Workers Lifestyle Annual Report 2022

ABOUT THIS REPORT

Workers Lifestyle Group’s Annual Report provides a comprehensive account of the Group’s performance from 1st January 2022 to 31st December 2022. The report is presented as a commitment to transparent financial reporting, good corporate governance, and clear strategic planning for future sustainability.

The Annual Report demonstrates initiatives undertaken throughout the year to strive towards our vision of being Australia’s leading lifestyle and hospitality group through service excellence, exceptional experiences, and our culture of care.

Finally, this publication reflects our commitment to improving member equity, to serving our community and enhancing the working life of our employees.

Workers Lifestyle Group acknowledges the Darug people, the original custodians of this land. We pay our respect to their Elders past, present and emerging, and to all people of Aboriginal and Torres Strait Island descent.

villagegreen Parkside

OUR VENUES

WORKERS BLACKTOWN

55 Campbell Street, Blacktown

The flagship club within the Group, Workers Blacktown is an icon that has stood proudly in the Blacktown community for decades as a major entertainment and leisure destination. The venue features restaurants, including Eucalyptus Dining, Mango Tango Thai, the brand new Blue Gum Café and Hi Lights, Western Sydney’s only revolving restaurant and event space. It is home to the famous Diamond Showroom, as well as three bars and conference and function facilities. There are three floors of sporting and health facilities to cater to the local community.

WORKERS SPORTS

170 Reservoir Road, Blacktown

A modern club, Workers Sports epitomises the Group’s passion for sport. Outside, you’ll find the renowned sporting complex with two rugby league fields, two soccer fields and a cricket oval, complete with stadium seating, as well as bowling greens, tennis courts and baseball/softball diamonds. Inside, the venue celebrates all sports as the home of live sports on our big screens. With a variety of dining options, a popular outdoor seating area, and a Mercure next door, Workers Sports attracts a wide range of patrons. Workers Sports will soon become the home of Parkside Lifestyle Community, a residential development, exclusively for over 55’s, with construction to commence in 2023.

WORKERS HUBERTUS

205 Adams Road, Luddenham

A little club with a big heart, Workers Hubertus has enjoyed a long, rich history as a German Country Club. It is now a destination for amazing outdoor activities, including one of the biggest events on the calendar, Oktoberfest. The restaurant serves all the classic club favourites with a nod to its German heritage, and with a modern, comfortable lounge with a massive LED screen for catching live sport, Workers Hubertus is a perfect place to spend time with friends and family. The function space boasts stunning views of the lake and rural landscape beyond, so it’s in high demand for important celebrations.

OUR PROGRESS

BLUE GUM CAF É & JACK MAC LOUNGE

Workers Lifestyle Group has completed a $15 million refurbishment with the final piece of the puzzle being transforming the café and bistro on the ground level into a light and bright dining zone, complemented by the dark and moody space of the Jack Mac Lounge.

Blue Gum Café creates a central meeting place within Workers Blacktown. The new refurbishment includes the addition of the Gurung Buru kids play area, so it’s perfect for families to come and enjoy a leisurely meal.

Whether you’re in the mood for a quality coffee or tea, a light meal or something hot and tasty from the bistro range, you are covered. You can also enjoy a tasty gelato treat, either after your meal or after a show.

The Jack McNamara Lounge (or the Jack Mac Lounge as it’s affectionally known by staff, members and regular guests alike) also enjoyed a facelift, new furniture and the return of the long bar.

It is now the venue for mingling with friends over a beverage, while enjoying our Free Live Music every Saturday night and Sunday afternoon or joining in one of our regular activities including Trivia and Raffles.

In December, a grand opening ceremony was held to celebrate the completion of the redevelopment project. The Board of Directors, led by President Kay Kelly, cut the ribbon to officially open the new area and the Nulungu Dreaming Dancers performed a blessing dance to celebrate the special milestone.

OUR YEAR IN A GLANCE

JUN

SENIORS LIVING PRECINCT DA ACHIEVED

The one we had all been waiting for. The DA for the Seniors Living Precinct at the Workers Sports site was approved and Parkside Lifestyle Community was launched.

JUL

CEO & CO SLEEPOUT

Our CEO and the Co (our President, managers, staff and partners) braved the cold to sleep out and raise over $45,000 for Blacktown Women’s and Girls Health Centre.

QUARTER CENTURY NIGHT RETURNS

After a long few years of Covid-19, the Board of Directors were able to celebrate with the members who achieved 25 years of continuous membership at a gala dinner. AUG

SEP

TRIPLE

DIP PROMOTION

Our biggest promotion in many years was held during the winter months with triple the cars to give away for triple the happy winning members!

WEXPO

Workers Blacktown hosted the inaugural WEXPO event with many exhibits featuring businesses from Greater Western Sydney as well as expert speakers and workshops.

DEC

CHILDREN’S CHRISTMAS PARTY RETURNS

The biggest event on the calendar that had been missing for two years due to the pandemic returned with the largest event ever on the fields of Workers Sports.

REWARDS RELAUNCH

LIFESTYLE

BLUE

GUM CAFÉ OPENS

The final step in our renovation occurred with Blue Gum Café opening, along with a new Reg McGrath lounge and a revamped Jack Mac lounge. SEP

We launched our new and improved rewards program, with a stylish new brand, called Lifestyle Rewards, with plenty of extra benefits for members.

OCT

STARS

OF WESTERN SYDNEY

Workers Blacktown hosted the ‘Stars of Western Sydney’ dance competition with the stars raising funds for the Cancer Council. Our very own Willie, Customer Service Manager, was a star!

DEC

SENIORS CHRISTMAS PARTY RETURNS

After missing one year due to Covid-19 we were able to host 500 members at our Seniors Christmas Party once again, with a delightful lunch and show plus a visit from Santa.

HARLEY DAVIDSON PROMOTION

A huge Sunday at Workers Sports was the Harley Davidson promotion. We joined forces with BlackBear BBQ in the outdoor area for this huge giveaway.

DEC

WESTERN SYDNEY CHANGING DIABETES LAUNCH

Our President, Kay Kelly, opened the Western Sydney Changing Diabetes launch where our CEO, Morgan Stewart, announced a $500,000 commitment over five years to tackling diabetes in our region.

6,333 INCREASE IN MEMBERSHIP NUMBERS

47,775 COVERS AT EUCALYPTUS DINING

12,802 CHICKEN SCHNITZELS SOLD

455,754 SCHOONERS OF BEERS POURED

14,987 TICKETS TO LIVE SHOWS IN THE DIAMOND SHOWROOM

19,661 FREE BINGO GAMES PLAYED

5,045 BIRTHDAY REWARDS REDEEMED AT THE LIFESTYLE REWARDS KIOSK

83,977 HOT DRINKS SOLD

270,912 MAIN MEALS SERVED

$430,618 DONATED THROUGH THE CLUBGRANTS PROGRAM

1,195,556 VISITORS TO WORKERS VENUES

2,600 WINNERS IN OUR MEMBER PROMOTIONS

53,518 GLASSES OF WINE POURED

6,524 MEAT TRAYS WON

SOCIAL MEDIA: E 13,944

C 816

Q 1,478

OUR PROMISE

MISSION

To provide premium destinations, relevant services and lifestyle options that benefit our local community and enhance the lives of our members.

VISION VALUES

To be Australia’s leading lifestyle and hospitality group through service excellence, exceptional experiences, and our culture of care.

BRAND PROMISE

We put People & Community First

We treat others with Dignity & Respect We strive for Excellence

We are Passionate in everything we do

We are always Authentic

We promise to never forget that we are a Workers club. We welcome everyone, we lend a hand to those that need it, we have a spirit of fairness, we give everyone a fair go, and at all times, we look after our mates.

PRESIDENT’S REPORT

On behalf of the Board of Directors, we are pleased to present to our members this Annual Report, detailing our financial results for 2022.

2022 was a year of change and achievement for the Workers family. Without a lockdown in sight, we saw the completion of the long awaited $15 million renovation of the flagship club at 55 Campbell Street when the café and bistro, formerly known as Impressions, was given a beautiful refurbishment. It is now known as Blue Gum Café and features a kids play area, so it is pleasing to see families enjoying Workers Blacktown in this new space.

We saw our membership numbers return to pre-pandemic levels, which reflects the end of the renovations at Workers Blacktown, but also the return of our much-loved club activities including our generous member promotions, ticketed shows in the Diamond Showroom including our monthly Champagne Wednesday event, and the Children’s Christmas Party. It is truly pleasing to see the Diamond Showroom full of members and guests enjoying themselves, and as well as the thousands of members and their families enjoying the first Children’s Christmas Party after a two-year hiatus due to the pandemic.

The Group underwent a rebrand, as we are now known as Workers Lifestyle Group. It was important for the Board to acknowledge our transition as being ‘just’ Blacktown and ‘just’ clubs, to being an organisation that spans Greater Western Sydney and features other lifestyle offerings. We did, however, honour our history through maintaining our original emblem featuring the Indigenous warrior.

Of course, the brand change coincided with the very important announcement that we had achieved the longawaited Development Application that allowed us to move ahead with the Seniors Living Development. Parkside Lifestyle Community was launched and the expressions of interest gained in the second half of 2022 proves that we are on track to deliver an over 55s living option to meet our mission of benefiting our local community and improving the lives of our members.

Our community efforts are the driving force behind everything we do at Workers and 2022 was no exception. Our commitment to $500,000 over five years to the fight against Domestic & Family Violence is well underway and we have now committed more than $350,000 to deserving local organisations that are working on the front line daily to help people in crisis. In 2022, we also donated to many programs that specialised in early intervention to ensure that we are doing our part to help break the generational cycle. Our second annual CEO & CO Sleepout saw us donate an extra $45,000 to the Blacktown Women’s and Girls Health Centre.

In 2022, Workers Lifestyle Group turned our attention to another major issue that is facing the region of Blacktown. In partnership with Western Sydney Diabetes, we have formed the Western Sydney Changing Diabetes, an initiative that is designed to combat the scourge of diabetes in Greater Western Sydney. As the President of an organisation with three member clubs within Western Sydney, the health and wellbeing of the community is a significant issue that is important to me.

13% of adults living in the Western Sydney Local Health District already have diabetes and a further 38% are at high risk of developing it. More than half of Western Sydney’s population is overweight which is a major risk factor contributing to developing type 2 diabetes. With over 52,000 members living in Western Sydney, we know that these statistics are sobering as they would be similarly represented within our membership, meaning that thousands of our members would be living with diabetes, have a loved one living with diabetes or be at risk of developing diabetes soon.

Factors such as age, family history and place of birth can also contribute to an increased risk of developing diabetes. However, some groups are at a greater risk of developing diabetes or complications from their diabetes and therefore require targeted actions.

That is why the Western Sydney Changing Diabetes program was established in response to the growing threat diabetes poses to our community’s health and wellbeing. We have committed $500,000 over five years to Western Sydney Changing Diabetes and I encourage you to explore the range of initiatives available free to our members, including the Diabetes Detection Program, the Healthy Cooking Classes and the SiSu Health Stations.

We acknowledge our 13 Tin Shed members who were founders of the club (1955 – 1960), our seven Life members, our 627 VIP (50+ years) members and our 5,913 Quarter Century (25+ year) members. We are so pleased that in 2022, not only were we able to hold our Tin Shed luncheon in December and were joined by five of our Tin Shed members, we were also able to hold our Quarter Century event in August for the first time in two years where we celebrated our members who have reached the 25 continuous years of membership milestone.

To my Board of Directors, thank you for your dedication and support this year. It was a year of major milestones and many achievements that the Board and I have been working towards as a group for many years. We look forward to seeing our efforts come together for the benefit of our members for years to come.

Thank you to the Management and Staff. The year that commenced with staff shortages due to the pandemic that saw everybody in the organisation working extremely hard, concluded with the operation in full flight again, as we were busy with many of our traditional events. I appreciate the efforts of everyone that contributed to our success.

We look forward an exciting new year in 2023. We commenced the year welcoming Douglas Kirkham into the role of Chief Operating Officer, reporting to our CEO, Morgan Stewart. Douglas brings with him a wealth of experience within hospitality and hotels, and we look forward to working with him.

I thank you, our members, for your continued support and loyalty to our clubs. I wish you all the best – in good health, love and friendship in the new year.

Keep smiling and be kind to each other.

Kay Kelly President Workers Lifestyle Group

OUR BOARD OF DIRECTORS

Workers Lifestyle Group is governed by a group of dedicated volunteers who are elected by the members to represent their interests. Together they guide the management team to achieve strategic objectives including commitments to financial outcomes, diversification efforts and sustainability.

Kay Kelly President

Life Member

Jack Miller Senior Vice President

Terry O’Loughlin Junior Vice President

Life Member

Gary Callaghan Treasurer

George Vella Director

Ange Humphries JP Director

Murray Searle Director

Brett Fielding JP Director

Paul Hayes Director

From left to right

CEO’S REPORT

On behalf of the Board of Directors, I am pleased to present the 2022 Annual Report incorporating the Annual Financial Report for the year ending December 31st 2022, which details the financial result of a Net Profit After Tax of $4,299,406.

This is an excellent operating result that is reflective of the three Workers clubs trading strongly post-pandemic and post-renovations. The result is a credit to our Board of Directors who lead us strongly through the previous two years, our staff who carried out our brand promise of welcoming everyone and our members and guests who chose to spend their time and money at a Workers club.

The financial result included an EBITDA (Earnings Before Interest, Income Tax, Depreciation and Amortisation) of $12.9M in 2022; up from $6.9M in 2021. The Group reported revenue of $60.4M; up from $37.1M as well as a net profit after tax of $4.3M; up from negative $774,925. Workers Lifestyle Group is in a strong financial position with cash and cash equivalents at $13.4M and net assets exceeding $144M.

The $15M renovation is now completed at Workers Blacktown and we are enjoying a return to pre-pandemic levels of visitation and membership. Our staff numbers are strong with an increase to 237 staff across the hospitality organisation. We have commenced 2023 with the introduction of our Chief Operating Officer, Douglas Kirkham to the Executive Management Team, whose objective is to utilise his wealth of experience in hospitality to help deliver more to our members and guests from our clubs.

Our focus is now towards the future of the new Workers Lifestyle Group, with the goal of expanding our business model and securing generational income diversification, with the goal of proactively growing our financial position through pragmatic asset management.

Workers Lifestyle Group will include your three clubs and, thanks to the achievement of the Development Application for the Seniors Living Precinct in June 2022, an over 55’s living community called Parkside Lifestyle Community. Groundworks has commenced ahead of construction to be underway by June 2023. Throughout 2022, we have registered expressions of interest from hundreds of our members and from May 2023, we begin to assist our future residents secure their new home.

We have also now submitted the Development Application for the front of the Workers Hubertus site. The club’s position next to the Nancy-Bird Walton Western Sydney Aerotropolis is now becoming increasingly relevant as the airport development ramps up ahead of its expected completion date in 2026, just a few short years away. We will seek to create an asset for members through the development of a fuel service station incorporating a truck stop and amenities including fast food outlets.

This interest in income diversification becomes increasingly necessary considering the current proposal for a cashless gaming card which will regulate the poker machine industry further. I acknowledge that gaming machines are currently our primary revenue source, and that while they are a lawful product that is played by a vast majority of people in a reasonable manner for entertainment and social purposes, we understand that for a small percentage, gaming

machines are a source of problem gambling.

Our position is that we are responsible operators of both gaming and liquor. We are proactive and seek to identify and provide a gateway to resourceful and supportive experts to assist those patrons. We will never put profit before the health and wellbeing of people in our community. We put people and community first.

Some of our harm minimisation tools include:

• BetSafe Responsible Gambling Program provides a responsible gaming framework, venue and multi-venue self-exclusions, third-party/involuntary exclusions, online exclusion registers, ongoing staff training and free counselling services for patrons. BetSafe also includes mandatory compliance reporting and site audits, along with compliance for Anti-Money Laundering/Counter Terrorism Financing (AML/CTF), Electronic Gaming Machines, Keno and TAB services.

• Voluntary Pre-Commitment (VPC) gives our patrons the ability to limit all or any of their time spent, turnover generated, or cash spent on an electronic gaming machine, and has been in place in all our venues since 2013 via IGT gaming system.

• Third-party exclusions and involuntary exclusions are already permissible through our club constitution and determined externally through BetSafe. An individual can be referred to BetSafe by the club or family member.

• Advanced Responsible Gambling Training has been provided to the Club’s staff voluntarily for the past two years. This training provides a higher level of training to staff in identifying patrons showing indications of problematic gambling and empowers staff to have proactive discussions with patrons.

• Circle Scan is an electronic entry mechanism compliant to the requirements of the Registered Clubs Act which identifies patrons at the entry to our clubs through a central database provided by BetSafe of patrons who have self-excluded (from our venues or other venues). They can be detected at the front door, denied entry and provided a referral to BetSafe.

• Facial Recognition Technology rollout has commenced at Workers. Once approved and activated, we anticipate that Facial Recognition will enhance patron’s security and will aid in detection for harm minimisation purposes by ensuring that self-excluded patrons do not enter the premises.

• Card based gaming has been introduced into all our Clubs through the IGT gaming system. The system sees patrons utilise a member or visitor card collecting gaming machine winnings within our venues and records their information accordingly.

Another area in which we are exceedingly proud is our work within the communities of both Blacktown and the Greater Western Sydney. We may be only “world famous in Blacktown”, however, I believe our efforts in the community space stack up against some of the major corporations. Our point of difference is that we ensure that we are facing the issues that matter to people most in the community –and, most importantly, for us, it isn’t just a cheque writing

exercise. We work with our partners on projects that create positive outcomes. We lead the way on issues that need attention.

This includes our two major initiatives currently underway – our commitment to the fight against Domestic & Family Violence and our new program, Western Sydney Changing Diabetes. Both projects will receive significant funding thanks to the Board of Directors, but we are also working with these partners to create tangible outcomes such as the free detection program, healthy cooking classes, the SiSu Health Stations and healthy meals in Blue Gum Café.

One other number that we’re very proud of is the $3 million contribution that was made in 2022 by the Workers Lifestyle Group. This figure is the total estimated value of our community contributions, services and activities. That is to say, when you, our members, chose to spend your time and money with us, you are helping us as a community owned organisation to invest back into your community, your people and your region. For that, we thank you.

Thank you as always to the Board of Directors, led by our President, Kay Kelly for their hard work and commitment to the Group. Thank you to the management and staff for their contribution and mateship.

I offer my condolences to those members who have lost loved ones in the past year.

We look forward to a bright 2023. Please take care of yourselves and each other.

Morgan Stewart Chief Executive Officer Workers Lifestyle Group

OUR STAFF

237 STAFF EMPLOYED

39% FULL-TIME 28% PART-TIME 33% CASUAL

MALE STAFF 45%

55%

FEMALE STAFF

54 NEW STAFF EMPLOYED IN 2022

4,387 HOURS OF PAID TRAINING

58% OF STAFF LIVE WITHIN FIVE KILOMETRES OF THE BLACKTOWN VENUES

$8,055,434 IN EMPLOYMENT BACK INTO THE LOCAL COMMUNITY

35 YEARS 20 YEARS

Felicity Stewart

15 YEARS

Geoffrey Cooke

Christopher Kersten

Calvin Tieu

Lu’sia Foote

Jane Seymour

Theresa Young Gow

Maria McLennan

Ray Staples

Anthony Boyer

10 YEARS

Sandra Cowie

Sam Wills

Scott Taylor

Rosalie Hulands

Harold Becker –special mention

MILESTONES

Tracy Mutton

OUR MEMBERS

53,564 TOTAL

13

TIN SHED MEMBERS

7 LIFE

627 VIP MEMBERS Over 50 years of continuous membership

5,913 QUARTER CENTURY MEMBERS Over 25 years of continuous membership

61% OF MEMBERS LIVE WITHIN FIVE KILOMETRES OF THE BLACKTOWN VENUES

45% FEMALE MEMBERS AVERAGE AGE IS 59.4

55% MALE MEMBERS AVERAGE AGE IS

56.5

WE THANK OUR TIN SHED MEMBERS

#26 Kenneth Williams

#39 Ernest Robson

#259 John O’Connor

#349 Victor Lamb

#353 Jack McCahill

#832 William Weller

#1093 Allan Burgmann

#1356 Keith Williams

#1483 William Morgan

#1546 Douglas Crellin

#1699 Cecil Creswick

#1836 John Baron OAM

#2555 Alexander Farrugia

WE CELEBRATE OUR LIFE MEMBERS

#41 Robert Vincent

#50 Kay Kelly

#401 Mark Cowgill

#413 Harold Becker

#2210

James Buckley

#7256 Terry O’Loughlin

#23766 Pat Collins

OUR COMMUNITY

Every year, the Board of Directors of Workers Lifestyle Group contributes tens of thousands of dollars through the ClubGRANTS program. Workers Lifestyle Group is committed to supporting and improving the local community through trusted organisations that seek to better the social fabric of Blacktown and Western Sydney. Some of the community groups supported in 2022 include:

SUPPORT FOR MORE THAN 100 LOCAL COMMUNITY ORGANISATIONS THROUGH CHARITIES, SPORTING GROUPS AND SCHOOLS.

$3 MILLION IN TOTAL ESTIMATED ECONOMIC VALUE OF COMMUNITY CONTRIBUTIONS, SERVICES AND ACTIVITIES.

WESTERN SYDNEY CHANGING DIABETES

Workers Lifestyle Group aims to combat the prevalent issue of Diabetes in the local community of Western Sydney. As a community-focused organisation, the Board of Directors, CEO and executive team are focused on confronting the real and pressing issue of diabetes in Western Sydney through partnering with Western Sydney Diabetes (WSD), part of the Western Sydney Local Health District, to create a whole of community approach.

“Thirteen per cent of adults living in the Western Sydney Local Health District have diabetes and 38% are at high risk of developing it,” Janine Dawson, Prevention Manager, WSD.

To effectively address this growing issue in the local community of Western Sydney, Workers Lifestyle Group has partnered with WSD to launch Western Sydney Changing Diabetes, a campaign aiming to increase diabetes detection, awareness, and prevention through a comprehensive approach. Workers Lifestyle Group has committed to investing $500,000 over five years.

The objectives were:

• Increasing awareness of diabetes and the risk of diabetes.

• Creating awareness on the opportunities for early detection and for prevention through lifestyle changes.

• Reduce type 2 diabetes in the community of Blacktown where it is currently prevalent.

• Create awareness that reducing weight by two kilograms, can decrease chance of diabetes by 30%.

• Highlight that diabetes creates health issues that are costly to the health structure and economic health, as well as disproportionally effects Aboriginal, Torres Strait, Pacific Island and Asian.

Key activities and events include:

• healthy interactive displays (shown at Diabetes stalls throughout Workers venues).

• cooking demonstrations (held at Workers Blacktown to inform, teach and train individuals on how to eat healthier).

• Diabetes Detection Program (events run by WSD at Workers Blacktown allowing participants to test for diabetes while simultaneously learning about diabetes, lifestyle choices that affect the likelihood of developing it and how to manage if developed).

• SiSU health-check stations (available at Workers venues at Blacktown, free to all members and guests) and;

• healthy menu options (with menu items inspired by CSIRO Diet & Lifestyle Books).

With diabetes being a prevalent issue in the local community of Western Sydney, the origin of Workers Lifestyle Group’s initiatives stems from equally being affected by the same issue plaguing our community. With staff, executive directors and board members having individual experiences with diabetes either

personally or through loved ones, it was an obvious and real issue that needed to be addressed.

From previous dealings with WSD, Workers Lifestyle Group had access to the tools and information to understand the magnitude of the issue within the local community, inspiring the decision to act.

Considering the high rate of diabetes in Western Sydney to be a serious health concern that required attention, Workers Lifestyle Group has taken it upon themselves to be proactive in promoting diabetes prevention and control. This is a contributing factor to the overall wellbeing of the local community of Blacktown and Western Sydney due to how diabetes can be a chronic condition, affecting the life of the neighbourhood and its residents. Workers Lifestyle Group seeks to increase awareness of diabetes, offer information and support, as well as opportunities for persons affected by diabetes to better manage their health and their quality of life through their “Western Sydney Changing Diabetes” campaign.

The “Western Sydney Changing Diabetes” campaign has improved the local community and infrastructure of the Western Sydney through its multi-armed strategy to raise awareness and combat the prevalent issue of diabetes. Through strategies such as the integration of the SiSU Health Machines and Diabetes Detection Program the campaign is achieving its goals of raising awareness and educating the local community.

Feedback from participants found their experiences to be both intriguing and informative. Provision of these facilities have created an environment for local individuals to stay updated on their level of personal health. In addition, the healthy cooking class demonstrations and CSIRO-inspired menu options have helped educate and normalise a healthy diet for the local community. These initiatives in tandem have created a central hotspot in Western Sydney where healthy living, mindfulness and choices have become a normalised and prioritised conversation, making a difference in addressing the issue of diabetes in Western Sydney.

CREATING RESILIENT KIDS AT WORKERS

Workers Lifestyle Group recognises that generational change is key to the future success of our community. We have invested to build resilience in our local kids as part of a sustained, long term effort by Workers Lifestyle Group to help our next generation manage the challenges that they may face with greater skills and confidence. By working to break the cycle of poverty and disadvantage that leads to issues with education and employment pathways.

Sudanese and South Sudanese school children who come from financially disadvantaged families. The lunch boxes will be provided to these children five days a week during the school term.

• Warrakirri College – multi-year funding of over $5,000 for their lunch program that supplies a nutritious lunch for students, many of whom come from socially disadvantaged background and need support through their learning.

• Youth Insearch – $9,956 for a program that provides 20 places for Blacktown at-risk young people (aged 14 to 20) in their Weekend Workshops. This starts their journey to overcome their mental health and social changes.

• Youth Sport – Workers Lifestyle Group supports children development through access to sports, in particular team sports (including soccer/football, baseball, rugby league) with over $1 million per year in funding and other support, including access to purpose built $30 million infrastructure.

The community partners that we have joined forces with through funding and fundraising include:

• Clontarf Foundation “helping young Aboriginal & Torres Straight Islanders men to attend school, finish Year 12 and enter employment” – a multi-year partnership, providing cash and in-kind support through employment assistance.

• Grace’s Place – over $200,000 raised over many years to help build a centre for children impacted by homicide and in honour of the late Anita Cobby and her mother, Grace. This centre has recently opened and commenced operations.

• BYSA – over $135,000 through multi-year ongoing partnership to assist BYSA (Blacktown Youth Services Association) to help this over 30-yearold not-for-profit remain open and continue to assist disadvantaged youths with the aim of breaking generational homelessness, poverty, and incarceration.

• Vardys Road Public School – $2,000 granted to supply and install laundry facilities to help the school provide change to underprivileged students who come to school in dirty uniforms due to their circumstances at home. Laundering their clothes helps them fit in and concentrate at school, while they can also send them home with a clean uniform.

• Kor-Hajer Youth Development Organisation – $8,000 granted for the School Lunch Box program which is staffed by volunteers to create lunch boxes full of nutritional food that is culturally acceptable to

• Blacktown North Public School (Learning Links Resilient Kids program) – $43,485 has been donated in 2022 to this very special program. Learning Links specialist childhood educators and psychologists are adopting a whole-community response to ensuring children from Blacktown North Public School who are at risk from or who have experienced trauma through Domestic Violence are supported through targeted child-centric and community interventions that will help them now and into the future.

This is about creating a ‘whole of community” approach.

It has grown organically from our involvement with youth sport, and ranging from the creation of the H.E Laybutt Sporting Reserve (a $30 million development) through to the donation of funds in 2022 to purchase laundry facilities at Vardys Road Public School.

Our approach is partnership based to extend over multiple years. We recognise that intergenerational change requires many years of time and support, and we work with organisations to offer that multiyear support, Workers Lifestyle Group are partners that are committed in creating sustainable change.

We are in an area that has a very diverse community – age, ethnicity, religious beliefs – there are more than 180 nationalities in Blacktown LGA. It is a fact that many of these CALD nationalities have been impacted by disadvantage and fall into a low socioeconomic bracket, making it difficult for their children to access education and employment pathways.

It is important to Workers Lifestyle Group to improve

It is important to Workers Lifestyle Group to improve the lives of the Blacktown community through assistance to children and youth and to work with various community partners to bring out intergenerational change. The aim of this change is to then break the cycle of poverty and disadvantage, which in turn improves the lives of people in our community and our members.

Support of children and youth often converges with other important aims of Workers Lifestyle Group, including bringing awareness to and helping to break the cycle of Domestic & Family Violence, which is a major issue in the Blacktown LGA.

Further to that, these programs have achieved the following:

• Giving children access to positive role models.

• Taught basic life skills and employment pathway.

• Access to food or other necessities through laundry facilities

• Access to counselling, therapy and other programs.

• Using sports as a community benefit for health and wellbeing.

RECONCILIATION ACTION PLAN

Workers Lifestyle Group have embarked on the Reflect stage of our Reconciliation Action Plan or RAP. The purpose of creating a RAP is to recognise and celebrate the history of Blacktown, to acknowledge the traditional owners of the land on which our clubs operate, the Darug people, and to ensure that we are actively working towards improving the lives of First Nations people in our community.

Indigenous culture has always been a part of the DNA of the Blacktown Workers Club, as evident with the original club logo that dates to our inception in the 1960s. Blacktown also has the largest urban Aboriginal and/ or Torres Strait Islander population in New South Wales with 9,530 people making up 2.6% of our population (2016 ABS Census).

Many of the key activities within the reflect stage of the RAP have involved celebrating our connection to the tradition owners through arts and culture.

In 2022, we conducted a branding relaunch to change the organisations logo to Workers Lifestyle Group and our club logos to a more modern Workers logo. In doing this, we maintained our original Blacktown Workers Club logo from 1961 which is an emblem that features an indigenous warrior, holding a spear in one hand and a boomerang in the other. The warrior has been depicted on a large sign as well as a sculpture. The origins of how the indigenous warrior came to be on a Workers Club logo has become an urban legend, with the story involving a real-life character in Blacktown in the early 50s. The legend goes that he was the first Aboriginal and/or Torres Strait Islander to be allowed to join the club and was a regular guest at a time when Aboriginal and/or Torres Strait Islanders were banned from entering clubs. Thus, the logo and sculpture were created in his honour.

Since May 2021, and now at all major events, including the Children’s Charity Christmas Party in 2022, we invite an elder to do the Welcome to Country, while other speakers do an Acknowledgement to Country whenever they are making a speech.

With the completion of the renovations at 55 Campbell Street, there were two Grand Opening Ceremonies held at different stages of completion from December 2021. In addition to the elder conducting the Welcome to Country, we invited the Nulungu Dreaming Dancers to perform a blessing dance as our acknowledgement of the traditional owners of the land on which our club is built.

We are also embracing art! We support the local Indigenous community through sponsorship of the Indigenous art prize at the Blacktown City Art Centre, and have done so for many years. Our administration area is decorated with legitimate Indigenous art from a local Darug artist, Leanne Watson. The collection features four artworks, and add to our collection of Indigenous art that commenced with our acquisition of artwork by well-known Blacktown treasure, Uncle Danny Eastwood that has been in our possession since the early 2000s. Within our Parklane Airbridge, we have installed an Indigenous artwork installation from local artist, Leanne Mulgo Watson in February 2023. The artwork covers the roof of the airbridge and provides members and guests with an immersive experience of the artwork. The installation also features the ‘story’ of both the artwork and the artist.

The project has developed organically since we commenced the RAP journey in January 2021. With the mindset focused on celebrating our history of Blacktown and of our flagship club, it become easy to identify opportunities to embrace the traditions of the original owners of the land.

The focus in 2023, is to have the RAP working group complete a RAP document that will be available for all to view. One aim is to continue to grow our collection of Indigenous and local artwork as the Board of Directors has committed funding to increase our collection. This collection will be available to view within our clubs as we aim to raise awareness amongst our community.

There has been an ongoing interest and enthusiasm throughout time to support Indigenous arts and culture as demonstrated by the acquisition of Uncle Danny’s painting. In the past few years, this interest has been developed into a Board level strategic initiative with the introduction of the RAP, the introduction of the Welcome to Country / Acknowledgement to Country at our events, as well as the funding support.

We are now allocating specific time, money and human resources to the development and implementation of the RAP. It is important to Workers Lifestyle Group to do this as one of our key values is to put people and community first, and this includes all parts of our community. The addition of these arts and cultural initiatives has had a positive impact on our staff, members, and local community.

OUR SPORTING BODIES

Workers Lifestyle Group owns and operates one of Australia’s largest privately owned sporting complexes at Workers Sports, along with more sporting facilities at Workers Blacktown and Workers Hubertus.

Our sporting facilities include:

• Rugby League fields with stadium seating

• Soccer / cricket fields with stadium seating

• Lawn bowling greens

• Pistol shooting range

• Table tennis

• Baseball fields

• Snooker

• Darts

• Indoor bowls

• Tennis courts

• Rifle range

• Lake for miniature boats.

The Board of Directors contribute over $1.8M annually to the support of local grassroots sport through the support of 29 sporting and leisure groups.

OUR COMMITMENT

ESG STATEMENT

Workers Lifestyle Group has commenced developing an environmental, social and governance (ESG) strategy to improve our corporate social responsibility. Workers Lifestyle Group recognises the importance of ESG considerations and the comprehensive strategy will maximise long-term performance of the group in an ethical and responsible manner. As the world becomes increasingly aware of environmental, social, and governance (ESG) factors, companies that prioritise sustainable practices are well-positioned for long-term success.

To achieve this goal, Workers Lifestyle Group has started conducting a thorough analysis of its operations, strategy and supply chain to identify areas where we can reduce our environmental impact, improve our membership engagement, community relationships and enhance governance practices. In addition to

Our

ESG Framework:

enhancing our own sustainability practices, Workers Lifestyle Group is also looking for ways to continue creating positive social and environmental impacts in our local area. For example, we are exploring the use of renewable energy sources to power our facilities, integrating ESG factors into new development projects, and increasing methods to be more energy-efficient and eco-friendly.

Workers Lifestyle Group will continue to engage with stakeholders, including employees, members, suppliers, the community we operate in, and customers we serve to better understand their expectations and concerns around sustainability over the coming year. Based on this research, we will develop a clear set of ESG goals and metrics to track our progress over time. The outcome of this work will be an annually published ESG Report to be produced in line with our Annual Report.

By considering applicable ESG factors in everything that we do, we aim to identify and address risks and create value, through the assessment of the factors:

GOVERNANCE CONSIDERATIONS

• Corporate governance and oversight

• Risk management

• Compliance

• Anti-money Laundering

• Conflict of Interest

• Transparency (including financial and operational reporting)

• Anti-bribery and anticorruption controls

• Social License to Operate

SOCIAL CONSIDERATIONS

• Diversity, equity and inclusion

• Human rights and modern slavery

• Employee health and safety

• Labour relations and practices

• Product quality and safety

• Reconciliation Action Plan

• Membership engagement and experience

• Community support (Audited value of $3m)

ENVIRONMENTAL CONSIDERATIONS

• Waste, water and energy

• Air pollution

• Energy management and efficiency

• Land use

• Climate risk

• Sustainable development practices (biodiversity conservation, material selection and construction methodology)

• Environmental rating (e.g. NABERS targets and Carbon Neutrality)

DIRECTORS’ REPORT

The Directors present their report together with the financial statements of Blacktown Workers Club Limited (the company) for the year ended 31 December 2022.

DIRECTORS

The Directors of the company in office at any time during or since the end of the financial year are:

Kay Kelly

Jack Miller

Terry O’Loughlin

Gary Callaghan

George Vella

Ange Humphries

Murray Searle

Brett Fielding

Paul Hayes

INFORMATION ON DIRECTORS

Kay Kelly – President

Club member since 1976. Awarded Club Life Membership. Proud existing President of Blacktown Workers Club Group. On all Club committees. Club delegate for Federation of Workers Clubs Holiday Units. CDI member. Very interested and proud of what the club does for our members and community. Together we can achieve results.

Since 1986 I have been founder/Director of successful promotions company which closed in Jan 2022. I am now retired. Thank you for your consideration.

Jack Miller - Senior Vice President

Club Member since 1976. Current Senior Vice President of Blacktown Workers Club Limited. Club Director 20102012, 2015 (appointed 29-Mar-2015) – present. Passionate about sporting bodies and Club business. 30 years’ management experience. Delegate to Sister City Committee at Blacktown City Council. Club-Grants Delegate. Member of Blacktown City Lions Club. Blacktown resident since 1975. Now retired.

Terry O’Loughlin - Junior Vice President

Life Member. Club Member since 1969. Club Director since 1994. Current Junior Vice President of Blacktown Workers Club Limited. Member of all sub-committees. Delegate to and member of the Executive of Federation of Workers Clubs Holiday units. House and Field Committee Chairman. Life Member of the BWC Golf Club. Now retired.

Gary Callaghan - Treasurer

Club Member since 1999. Club Director since 2012. Life Member of Blacktown Rugby League Football Club. Strong advocate for the continued growth of Sport in Clubs, Community and of Junior Rugby League since 2005. Member of the Audit, Risk & Compliance Committee. Member of the ClubsNSW Club Directors Institute.

DIRECTORS’ REPORT INFORMATION ON

George Vella

DIRECTORS (CONTINUED)

Director since 2016. Member of Blacktown Workers Club for over 36 years. Lived & worked in the Blacktown District since 1959. Managing Director of Breakaway Travel since 1977. Served in Committees ranging from Social Sporting Clubs & Businessman Associations. Sponsor of Sporting Clubs & Local Charities.

Ange Humphries

Director since April 2017. Member of the Australian Institute of Company Directors (AICD) and is passionate about corporate governance. Wants to ensure that club members facilities are robust, and the financial future of the Club is strong. Elected Councillor: City of Parramatta Council. NSW Justice of the Peace. Member of the Blacktown Workers Club Project Control Group. Responsible Service of Alcohol Accreditation and Responsible Gaming Accreditation.

Murray Searle

Club Member since 2014. Blacktown Workers Group Director since 2018, current Managing Director of Hospitality/ Consultancy companies, resident of Blacktown 57 years. Member of Risk & Audit Committee. Motivated to the growth and success of our great club.

Brett Fielding JP

60 years Blacktown resident, 39 years Club Membership Current Club Director, Justice of the Peace, Life member Workers Soccer Club. Semi-Retired partner in a legal company and previous Citizen of the Year Finalist. Strong community wellbeing interests and has helped raise over $400k for charity. Member of the Club Directors Institute.

Paul Hayes

Joined the Club in 1989 and lived in Blacktown for over 30 years. I have worked for over 43 years in the communications and construction industries on major projects. Proud member and supporter of many sporting groups. Life member and President of Workers Men’s Golf Club. Member of the Club Directors Institute. Successfully completed Finance for Clubs Boards and Director Foundation and Management Collaboration courses. Honoured to be a Director of our Club that gives back to our local sporting bodies and community charities while continuing to diversify.

DIRECTORS’ REPORT

DIRECTORS’ MEETINGS

The number of committee meetings the club’s Board of Directors (the Board) held during the year ended 31 December 2022 and the number of committee meetings attended by each director were:

* Other meetings include committee meetings to which not all directors are eligible to attend.

DIRECTORS’ REPORT MEMBERSHIP

The company is a company limited by guarantee and is without share capital. The number of members as at 31 December 2022 and the comparison with last year is as follows:

MEMBERS’ LIMITED LIABILITY

In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time that he or she is a member or within one year thereafter. The total liability in the event of winding up is $107,128 (2021: $94,462).

OPERATING RESULT

The table below shows a reconciliation of Blacktown Workers Club Limited earnings before interest, income tax, depreciation, amortisation, gains and impairment losses. This is referred to as EBITDA.

DIRECTORS’ REPORT OBJECTIVES

The objectives for which the company is established are to provide for members and for members’ guests a social and sporting Club with all the usual facilities of a Club, to look after the members in every possible way by providing service, comfort, entertainment, good food and a wide range of facilities to cater for every age group, and to give the community a significant proportion of the Club’s profits in support of various charities and community organisations.

Short term

• Maintain membership numbers and increase attendance at all premises

• Improve the experience of members using the Club facilities

• Improve profitability and efficiency of Club operations

• Increase cash reserves of the Club

• Maintain level of community support funding

Long term

• Diversify income streams

• Maintain financial stability of the Club

• Ensure facilities continue to cater for members’ needs

• Increase efficiency of energy consumption

STRATEGY FOR ACHIEVING THE OBJECTIVES

• Research on members’ preferences for facilities and services

• Review promotional activity conducted in the Club

• Evaluate operational procedures and staff training

• Install monitoring equipment and solar energy generation plant

• Investigate alternatives for producing income from non-traditional sources

PRINCIPAL ACTIVITIES

The principal activities of the company during the course of the financial year consisted of the conduct and promotion of licensed social and sporting Clubs, and the provision of sporting and recreation facilities to members of the company.

HOW THESE ACTIVITIES ASSIST IN ACHIEVING THE OBJECTIVES

The principal activities of the company contributed to achieving the objectives by providing a stable base of operations. This ensured the financial position of the company remained stable and generated funds to meet the demands of the company and maintain high levels of service to members and guests.

DIRECTORS’ REPORT

PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS

The financial performance of the Club is measured against the budget set and benchmark data from the Club industry. Some of the criteria reported on are:

• Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA)

• Per Capita Spend

• Gross Profit Margins

• Expense Ratios and Analysis

• Cash Flow

Non-financial performance is assessed by a variety of measures including:

• Mystery shoppers

• Members’ feedback

• Staff turnover

• Comparison with industry wide initiatives

• Market research

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 40.

Signed in accordance with a resolution of the Directors.

Dated at Blacktown this 28th day of February 2023.

Kay Kelly President

Tel: +61 2 9251 4100

Fax: +61 2 9240 9821 www.bdo.com.au

Level 11, 1 Margaret St

Sydney NSW 2000 Australia

DECLARATION OF INDEPENDENCE BY CLAYTON EVELEIGH TO THE DIRECTORS OF BLACKTOWN WORKERS CLUB LIMITED

As lead auditor of Blacktown Workers Club Limited for the year ended 31 December 2022, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

2. No contraventions of any applicable code of professional conduct in relation to the audit.

Clayton Eveleigh Director

BDO Audit Pty Ltd

Sydney

28 February 2023

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

INDEPENDENT AUDITOR’S REPORT

To the members of Blacktown Workers Club Limited

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

Opinion

We have audited the financial report of Blacktown Workers Club Limited (the Company), which comprises the statement of financial position as at 31 December 2022, the statement of profit or loss and other comprehensive income, the statement of changes in members’ funds and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion the accompanying financial report of Blacktown Workers Club Limited, is in accordance with the Corporations Act 2001, including:

i. Giving a true and fair view of the Company’s financial position as at 31 December 2022 and of its financial performance for the year ended on that date; and

ii. Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the Directors’ report, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Simplified Disclosures and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor’s report.

BDO Audit Pty Ltd

DIRECTORS’ DECLARATION

The Directors of Blacktown Workers Club Limited declare that:

a. In the Directors’ opinion the financial statements and notes set out on pages 40 to 61 , are in accordance with the Corporations Act 2001, including:

i. Giving a true and fair view of the company’s financial position as at 31 December 2022 and of its performance, for the financial year ended on that date; and

ii. Complying with Australian Accounting Standards – Simplified Disclosures and Corporations Regulations 2001

b. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors.

Dated at Blacktown this 28th day of February 2023.

Kay Kelly President

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Year Ended 31 December 2022

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 48 to 66.

STATEMENT OF FINANCIAL POSITION

As at 31 December 2022

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 48 to 66.

STATEMENT OF CHANGES IN MEMBERS’ FUNDS

For the Year Ended 31 December 2022

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 48 to 66.

STATEMENT OF CASH FLOWS

For the Year Ended 31 December 2022

Note 2022 $ 2021 $ Cash Flows From Operating Activities

The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 48 to 66.

NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended 31 December 2022

ABOUT THIS REPORT

Blacktown Workers Club Limited is a company limited by guarantee, incorporated and domiciled in Australia and is a non-for-profit entity for the purposes of preparing the financial statements. The financial statements are for Blacktown Workers Club Limited as a standalone legal entity.

The financial statements were approved for issue by the Directors on 28 February 2023.

The financial statements are general purpose financial statements which:

• Have been prepared in accordance with the requirements of the Corporations Act 2001 and Australia Accounting Standards – Simplified Disclosures of the Australia Accounting Standards Board (AASB);

• Have been prepared under the historical cost convention;

• Are presented in Australian dollars;

• Where necessary comparative information has been restated to conform with changes in presentation in the current year; and

• Have been prepared on a going concern basis.

New or amended Accounting Standards and Interpretations adopted

The Company has adopted all new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the company:

AASB 1060 General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

The company has adopted AASB 1060 from 1 January 2022. The standard provides a new Tier 2 reporting framework with simplified disclosures that are based on the requirements of AASB. The adoption of this standard has not had a significant impact on the Company’s financial statements.

Critical accounting judgements, estimates and assumptions

In the process of applying the company’s accounting policies, management has made a number of judgements and applied estimates of future events. Judgements and estimates that are material to the financial statements include:

Estimation of useful lives of assets Note 2 (i) Recoverability of intangible assets Note 6 (i) Long service leave provision Note 8 Mortality fund provision Note 9 (i)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

1. REVENUE AND OTHER INCOME

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

1. REVENUE AND OTHER INCOME (CONTINUED)

Revenue recognition

Revenues are recognised at fair value of the consideration received or receivable net of the amount of goods and services tax (GST) payable to the taxation authority. Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as revenues.

Sale of goods

Revenue from the sale of goods comprises of revenue earned from the provision of food, beverage and other goods and is recognised (net of rebates, returns, discounts and other allowances) at a point in time when the performance obligation is satisfied that is on delivery of goods to the customer.

Rendering of services

Revenue from rendering services comprises revenue from gaming facilities together with other services to members and other patrons of the club and is recognised at a point in time when the services are provided.

Interest revenue

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument.

Rent revenue

Rent revenue is recognised on a straight-line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are recognised as income in the period when earned.

Other income

Other revenue is recognised when it is received or when the right to receive payment is established.

Government grants

During the year, the company received $42,602 (2021: $1,192,845) from JobSaver support payments from the Australian Government, to support the maintenance of the employee headcount. These have been recognised as government grants in the financial statements and recorded as other income over the periods in which the related employee benefits are recognised as an expense.

Sale of non-current assets

The gain or loss on disposal of property, plant and equipment is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal (including incidental costs) and is recognised as other income at the date control of the asset passes to the buyer.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

2. EXPENSES

Profit before income tax including the following specific expenses:

Significant judgements

i. Estimation of useful lives of assets

The company 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.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

3. INCOME TAX

a. Income tax expense

The Income Tax Assessment Act, 1997 (amended) provides that under the concept of mutuality Clubs are only liable for income tax on income derived from non-members and from outside entities.

The amount set aside for income tax in the Statement of Profit or Loss and Other Comprehensive Income has been calculated as follows:

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2021

3. INCOME TAX (CONTINUED)

(c) Deferred tax assets

The balance comprises temporary differences attributable to:

Recognition and measurement

The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and the adjustment recognised for prior periods, where applicable.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entity’s which intend to settle the claim simultaneously.

Mutuality Principle

The company calculates its income in accordance with the mutuality principle which excludes from income, any amounts of subscriptions and contributions from members, and payments received from members for particular services provided by the Club or association, e.g. poker machines, bar and dining room service in the case of social Clubs. The Commissioner of Taxation accepts this method of calculating income as appropriate for recognised Clubs and associations.

Amendments to the Income Tax Assessment Act 1997 ensure social Clubs continue not to be taxed on receipts from contributions and payments received from members.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

4. FINANCIAL ASSETS

Recognition and measurement

The company holds an investment in Clubs4Fun Pty Ltd, held for the purpose of capital appreciation and future access to software currently being developed by Clubs4Fun Pty Ltd. This investment has been initially measured at fair value.

Term deposits are financial instruments in highly liquid markets, held until maturity. Maturity is in excess of 3 months.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

5. PROPERTY, PLANT AND EQUIPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Valuation

An independent valuation by Global Valuation Services Pty Limited of the company’s land and buildings was carried out on 30 November 2020 on the basis of open market value for existing use resulted in a valuation of $166,600,000. As the properties are recorded at cost the valuation has not been brought to account. The directors do not believe that there has been a material movement in the fair value since the valuation.

Reconciliations

Movements in Carrying Amounts

Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year are set out below:

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

(continued)

The land holdings of Blacktown Workers Club Limited are classified as either core or non-core properties, as listed below:

Core Properties

• Workers Blacktown Club premises, air-bridge and airspace at 55 Campbell Street, Blacktown

• Multi-storey car park at Colo Lane, Blacktown

• Workers Sports Club premises and car park and sporting facilities at 170 Reservoir Road, Blacktown excluding part of the land comprised in certificate of title 201/880404 held as non-core property per page 58

• Hubertus Club premises at Adams Road, Luddenham

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Non-core Properties

• Sporting Fields at Walters Road, Blacktown

• Open carpark at 40-44 Campbell Street, Blacktown

• 34 Campbell Street, Blacktown

• 52 Campbell Street, Blacktown

• Part of the land comprised in certificate of title 201/880404 known as 170 Reservoir Road Blacktown NSW

Recognition and measurement

All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred.

Useful lives are estimated as follows:

Buildings

Plant and Equipment

40 years

5-15 years

Poker Machines 4-5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial Position date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the profit or loss.

Capital works in progress are the cost incurred to date for capital projects that are underway at reporting date. Capital works in progress are not depreciated until they are ready for use and allocated to the appropriate asset category.

Impairment of 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 to sell 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.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

6. INTANGIBLE ASSETS

Licences

The amount represents the costs incurred in acquiring licences at certain holiday units in Sussex Inlet, Fingal Bay and Urunga.

Recognition and measurement

Poker machine entitlements

Poker machine entitlements are considered to be intangible assets with an indefinite life as there is no set term for holding the entitlements. As a result the entitlements are not subject to amortisation. Instead, poker machine entitlements are tested for impairment annually and are carried at cost less accumulated impairment losses. Poker machine entitlements are not considered to have an active market, hence the fair value is calculated using the value in use method based on management’s 5 year forecasts.

Licences to occupy holiday units

Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.

Significant judgements

i. Recovery of intangible assets

Impairment of poker machine entitlements and licenses to occupy holiday units is recognised based on a value in use calculation and is measured at the present value of the estimated future cash inflows available to the company from the use of these licenses. In determining the present value of the cash inflows, assumptions regarding growth rates and appropriate discount factors have been applied to the cash flows.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

7. TRADE AND OTHER PAYABLES

Recognition and measurement

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

8. EMPLOYEE BENEFITS

The present value of employee benefits not expected to be settled within 12 months of reporting date have been calculated using the following weighted averages:

Significant judgements

Long service leave provision

The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect to 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.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

8. EMPLOYEE BENEFITS (CONTINUED)

Recognition and measurement

Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave are recognised in other payables with respect to employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Long service leave

The provision for employee benefits relating to long service leave represents the present value of the estimated future cash outflows to be made resulting from employees’ services provided to reporting date.

The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the market yields on national government bonds at reporting date which most closely match the terms of maturity with the expected timing of cash flows. The unwinding of the discount is treated as long service leave expense.

Superannuation plan

The company contributes to several defined contribution superannuation plans. Contributions are recognised as an expense as they are made. The company has no legal or constructive obligation to fund any deficit.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

9. PROVISIONS

Recognition and measurement

The valuation of the mortality fund liability was performed by Professional Financial Solutions Pty Ltd as at 31 December 2020. The Fund’s liability is calculated for the death benefit of an average of 15 years discounted at 2%. The Fund is a closed fund. Per the charter, a valuation is required every 5 years. The current portion of the liability relates to estimated payouts within 12 months from the balance date.

Significant judgements

i. Mortality fund provision

A mortality fund provision is recognised based on the estimated future cash outflows to members of the mortality fund. The provision is based on the maximum amount payable on the death of a member. The maximum amount payable is determined by the company’s constitution. In determining the present value of the liability estimates are used to determine investment returns, estimates of mortality rates and lapse rates.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

10. INCOME RECEIVED IN ADVANCE

Membership

Income received in advance from membership represents the company’s obligation to transfer membership services to members and is recognised when a customer pays consideration, or when the company recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the company has transferred the services to the member.

Customer loyalty program

The company operates a loyalty reward program where customers accumulated points for dollars spent. The reward points are recognised as a separately identifiable component of the initial sale transaction, by allocating the fair value of the consideration received between the reward points and the other components of the sale, such that the reward points are recognised at their fair value. Revenue from the reward points is recognised when the points are redeemed. The amount of revenue is based on the number of points redeemed relative to the total number expected to be redeemed.

11. COMMITMENTS

Capital Expenditure Commitments

Buildings

Contracted but not provided for and payable: Within one year

$

Capital expenditure commitments are comprised of ongoing contracted projects pertaining to refurbishments to the Main Club and site plans for the Hubertus Country Club.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

12. KEY MANAGEMENT PERSONNEL DETAILS

a. Directors

The following persons were non-executive Directors of the company during the financial year:

Kay Kelly

Jack Miller

Terry O’Loughlin

Gary Callaghan

George Vella

Ange Humphries

Murray Searle

Brett Fielding

Paul Hayes

b. Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly during the 2022 financial year:

Name Position

Morgan Stewart

Cindy Feng

John Mizzi

Simon Graham

Shelley Fletcher

Alison Brown

Group Chief Executive Officer / Company Secretary

Executive Manager, Finance (Appointed on 7 November 2022)

Executive Manager, Finance (Resigned on 23 September 2022)

Executive Manager, Community & Government Relations (Appointed on 1 January 2022)

Executive Manager, People & Culture

Executive Manager, Marketing & Communications

c. Key management personnel compensation

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

13. RELATED PARTIES Key Management Personnel

Disclosures relating to key management personnel are set out in note 12.

Directors’ transactions with the company

No Director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving Directors’ interests subsisting at year end.

14. COMPANY DETAILS

The Club is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time that he is a member or within one year thereafter. At 31 December 2022 there were 53,564 members.

The registered office of the company is 55 Campbell Street, Blacktown NSW 2148.

15. EVENTS SUBSEQUENT TO REPORTING DATE

There are no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.

16. REMUNERATION OF AUDITORS

During the financial year the following fees were paid or payable for services provided by BDO Audit Pty Ltd, the auditor of the company:

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended 31 December 2022

17. SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES

a. 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.

b. Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part the expense.

Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as a current asset or liability in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office.

c. Trade and other receivables

Trade debtors and other receivables represent the principal amounts due at reporting date plus accrued interest and less, where applicable, any unearned income and provisions for doubtful accounts, including expected credit losses, as per AASB 9.

d. Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs.

e. Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets such as trading and available-for-sale securities is based on quoted market prices at the Statement of Financial Position date. The quoted market price used for financial assets held by the company is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.