Prohibition, Non-Disturbance or Provisional Improvement notices by Comcare for 2020-21.

Case Study - Teamgage During the challenges of the past 12 months, the safety, engagement and wellbeing of our people have been a particular focus for Hearing Australia. We have implemented a program of regular staff surveys, as a key tool in measuring and facilitating high levels of staff engagement, performance and wellbeing.

Every month, our people’s views are sought through ‘Dial Up with Teamgage’. This is an anonymous pulse survey which facilitates two-way feedback between teams and their managers to generate a high performance culture.

Results of this survey are regularly discussed with teams to develop action plans which support high engagement and performance. The feedback can be viewed in real time, meaning that responses to feedback may be actioned quickly.

Our ‘Raise The Bar’ survey, conducted twice a year, focuses on 20 key areas that we are committed to improve and grow across our business. This survey provides an opportunity for our people to generate actionable insights to assist us to improve corporate performance in these focus areas. Results from this survey are used to shape priorities over the coming six months and inform a loop of continuous improvement.

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Financial Performance As at 30 June 2021, total revenue for the financial year was $274.5 million, $17.8 million or 6.9 per cent higher than last year.

Profit before tax was $12.0 million to 30 June 2021, $1.8 million lower than 2019-20, as a result of lower than forecast demand arising from impacts of the pandemic.

Further details of our financial performance for the year are provided in the Financial Statements.

Managing Risk and Compliance Effective risk management and compliance are an integral part of Hearing Australia’s operations. We manage risk and compliance in accordance with section 16 of the Public Governance, Performance and Accountability Act (2013), the Commonwealth Risk Management Policy and in alignment with international standards for risk and compliance.

The Hearing Australia Board oversees risk management and internal control within Hearing Australia, on advice from the Managing Director, the Chief Risk Officer and the Audit and Risk Management Committee. Members of the Executive are responsible for implementing risk management within their business and operational units, and report regularly to the Chief Risk Officer and Managing Director.

Our approach to risk and compliance

Hearing Australia recognises that risk management is an integral part of good business and governance and is committed to building a culture where the conscious and deliberate consideration of risk is an integral part of Hearing Australia’s ways of thinking and working.

Hearing Australia manages risks as a routine part of its strategic and operational business planning processes. Identified risks are planned for and managed, taking account of Hearing Australia’s broader purpose, strategic objectives and priorities.

Our Risk Management Policy ensures that a clear and consistent approach to risk management is applied across our business. The Risk Management Framework provides a formal process and helps our people to understand and actively manage risk in their day-to-day work.

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Hearing Australia is committed to ensuring compliance with laws, regulations and policies applicable to how we operate. Our Compliance Policy and Compliance Framework sets the expectations for how our people identify, understand and manage the obligations applicable to our business.

We have established a Compliance Program which sets out the activities and outcomes that are delivered each year to ensure that Hearing Australia meets its obligations.

Our strategic risks

The Executive of Hearing Australia regularly reviews the organisation’s strategic risks and reports to the Audit and Risk Management Committee on a quarterly basis. All strategic risks are assigned a risk owner from the Executive. Risk owners must ensure risks are actively managed with emerging threats and opportunities identified and addressed.

Competition and Competitive Neutrality

In support of established policy on choice and competition, Hearing Australia operates in accordance with the Australian Government’s competitive neutrality policy, a policy first established in 1996 to ensure that government businesses do not enjoy market advantages due to the fact that they are owned by Government.

Hearing Australia is fully compliant with this policy.

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Organisational structure and governance

The functions and powers of the Board are set out in sections 8 and 9 of the AHS Act and are summarised in the section ‘Board Governance’.

The Board of Hearing Australia is our accountable authority, and it is responsible for determining the objectives, strategies and policies to be followed and to ensure Hearing Australia performs its functions in a proper, efficient and economical manner.

Governance Arrangements and Executive Governance Structure Hearing Australia operates under the Australian Hearing Services Act 1991 (AHS Act) and the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Under the PGPA Act, Hearing Australia is defined as a Corporate Commonwealth Entity.

Minister for Government Services

The Secretary of the Department of Social Services The Board of

Hearing Australia

The Managing Director of Hearing Australia

Hearing Australia

Audit & Risk Management Committee

Research & Innovation Committee

Remuneration Committee

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Board of Directors Board appointments

Directors are appointed to the Board of Hearing Australia on fixed terms by the Minister. All are Non-Executive or Special Purpose Directors, except for the Managing Director. The names and details of the Directors in office during 2020-21 are detailed below.

Ms Andersen’s and Mr Crawford’s appointments to the Board ceased on 29 August 2020.

Ms Liew and Ms Crouch commenced their appointments to the Board on 3 September 2020.

Directors’ details Dr. Peta Seaton AM, Chair, PhD, BA (Hons) (USyd), GAICD

Dr Seaton AM was appointed as Chair on 8 December 2014. She is the Principal of Strategic Consulting, a Non-Executive Director of the Menzies Research Centre (since November 2015) and President of the Near Eastern Archaeology Foundation Council at the University of Sydney. She is formerly a Non-Executive Director of the Bradman Foundation, CARE Australia and BDCU Alliance Bank. A former NSW Parliamentarian and frontbencher, Dr Seaton served as Director of Transition and Director of Strategic Priorities in the NSW Premier’s Office from 2011-2014.

Jody Currie, Non-Executive Director

Ms Currie was appointed as a Non-Executive Director on 30 August 2017. She is the CEO of the Aboriginal and Torres Strait Islander Community Health Service (ATSICHS) Brisbane. She is a member of the Australian Institute of Company Directors. She currently serves on the Board of the Brisbane Indigenous Media Association and was a member of the Board of the Queensland Poetry Festival. Prior to her position as CEO, Ms Currie was a member of the ATSICHS Board over a six year period, two of these as Chair. Ms Currie has a lengthy history in Aboriginal and Torres Strait Islander human service delivery and is a strong advocate for improving service accessibility to Aboriginal and Torres Strait Islander peoples. She has a passion and focus on child protection and health, after her experience in a variety of roles in both the community and government sectors.

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Sarah Vaughan, Non-Executive Director, M IT, GradDip Comm, Mgt

Ms Vaughan was appointed as a special purpose member of Hearing Australia’s Innovation Strategy Committee on 30 January 2017 and then appointed as a Non-Executive Director in August 2017. Ms Vaughan has held a number of positions in the public and private sectors. She is a graduate of the Australian Army’s Royal Military College and spent eight years in the Army in a variety of Communications and Information Systems management roles. She holds a Masters Degree in Information Technology and is a graduate of Stanford’s executive education programme in Design Thinking. Ms Vaughan was most recently a Senior Director at Microsoft Australia, and has a strong background in stakeholder engagement, product commercialisation, as well as the application of emerging technology.

Shirley Liew, Non-Executive Director, BBus, MBA, GDip Corporate Finance, FCPA, FAICD

Ms Liew was appointed to the Board on 3 September 2020 and brings extensive public and private health experience, including in the ageing sector. Ms Liew also has a strong commercial background in finance, retail, transport, food, and mergers and acquisitions.

Ms Liew chairs Hearing Australia’s Audit and Risk Management Committee and that of the Central Coast Local Health District. Ms Liew is a Fellow of CPA Australia as well as being a Chartered accountant with extensive experience in leadership and senior technical roles as an audit, assurance and advisory partner for major accounting firms.

Elizabeth Crouch AM, Non-Executive Director, BEc, FAICD

Ms Crouch brings strong government and policy expertise and extensive Non-Executive Director experience to Hearing Australia’s Board including as a Board member for Western Sydney Local Health District, Health Infrastructure and the NSW Institute of Sport.

Ms Crouch also chairs the boards of the Customer Owned Banking Association, the Sydney Children’s Hospital Network and SGS Economics and Planning. Ms Crouch is also the Emeritus Deputy Chancellor of Macquarie University. Ms Crouch is skilled in business strategy and delivery, enterprise risk management, leadership and mentoring, government relations, stakeholder relations, and culture change.

Kim Keogh, Special Purpose Director

Mr Keogh was appointed as a Special Purpose Director of Hearing Australia on 1 September 2018. Mr Keogh was previously a Director of Hearing Australia over the period of 2007 to 2013. He is currently an Executive Director of Darlot Brothers Pty Ltd and a government relations/public affairs advisor to Atlas Iron Ltd, Pilbara Minerals Ltd and Balla Balla Infrastructure Pty Ltd. Previously he was a member of the National Heritage Trust Advisory Board, Chair of the Ministerial Reference Group (Agriculture and Environment), member of the National Weeds Advisory Group and pastoralist. He is a member of the Australian Institute of Company Directors.

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Kim Terrell, Managing Director, B Arts, Master’s Degree in Public Policy

Mr. Terrell was appointed Acting Managing Director of Hearing Australia on 1 March 2018 and appointed Managing Director on 1 September 2018. His extensive career includes working with and advising various Ministers, Prime Ministers and their offices, to initiate significant improvements across various government programs. He played a key role in establishing three agencies: the Digital Transformation Office (DTO), the Australian Sports Anti-doping Authority (ASADA) and the CrimTrac Agency, and is highly experienced in building innovative, high performing teams. He was instrumental in creating myGov and driving digital transformation across the Department of Human Services and the government. He has a Bachelor of Arts degree, a Masters Degree in Public Policy and four Australia Day awards. In addition to his professional achievements, Kim was an Australian Swim Team member from 1981-86 and attended the 1982 Commonwealth Games and 1984 Olympics.

Previous Directors Sam (Sandra) Andersen, Non-Executive Director, LLB (QUT), CPA, FAICD, F Fin

Mrs Andersen is a Certified Practicing Accountant with a Bachelor of Laws degree. She is a Fellow of Finsia (the Financial Services Institute of Australasia) and the Australian Institute of Company Directors. She was appointed as a Non-Executive Director of Hearing Australia on 30 August 2013, is Chair of the Australian Packaging Covenant Organisation Limited, Chair of Beyond Bank Australia and Chair of the Department of Premier & Cabinet Victoria, Audit & Risk Management Committee. Mrs Andersen is also a member of the Board of Trustees for Melbourne Convention and Exhibition Trust, Director of Agriculture Victoria Services Pty Ltd and a board member of the Victorian Land Registry Services.

Chris Crawford PSM, Non-Executive Director, BA (Hons) (UNSW), LLB (UNSW), LLM (USyd) and MBA (MU), GAICD

Mr Crawford was appointed as a Non-Executive Director on 30 August 2017. He is the Principal of Crawford Consulting, a Graduate Member of the Australian Institute of Company Directors and a Member of the Industry Advisory Committee of the Macquarie University Centre for the Health Economy. Previously he was consecutively Chief Executive of the Northern NSW Local Health District, North Coast Area Health Service and Northern Rivers Area Health Service for over 15 years. Prior to that he was Executive Director of St George Hospital and Community Health Service and earlier he served as Chief of Staff to the NSW Minister for Health. He has Master of Business Administration and Master of Laws degrees and, for his services to Health, he received the Public Service Medal.

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Director NAL Brent Edwards

Signal Processing Commercial Clinical Services Strategy and Growth Customer Experience

Design and Innovation

CTO Risk and Compliance

Behavioural Science and Hearing Science Specialist Clinical Services

Finance Brand & Marketing Cybersecurity Legal

Operations General Managers

Financial Planning and Analytics

Digital Development Communications

Communications Sciences

Property Insights

Business Analysis and Relationships

Governance

Audiology

Procurement and Logistics Infrastructure

Service Management

Managing Director Kim Terrell

Executive Governance Executive Governance Structure

Hearing Australia’s Executive Team is responsible for the efficient and effective operation of Hearing Australia and for developing strategies and policies for Board consideration.

Hearing Australia’s Executive Team and their responsibilities is illustrated below.

Managing Director’s Office

People

Nick Fitzgerald (to Feb 2021) David Cuda (from Apr 2021)

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Executive Management Executive Kim Terrell, Managing Director

Refer to Directors’ details.

Gina Mavrias, Chief Operating Officer

Gina Mavrias has a Bachelor of Science Degree and a Diploma of Audiology from the University of Melbourne and completed the General Management Program at the Australian Graduate School of Management in 2007. Gina has been a member of the Hearing Australia Executive team since 2004. She has extensive knowledge of the business and the hearing industry and currently holds the role of Chief Operating Officer. She is responsible for the management of operations and service delivery across a national network of sites. This includes responsibility for clinical policies and procedures.

Brent Edwards, Director NAL

Brent Edwards, Ph.D., is Director of the National Acoustic Laboratories. Brent has spent his career leading research and technology departments at major hearing aid companies GN ReSound and Starkey Hearing Technologies and at Silicon Valley startups SoundID and Earlens. His work has led to the development of innovative hearing technology, clinical tools, novel diagnostics and outcome measures that have benefitted hearing aid wearers and audiologists worldwide. Brent founded and developed the Starkey Hearing Research Center which is a leading site for research in hearing impairment and cognition. Brent is a Fellow of the Acoustical Society of America, a Fellow of the International Collegium of Rehabilitative Audiology, and Honorary Associate Professor at the University of Nottingham’s School of Medicine. Brent received his Ph.D. in electrical engineering and computer science from the University of Michigan and was a Postdoctoral Fellow in psychology at the University of Minnesota.

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Mike Brett, Chief Information Officer

Mike Brett was appointed to the role of Chief Information Officer at Hearing Australia in April 2019. Mike has enjoyed a rewarding career both in the Australian Public Service and the private sector. Mike has worked in many different roles in ICT over nearly 35 years, starting at the bottom as a batch scheduler in a computer centre and then undertaking many different roles ranging from technical delivery through to management of application development centres. Mike has previously held senior roles in the Department of Human Services, including General Manager ICT Infrastructure, where he was responsible for the integration and consolidation of three large infrastructure capabilities and, Chief Technology Officer responsible for the Department’s ICT Strategy and Architecture. Mike has a Bachelor of Computing from Monash University and a Masters of Business Administration from the University of Adelaide.

Robin Priddin, Chief People and Governance Officer

Rob Priddin joined Hearing Australia in October 2018 from the Department of Human Services with the objective of helping progress our work on the Hearing Australia risk management and compliance programs. She has a Graduate Certificate in Public Sector Management and is a member of the Australian Institute of Company Directors. She also holds qualifications in program and project management and has an extensive background in the Australian Public Service.

Leigh Shaw, Chief Customer Officer

Leigh Shaw joined the Hearing Australia executive team in January 2020 as the Chief Customer Officer. She has worked in Marketing, Insights and CX Design for the last 20 years, and has passionately championed the voice of the customer through fast moving consumer goods (FMCG), retail, telecommunications and the building industry. She has served on the Australian and New Zealand leadership teams of Procter & Gamble, James Hardie and Nielsen.

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David Cuda, Chief Financial Officer (from April 2021)

David Cuda joined the Hearing Australia Executive Team in April 2021 as the Chief Financial Officer. He has over 30 years’ experience having worked across the FMCG, Telco and Media industries in a variety of roles spanning Finance, Strategy, Sales and Customer Marketing.

David brings technical expertise, entrepreneurial drive and a deep understanding of customer drivers to champion strategies and solutions focussing on the customer loyalty needed to remain relevant in fast changing markets. He has a strong passion for people and creating high-performance teams that add value to the divisions they support. David has a Bachelor of Economics and a MBA, is a Fellow of CPA Australia and is a Graduate Member of the Australian Institute of Company Directors.

Corporate Planning Corporate Plan

Hearing Australia’s Board and Executives undertake annual strategic planning sessions and present a Corporate Plan to the Minister for Government Services and the Minister for Finance. This Corporate Plan must meet the requirements of the AHS Act and the PGPA Act.

In accordance with the AHS Act, the Board must review and revise the Corporate Plan as soon as practicable before the beginning of each financial year and provide the Corporate Plan to the Minister for Government Services and the Minister for Finance at least 60 days before the start of the first reporting period to which the plan relates.

Reporting and Analysis

In addition to reporting to our Board of Directors, we provide regular reporting against our Corporate Plan to the Minister for Government Services. The reports contain information on key performance and financial indicators, as well as performance against strategic objectives.

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Annual Performance Statement Purpose Hearing Australia’s purpose is outlined

by the Parliament in our enabling legislation, Australian Hearing Services Act 1991 (AHS Act), with specific Powers and Functions outlined in Part 2, Sections 8 and 9 of the Act.

Our mission is to provide world leading research and hearing services for the wellbeing of all Australians.

Performance Analysis The following table outlines the results achieved by Hearing Australia against the specific activities and targets outlined in our 2020-21 Corporate Plan (noting that ‘substantially met’ means that at least 90 per cent of target was achieved and ‘partially met’ means at least 75 per cent of target was achieved).

Chair’s Statement I, Peta Seaton, as the Chair of the accountable authority, which is the Board of Hearing Australia, present the 2020-21 Annual Performance Statement of Hearing Australia, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It is the opinion of the Board that this annual performance statement is based on properly maintained records and accurately reflects the performance of the entity during the period and complies with subsection 39(2) of the PGPA Act.

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Activity Performance Measurements

Target 2020-21

Results Achieved 2020-21

Client Satisfaction NPS Score for in centre appointments (with new client satisfaction measure to be developed) 76 871 (Exceeded)

Services provided to voucher-holders

Scheduled services for all voucher clients 296,000 349,106 (Exceeded)

Reduce the current rate of hearing loss in Aboriginal and Torres Strait Islander children by at least half by 20292

As determined by ABS data Achieved Progressing

Implement agreed hearing loss prevention initiatives HAP communities target achieved RFDS program established and managed

Hearing Australia projects successfully managed and delivered

National Hearing Loss Prevention Strategy developed and implemented

170

Achieved

Achieved

Achieved

244 (Exceeded)

Progressing

On track

Progressing

Prevent hearing loss in Aboriginal and Torres Strait Islander children aged 0-6 years

HAP program children target achieved 10,000 10,518 (Exceeded)

Help Aboriginal and Torres Strait Islander children with hearing loss Reduce the peak age of first fitting to under 5 years by 2023

4 years Achieved (Met)

Services provided to all Community Service Obligations (CSO) clients

Total number of CSO Services YTD 118,000 172,363

(Exceeded)

Services provided to children and young Australians Increase proportion of 0-25yo WHL YOY Achieve Stable (Partially met)

Services provided to Aboriginal and Torres Strait Islander peoples Increase proportion of aided Aboriginal and Torres Strait Islander clients seen YOY

Achieve Increase (Met)

Services provided to adults with complex hearing needs 85%+ complex adult aided annual review 85% 88.4% (Exceeded)

Provision of high quality advice and support to Government and partners to improve national hearing health outcomes

Quality of advice and support Achieved Achieved (Met)

Staff turnover Retention Voluntary Turnover <12% 9.7% (Exceeded)

Acceptable Total Injury Frequency Rate (TIFR) Total Injury Frequency Rate (TIFR) <9.5 7.3 (Exceeded)

Staff engagement and satisfaction Overall Teamgage Score Average

score of 70+

74 (Exceeded)

1. In previous years Client Satisfaction was measured using a NPS Score. This measure now uses the new C-Sat Score, as noted in the ‘Performance Measurement’ column.

2. In 2016 the ABS reported that 8.4 per cent of Indigenous children aged 0-14 reported hearing loss, compared with 2.9 per cent for non-Indigenous children The source of these activities is the 2020-21 to 2023-24 Corporate Plan

Performance Activities

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Financial Statements

Australian Hearing Services ABN 80 308 797 003

Trading as Hearing Australia (hereinafter referred to as Hearing Australia) Financial Statements - 30 June 2021

Contents

2021 Financial statements

Independent Auditor’s Report 38

Statement by the Accountable Authority, Managing Director and Chief Financial Officer 40

Statement of Profit or Loss and Other Comprehensive Income 41

Statement of Financial Position 42

Statement of Changes in Equity 43

Statement of Cash Flows 44

Notes to the Financial Statements 45

38

Independent Auditor’s Report

39

40

Statement by the Accountable Authority, Managing Director and Chief Financial Officer

Hearing Australia

Statement by the Accountable Authority, Managing Director and Chief Financial Officer

For the year ended 30 June 2021

In our opinion:

• the attached financial statements for the year ended 30 June 2021 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 ('PGPA Act'), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act;

• at the date of this statement, there are reasonable grounds to believe that Hearing Australia will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the directors.

_________________________

Dr Peta Seaton

Chair

_________________________

Kim Terrell

Managing Director

_________________________

David Cuda Chief Financial Officer

Date: 17 August, 2021

Page 1

41

Note

2021 $’000

2020 $’000

Revenue from contracts with customers 4 259,025 243,963

Grant income 5 14,829 10,700

Other income 6 664 2,020

Total revenue and other income 274,518 256,683

Employee benefits 7 (132,820) (125,873)

Goods and services received 8 (103,881) (91,523)

Depreciation and amortisation 18,19,20 (22,456) (22,281)

Lease rental 19 (1,658) (1,421)

Workers’ compensation premiums (504) (458)

Finance costs 9 (1,182) (1,329)

Total expenses (262,501) (242,885)

Surplus before income tax equivalent expense 12,017 13,798

Income tax equivalent expense 10 (3,173) (4,341)

Surplus after income tax equivalent expense for the year 8,844 9,457

Total comprehensive income 8,844 9,457

The above should be read in conjunction with the notes to the financial statements.

Statement of Profit or Loss and Other Comprehensive Income

For the Year Ended 30 June 2021

42

Note

2021 $’000

2020 $’000

ASSETS

Current assets

Cash and cash equivalents 8,159 8,307

Trade and other receivables 12 3,962 2,599

Inventories 13 5,364 4,482

Prepayments 4,848 3,180

Contract assets 14 3,163 2,262

Investments under s.59 of the PGPA Act 16 125,700 107,522

Other current assets 15 210 94

Total current assets 151,406 128,446

Non-current assets

Property, plant and equipment 18 23,099 24,283

Right-of-use assets 19 45,512 44,779

Intangible assets 20 2,342 4,326

Deferred tax assets 17 19,599 15,361

Total non-current assets 90,552 88,749

Total assets 241,958 217,195

LIABILITIES

Current liabilities

Trade and other payables 21 21,005 12,887

Lease liabilities 19 11,143 10,867

Provisions 22 12,610 11,949

Contract liabilities 23 15,657 18,414

Tax liabilities 4,725 3,000

Dividend payable 26 761 1,009

Grant liabilities 5 21,225 11,926

Refund liabilities 24 339 199

Total current liabilities 87,465 70,251

Non-current liabilities

Lease liabilities 19 41,759 40,978

Provisions 25 22,482 22,304

Total non-current liabilities 64,241 63,282

Total liabilities 151,706 133,533

Net assets 90,252 83,662

EQUITY

Retained surplus 90,252 83,662

Total equity 90,252 83,662

The above should be read in conjunction with the notes to the financial statements.

Statement of Financial Position

As at 30 June 2021

43

Note

Retained Surplus $’000

Total Equity $’000

Balance at 1 July 2019 78,989 78,989

Retained surplus after income tax equivalent expense for the year 9,457 9,457

Total comprehensive income for the year 9,457 9,457

Transactions with owners

Dividends paid or payable 26 (4,784) (4,784)

Balance at 30 June 2020 83,662 83,662

-

Balance at 1 July 2020 83,662 83,662

Retained surplus after income tax equivalent expense for the year 8,844 8,844 Total comprehensive income for the year 8,844 8,844

Transactions with owners

Dividends paid or payable 26 (2,254) (2,254)

Balance at 30 June 2021 90,252 90,252

The above should be read in conjunction with the notes to the financial statements.

Retained surplus of $1,690,525 (2020: $841,000) is apportioned to National Acoustic Laboratories with the balance to Hearing Australia.

Statement of Changes in Equity

For the Year Ended 30 June 2021

44

Statement of Cash Flows

For the Year Ended 30 June 2021

Note

2021 $’000

2020 $’000

Cash flows from operating activities

Receipts from goods and services 281,464 244,397

Interest received 883 2,137

Royalty received 11 89

Net GST received 3,825 3,546

Payments to employees (128,811) (122,774)

Payments to suppliers (110,328) (103,934)

Income tax equivalent (5,686) (5,632)

Interest paid on lease liabilities (1,086) (1,251)

Net cash inflow (outflow) from operating activities 40,272 16,578

Cash flows from investing activities

Payments for property, plant and equipment (8,112) (7,241)

Payments for intangibles 20 (177) (430)

Net payments for investments under s.59 of the PGPA Act (18,178) 9,834

Net cash inflow (outflow) from investing activities (26,467) 2,163

Cash flows from financing activities

Dividends paid (2,502) (7,734)

Principal paid on lease liabilities (11,451) (11,095)

Net cash inflow (outflow) from financing activities (13,953) (18,829)

Net increase (decrease) in cash and cash equivalents (148) (88)

Cash and cash equivalents at the beginning of the financial year 8,307 8,395

Cash and cash equivalents at end of year 8,159 8,307

The above should be read in conjunction with the notes to the financial statements.

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Notes to the Financial Statements

For the year ended 30 June 2021

Note No. Description Page

1 General information 46

2 Significant accounting policies 46

3 Critical accounting judgements, estimates and assumptions 49

4 Revenue from contracts with customers 51

5 Grant income 53

6 Other income 53

7 Employee benefits 54

8 Goods and services received 54

9 Finance costs 54

10 Income tax equivalent expense 55

11 Competitive neutrality 56

12 Trade and other receivables 56

13 Inventories 57

14 Contract assets 58

15 Other current assets 58

16 Investments under s.59 of the PGPA Act 58

17 Deferred tax 60

18 Property, plant and equipment 60

19 Leases 62

20 Intangible assets 64

21 Trade and other payables 65

22 Provisions - Current 66

23 Contract liabilities 67

24 Refund liabilities 67

25 Provisions - Non-current 67

26 Dividends paid and payable 68

27 Fair value 69

28 Key management personnel disclosures 69

29 Remuneration of Auditors 70

30 Contingent liabilities 70

31 Commitments 70

32 Related party transactions 71

33 Events after the reporting period 71

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Note 1. General Information

Australian Hearing Services (‘AHS’), trading as Hearing Australia (hereinafter referred to as Hearing Australia), is a corporate Commonwealth entity created under the provisions of the Australian Hearing Services Act 1991 and operates on a for-profit basis.

The financial statements cover Hearing Australia as an individual entity. The financial statements are presented in Australian dollars, which is Hearing Australia’s functional and presentation currency.

The objectives of Hearing Australia are to provide hearing services and to carry out research and development in hearing related matters.

The continued existence of Hearing Australia in its present form and with its present programmes is dependent on Government policy in relation to the provision of hearing services.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 17 August 2021.

Note 2. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of Preparation These general purpose financial statements are required by section 42 of the Public Governance, Performance and Accountability Act 2013 (‘PGPA Act’).

The financial statements have been prepared in accordance with Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (‘FRR’), and with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board (‘AASB’), as appropriate for for-profit oriented entities.

Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, certain assets and liabilities at fair value.

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Amounts in the financial statements have been rounded off to be the nearest thousand dollars, unless otherwise specified.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying Hearing Australia’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.

Interest on deposits calculated using the effective interest method Interest is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in Hearing Australia’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in Hearing Australia’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash is recognised at its nominal amount.

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In accordance with the financial targets and performance considerations contained in the Australian Hearing Services Act 1991, the level of cash resources held by Hearing Australia is, in the opinion of the board of directors, sufficient to maintain:

a reasonable level of reserves, having regard to estimated future infrastructure requirements;

the extent of the Commonwealth equity in the entity; and

Hearing Australia’s commercial operational requirements.

Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Comparatives Comparatives have been realigned, where necessary, to be consistent with current year presentation. There is no effect on the surplus or net assets of Hearing Australia.

New or amended Accounting Standards and Interpretations adopted Hearing Australia has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting year.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

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Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Provision for impairment of inventories The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the provision is assessed by taking into account recent sales experience, the ageing of inventories, damaged, obsolete, slow moving inventories and other factors that affect inventory obsolescence.

Estimation of useful lives of assets Hearing Australia determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets.

The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Employee benefits provision The liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account, based on actuarial assessments. The last actuarial assessment was in May 2021.

Restoration obligations A provision has been made for the present value of anticipated costs for future restoration of leased premises. The provision includes future cost estimates associated with vacating of premises. The calculation of this provision requires assumptions such as the exit date and cost estimates. The provision recognised is periodically reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated future costs are recognised in the statement of financial position by adjusting the asset and the provision. Reductions in the provision that exceed the carrying amount of the asset are recognised in profit or loss.

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Lease term The determination of the lease term requires management judgement regarding whether extension options are reasonably certain to be exercised. Whilst each lease is assessed individually, in general, for property leases the next option is considered reasonably certain, however subsequent options are not reasonably certain as management believe these are too far into the future to be reasonably certain.

Incremental borrowing rate Hearing Australia are not able to determine the interest rate implicit in the lease for a large number of leases. Therefore, management have determined the incremental borrowing rate taking into consideration entity and asset specific factors relevant to each lease.

Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the entity operates. There does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only if the entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Impairment of non-financial assets and other indefinite life intangible assets The entity assesses impairment of non-financial assets other than indefinite life intangible assets at each reporting date by evaluating conditions specific to the entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

Configuration and customisation costs for cloud-based software - Software-as-a-Service (SaaS). Configuration and customisation costs incurred will be expensed if the principles of intangible assets under the characteristics of identifiability, control of asset and future economic benefits are not met. Costs will be expensed when services are performed by third parties. This approach is consistent with the decision taken by the IFRS Interpretations Committee in March 2021.

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Note 4. Revenue from contracts with customers

2021 $’000

2020 $’000

Sale of goods 138,327 129,747

Rendering of services 120,698 114,216

259,025 243,963

Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

2021 $’000

2020 $’000

Major product & service lines

Fittings and sales of devices 192,964 178,734

Hearing assessments and maintenance 66,081 65,229

259,025 243,963

Geographical regions

Australia 259,025 243,963

Timing of revenue recognition

Goods and services transferred at a point in time 219,753 213,528

Goods and services transferred over time 39,272 30,435

259,025 243,963

Accounting policy for revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which Hearing Australia is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, Hearing Australia: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance

obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either

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the ‘expected value’ or ‘most likely amount’ method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as contract liabilities in the form of a separate refund liability.

Sale of goods Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.

Rendering of services Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate.

Revenues from Government Hearing Australia receives a significant amount of its sales revenue (as disclosed above) from the Federal Government. This consists of an allocation of Federal budget funding which is received in the form of sales consideration, received from the Department of Health (DOH) for (i) revenue received through a competitive voucher scheme administered by the DOH; and (ii) the provision of goods and services to the community.

Funding from the DOH is recognised when the service or goods have been provided, in accordance with the accounting policy above. Funding that is carried forward to be recognised as revenue in future years is specifically authorised by the DOH.

Revenue for services provided under the competitive voucher scheme is recognised when the services are provided, in accordance with the accounting policy above. Where fees for support services are received in advance, the amount is initially recognised as a contract liability and revenue is recognised over the service period.

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The Australian Government provides additional grants to Hearing Australia for the funding of various activities including:

(i) Ongoing research and development into hearing health, rehabilitation and prevention program,

(ii) Activities related to online hearing tests under the hearing services development program, and

(iii) Hearing assessment activities under the Indigenous Australians Health Program.

Hearing Australia, through its research division NAL, also receives grants from a variety of external organisations to conduct research into hearing loss, diagnostics, outcomes, behaviours, technologies and preservation.

Grant income is recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate. Where grant monies are received in advance, a liability is initially recognised and subsequently recognised as income when the services have been performed.

Note 6. Other Income

2021 $’000

2020 $’000

Royalties 11 89

Rental income 42 49

Interest on deposits 611 1,882

664 2,020

Note 5. Grant Income

2021 $’000

2020 $’000

Grant Income 14,829 10,700

14,829 10,700

Accounting policy for royalties Royalty income is recognised by Hearing Australia when the funds are received.

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Note 8. Goods and services received

2021 $’000

2020 $’000

Aids and appliances 60,589 59,086

Consultants 10,653 2,515

Contractors 1,169 851

Information and communication technology 9,511 7,271

Marketing 5,836 5,115

Property 4,886 5,229

Travel 4,077 4,251

Other 7,160 7,205

Goods and services received 103,881 91,523

Note 7. Employee benefits

2021 $’000

2020 $’000

Wages and salaries 95,842 90,286

Superannuation - Defined contribution plans 16,683 15,816

Leave and other entitlements 12,845 13,336

Taxes, separation and redundancies 7,450 6,435

132,820 125,873

Note 9. Finance costs

2021 $’000

2020 $’000

Interest expense - Leases 1,085 1,251

Unwinding of discount on restoration provision liability 97 78

1,182 1,329

Accounting policy for finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset.

All other finance costs are expensed in the period in which they are incurred.

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Note 10. Income tax equivalent expense

The above amounts have been calculated as being payable to the Australian Government in the form of company income tax under the Income Tax Assessment Acts had they applied, in accordance with the accounting policy for competitive neutrality (Note 11).

Accounting policy for taxation Hearing Australia is exempt from all forms of taxation except fringe benefits tax (‘FBT’) and goods and services tax (‘GST’).

Revenues, expenses and assets are recognised net of GST except for: (i) where the amount of GST incurred is not recoverable from the Australian Taxation Office (‘ATO’); and (ii) receivables and payables.

2021 $’000

2020 $’000

Income tax equivalent expense

Current tax 7,411 5,696

Total current tax expense 7,411 5,696

Deferred tax

Decrease (increase) in deferred tax assets (Note 17) (4,238) (1,355)

Total deferred tax expense (4,238) (1,355)

Aggregate income tax equivalent expense 3,173 4,341

Numerical reconciliation of income tax equivalent expense and tax at the statutory rate

Surplus before income tax equivalent expense 12,017 13,798

Tax at the statutory tax rate of 30% (2020: 30%) 3,605 4,139

Tax effect of amounts which are not deductible (taxable) in calculating taxable income:

Non-deductible expense/(Non-taxable income) (177) 241

National Acoustic Laboratories exempt from income tax equivalent (255) (39)

Subtotal (432) 202

Income tax equivalent expense 3,173 4,341

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Note 11. Competitive neutrality

2021 $’000

2020 $’000

State tax equivalent expense 5,896 5,759

Commonwealth tax equivalent expense 7,411 5,696

Annual neutrality offset payment to the national workers compensation regulatory scheme 120 100

Total 13,427 11,555

Accounting policy for competitive neutrality Hearing Australia provides services on a for-profit basis. Under competitive neutrality arrangements Hearing Australia is required to make payroll tax and income tax equivalent payments to the Commonwealth Government in addition to statutory payments for FBT and GST.

Hearing Australia pays an annual regulatory neutrality payment to the Official Public Account to offset the cost advantages relative to its competitors as a result of operating under one national workers compensation regulatory scheme.

Note 12. Trade and other receivables

Allowance for expected credit losses Hearing Australia has recognised an increase in allowance for expected credit losses of $321,000 (2020: an increase in allowance for expected credit losses of $7,000) in profit or loss for the year ended 30 June 2021.

2021 $’000

2020 $’000

Current

Trade receivables 3,412 2,054

Less: Allowance for expected credit losses (337) (16)

3,075 2,038

Interest receivable 50 322

GST receivable 837 239

3,962 2,599

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Note 13. Inventories

2021 $’000

2020 $’000

Inventories held for sale - at cost 3,589 3,138

Inventories held for distribution - at cost 2,510 1,983

Less: Provision for impairment (735) (639)

5,364 4,482

Inventory held for sale and distribution that was recognised as an expense in profit or loss amounted

to $60,589,000 (2020: $59,086,000) for the year ended 30 June 2021.

Accounting policy for inventories Inventories held for sale are stated at the lower of cost and net realisable value on an ‘average cost’ basis. Cost comprises of purchase and delivery costs, where applicable, net of rebates and discounts received or receivable.

Accounting policy for trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables for goods and services are generally due for settlement within 30 days from date of invoice and 3 days for DOH claims for payment.

Hearing Australia has applied the simplified approach to measuring the allowance for expected credit losses, which uses a lifetime expected loss allowance. To measure the allowance for expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less allowance for expected credit losses.

Inventories held for distribution are stated at cost and are adjusted for any loss in service potential.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

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Note 14. Contract assets

2021 $’000

2020 $’000

Services and sale of goods 3,285 2,391

Less: Allowance for expected credit losses (122) (129)

3,163 2,262

Hearing Australia has recognised a reversal of impairment of expected credit losses of $7,000 (2020:

a reversal of impairment of $69,000) in profit or loss for the year ended 30 June 2021.

Accounting policy for contract assets Contract assets are recognised when Hearing Australia has transferred goods or services to the customer but where Hearing Australia is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes.

Under the current claims process with the DOH, Hearing Australia is

remunerated on completion of a fitting which occurs when a customer returns for their follow up appointment. Services and sale of goods classified as contract assets represents revenue activities that are partially completed, usually when a customer has been fitted with a hearing device and has yet to return for the follow up appointment.

Note 15. Other current assets

2021 $’000

2020 $’000

Grants receivables 206 94

Security deposits 4 -

210 94

Note 16. Investments under s.59 of the PGPA Act

2021 $’000

2020 $’000

Fixed term cash deposits 125,700 107,522

125,700 107,522

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Accounting policy for investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Hearing Australia has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.

Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met:

(i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

(ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.

In accordance with section 59 of the PGPA Act, the funds are invested on deposit with a bank, including a deposit evidenced by a certificate of deposit, all maturing within 12 months.

Impairment of financial assets Hearing Australia recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon Hearing Australia’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.

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Note 17. Deferred tax

2021 $’000

2020 $’000

Deferred tax assets comprises temporary differences attributable to:

Property, plant and equipment (803) (1,668)

Contract assets (985) (717)

Right of use assets (13,654) (13,434)

Accrued expenses 2,005 1,041

Contract liabilities 3,858 3,910

Provisions 10,528 10,275

Inventories 220 192

Software 2,445 179

Lease liabilities 15,871 15,553

Other 114 30

Deferred tax asset 19,599 15,361

Movements

Opening Balance 15,361 14,006

Credited (charged) to profit or loss (Note 10) 4,238 1,355

Closing balance 19,599 15,361

Note 18. Property, plant and equipment

2021 $’000

2020 $’000

Leasehold improvements

Leasehold improvements - at cost 51,245 49,131

Leasehold improvements - accumulated depreciation (36,830) (34,256)

14,415 14,875

Plant and equipment

Plant and equipment - at cost 34,599 32,156

Plant and equipment - accumulated depreciation (25,915) (22,748)

8,684 9,408

23,099 24,283

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Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below:

Plant and equipment $’000

Leasehold improvements $’000 Total

$’000

Carrying amount as at 1 July 2020 9,408 14,875 24,283

Additions 3,652 4,308 7,960

Disposals - written-down value (75) (149) (224)

Depreciation expense (4,301) (4,619) (8,920)

Carrying amount as at 30 June 2021 8,684 14,415 23,099

Accounting policy for property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment, except for items costing less than $1,000, which are expensed as incurred. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to restoration obligations in property leases taken up by Hearing Australia where an obligation to restore the property to its original condition exists. Plant and equipment acquired at no cost, or for nominal consideration are initially recognised as assets and income at their fair value at the date of acquisition.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows:

Leasehold improvements over the expected lease term

Plant and equipment

3 - 7 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements are depreciated over the unexpired period of the expected lease term or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to Hearing Australia. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

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Note 19. Leases

2021 $’000

2020 $’000

Right-of-use assets

Property 43,763 42,652

Vehicles 713 748

Plant and equipment 1,036 1,379

45,512 44,779

Lease liabilities

Current 11,143 10,867

Non-current 41,759 40,978

52,902 51,845

Additions to the right-of-use assets during the year ended 30 June 2021 were $8,336,106.

(i) Amount recognised in the statement of financial position

The balance sheet shows the following amounts relating to leases:

(ii) Amount recognised in profit or loss

The following amounts relating to leases are recognised in profit or loss:

2021 $’000

2020 $’000

Depreciation charge of right-of-use assets

Property 10,379 10,451

Vehicles 526 407

Plant and equipment 470 437

11,375 11,295

Interest expense (included in finance cost) 1,085 1,251

Expense relating to low-value leases (included in lease rental expense) 207 207

Expense relating to short-term leases (included in lease rental expense) 1,451 1,214

The total cash outflow for leases for the year ended 30 June 2021 was $12,536,405.

2021 $’000

2020 $’000

Maturity analysis - contractual undiscounted cash flows

Within one year 10,943 11,745

One to five years 21,345 30,296

More than five years 1,084 3,077

33,372 45,118

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(iii) Hearing Australia’s leasing activities and how these are accounted for

Hearing Australia leases properties, vehicles and plant and equipment. Rental contracts are typically made for fixed periods of 3 months to 6 years but may have extension options as described in (iv) below.

Contracts may contain lease components. Hearing Australia allocates the consideration in the contract to the lease components based on their relative stand-alone prices.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

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

variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date

amounts expected to be payable by Hearing Australia under residual value guarantees

the exercise price of a purchase option if Hearing Australia is reasonably certain to exercise that option, and

payments of penalties for terminating the lease, if the lease term reflects Hearing Australia exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which apart from motor vehicles is generally the case for leases in Hearing Australia, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Hearing Australia is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and finance cost.

Right-of-use assets are measured at cost comprising the following:

the amount of the initial measurement of lease liability

any lease payments made at or before the commencement date less any lease incentives received

any initial direct costs.

Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If Hearing Australia is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

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Note 20. Intangible assets

Intangible assets

2021 $’000

2020 $’000

Computer software internally developed - at cost 8,754 8,603

Computer software internally developed - less: accumulated amortisation (6,744) (5,139)

2,010 3,464

Computer software purchased - at cost 4,024 3,997

Computer software purchased - less: accumulated amortisation (3,692) (3,135)

332 862

2,342 4,326

Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below:

Computer

software internally developed $’000

Computer software purchased $’000

Total $’000

Carrying amount as at 1 July 2020 3,464 862 4,326

Additions 150 27 177

Amortisation expense (1,604) (557) (2,161)

Carrying amount as at 30 June 2021 2,010 332 2,342

Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise small items of office equipment.

(iv) Extension and termination options

Extension and termination options are included in a number of property and equipment leases across Hearing Australia. The majority of extension and termination options held are exercisable only by Hearing Australia and not by the respective lessor.

The lease term is reassessed if an option is actually exercised (or not exercised) or Hearing Australia becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

(v) Residual value guarantees

Hearing Australia has residual value guarantees on some motor vehicle leases. On the anniversary of these leases the residual value is re-assessed and where required the monthly lease payments and corresponding lease liability balances are adjusted accordingly.

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Note 21. Trade and other payables

Trade and other payables

2021 $’000

2020 $’000

Current

Trade creditors 4,475 3,512

Accrued expenses 9,953 5,433

Salaries and wages 6,577 3,942

21,005 12,887

Accounting policy for trade and other payables These amounts represent liabilities for goods and services provided to Hearing Australia prior to the end of the financial year and which are unpaid.

Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

The impending implementation of new software systems has resulted in the reduction of the useful life of certain software. The amortisation expense includes an additional amount of $594,000 as a result of the review of the useful life.

Accounting policy for intangible assets Intangible assets acquired are initially recognised at cost. Intangible assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition. The gains or losses recognised in profit or loss arising from the de-recognition of an intangible asset is measured as the difference between net disposal proceeds, if any, and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Computer software internally developed and purchased Costs relating to computer software internally developed are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; Hearing Australia is able to use or sell the asset; Hearing Australia has sufficient resources; and intent to complete the development and its costs can be measured reliably. Following the initial capitalisation of software internally developed or purchased software, the cost model is applied requiring the assets to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation is on a straight-line basis over the period of their expected benefit, being their finite useful lives between three and seven years.

66

Note 22. Provisions

Provisions

2021 $’000

2020 $’000

Current

Employee benefits 11,456 10,784

Restoration obligations 1,154 1,165

12,610 11,949

Restoration obligations Refer to Note 25 for more information on the restoration obligations.

Accounting policy for provisions Provisions are recognised when Hearing Australia has a present (legal or constructive) obligation as a result of a past event, it is probable Hearing Australia will be required to settle the 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. If the time value of money is material, provisions are discounted using a current pre—tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Accounting policy for employee benefits Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, termination benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

No provision is made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of Hearing Australia is estimated to be less than the annual entitlement for sick leave.

Superannuation benefits Employees of Hearing Australia are members of the Commonwealth Superannuation Scheme (‘CSS’), the Public Sector Superannuation Scheme (‘PSSdb’), the PSS Accumulation Plan (‘PSSap’) or other superannuation funds held outside the Commonwealth. Directors of Hearing Australia are members of the CSS, PSSdb or other superannuation funds held outside the Commonwealth, but not the PSSap.

The CSS and PSSdb are defined bene fit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined bene fits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedule and notes.

Hearing Australia makes employer contributions to the Commonwealth employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government, and accounts for the contributions as if they were contributions to defined contribution plans.

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Note 24. Refund liabilities

2021 $’000

2020 $’000

Current

Refund liabilities 339 199

339 199

Accounting policy for refund liabilities Refund liabilities are recognised where Hearing Australia receives consideration from a customer and expects to refund some, or all, of that consideration to the customer. A refund liability is measured at the amount of consideration received or receivable for which Hearing Australia

does not expect to be entitled and is updated at the end of each reporting period for changes in circumstances.

Historical data is used across product lines to estimate such returns at the time of sale based on an expected value methodology.

Note 25. Provisions

2021 $’000

2020 $’000

Non-current

Employee benefits 16,606 15,906

Restoration obligations 5,876 6,398

22,482 22,304

Note 23. Contract liabilities

2021 $’000

2020 $’000

Current

Maintenance and Hearing Services Card 15,657 15,890

Government funding for goods and services - 2,524

15,657 18,414

Accounting policy for contract liabilities Contract liabilities represent Hearing Australia’s obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when Hearing Australia

recognises a receivable to reflect its unconditional right to consideration, whichever is earlier, before Hearing Australia has transferred the goods or services to the customer.

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Accounting policy for dividends Hearing Australia’s dividend payment is paid according to a directive from the Portfolio Minister under Section 63A of the Australia Hearing Services Act 1991. Dividend payments are typically made to the Official Public Account via the

Restoration obligations The provision represents the present value of the estimated costs to make good the premises leased by Hearing Australia at the end of the respective lease terms. Hearing Australia currently

has 180 (2020: 178) agreements for the leasing of premises which have provisions requiring Hearing Australia to fully or partly restore the premises to their original condition at the conclusion of the lease.

Movement in provisions Movements in each class of provision (current and non-current) during the current financial year, other than employee benefits, are set out below:

Restoration obligations 2021 $’000

Carrying amount as at 1 July 2020 7,563

Additional provisions recognised 271

Utilisation and write backs (901)

Unwinding of discount 97

Carrying amount as at 30 June 2021 7,030

Accounting policy for other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to

expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Note 26. Dividends paid and payable

2021 $’000

2020 $’000

Interim dividend declared and paid to the Australian Government 1,493 3,775

Final dividend to the Australian Government payable at the reporting date 761 1,009

2,254 4,784

Department of Social Services in two instalments; an interim dividend paid by 30 April and a final dividend paid by 31 October each year. From time to time there may be a requirement to pay an additional dividend.

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Note 28. Key management personnel disclosures Key management personnel Hearing Australia has determined that Key Management Personnel (‘KMP’) is comprised of all members of the Board and all members of the Senior Executive

Team as they have the responsibility for planning, directing and controlling the activities of Hearing Australia.

2021 $

2020 $

Short-term employee benefits 2,798,617 2,700,659

Post-employment benefits 327,760 310,015

Other long-term benefits 119,417 89,797

Total aggregate compensation of KMP 3,245,794 3,100,471

Short term employee benefits include estimated performance payments of $283,351 that are not yet finalised at the time of preparing this report (2020: $169,277).

There were no material related party transactions with KMP.

The total number of KMP included in the above table is 16 (2020: 13). The +3 variance to last year is a result of the outgoing and incoming of two directors and one senior executive as shown in the table below:

Note 27. Fair value Accounting policy for fair value measurement Hearing Australia operates on a for-profit basis. As per approved exemption 17.7 under the FRR, Hearing Australia is

Compensation The aggregate remuneration made to directors and other members of KMP is set out below:

Directors

Senior

Executives

KMP as at 30 June 2020 7 6

Incoming during the year 2 1

Total KMP included in this year's aggregate compensation 9 7

Outgoing during the year -2 -1

KMP as at 30 June 2021 7 6

exempted from the requirement of fair value measurement for valuation of non-financial assets.

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Note 29. Remuneration of Auditors During the financial year the following fees were paid or payable for services provided by Australian National Audit Office, the auditor of Hearing Australia:

2021 $

2020 $

Audit services:

Audit of financial statements 132,000 132,000

Note 30. Contingent liabilities Hearing Australia had no contingent liabilities or assets as at 30 June 2021 and 30 June 2020.

Accounting policy for contingent liabilities and contingent assets Contingent liabilities and assets are not recognised in the statement of financial position but disclosed in these financial statements. They may arise

from uncertainty as to the existence of a liability or asset or represent a liability or asset in respect of which the amount cannot be reliably measured.

Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are recognised when settlement is greater than remote.

Note 31. Commitments

Commitments

2021 $’000

2020 $’000

Lease commitments - Operating

Committed at the reporting date and recognised as liabilities, payable:

Within one year 227 231

One to five years 126 302

353 533

Capital commitments

Committed at the reporting date but not recognised as liabilities, payable:

Within one year 2,884 6,131

One to five years - -

More than five years - -

2,884 6,131

Commitments are GST exclusive.

The KMP as at 30 June 2021 of 13 is consistent with the prior year.

The above KMP remuneration excludes the remuneration and other benefits of the Portfolio Minister. The

Portfolio Minister’s remuneration and other benefits are set out by the Remuneration Tribunal and are not paid by Hearing Australia.

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Transactions with related parties The following transactions occurred with related parties:

2021 $

2020 $

Sale of goods and services:

Sale of goods to related parties 85,887,713 88,452,193

Rendering of services to related parties 109,438,930 103,681,061

Other income:

Grant income from related parties 14,351,558 10,049,432

Payment for other expenses:

Other expenses paid to related parties 634,025 666,404

Receivable from and payable to related parties The following balances are outstanding at the reporting date in relation to transactions with related parties:

2021 $

2020 $

Current receivables:

Trade and other receivables from related parties 3,111,415 1,930,118

Current payables:

Trade and other liabilities to related parties 39,107,432 25,466,182

Term and conditions All transactions were made on normal commercial terms and conditions and at market rates.

Note 33. Events after the reporting period The impact of the Coronavirus (Covid-19) pandemic is ongoing and while it has had a negative impact on the results of the reporting year ended 30 June 2021, it is not expected to impact the going concern of the entity. The situation is however developing and is dependent on measures imposed by the Australian Federal, State and Territory governments which could make

it impractical to estimate the potential long-term impact to the entity.

No other matter or circumstance has arisen since 30 June 2021 and at the date of this report that has significantly affected, or may significantly affect Hearing Australia’s operations, the results of those operations, or its state of affairs in future financial years.

Note 32. Related party transactions Related party relationships Hearing Australia is an Australian Government controlled entity. Related parties to this entity are KMP

as detailed in Note 28 and other Australian Government entities. This note provides additional related party disclosures where such disclosures are not made in other notes in this report.

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Compliance Index PGPA Rule Reference Part of Report Description Requirement

17BE Contents of annual report

17BE(a) The Australian Hearing Services Act Details of the legislation establishing the body. Mandatory

17BE(b)(i) The Australian Hearing Services Act A summary of the objects and functions of the entity as set out in legislation.

Mandatory

17BE(b)(ii) Purpose The purposes of the entity as included in the entity’s corporate plan for the reporting period. Mandatory

17BE(c) Minister for Government Services 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

17BE(d) Appendix 1 - Ministerial directions and other statutory requirements

Directions given to the entity by the Minister under an Act or instrument during the reporting period. If applicable, mandatory

17BE(e) Appendix 1 - Ministerial directions and other statutory requirements

Any government policy order that applied in relation to the entity during the reporting period under section 22 of the Act.

If applicable, mandatory

17BE(f) N/A Particulars of non-compliance with:

(a) a direction given to the entity by the Minister under an Act or instrument during the reporting period; or (b) a government policy order that applied in relation to the entity during the reporting period under section 22 of

the Act.

If applicable, mandatory

17BE(g) Annual Performance Statement Annual performance statements in accordance with paragraph 39(1)(b) of the Act and section 16F of the rule.

Mandatory

17BE(h), 17BE(i)

Appendix 1 - PGPA Rule Section 17BE (h) - (i) Significant non-compliance with the Finance Law

A statement of significant issues reported to the Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with finance law and action taken to remedy non-compliance.

If applicable, mandatory

17BE(j) Appendix 7 - Board Governance Information on the accountable authority, or each member of the accountable authority, of the entity during the

reporting period.

Mandatory

17BE(k) Organisational structure and governance

Outline of the organisational structure of the entity (including any subsidiaries of the entity). Mandatory

17BE(ka) Appendix 3 - Key staffing statistics 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

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PGPA Rule Reference Part of Report Description Requirement

17BE Contents of annual report

17BE(l) Delivering

excellent client outcomes

Outline of the location (whether or not in Australia) of major activities or facilities of the entity. Mandatory

17BE(m) Organisational structure and governance

Information relating to the main corporate governance practices used by the entity during the reporting period. Mandatory

17BE(n), 17BE(o)

N/A 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 accountable authority to approve the entity 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

17BE(p) N/A Any significant activities and changes that affected the operation or structure of the entity during the reporting period. If applicable, mandatory

17BE(q) N/A Particulars of judicial decisions or decisions of administrative tribunals that may have a significant effect on the operations of the entity.

If applicable, mandatory

17BE(r) N/A Particulars of any reports on the entity given by:

(a) the Auditor-General (other than a report under section 43 of the Act); or (b) a Parliamentary Committee; or (c) the Commonwealth Ombudsman; or (d) the Office of the Australian Information Commissioner.

If applicable, mandatory

17BE(s) N/A An explanation of information not obtained from a subsidiary of the entity and the effect of not having the information on the annual report.

If applicable, mandatory

17BE(t) Indemnity and Insurance of Officers

Details of any indemnity that applied during the reporting period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs).

If applicable, mandatory

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PGPA Rule Reference Part of Report Description Requirement

17BE(taa) Appendix 8 - Audit and Risk Management Committee

The following information about the audit committee for the entity:

(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

17BE(ta) Appendix 4 - Information about Remuneration, including Executive Remuneration

Information about executive remuneration. Mandatory

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AHS Act Australian Hearing Services Act 1991

ANAO Australian National Audit Office

Annual Report

The yearly report prepared by Hearing Australia in accordance with section 46 of the PGPA Act (or the Directors of a Commonwealth company in accordance with section 97 of the PGPA Act). It provides a broad statement of capability and performance, including results against targets published previously for the corresponding year in the corporate plan. It allows the Board and senior management to report to the Minister on the efficiency and effectiveness for which the Minister is ultimately responsible.

ARMC Audit and Risk Management Committee of the Board of Hearing Australia

Audiologist

A university qualified professional that evaluates hearing function and provides appropriate rehabilitation, such as the fitting of hearing aids

Audiometrist A clinician who has completed a certificate course in hearing assessment, hearing aid fitting and management

Clinician An Audiologist or Audiometrist

Corporate Plan A document detailing Hearing Australia’s strategic direction that is required to be prepared for the Minister for Government Services and the Minister for Finance

CSO Community Service Obligations - part of the Government's Hearing Services Program

DOH Department of Health (within the Financial Statements)

DSS The Department of Social Services

EBITDA Earnings before interest, tax, depreciation and amortisation

ESD

Ecologically Sustainable Development that aims to meet the needs of today, while conserving our ecosystems for the benefit of future generations

ERP Enterprise Resource Planning (System)

Financial Year (FY) Period of a year being reported upon (commencing on 1 July and ending on 30 June)

First Nations A term which acknowledges the diversity of Australia’s First Peoples

GST Goods and Services Tax

HATS Hearing and Talking Scale - instrument used to assess a child's hearing

HAP Hearing Assessment Program

HAPEE Hearing Assessment Program - Early Ears

Health

The Department of Health - administers the Australian Government’s Hearing Services Program

Hearing Bus

Purpose built vehicles intended primarily to promote Hearing Australia and provide free hearing screening across the country

Hearing Centres Hearing Australia’s service outlets and physical point of contact for clients

Glossary

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HSP

Hearing Services Program - provides Government supported hearing services to eligible people. Funded through the Commonwealth Department of Health

ICT Information and Communications Technology

KPI Key Performance Indicator

NAL National Acoustic Laboratories - a division of Hearing Australia

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

Network Hearing Australia’s services across Australia

Outreach Specialist services provided for Aboriginal and Torres Strait Islanders

Permanent site A permanently staffed hearing centre.

PGPA Act Public Governance, Performance and Accountability Act 2013

PGPA Rule Public Governance, Performance and Accountability Rule 2014

PLUM

Parent-evaluated Listening and Understanding Measure - instrument used to measure a child's hearing

Remote Site A location providing for assessment, device fitting and rehabilitation, situated in a locality determined by the Department of Health (using the Modified Monash Model - from 1 October 2019) as being disadvantaged by restricted accessibility of goods and services

Responsible Minister Minister with portfolio responsibility for a Commonwealth entity

RFDS Royal Flying Doctor Service

Teleaudiology Provision of audiological services remotely from the patient

Telehealth

Use of telecommunication techniques for the purpose of providing telemedicine, medical education, and health education over a distance

Visiting Site

A site that is visited on regular basis by a clinician to deliver hearing services. No Hearing Australia staff are permanently based at a visiting site.

Voucher

Certificate issued by the Department of Health to eligible adults that entitles clients to Government funded hearing services under the Hearing Services Program (HSP)

VROA

Visually Reinforced Orientation Audiometry - gaining a child's response by presenting a sound through a speaker, then when the child turns in the direction of the speaker a visual reward is given

WHS Work health and safety

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Appendices Appendix 1 - Ministerial directions and other statutory requirements Hearing Australia is required to make annual disclosures under the following legislation:

Australian Hearing Services Act 1991

Public Governance, Performance and Accountability Act 2013

Work Health and Safety Act 2011

Freedom of Information Act 1982

The Environment Protection and Biodiversity Conservation Act 1999

No Ministerial directions were issued during the year 2020-21.

No Government Policy Orders were applied to Australian Hearing Services (trading as Hearing Australia).

Appendix 2: Freedom of Information Hearing Australia is subject to the Freedom of Information Act 1982 (FOI Act). The FOI Act provides the public with a general right of access to documents held by Australian Government agencies, by requiring Commonwealth entities, such as Hearing Australia, to publish information and provide a right of access to documents.

The general right is limited by exception to protect essential public interests, including the privacy of individuals and the business affairs of those who give information to the entity.

Hearing Australia is required to publish information to the public as part of the Information Publication Scheme (IPS). The IPS is designed to promote open and transparent communications of government information. Hearing Australia’s plan showing what information it publishes in accordance the IPS is located at https://www. hearing.com.au/About-Hearing-Australia/Corporate-Publications-(1)/ Information-Publication-Scheme.

Hearing Australia is required to publish on its website information about its structure, functions and statutory appointments. Hearing Australia must also publish its Annual Reports and other types of information including information that guides decisions or recommendations affecting members of the public as well as information about how the public can comment on policy proposals. This information is available at www.hearing.com.au/About-Hearing-Australia

Enquiries on freedom of information matters, including requests for access to documents, may be directed to:

The FOI Officer Hearing Australia Level 5, 16 University Avenue Macquarie University NSW 2109

Telephone: (02) 9412 6800 TTY: (02) 9412 6802 email: FOI@hearing.com.au

In the reporting year to 30 June 2020, Hearing Australia was not the subject of any report given by the Office of the Australian Information Commissioner.

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Appendix 3: Key staffing statistics All Ongoing Employees Current Report Period (2020-21) Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female Full-time

Part-time

Total Indeterminate

NSW 119 6 125 196 162 358 0 0 0 483

QLD 38 3 41 98 77 175 0 0 0 216

SA 4 1 5 23 23 46 0 0 0 51

TAS 7 1 8 19 17 36 0 0 0 44

VIC 33 3 36 132 120 252 0 0 0 288

WA 7 3 10 38 27 65 0 0 0 75

ACT 1 0 1 6 6 12 0 0 0 13

NT 1 0 1 7 2 9 0 0 0 10

External Territories 0 0 0 0 0 0 0 0 0 0

Overseas 0 0 0 0 0 0 0 0 0 0

Total 210 17 227 519 434 953 0 0 0 1180

All Non-Ongoing Employees Current Report Period (2020-21) Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female Full-time

Part-time

Total Indeterminate

NSW 25 3 28 45 35 80 0 0 0 108

QLD 2 2 4 7 14 21 0 0 0 25

SA 0 1 1 1 0 1 0 0 0 2

TAS 1 2 3 2 3 5 0 0 0 8

VIC 0 3 3 7 23 30 0 0 0 33

WA 1 1 2 4 9 13 0 0 0 15

ACT 0 0 0 0 1 1 0 0 0 1

NT 0 1 1 1 4 5 0 0 0 6

External Territories 0 0 0 0 0 0 0 0 0 0

Overseas 0 0 0 0 0 0 0 0 0 0

Total 29 13 42 67 89 156 0 0 0 198

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All Ongoing Employees Previous Report Period (2019-20)

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female Full-time

Part-time

Total Indeterminate

NSW 124 14 138 205 181 386 0 0 0 524

QLD 37 3 40 105 81 186 0 0 0 226

SA 4 0 4 23 18 41 0 0 0 45

TAS 8 3 11 17 19 36 0 0 0 47

VIC 31 7 38 129 141 270 0 0 0 308

WA 10 3 13 34 40 74 0 0 0 87

ACT 1 0 1 3 8 11 0 0 0 12

NT 1 1 2 7 7 14 0 0 0 16

External Territories 0 0 0 0 0 0 0 0 0 0

Overseas 0 0 0 0 0 0 0 0 0 0

Total 216 31 247 523 495 1018 0 0 0 1265

All Non-Ongoing Employees Previous Report Period (2019-20)

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female Full-time

Part-time

Total Indeterminate

NSW 9 2 11 19 22 41 0 0 0 52

QLD 0 0 0 4 2 6 0 0 0 6

SA 0 0 0 1 0 1 0 0 0 1

TAS 0 0 0 1 0 1 0 0 0 1

VIC 0 0 0 3 0 3 0 0 0 3

WA 0 0 0 3 3 6 0 0 0 6

ACT 0 0 0 0 0 0 0 0 0 0

NT 0 0 0 1 1 2 0 0 0 2

External Territories 0 0 0 0 0 0 0 0 0 0

Overseas 0 0 0 0 0 0 0 0 0 0

Total 9 2 11 32 28 60 0 0 0 71

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Appendix 4 - Information about Executive Remuneration

In accordance with the requirements of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) and the Department of Finance Resource Management Guide (RMG)-38 Commonwealth Entities Executive Remuneration Reporting Guide for Annual Reports, Hearing Australia reports on its remuneration practices.

Table 4.1 lists the Key Management Personnel (KMPs) for 2020-21. This includes all Non-Executive Directors and members of Hearing Australia’s Executive. These individuals are identified as KMPs consistent with the definition in the Australian Accounting Standards Board (AASB) 124 Related Party Disclosures. A further 15 employees are regarded as Other Highly Paid Employees for the purposes of the Commonwealth’s remuneration reporting (Table 4.2 refers). Other Highly Paid Staff are employees who are neither KMP nor senior executives and whose total remuneration exceeds the $230,000 threshold for the 2020-21 reporting period.

Employment Arrangements

Hearing Australia employees are engaged under the Australian Hearing Services Act 1991 as Commonwealth employees and are not covered by the Australian Public Service Act 1999. Some 96 per cent of employees are employed under Hearing Australia’s Enterprise Agreement. Approximately four per cent of employees, including members of the Executive and Other Highly Paid Staff, are employed under common law contracts.

Hearing Australia’s employees include audiologists, audiometrists, technicians, researchers and other hearing health professionals. Other roles include support for client engagement and corporate services.

Fixed and Performance Based Pay

To achieve its business outcomes, as outlined in the Corporate Plan, Hearing Australia needs to be able to attract, reward and retain skilled employees. Hearing Australia’s performance scheme framework supports that outcome, recognising that Hearing Australia must comply with relevant Commonwealth Government policies.

Remuneration for some employees consists of two components: a total guaranteed package and a variable ‘at risk’ component which is delivered through the performance scheme framework.

The fixed, guaranteed component of remuneration is comprised of base salary, superannuation contributions, allowances and any non-cash benefits, and aims to compensate employees for executing the core requirements of their role.

The performance payment (variable component) is an ‘at risk’ opportunity where a performance component of remuneration may be awarded to recognise outstanding performance. The provision of performance payments is discretionary and recognises high performing individuals and teams that have exceeded their key performance indicators and have contributed to the overall success of Hearing Australia.

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Salary Increases

Hearing Australia works within the parameters of the Remuneration and Funding Declaration (Declaration) under the Workplace Bargaining Policy approved by the Australian Public Service Commissioner.

Those employees engaged under Hearing Australia’s Enterprise Agreement received an annual pay increase of two per cent in May 2021. This increase was scheduled for November 2020 but was deferred by six months in accordance with Commonwealth Government policy. Those employees on common law contracts did not receive an annual salary increase for 2020-21.

Director Remuneration

All Hearing Australia Directors are appointed by the Minister for Government Services in accordance with s16 of the Australian Hearing Services Act 1991. Board Fees for Directors are paid according to the determination of the Commonwealth Remuneration Tribunal (the Tribunal) under the Remuneration Tribunal (Remuneration and Allowances for Holders of Part-time Public Office) Determination 2021. Hearing Australia has no role in determining the level of the Board Director fees. Statutory superannuation is paid in addition to the fees set by the Tribunal.

Managing Director Remuneration

The Managing Director’s remuneration is determined by the Board of Hearing Australia in line with the Remuneration Tribunal (Principal Executive Officers - Classification Structure and Terms and Conditions) Determination 2021.

Remuneration Governance Arrangements

Hearing Australia’s Remuneration Committee advises the Board on matters relating to employee remuneration. Appendix 9 provides further details on the operation of this Committee.

2020-21 Remuneration Information

The following tables detail the remuneration paid to Hearing Australia KMPs and other highly paid staff in 2020-21.

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Short-term benefits Post-

employment benefits

Other long-term benefits Termination benefits

Total

remuneration

Name Position Title Base Salary Bonuses Other

benefits and allowances

Superannuation contributions Long Service

Leave

Other long-term benefits

P L Seaton Chair $55,555 $0 $0 $5,278 $0 $0 $0 $60,833

S D Andersen Director $8,449 $0 $0 $803 $0 $0 $0 $9,252

C J Crawford Director $7,104 $0 $0 $675 $0 $0 $0 $7,779

E A Crouch Director $28,792 $0 $0 $2,735 $0 $0 $0 $31,527

J E Currie Director $34,952 $0 $0 $3,321 $0 $0 $0 $38,273

S S Liew Director $42,244 $0 $0 $3,267 $0 $0 $0 $45,511

S J Vaughan Director $43,118 $0 $0 $4,096 $0 $0 $0 $47,214

K W Keogh Special Purpose Director $43,118 $0 $0 $4,096 $0 $0 $0 $47,214

K C Terrell Managing Director $357,312 $56,678 $0 $44,627 $10,331 $0 $0 $468,948

M K S Brett Chief Information Officer $332,034 $0 $13,992 $58,527 $30,488 $0 $0 $435,041

D P Cuda Chief Financial Officer $59,120 $11,592 $0 $5,221 $582 $0 $0 $76,515

N J Fitzgerald Chief Financial Officer $201,186 $0 $0 $24,140 $0 $0 $0 $225,326

B Edwards Director NAL Research $336,492 $71,530 $0 $36,410 $7,043 $0 $0 $451,475

G Mavrias Chief Operating Officer $316,347 $78,426 $27,017 $61,548 $23,170 $0 $0 $506,508

R A Priddin

Chief People & Governance Officer $283,400 $0 $13,992 $44,023 $43,746 $0 $0 $385,161

L Shaw Chief Customer Officer $311,042 $65,125 $0 $28,993 $4,057 $0 $0 $409,217

Total

$2,460,265 $283,351 $55,001 $327,760 $119,417 $0 $0 $3,245,794

All Senior Executive Staff are reported as Key Management Personnel. Table 4.1 Information about remuneration for key management personnel

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Table 4.2 Information about remuneration for other highly paid staff

Short-term benefits Post-

employment benefits

Other long-term benefits Termination benefits Total remuneration

Total remuneration bands Number of other highly paid staff

Average Base Salary Average Bonuses

Average other benefits & allowances

Average superannuation contributions

Average long service leave

Average other long-term benefits

Average termination benefits

Average total remuneration

$230,001 - $245,000 4 $180,166 $14,792 $9,987 $29,400 $4,021 $0 $0 $238,366

$245,001 - $270,000 8 $158,817 $15,827 $2,526 $23,214 $5,170 $0 $52,655 $258,208

$270,001 - $295,000 2 $204,889 $25,563 $10,006 $29,937 $5,545 $0 $0 $275,940

$295,001 - $320,000 1 $213,559 $33,942 $21,930 $41,769 $8,660 $0 $0 $319,860

$320,001 - $345,000 0 0 0 0 0 0 0 0 0

$345,001 - $370,000 0 0 0 0 0 0 0 0 0

$370,001 - $395,000 0 0 0 0 0 0 0 0 0

$395,001 - $420,000 0 0 0 0 0 0 0 0 0

$420,001 - $445,000 0 0 0 0 0 0 0 0 0

$445,001 - $470,000 0 0 0 0 0 0 0 0 0

$470,001 - $495,000 0 0 0 0 0 0 0 0 0

$495,001 - … 0 0 0 0 0 0 0 0 0

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Appendix 5 - Environment Commonwealth organisations have a statutory requirement to report on their environmental performance and how they accord with and advance the principles of ecologically sustainable development (ESD) under Section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

Hearing Australia’s functions include assessing hearing, fitting/supply of hearing and assistive listening devices and providing counselling and rehabilitative programs to enable eligible clients to manage their hearing impairment and related education and research including hearing loss prevention. In carrying out these functions, we support and adhere to the sustainable procurement strategies set by the Australian Government for procurement processes, which are intended to drive performance, resource efficiency and innovation in supply chains and across industry.

Ecologically sustainable development (ESD) Hearing Australia continues to plan a transition to supply 100 per cent rechargeable batteries. This initiative will significantly reduce the number of batteries sent to landfill as we ramp up to full implementation.

Our major battery supplier is developing new technology to increase battery capacity, which will reduce the number of batteries used each year. We are expecting that this technology will be available for our clients in coming years.

Environmental performance The following measures were implemented to minimise the effect of our activities on the environment.

Energy Efficiency

Our landlord and tenant obligations are under a Green Lease Schedule, resulting in improved energy efficiency in the premises and building at the Australian Hearing Hub, our national head office, by implementing an Energy Management Plan in support of the requirements and objectives of the Australian Government’s Energy Productivity and Efficiency priorities.

Our motor vehicle fleet is largely 4 cylinder fuel-efficient, value for money, environmentally friendly vehicles for fleet use and have a high Green Vehicle Guide rating. We also promoted the use of energy efficient fuels such as diesel (for our twelve hearing buses) and the use of ethanol blended fuels (E10), where reasonably available.

We promote and support the use of video and phone conferencing instead of staff using air travel. In light of the recent pandemic, staff travel has been further reduced and the use of teleservices for clients has been expanded.

Enhancement of the ESD Principles is being achieved by all new centre builds (small retail sites) incorporating energy efficient lighting. Air conditioning units are replaced with ones with the most appropriate refrigerant and all toilets, where included, are converted to or installed with dual flush systems. Further, all our fleet and hearing bus vehicles are regularly serviced and maintained to ensure optimum fuel

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efficiency. Following a strategic review of our fleet policy in October 2017, it was determined that our standard vehicles of choice going forward will be the Toyota Corolla and Camry Hybrid. This will translate to reductions in fuel consumption of more than 30 per cent per vehicle, resulting in considerably lower vehicle emissions. Over 50 per cent of our vehicle fleet (excluding buses) is now hybrid, with this to increase as older leases expire.

Waste

Most personal computers are manually shutdown and all monitors are put into sleep mode after 10 minutes of inactivity. Following introduction of a Solid State storage unit, we have virtualised around 97.5 per cent of Wintel Server workload and 95 per cent of Unix Server workload. Personal computer and monitors are all ecological and power saving compliant.

Twenty per cent recycled copier paper is used in printers, photocopiers and multifunction devices. The non-recycled component is from sustainably managed plantations and forestry operations. The copy paper is certified carbon neutral. Our cleaning contractors provide environmentally friendly tissue paper (toilet paper and towels) and cleaning products.

ESD Principles are being enhanced through migration to a largely paper free environment. An e-Form framework has also been established. Paper reduction technology has also been introduced to our printers to further reduce consumption of paper

Water

Hearing Australia is not a major water user and generally is not separately metered in our leased premises.

Environment - our commitment Environmental Management clauses are included in supplier contracts to improve environmental performance, specifically compliance with the National Waste Policy, the National Environment Protection Measures, Energy Efficiency in Government Operations Policy and the Green Marketing and Australian Consumer Law guideline.

This may cover use of energy efficient products, products from recycled materials or other environmentally preferable products, reduction/ elimination of environmentally sensitive materials, material selection, design for end of life, product longevity/life cycle extension, energy conservation, end of life management, and corporate management and packaging.

Appendix 6 - Business Ethics Policy Our essence and purpose is to be caring and to have a positive impact on people’s lives. Everything we do reflects these values - out in the community and within our locations across the country.

Hearing Australia has a Business Ethics Policy which ensures that our people understand:

the values that underpin the way we do business

the commitments and expectations that govern our interaction with others

the standards of workplace behaviour that are expected

behaviours that are unacceptable and require action

the consequences of breaching the requirements of the Policy.

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Appendix 7 - Board Governance Board Governance

Hearing Australia operates under the Australian Hearing Services Act 1991 (AHS Act) and the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Under the PGPA Act, Hearing Australia is defined as a Corporate Commonwealth Entity.

The Board of Hearing Australia is our accountable authority, and it is responsible for determining the objectives, strategies and policies to be followed and to ensure Hearing Australia performs its functions in a proper, efficient and economical manner.

The functions and powers of Board are set out in section 8 and 9 of the AHS Act and are summarised as follows:

to decide the objectives, strategies and policies to be followed by Hearing Australia, in accordance with section 14(1)(a) of the AHS Act

to ensure that Hearing Australia performs its functions in a proper, efficient and economical manner in accordance with section 14(1)(b) of the AHS Act

to act in accordance with the duties of officials required by the PGPA Act which include the obligations provided for in Division 3 (Subdivision A sections 25 - 29) dealing with the general duties of officials.

In executing its functions, the Board seeks to:

ensure that Hearing Australia complies with Commonwealth reporting requirements

provide guidance to senior management

ensure the long term viability and financial position of Hearing Australia

agree on key performance indicators (KPIs) for the measurement of Hearing Australia’s performance

ensure an appropriate corporate governance structure is in place

assess the performance of Hearing Australia, our management and the Board itself

monitor developments within Hearing Australia’s operating environment

approve annual accounts, the Annual Report and other public documents.

The PGPA Act requires the Board to maintain financial stability, measure and assess Hearing Australia’s performance, prepare annual performance statements and an Annual Report.

The Board is also responsible for providing the Minister and the Finance Minister annually with Hearing Australia’s Corporate Plan and Financial Plan, which includes financial targets and performance information, and for the establishment and management of risk and control systems.

Directors are appointed by the Minister in line with the AHS Act and have qualifications relevant to, or special experience or interest in, a field related to Hearing Australia’s functions. The duties of the Managing Director as prescribed in Section 42 of the AHS Act.

The Board meets on a regular basis and has a number of committees. The following table lists the qualifications and experience of each Board member and the number of formal meetings attended by each member during 2020-2021.

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Details of Accountable Authority during the reporting period - Current Report Period (2020-21) Name Period as the accountable authority or member

within the reporting period

Qualifications of the Accountable Authority

Experience of the Accountable Authority Position Title / Position held

Executive / Non-Executive

Date of Commencement Date of cessation

Number of meetings of accountable authority attended

Dr Peta Seaton AM

BA (Hons), PhD, GAICD Principal of Strategic Consulting.

Former Deputy Chair of the Bradman Foundation.

Former Director of CARE Australia.

Member of the Near Eastern Archaeology Foundation Council.

Non-Executive Director of the Menzies Research Centre.

Former NSW Parliamentarian and frontbencher.

Former Director of Transition and Director of Strategic Priorities in the NSW Premier’s Office.

Director of the Bundanon Trust.

Chair of the Board

Non Executive

1 July 2020 30 June 2021 6

Mr Kim Terrell BA, Master’s Degree in

Public Policy

Played a key role in establishing three agencies, the Digital Transformation Office (DTO), Australian Sports Anti-doping Authority (ASADA) and CrimTrac.

Instrumental in creating myGov and driving digital transformation across the Department of Human Services and the Government.

Experience working with and advising various ministers, Prime Ministers and their offices, to initiate significant improvements across various government programs. Australian Swim Team member from 1981-1986 and attended the 1982 Commonwealth Games and 1984 Olympics - winning ten national titles and holding six Australian records. Recipient of three Australia Day Awards.

Managing Director

Executive

1 July 2020 30 June 2021 6

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Name Period as the accountable authority or

member within the reporting period

Qualifications of the Accountable Authority

Experience of the Accountable Authority Position Title / Position held

Executive / Non-Executive

Date of Commencement Date of cessation

Number of meetings of accountable authority attended

Mrs Sandra Andersen

CPA, LLB, FAICD, Fellow of FINISIA

Member of the Board of Trustees and Chair of the Finance and Audit Committee for Melbourne Convention and Exhibition Trust.

Director and the Chair of the Audit and Risk Management Committee for Chisholm Institute.

Director and Chair of Board Risk Committee for Beyond Bank Australia.

Director and Chair of Audit & Risk Management Committee for Agriculture Victoria Services Pty Ltd.

Chair of the Australian Packaging Covenant Organisation Limited Chair of the Audit & Risk Management Committee for Department of Premier & Cabinet, Victoria.

Mrs Andersen has also held senior executive positions with ANZ, Commonwealth Bank and NAB.

Director

Non Executive

Chair of Audit and Risk Management Committee

1 July 2020 29 August

2020

1

Mr Kim Keogh

Previously a Director of Australian Hearing over the period 2007 to 2013. Executive Director of Darlot Brothers Pty Ltd. Government relations/ public affairs advisor to Atlas Iron Ltd, Pilbara Minerals Ltd and Balla Balla Infrastructure Pty Ltd.

Previously a member of the National Heritage Trust Advisory Board.

Chair of the Ministerial Reference Group (Agriculture and Environment).

Member of the National Weeds Advisory Group and pastoralist. He is a member of the Australian Institute of Company Directors.

Special Purpose Board Director

Non Executive

Chair, Research and Innovation Committee

1 July 2020 30 June

2021

6

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Name Period as the accountable authority or

member within the reporting period

Qualifications of the Accountable Authority

Experience of the Accountable Authority Position Title / Position held

Executive / Non-Executive

Date of Commencement Date of cessation

Number of meetings of accountable authority attended

Mr Chris Crawford GAICD, MBA, LLM, PhD

Principal of Crawford Consulting.

Member of the Industry Advisory Committee of the Macquarie University Centre for the Health Economy.

Previously consecutively Chief Executive of the Northern NSW Local Health District, North Coast Area Health Service and Northern Rivers Area Health Service for over fifteen Years.

Previously Executive Director of St George Hospital and Community Health Service Formerly Chief of Staff to the NSW Minister for Health.

For his services to Health he received the Public Service Medal.

Director

Non Executive

1 July 2020 31 August

2020

1

Ms Sarah Vaughan Graduate Diploma in

Personal Management, Leadership, People Management and Operations, Australian Royal Military College

Masters in Information Technology, Information Systems Management

Graduate Diploma, Applied Data Analytics and Computer Science

Eight years’ experience in the Army in a variety of Communications and Information Systems management roles.

Formerly Senior Director at Microsoft Australia.

Strong background in stakeholder engagement, product commercialisation and application of emerging technology.

Founder, The Arché, a bespoke accelerator and seed fund helping Australian SMEs market test new products and scale-up.

Member of Melbourne University’s Industry Advisory Group and works with a wide range of Australian Universities on curriculum and student programmes on innovation and entrepreneurship.

Director in an agricultural business in Western NSW, producing beef for the premium Australian and Asian export markets.

Director

Non Executive

1 July 2019 30 June

2020

6

90

Name Period as the accountable authority or

member within the reporting period

Qualifications of the Accountable Authority

Experience of the Accountable Authority Position Title / Position held

Executive / Non-Executive

Date of Commencement Date of cessation

Number of meetings of accountable authority attended

Ms Jody Currie Bachelor’s Degree

- Ethnic, Cultural, Gender and Group Studies

CEO of the Aboriginal and Torres Strait Islander Community Health Service (ATSICHS) Brisbane.

Member of the Australia Institute of Company Directors, Board of the Brisbane Indigenous Media Association. Formerly a member of the Board of the Queensland Poetry Festival. Previously a member of the ATSICHS board over a six year period, two of these as Chair. Lengthy history in Aboriginal and Torres Strait Islander human service delivery and is a strong advocate for improving the service accessibility to Aboriginal and Torres Strait Islander people.

Director

Non Executive

Chair, Renumeration Committee

1 July 2019 30 June

2020

6

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Name Period as the accountable authority or

member within the reporting period

Qualifications of the Accountable Authority

Experience of the Accountable Authority Position Title / Position held

Executive / Non-Executive

Date of Commencement Date of cessation

Number of meetings of accountable authority attended

Ms Shirley Liew Bachelor of Business,

MBA, GDip Corporate Finance, FCPA

Shirley brings extensive public and private health experience, including in the ageing sector, and has a strong commercial background in finance, retail, transport, food, and mergers and acquisitions.

She also chairs various risk, finance and audit committees, including the Central Coast Local Health District.

Shirley is a Fellow of CPA Australia as well as being a Chartered accountant with extensive experience in leadership and senior technical roles as audit, assurance and advisory partner for major accounting firms.

Director

Non Executive

Chair, Audit and Risk Management Committee

3 September 2020 30 June 2020

5

Ms Elizabeth Crouch AM

Bachelor of Economics, FAICD, Masters in Cyber Security

Ms Crouch brings strong government and policy expertise and extensive non-Executive Director experience, including being a Board member for Western Sydney Local Health District, Health Infrastructure and the NSW Institute of Sport. She also chairs the boards of the Customer Owned Banking Association, the Sydney Children’s Hospital Network and SGS Economics and Planning. Ms Crouch is also the Emeritus Deputy Chancellor of Macquarie University.

She is skilled in business strategy and delivery, enterprise risk management, leadership and mentoring, Government relations, stakeholder relations, and culture change.

Director

Non Executive

3 September 2020 30 June 2021

5

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Induction

New Directors are provided with a briefing and information to ensure they understand their roles, responsibilities and key features of Hearing Australia, including its operations, policies and strategies. Ongoing Director education is provided through site visits and presentations.

Confidentiality

All Directors are required to sign a confidentiality agreement on commencement with Hearing Australia. These agreements set out the obligations of Directors to not disclose confidential information obtained during the course of their duty as Directors.

Indemnity and Insurance of Officers

During the year, Hearing Australia paid a premium of ex GST $87,088 to insure the Directors and Officers of Hearing Australia. The liabilities insured were legal costs and other expenses that may be incurred in defending any civil or criminal proceedings brought against them in their capacity as Directors and Officers of Hearing Australia.

Performance Assessment

An appraisal of the performance of the Board is undertaken on an annual basis to ensure the effectiveness of operations of the Board and its Committees. This includes completion of a formal questionnaire based on guidance from the Australian Institute of Company Directors and action to improve internal governance arrangements.

Certification

The Managing Director and the Chief Financial Officer provide written certification regarding the integrity of the controls and activities of the organisation, including assurances as to Hearing Australia’s financial situation. This assurance supports the Audit and Risk Management Committee in one of its key responsibilities: reviewing the Annual Financial Statements, which culminates in the acceptance of the Annual Financial Statements by the Board.

Independent Professional Advice

Directors have the right, with the prior agreement of the Chair, to obtain relevant independent professional advice at the expense of the organisation on any matter connected with the discharge of their duties as a Director.

Appendix 8 - Audit and Risk Management Committee Audit and Risk Management Committee

The responsibilities of the Audit and Risk Management Committee include:

Financial reporting

review the financial statements and provide advice to the Board (including whether appropriate action has been taken in response to audit recommendations and adjustments), and recommend their signing by the Chair of the Board

assess whether appropriate management action has been taken in response to any issues raised by the Australian National Audit Office (ANAO), including financial statement adjustments or revised disclosures

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System of risk oversight and management

review whether Hearing Australia’s management has in place a current and comprehensive risk management framework and associated procedures for effective identification and management of Hearing Australia’s financial and business risks, including fraud, and to approve Hearing Australia’s Risk Management Framework

determine whether a sound and effective approach has been followed by Hearing Australia in managing its major risks, including those associated with individual projects, program implementation and activities

satisfy itself that Hearing Australia’s management has assessed the impact of Hearing Australia’s enterprise risk management framework on Hearing Australia’s control environment

monitor the adequacy of insurance cover for Hearing Australia

monitor reports on fraud from Hearing Australia’s management that outline any significant or systemic allegations of fraud, the status of any ongoing investigations and any changes to identified fraud risk in Hearing Australia

at least annually, commission and approve an entity wide assurance map that identifies Hearing Australia’s key assurance arrangements.

review the processes designed to ensure that financial information included in Hearing Australia’s Annual Report is consistent with the signed financial statements

monitor the standard of financial information provided to the Board

discuss with the ANAO the auditor’s judgments about the adequacy of Hearing Australia’s accounting policies and the quality of processes for the preparation of the financial statements

review whether Hearing Australia has appropriate mechanisms in place to review and implement, where appropriate, relevant Parliamentary Committee reports and recommendations.

Performance reporting

review how Hearing Australia measures and reports on its performance

satisfy itself and provide assurance to the Board that Hearing Australia has a performance management framework that is linked to organisational objectives and outcomes, to ensure that Hearing Australia can measure and assess its performance in achieving its purposes as required under section 38 of the PGPA Act

advise the Board on the preparation and review of Hearing Australia’s Annual Performance Statement for inclusion in the Annual Report

provide other advice at the request of the Board.

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The Charter of the Audit and Risk Management Committee is available at: https://www.hearing. com.au/HearingAustralia/media/ assets/Documents/ARMC-charter-September-2019.pdf

Attendance at Meetings The Chair of the Hearing Australia Board, the Managing Director, the Chief Financial Officer, the Chief Operating Officer, Chief People and Governance Officer and other representatives from Hearing Australia management, who are not members of the Committee, may attend all or part of the ARMC meeting as observers, by invitation of the Committee Chair.

Representatives from the ANAO and their contracted service provider - Crowe Sydney - also attend each ARMC meeting, by invitation of the Committee Chair.

Ernst & Young was reappointed on 1 July 2020 for a one year period to manage the internal audit function. Their representatives attended each ARMC meeting by invitation of the Committee Chair.

Regular reports are received from management, Internal and External Auditors and recommendations for improved internal controls, processes and efficiencies are implemented on a regular basis.

The following table lists the number of formal meetings attended by each Committee member during 2020-21.

System of internal control

assess whether management has in place comprehensive and relevant policies and procedures designed to maintain an effective internal control framework, including controls over external parties such as contractors and advisors and information technology security and arrangements

review whether management has in place appropriate policies and procedures, and that these are periodically reviewed and updated

determine whether the appropriate processes are in place to assess, at least once a year, whether policies and procedures are complied with

assess whether appropriate policies and supporting procedures are in place for the management and exercise of delegations

assess whether management has taken steps to embed a culture that promotes the proper use of Commonwealth resources and which is committed to ethical and lawful behaviour

determine whether a sound and effective approach has been followed in establishing Hearing Australia’s business continuity planning arrangements, including whether business continuity and disaster recovery plans are periodically updated and tested

determine whether management has appropriately considered legal and compliance risks as part of Hearing Australia’s enterprise risk management plan

assess the effectiveness of the system for monitoring Hearing Australia’s compliance with relevant laws, regulations and associated government policies

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Member name

Qualifications, knowledge, skills or experience Number of meetings attended / total number of meetings

Total annual remuneration (GST inc.)

Additional Information

Ms Shirley Liew Bachelor of Business, MBA, GDip Corporate Finance, FCPA

Shirley brings extensive public and private health experience, including in the ageing sector, and has a strong commercial background in finance, retail, transport, food, and mergers and acquisitions.

She also chairs various risk, finance and audit committees, including the Central Coast Local Health District. Shirley is a Fellow of CPA Australia as well as being a Chartered accountant with extensive experience in leadership and senior technical roles as audit, assurance and advisory partner for major accounting firms.

3/5 $14,730 Ms Liew was

appointed to the Board and as the Chair of the Audit and Risk Management Committee on 3 September 2020.

Ms Sarah Vaughan Graduate Diploma in Personal Management, Leadership, People Management and

Operations, Australian Royal Military College

Masters in Information Technology, Information Systems Management

Graduate Diploma, Applied Data Analytics and Computer Science

Eight years’ experience in the Army in a variety of Communications and Information Systems management roles.

Formerly Senior Director at Microsoft Australia.

Strong background in stakeholder engagement, product commercialisation and application of emerging technology.

Founder, The Arché, a bespoke accelerator and seed fund helping Australian SMEs market test new products and scale-up.

Member of Melbourne University’s Industry Advisory Group and works with a wide range of Australian Universities on curriculum and student programmes on innovation and entrepreneurship.

Director in an agricultural business in Western NSW, producing beef for the premium Australian and Asian export markets.

5/5 $8,941

Mr Kim Keogh

Previously a Director of Australian Hearing over the period 2007 to 2013.

Executive Director of Darlot Brothers Pty Ltd. Government relations/public affairs advisor to Atlas Iron Ltd, Pilbara Minerals Ltd and Balla Balla Infrastructure Pty Ltd. Previously a member of the National Heritage Trust Advisory Board, Chair of the Ministerial Reference Group (Agriculture and Environment), member of the National Weeds Advisory Group and pastoralist. He is a member of the Australian Institute of Company Directors

5/5 $8,941

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Member name

Qualifications, knowledge, skills or experience Number of meetings attended / total number of meetings

Total annual remuneration (GST inc.)

Additional Information

Ms Eliza Penny

Bachelor of Commerce, Partner at PWC 5/5 $19,136 Ms Penny is a

Special Purpose Member of the Audit and Risk Management Committee.

Ms Sandra (Sam) Andersen

Certified Practicing Accountant, Bachelor of Laws, Fellow of Finsia (the Financial Services Institute of Australasia) and the Australian Institute of Company Directors. Member of the Board of Trustees and Chair of the Finance and Audit Committee for Melbourne Convention and Exhibition Trust, Director and the Chair of the Audit and Risk Management Committee for Chisholm Institute. Director and Chair of Board Risk Committee for Beyond Bank Australia. Director and Chair of Audit & Risk Management Committee for Agriculture Victoria Services Pty Ltd. Chair of the Australian Packaging Covenant Organisation Limited. Chair of the Audit & Risk Management Committee for Department of Premier & Cabinet, Victoria. Sam has held senior executive positions with ANZ, Commonwealth Bank and NAB. Following a career change from banking and finance into industry, she was CFO at Lumacom Ltd and Chief Operating and Financial Officer at Multi-Emedia.com Ltd, and led the IPO as Managing Director of Eyecare Partners Limited (ASX:EPL).

2/5 $2,946 Ms Andersen

was Chair of the Audit and Risk Management Committee until 29 August 2020

Mr Chris Crawford PSM

Graduate Member of the Australian Institute of Company Directors, Master of Business Administration, Master of Laws, PhD in Government Principal of Crawford Consulting. Member of the Industry Advisory Committee of the Macquarie University Centre for the Health Economy. Previously consecutively Chief Executive of the Northern NSW Local Health District, North Coast Area Health Service and Northern Rivers Area Health Service for over fifteen Years. Previously Executive Director of St George Hospital and Community Health Service. Formerly Chief of Staff to the NSW Minister for Health. For his services to Health, he received the Public Service Medal.

2/5 $1,473 Mr Crawford was

a member of the Audit and Risk Management Committee until 29 August 2020 when his term ended.

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Appendix 9 - Remuneration Committee Remuneration Committee

The function of the Remuneration Committee is to assist and advise the Board on matters relating to compensation, performance pay, incentives and remuneration issues of the Managing Director and staff of Hearing Australia.

This includes providing the Board with advice in relation to:

the remuneration of the Managing Director of Hearing Australia within the terms of the Managing Director’s Employment Determination and relevant Remuneration Tribunal determinations and guidelines

the annual key performance indicators for the Managing Director

Attendance of Members at Remuneration Committee Meetings

Member Number of Remuneration meetings attended/number held

Jody Currie (Chair) 2/2

Kim Terrell^ 1/2

Peta Seaton* 1/2

Elizabeth Crouch+ 1/2

Chris Crawford# 1/2

^Mr Terrell was a member of this Committee until 31 July 2020

* Dr Seaton was a member of the Committee from 1 August 2020 onwards

+Mrs Crouch was a member of the Board and Committee from 3 September 2020 onwards

# Mr Crawford was a member of the Committee (and the Board) until 29 August 2020

the performance of the Managing Director against these key performance indicators, for the determination of annual performance related components

the Managing Director’s processes, policies and decisions regarding the remuneration for Hearing Australia’s senior executives and staff

Hearing Australia’s Enterprise Agreement and associated policies and frameworks for staff remuneration, allowances and entitlements.

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Appendix 10 - Human Research Ethics Committee The Hearing Australia Board approves the appointment of the Chair of the Ethics Committee based on the recommendation of the Director, National Acoustic Laboratories (NAL). Other members are invited and appointed by the Director as vacancies occur.

The role of the Human Research Ethics Committee is to:

protect the welfare and rights of participants in research undertaken by researchers employed by Hearing Australia

approve research by other institutions on Hearing Australia clients where:

(a) there is significant involvement by researchers employed by Hearing Australia, or

(b) issues of privacy of client records kept by Hearing Australia are raised by the research, in which case, the Committee

needs to review the research to ensure that any breaches of the Australian Privacy Principles are justified, or steps are required of the researchers to obtain client permission to access the records.

ensure that prior to the commencement of subject testing, all projects have received the appropriate ethics approval

monitor the progress of research projects to which it has given ethics approval. This will be performed on an annual basis by examining the progress reports submitted by the researchers

approve procedures to deal with complaints from participants of research projects, researchers or other interested parties about the conduct of the research or the consideration of research projects by the Committee.

The Human Research Ethics Committee met twice formally during 2020-21 and also reviews submissions out of session throughout the year.

Attendance at Hearing Australia Human Research Ethics Committee Meetings

Name Meetings attended/Meetings Held

Dr John Quilter (Chairman) 2/2

Prof. Catherine McMahon 2/2

Dr John Mack^ (Retired Aug. 2020) 0/2

Alison King 2/2

Dr Teresa Ching* 1/2

Mr Richard Brading 2/2

Prof. Di Yerbury 0/2

Rev. Philip Bradford 2/2

Mr Arthur Gurjian+ 1/2

Dr Carmen Kung& 1/2

^ Dr Mack’s tenure ceased in August 2020. No meetings were held during his tenure in 2020-21 * Dr Ching retired from the Committee in April 2021 + Mr Gurjian was appointed to the Committee in March 2021 & Dr Kung was appointed to the Committee in March 2021

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Appendix 11 - Research and Innovation Committee The functions of the Research and Innovation Committee are outlined in its charter and are detailed below:

identify threats to Hearing Australia’s current business model and how such threats may be mitigated

identify opportunities for Hearing Australia associated with innovation and technology and how such opportunities can be maximised through innovation in services or service delivery

consider the extent to which Hearing Australia’s Corporate Plan addresses the threats and opportunities identified.

The role of the Research and Innovation Committee is to:

review the strategic plan of the National Acoustic Laboratories’ (NAL) research once each year and report to the Board

determine that the projects to be undertaken are in line with the role of Hearing Australia as described in the AHS Act and any broad strategic directions for NAL that are in place at the time.

For NAL projects that receive funding from the Department of Health (Health), the Committee undertakes tasks set out in the Memorandum of Agreement - Research and Development into Hearing Health, Rehabilitation and Prevention between Health and Hearing Australia, represented by NAL (the Agreement), to ensure:

that NAL’s activities are consistent with the terms of the Agreement

alignment between the aim of each project undertaken by NAL, with the objectives of the Australian Government’s Hearing Services Program, by endeavouring to confirm that each project:

- has the potential for national application

- provides practical and sustainable benefits

- has methodological merit, and where appropriate, be peer reviewed

- is cost effective

- can be directly translatable into practice and/or provide knowledge that has the potential to guide future research and development impacting on practice.

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The Committee also:

monitors and reviews the performance, progress and expenditure of projects against the above listed criteria and ensure that any changes to the direction and/or scope of a project do not compromise synergy with the objectives of the Hearing Services Program

manages the quality of the research through a review process which may be conducted by members of the Committee and/or involve audiological or other scientific peer review external to the Committee

considers whether to endorse any reports as requested by Health prior to NAL formally submitting them

takes a proactive, high level role in project selection, evaluation, resource allocation and balance of type of outcomes to be achieved (i.e. basic research versus applied research versus development

and community benefit versus commercial return) and the intellectual property rights strategy

takes a proactive, high level role in:

- identifying and advising on risk at all levels (organisational and project) around research and development at NAL

- providing oversight to ensure that all risks are effectively mitigated and managed by NAL.

is interactive, and apply scrutiny and guidance at a strategic level including review of project progress reports at each meeting

assesses significant changes to projects in line with strong governance, structure and reporting/evaluation mechanisms, including oversight of variations to individual project budgets/ allocations

monitors the development, ownership, protection and commercialisation of intellectual property created by NAL.

Attendance of Directors and Members at Research and Innovation Committee Meetings

Director

Number of Research Innovation committee meetings attended/number held

Kim Keogh (Chair) 4/4

Jody Currie 4/4

Sarah Vaughan 4/4

Elizabeth Crouch 4/4

Claire Kimball (Special Purpose Member) 4/4

Appendix 12 - PGPA Rule Section 17BE (h) - (i) Significant non-compliance with the Finance Law

PGPA Rule Section 17BE (h) - (i) Significant non-compliance with the Finance Law

Description of non-compliance Remedial Action

N/A N/A

N/A N/A

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Tel: (02) 9412 6800 TTY: (02) 9412 6802

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