SPASA Annual Report 2023

Swimming Pool & Spa Association

Welcome

to the 2023 Annual General Report for the Swimming Pool & Spa Association of Australia Ltd (SPASA) and its subsidiaries forming the SPASA Group.

SPASA proudly stands as a member-driven entity committed to educating individuals and propelling the growth of the pool, spa, and outdoor lifestyle sectors.

Throughout 2023, SPASA affirmed its position as the foremost nonprofit organisation for all stakeholders in the swimming pool and spa industry including leading manufacturers, suppliers, retailers, consultants, pool builders and technicians, subcontractors, installers, and associated allied professions/ trades.

Our advocacy, member support and comprehensive training initiatives SPASA provides are promoted via a multitude of events and strategic media endeavours which all converge on SPASA’s central mission: to enhance community well-being by promoting the enjoyable health benefits of swimming pools and spas.

Purpose

Mission

To promote, protect and grow the swimming pool, spa and outdoor lifestyle industry.

Pillars

People

We empower and develop our members through improved skills and knowledge.

Promotion

We promote the professional trade of delivering exceptional products to improve the health and wellness of the community.

Representation

We advocate for responsible outcomes for members and consumers at all levels of government and internationally.

Services

We provide exclusive products, services, and networking opportunities to all sectors of the industry.

Support

We consistently strive to improve our corporate structure for effectiveness and efficiency.

Values

Accountability

We respect the trust placed in us by our members and stakeholders.

Courage

We adapt, evolve and provide a positive experience with the aim to exceed expectations.

Integrity

We provide reliable and honest support and services.

Service

Putting people first, our objectives are delivered with benefits to our members, industry and the community.

Sustainability

We are responsible financially, environmentally and socially, providing benefits as a well governed not-for-profit Association.

Board of Directors

Peter Zukowski Managing Director, PJ Pools & Spas

Tom Boadle Managing Director, Ripple Pools

Anthony Cross CEO, Compass Pools Australia

Anthony Grice CEO, Clark Rubber

Steven Humphris Managing Director, Focus Products

Stefan Ossenberg SPASA Board Chairperson Owner, R&R Solutions

Lynley Papineau Executive Director, Aquatic Leisure Technologies

Jacque Patterson Business Owner/ Managing Director, Narellan Pools (Waikato & Taupo, NZ)

Andrew Pullen Vortex Leisure Spa World

Chairperson Report

I am honoured to be reporting on this year of achievement for the Association. We celebrate the eleventh full calendar year since the establishment of SPASA Australia, and the seventh calendar year since evolving into a National peak body with the merger of the regions NSW, ACT, SA, QLD and the SPRAA.

In 2023 we were excited to welcome SPASA Western Australia members who joined (as of 1 January) and SPASA Victoria (Master Pool Builders Association Australia) who merged into SPASA Australia on 1 October 2023. This completed the one united peak industry body journey that so many Directors, members and staff have dedicated years to achieve.

This year has been a difficult transition from the prior two years with all events now back up and running, along with a construction industry with a full pipeline. Due to a solid strategy, dedicated contributions of my fellow Board members and our dynamic team, this report highlights the organisation’s achievements over the past year as we continued to deliver a wide range of member services, support and achievements to the Australasian community.

I thank our Board, Management Team and employees for their time, energy and dedication during the past year, and for the expertise they each bring to overseeing SPASA’s activities. SPASA has seen its fair share of challenges.

Along with delivering expos, awards and meeting the dayto-day demands, the SPASA team continued deliver on our Strategic priorities – exclusive member services, research and education (to develop professionals in our industry), advocacy, promotion of our members businesses and consistent improvement as a peak body.

A new CRM was implemented to improve data collection and retention, as well as new member focused platforms (with the Aircall phone system and portal) and Scoop Community forum. Several of our team found new opportunities to explore, and we wish them the very best.

Training continued to play a key role in growing the professional trade network with hundreds completing the Certificate IV in Swimming Pool Building, and the Certificate III in Pool and Spa Service. Our registered training organisation the Institute of Research and Learning continues to see investment by SPASA in content development, services and trainers who are supporting the ever-increasing number of future trade professionals seeking national recognised qualifications.

Pool & Spa Lifestyle Expos in Adelaide, Melbourne Sydney, Perth & Brisbane had mixed results regarding attendance, highlighting the economy and consumer confidence is varied in some regions. Our exhibitors however provided positive feedback which reinforced SPASAs marketing strategy: ‘to increase the aspiration for the ownership of pools and spas’.

Advocacy remained at the forefront with local council issues, state government reforms and national legislation and standards all receiving multiple tiers of SPASA lobbying across both Australia and New Zealand. SPASA continues to advocate for better standards across the pool and spa industry and be recognised as a forerunner in delivering important health and safety benefits to the community.

I extend my appreciation on behalf of the Board for Lindsay and the SPASA team’s tireless and unwavering commitment to leadership in our industry. Congratulations to all industry members who continue to collaborate and improve the Pool Spa and Lifestyle industry, we look forward to your continuing participation in 2024.

Stefan Ossenberg Chairperson, SPASA Board

Message from the Audit & Finance Advisory Committee

It is my pleasure to submit to members the 2023 calendar year consolidated financial update of the Swimming Pool & Spa Association of Australia Ltd (SPASA).

The SPASA Group has grown during 2023 due to organic growth, mergers and acquisitions. The group now consists of seven entities and SPASA reports all entities in a consolidated manner.

Revenue had a few significant impactful events with addition of an Expo in Perth and a joint summer Expo in Melbourne. These events helped keep the revenue similar to the prior year, despite the biannual trade Expo SPLASH! being in its by-year. With no pandemic restrictions, all consumer Expos had the opportunity to be held supporting further industry growth.

Membership revenue saw an increase in income (18%) which was bolstered by the Western Australian organisation joining SPASA. Membership fees represent slightly under 17% of the total annual income, and is part of an income diversification strategy which continues to be adopted by the Board to include acquisitions, amalgamations, and regional product and services expansions.

SPASA continues to invest in its people to further increase benefits to members while asset building brands, products and services (including education and training). Replacement of lost staff during covid, moving some editor and trainers from contractors to staff and the inclusion of the Western Australian and Victorian teams, saw a substantial increase in employee costs compared to 2022.

The Association’s external Auditors – William Buck Accountants and Advisors – conducted the Audit Report for the year ending 31 December 2023, the highlights of which are:

Return on members’ funds with a net margin of 3.4% and a surplus of $278,187.00;

Reduction in total event income by $431,000.00 over the prior year;

Research & education investment continues with the Institute of Research and Learning Registered Training Organisation subsidiary – increasing staff levels to improve the volume and value of the content provided to students and members;

Balance sheet continues to improve with a Net Asset and Equity base of $8,982,591.00;

Professional fees from revenue generated in areas separate to membership and events (including training and media brands) increased by $197,000.00; and

Membership revenue reflected the new applications, increasing for the 7th consecutive year over 2022.

SPASA continues to focus on building a strong, sustainable financial position for the long-term support in the protection and promotion of member businesses.

It has been a pleasure to see the Association continue to grow and on behalf of the Finance, Audit and Compliance Committee (including Anthony Cross and Steven Humphris) I would like to take this opportunity to thank Paul Kimber (SPASA Finance Manager), Lindsay and the whole SPASA team for a year of investment in people and the foundation achieved for the future of the Association, members and industry as a whole.

Tom Boadle Audit

& Finance Committee Chairperson

Message from the CEO 2023 in Review

2023 was an exciting and inspiring year for us at SPASA. Our dedication and hard work have enabled us to build one of the most innovative and professional Associations in Australasia.

This year thanks to the leadership, passion and rigour of our teams, and our strong operational execution, we achieved our investment year - completing a 12-year journey from the creation of SPASA Australia to a single national body. We focused on diligently completing strategic acquisitions which welcomed new employees including Master Pool Builders, Australian Leisure Management and merging SPASA WA into the national body. They have strengthened our foothold and boosted our capabilities in key Australian markets. Diversification of our services and seizing market opportunities has fuelled our ability to consistently update our offering to members and their ever changing needs.

The impact of the aquatics commercial sector on our members has been a focus. The standards and regulations that impact large aquatic facilities flow down to the tens of thousands of smaller commercial pools that our members build and service daily. On 4 December 2023 SPASA invested in the industry magazine Australasian Leisure Management owned by Australian Leisure Media Pty Ltd. The intent of this acquisition was to further add value to our sector and membership (by utilising the learnings from previous media acquisitions with SPLASH, Pool & Spa and Aqua). We are excited about how this new brand can develop and support this growing industry.

The Swimming Pool & Spa Association is steadfast in our commitment to driving collaboration within the sector, presenting a united front in our advocacy efforts. Our adoption of a proactive and strategic approach over the last 12 months has positioned SPASA’s RTO IRLearning as the leader in the industry. This, in turn, has led to greater collaboration with government and standard committees so that we can implement practical solutions to benefit our industry members.

Together with our members we showcase our collective enhancement of the Swimming Pool, Spa and Outdoor lifestyle industries. We remain steadfast in our efforts to create a more sustainable future for our teams, our members, our communities and the industry as a whole. We enter 2024 with renewed optimism and determination, and trust in our ability to develop solutions to deliver on our Associations purpose.

SPASA also ranked number 58 in the Australian Financial Reviews Fast 100 List for 2023, named a finalist in the Association Forum Awards 2023 (Association of the Year, Association Turnaround of 2023, Association External Campaign of the Year Awards), named an SA Community Achievement Awards Finalist for Customer Service, and a Melbourne Business Network Awards Finalist in the Leadership Award category.

I wish to extend my sincere thanks to our members, employees, Board members and industry stakeholders for their ongoing confidence in our shared mission.

Lindsay McGrath Chief Executive Officer,

SPASA

Partnerships

Our partnerships go from strength-to-strength, delivering more options for our members to save time and money for their businesses whilst supporting the organisations that support SPASA.

SPASA could not deliver the volume and value of services without our partners that commit to all of our member events. We thank each and every one.

SPASA partners with a diverse range of suppliers to support our members.

Thank you to each of these service providers for offering extra value to the SPASA Membership:

Business Management

› HR Anywhere

› McDonaldHR (NZ)

› Podium

› Pool Site Quote

› ProTrade United

› Uprise

› Business Solutions Hub

› DELL

› Snorkel Software

› IndiHub

Education & Training

› IRLearning

Finance Services

› AB Phillips

› Handypay

› Payright

› Westpac

Insurance Services

› AB Phillips

› Runacres Insurance (NZ)

› Westfund Health Insurance

Vehicle Expenses

› AutoTender

› Caltex StarCard

› Hyundai Fleet Advantage

› Legal & Regulatory Services

Construct Law Group

Marketing Excellence and Member engagement to transform communities

As the Chief Operating Officer it is my pleasure to report on a remarkable year at SPASA.

Our organisation has re-iterated and evolved as required and overcome many economic challenges thrown at our member businesses over the past three years. In 2023, SPASA is now considered the peak body industry that directly impacts the Pool Spa and Lifestyle industry.

In 2023 SPASA’s Events and Marketing Team remained focused on platform preparation to promote our members and increase pool and spa ownership. I have a saying, “you are only as good as the people around you” and the SPASA Events and Marketing team is full of talent with a can-do attitude.

Credit goes to SPLASH!

Magazine Media & Sales

Manager David Stennett for ushering the www.splash.online Magazine to its 15Oth Issue, attracting readership from every sector and region across the industry. The SPLASH! website alone saw 41.6 million brand impressions, 38,500 ‘click throughs’, 6 online magazines and 26 industry podcasts promoting SPASA members. A true testament to the many hours spent strategising and implementing.

Our dynamic Operation & Events Coordinator Keeta Scown continued to oversee our State & National SPASA Award Events and Expos. Attendance was at the highest our Association has ever seen and the professional delivery of the events has set a new standard in the celebrating our industry professionals. Thank you to Keeta for site induction training and mentoring all exhibitor support staff at our events.

SPASA’s Pool & Spa Brand Manager Daena Bougoure-Latchford continued 2023 with a competitive focus and drive progressing the Pool & Spa Expos and the Australia’s Best Pools TV Program for all consumers. Our Expos were once again at capacity with over 20 thousand consumers attending across the various states, and the Pool & Spa brand expanded with a partnership with the Home Shows resulting in a further 7 consumer expos to the annual roster. Linking directly into the production of our Australia’s Best Pools TV Program, Members and Award winners reached new audience members for a second season through showcasing products and featuring their business on television.

Our Regional Managers put their boots on the ground and implemented SPASAs membership strategy – to engage face to face with members, care for current member businesses and recruit new organisations to our Association. Their efforts resulted in more member events, end of year informal gatherings and an 18.7% increase in new memberships. I commend Rebecca Smith (WA, SA, NT), Anna Kraulis (QLD, NSW, VIC), Terry Mwase (Corporate Support) and Michelle Marks (NZ) on their determination and perseverance in the promotion of SPASAs member offerings, and the time dedicated to genuine engagement with each of our members.

Joining us in 2023 to bolster our Marketing and Communications team: Sabrina McGrath in her role as Social & Content Executive further strengthened our social and content capabilities, ensuring that all SPASA brands are reflected in a positive light, along with our brand-new Head of Content, Dannielle Furness, who hit the ground running and refined SPASA’s publication processes.

With the Acquisition of the Australasian Leisure Management Magazine, Master Pool Builders and the initial stages of development of the poolquotes.com.au and spaquotes.com.au websites, we truly intend to promote a better, healthier and happier lifestyle through pool and spa ownership.

Our Team enters 2024 with a creative and targeted approach to achieving our Boards strategic goals. We will continue to produce efficient, productive and effective outcomes for our Association.

Luke Daly Chief Operating Officer, SPASA

Research & Education

Developing Industry professionals and facilitating diverse career pathways

IIn 2023 IRLearning continues to distinguish itself as the leader for technical and professional qualifications, providing training and assessment to the Swimming Pool and Spa industry. This year we have recruited a high performing team with a culture of compliance and professional development to continue to nurture our member and supplier relationships.

Our new courses have been curated in consultation with key industry stakeholders, employers and the wider community. A special thank you to Rachel Bambry (RTO Manager) and Spiros Dassakis for your efforts to bring in the new Certificate IV in Swimming Pool And Spa Building that will provide the foundation for industry for generations to come. Qualifications have been transitioned into our new online format, improving both the learning experience and Trainer assessment protocols.

Working with State Government we have developed specific courses to align with regulatory requirements including pool barrier inspectors, swimming pool construction license streams, Service Technician and Aquatic Technical Operator. We aim to ensure that the forecasted increase in workforce demand is underpinned by swimming pool and spa qualifications that are enticing to the next generation.

Continued growth over 2024 will be delivered from the introduction of new training products contextualised to these markets such as Retail, Landscape Construction and the Aquatic Technical Operator Course. I look forward to this coming year as we continue to support the growth of the industry with qualification streams that support requirements across Australia.

Wendy Donaldson General Manager, IRLearning

Message from the Chief Policy Officer

Member Advocacy Support, Success and Services

Advocacy & Policy

In 2023 advice for our members, customers and stakeholders on complex policy and matters continued to be a key focus for the Association. Strong industry connections remain fundamental to our deliverables in construction policy, industry skills and training, and building codes and standards. Our team regularly engage with businesses, organisations and governments to examine, and raise awareness of pressing issues impacting the swimming pool and spa industry on a regional, state and national level. In 2023 SPASAs advocacy efforts included the following:

Australian Standards

Standard

NZS 1838: Swimming pools – Premoulded fibre-reinforced plastics – Design and fabrication

NZS 1839: Swimming pools – Premoulded fibre-reinforced plastics – Installation

AS 1926.1: Swimming Pool Safety – Fencing for Swimming Pools

AS 3958: Installation of ceramic and stone tiles

AS 2783: Use of reinforced concrete for small swimming pools

AS 3633: Private Swimming Pools – Water Quality

AS/NZS 4755.3.2: Demand response capabilities and supporting technologies for electrical products, Part 3.2: Interaction of demand response enabling devices and electrical products – Operational instructions and connections for devices controlling swimming pool pump-units

Status

NZ Project Approved to commence Mid 2024. Proponent: SPASA

NZ Project Approved to commence Mid 2024. Proponent: SPASA

Draft new Standard completed and awaiting publication. Proponent: SPASA

Project completed and standard published

Project commenced and work is in progress. Proponent: SPASA

Project approved to commence mid-2024. Proponent: SPASA

Standard being reviewed.

National Advocacy

› National Construction Code (NCC)

› Australian and New Zealand Standard Classification of Occupations Codes (ANZSCO)

› Unfair Contract Terms – Building Contracts

› GEMS pool pump regulations

› Nationwide House Energy Rating Scheme (NatHERS)

Local Advocacy

Queensland

› Consultation on minor legislative amendments to transfer responsibility for prescribing technical qualification requirements across all QBCC licensees

› Temporary Fencing requirements for swimming pools and spas

› Electrical Equipment Safety System – Stakeholder Reference Group

› QBCC Engagement

New South Wales

› D raft NSW Guidelines for Public Swimming Pools and Spa Pools

› D raft Pool Operator Handbook

› Review of the NSW Protection of the Environment Operations

› Home Building Compensation Insurance Guidelines

› NSW Fair Trading Engagement

Australian Capital Territory

› ACT Home Swimming Pool Safety Reforms

› ACT Pool Barrier Course Outline

› Temporary Fencing requirements for swimming pools and spas

› Environment, Planning and Sustainable Development Directorate Engagement

Victoria

› Banning of Gas in New Housing

› Continuing Professional Development (CPD) Reforms

› Swimming pool amendment regulations

› Temporary Fencing requirements for swimming pools and spas

› VBA Engagement

Tasmania

› Consumer, Building and Occupational Services Engagement

› Tasmanian Planning Reform

› Homes Tasmania Bill

South Australia

› Building Indemnity Insurance Review

› Licensing reforms for industry

› Temporary Fencing requirements for swimming pools and spas

› Planning, Development and Infrastructure (Accredited Professionals)

› (Miscellaneous) Amendment Regulations

Western Australia

› G rout injection Publication

› Temporary Fencing requirements for swimming pools and spas

› Private Swimming Pool Technical Advisory Group

› Building Amendment Regulations

› WA Pool Cover requirements under the National Construction Code

› Rules for Pools and Spas

Northern Territory

› Building reforms

› Temporary Fencing requirements for swimming pools and spas

Spiros Dassakis Chief Policy Officer

Member Advocacy Support, Success and Services, continued...

Membership

SPASA’s membership numbers have grown steadily over the year, and by the end of 2023 SPASA has 1,742 organisational members across Australia and New Zealand.

Our membership now stands at an all-time high, reflecting the trust and value our members place in SPASA.

This year has been a testament to our resilience, adaptability, and dedication to promoting, growing and protecting the swimming pool and spa industry across Australia and New Zealand.

Membership growth is the result of strategic focus and careful attention to a whole range of benefits and services which requires consistent effort at every level of your association.

Our strength demonstrates the recognition of SPASA as the peak industry body.

Sustainability

Sustainability offers numerous advantages to businesses. It enables cost reductions through improved efficiency, mitigates risks associated with resource scarcity and climate change, enhances reputation, attracts investors and customers, and fosters innovation and long-term growth.

Cutting through current and future crisis’ with Climate Care Certified enables SPASA to expand and gain acceptance through genuine environmental engagement with more authorities and regulators, thereby protecting industry. Climate Care Certified protection measures help to reduce the environmental impact of a swimming pool and spa whilst also promoting cost-effective and efficient operation of products.

Youcanloveyourpoolsandspa,and the environment at the same time!

Awards of Excellence

The SPASA Awards of Excellence are the swimming pool and spa industry’s most prestigious awards, attracting entries from every region in Australia and New Zealand and showcasing achievements in construction, design, manufacturing, supply, products, retail and service.

Awards nominations continue to be a competitive advantage in the market with over 1,200 entries received in 2023.

The SPASA Awards of Excellence is the swimming pool and spa industry’s most prestigious awards program.

The Awards attract entries from across Australia and New Zealand and showcase achievements in construction, design, manufacturing, supply, products, retail and service.

We would like to congratulate and thank all sponsors, entrants and judges involved in the 2023 Awards.

All winners can be viewed at www.spasaawards.com.au

National winning members

Best Concrete Pool Builder Elite Pools and Landscapes – SA

Best Fibreglass Pool Builder Aquify Pools – NSW

Best Mobile Service Business Halogen Pools – QLD

Best Pool Store Poolwerx Upper North Shore – NSW

Best Professional Service Business Carter Marketing Project Management – VIC

Best Spa Retailer Endless Pools & Spas – VIC

Best Supplier AGent Pool and Spa – WA

Best Vinyl-Lined Pool Builder Pleasure Pools – SA

Business of the Year Aquify Pools – NSW

Commercial Project of the Year Alba Thermal Springs, Aquarius Pools – VIC

Commercial Project of the Year Rapids Water Feature (Alba Thermal Springs), Paul McQuillan Landscapes – VIC

Innovative Product Award Poolside Connect, Maytronics Australia – NSW

Pool of the Year Graziani Pools + Landscape – WA

Prefabricated Composite Pool up to $30,000 Prestige Plunge Pools – QLD

Professional of the Year Steve Taylor, COS Design – VIC

Gold winning members

ACT

Concrete Lap Pool

Leader Pools

NSW

Best Fibreglass Pool Builder

Aquify Pools

Best Pool Store

Poolwerx Upper North Shore

Business of the Year

Aquify Pools

Innovative Product Award

Poolside Connect, Maytronics

Australia

Commercial Spa

Dynamic Pool Designs

Concrete Commercial Pool up to $250,000

Dynamic Pool Designs

Concrete In-ground Spa

Pinnacle Pools

Concrete Pool up to $120,000

Pinnacle Pools

Concrete Pool up to $180,000

Splish Splash Pools

Fibreglass Pool & Spa Combination

Aquify Pools

Fibreglass Pool over $80,000

Aquify Pools

Fibreglass Pool up to $40,000

Narellan Pools Hills District

Marketing Campaign Award

Wanna Win a Pool, Cronulla Pools

Multi-Location Pool Store

Poolwerx Upper North Shore

Pool Landscape Design Transform Pools and Spas

Product of the Year

Poolside Connect, Maytronics

Australia

Renovation over $60,000 Poolside Co

Residential Lighting Feature Transform Pools and Spas

Safety Barrier

Transform Pools and Spas

QLD

Best Mobile Service Business

Halogen Pools

Prefabricated Composite

Pool up to $30,000

Prestige Plunge Pools

Best Prefabricated

Composite Pool Builder

Prestige Plunge Pools

Courtyard / Small Pool over $80,000 Rogers Pools

Education & Training Excellence Award Halogen Pools

Fibreglass Pool up to $80,000 Built Right Pools

Freeform Pool up to $120,000 Rogers Pools

Freeform Pool up to $60,000 Pool Fab

Innovative Project Ecozen Pools

International Project EvoHeat

Online Pool Store Pool Builders Pool Shop

Pool Sales Representative Award

Terry Nicholls, Queensland Family Pools and Spas

Renovation up to $30,000 Just Swimming Pool Renovations

Renovation up to $60,000 Living Style Co

Residential Water Feature Living Style Co

Sustainable Project Prestige Plunge Pools

Vinyl Lined Commercial Pool up to $250,000 Aqualon Interiors

SA

Best Concrete Pool Builder

Elite Pools and Landscapes

Best Vinyl-Lined Pool Builder Pleasure Pools

Commercial Renovation Hydrilla

Commercial System Hydrilla

Construction Tradesperson Award

Harrison Hawkins, Rainwise Pools Adelaide

Display Pool / Centre Freedom Pools

Freeform Pool over $120,000

Adelaide Classic Pools

Prefabricated Composite Pool up to $60,000 Plunge by Elite

Retail Service Technician Award

Gary Gulyani, Clark Rubber Modbury

Single Location Pool Store Prospect Pool and Spa

VIC

Best Professional Service Business

Carter Marketing Project Management

Best Spa Retailer Endless Pools & Spas

Commercial Project of the Year

Alba Thermal Springs, Aquarius Pools

Commercial Project of the Year

Rapids Water Feature –Alba Thermal Springs, Paul McQuillan Landscapes

Professional of the Year

Steve Taylor, COS Design

Commercial Pool over $1,000,000 Aquarius Pools

Commercial Pool up to $1,000,000 Aloha Pools

Commercial Pool up to $500,000 Aloha Pools

Commercial Water Display Paul McQuillan Landscapes

Composite Pool over $60,000 Swimco Aquatics

Concrete Pool & Spa Combination Laguna Pools and Spas

Concrete Pool over $240,000 Personal Pools

Enclosed / Indoor Pool Aloha Pools

Fibreglass Commercial Pool up to $250,000

Horizon Pools

Fibreglass In-ground Spa Aloha Pools

In-Field Service Technician Award

David Egan, Aloha Plus

New Pool Store

Pool Care Plus

Operational Excellence Award

Eddie Assemani, Clark Rubber

Pool & Spa Barrier Inspector Award

Chris Thynne, Pool Safety Barrier Inspections

Pool Designer Award Steve Taylor, COS Design

Sustainable Product Award Aspire Pool Solar Panel, Aspire Pool Solar Heating

Swim Spa Endless Pools & Spas

WA

Best Supplier AGent Pool and Spa

Pool of the Year

Graziani Pools + Landscape

Concrete Pool up to $240,000

Graziani Pools + Landscape

Concrete Pool up to $60,000 Boardwalk Pools

Courtyard / Small Pool up to $40,000

Busselton Spa & Pool Installations

Courtyard / Small Pool up to $80,000

Aqua Technics

Fibreglass Lap Pool Freedom Pools & Spas

New Product Award Ozone One, Pool Controls

Portable Spa

Oceanside Spa, Mega Spa Australia

Rising Star Award

Natalie Horak, Countrywide Pools

Spa Sales Representative Award

Narelle Bartolone. Mega Spa Australia

Supplier Salesperson Award

Mark Hall, EvoHeat

Vinyl Lined In-ground Pool

Add A Splash Pools

Vinyl Lined Modular Pools

Classic Pools

Vinyl-Lined Lap Pool

Add A Splash Pools

Vinyl-Lined Pool & Spa Combination

Add A Splash Pools

Swimming Pool & Spa Association of Australia Ltd

Directors' Report

For the year ended 31 December 2023

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Swimming Pool & Spa Association of Australia Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 31 December 2023.

Directors

The following persons were Directors of Swimming Pool & Spa Association of Australia Ltd during the whole of the financial year and up to the date of this report, unless otherwise stated:

Stefan Ossenberg (Chairman)

Lynley Papineau

Jacqueline Patterson

Andrew Pullen

Steven Humphris

Tom Boadle

Anthony Grice

Anthony Cross

Amanda Stephenson (up to the SPASA AGM June 2023)

Peter Zukowski (voted to the SPASA Board 18 October 2023)

Principal activities

The principal activities of the consolidated entity during the financial year was the representation of the Swimming Pool & Spa industry throughout Australia and New Zealand.

No significant change in the nature of these activities occurred during the year. There were 10 meetings of Directors held during the year ended 31 December 2023.

Meetings of Directors

Contributions on winding up

In the event of the company being wound up, ordinary members are required to contribute a maximum of $1 each. Honorary members are not required to contribute

The total amount that members of the company are liable to contribute if the company is wound up is $1,742 based on 1,742 current ordinary members.

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 immediately after this Directors' Report.

This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors:

Director

24 April 2024

Director

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF SWIMMING POOL & SPA ASSOCIATION OF AUSTRALIA LTD

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2023 there have been:

— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

— no contraventions of any applicable code of professional conduct in relation to the audit.

William Buck (SA) ABN 38 280 203 274

G.W. Martinella Partner

Adelaide, 24th April 2024

Swimming Pool & Spa Association of Australia Ltd

the year ended 31 December 2023

Swimming Pool & Spa Association of Australia Ltd

Statement of

position

at 31 December 2023

Swimming Pool & Spa Association of Australia Ltd

Swimming Pool & Spa Association of Australia Ltd Statement of

Statement of changes in

For the year ended 31 December 2023

Swimming Pool & Spa Association of Australia Ltd

Statement of cash flows

Swimming Pool & Spa Association of Australia Ltd

Statement of cash flows

For the year ended 31 December 2023

For the year ended 31 December 2023

Cash flows from operating activities

Cash flows from operating activities

Receipts from customers

Receipts from customers Payments to suppliers and employees

10,848,317 6,561,814 (8,807,857)

Payments to suppliers and employees

Interest received

Interest received

Interest and other finance costs paid

Interest and other finance costs paid

Net cash from (used in) operating activities

Net cash from (used in) operating activities

Cash flows from investing activities

Cash flows from investing activities

Net assets acquired as part of acquisition

Net assets acquired as part of acquisition Payments for property, plant and equipment Payments for intangibles

Payments for property, plant and equipment Payments for intangibles

Net cash used in investing activities

Net cash used in investing activities

Net cash from financing activities

Net cash from financing activities

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

2,100,176

(28,575)(34,596) (15,054) (243,444) (26,762) (306,615) (41,816) -1,793,561 (362,272) 3,873,197 4,225,378

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents

Effects of exchange rate changes on cash and cash equivalents

Cash acquired as part of acquisition

Cash acquired as part of acquisition

and cash equivalents at the end of the financial year 6 7,278,229 3,873,197

Cash and cash equivalents at the

The above statement of cash flows should be read in conjunction with the accompanying notes

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 1. General information

The financial statements cover Swimming Pool & Spa Association of Australia Ltd as a consolidated entity consisting of Swimming Pool & Spa Association of Australia Ltd and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Swimming Pool & Spa Association of Australia Ltd is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

8/13 King William Road

UNLEY SA 5061

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 22 April 2024.

Note 2. Material accounting policy information

The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The consolidated entity 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 period.

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

Basis of preparation

These general purpose financial statements have been prepared in accordance with the Australian Accounting Standards - Simplified Disclosures issued by the Australian Accounting Standards Board ('AASB'), the Australian Charities and Not-for-profits Commission Act 2012 and the Corporations Act 2001, as appropriate for not-for profit oriented entities.

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 the consolidated entity'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.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 21.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Swimming Pool & Spa Association of Australia Ltd ('company' or 'parent entity') as at 31 December 2023 and the results of all subsidiaries for the year then ended. Swimming Pool & Spa Association of Australia Ltd and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 2. Material accounting policy information (continued)

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Foreign currency translation

The financial statements are presented in Australian dollars, which is Swimming Pool & Spa Association of Australia Ltd's functional and presentation currency.

Foreign currency transactions

Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign operations

The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.

The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.

Revenue recognition

The consolidated entity recognises revenue as follows:

Revenue from contracts with customers

Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: 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 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 recognised as a refund liability.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 2. Material accounting policy information (continued)

Rendering of services

Revenue from a contract to provide services is recognised over time as the services are rendered.

Interest

Interest revenue 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.

Other revenue

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

Income tax

As the consolidated entity is a tax exempt institution in terms of subsection 50-10 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and 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.

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 are generally due for settlement within 30 days.

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

Inventories

Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

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.

Property, plant and equipment

Land and buildings are brought into account at Directors' valuation. The revaluation of land and buildings by the Directors are based on independent valuations carried by independent external valuers in March 2023 and April 2023. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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

Buildings 40 years

Plant and equipment 4-13 years

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

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 2. Material accounting policy information (continued)

Leasehold improvements are depreciated over the unexpired period of the lease 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 the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

Intangible assets

Goodwill

Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

Impairment of non-financial assets

Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other 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 valuein-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.

Trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity 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.

Employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary 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.

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 at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. 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 national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Notes to the financial statements

For the year ended 31 December 2023

Note 2. Material accounting policy information (continued)

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Business combinations

The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the preexisting fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisitiondate, but only after a reassessment of the identification and measurement of the net assets acquired, the noncontrolling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisitiondate. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii)when the acquirer receives all the information possible to determine fair value.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Notes to the financial statements

For the year ended 31 December 2023

Note 2. Material accounting policy information (continued)

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

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.

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Goodwill and other indefinite life intangible assets

The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy stated in note 2. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital and growth rates of the estimated future cash flows.

Note 4. Revenue

Note 5. Other income

Notes to the financial statements

For the year ended 31 December 2023

Note 6. Cash and cash equivalents

Note 7. Trade and other receivables

Note 8. Inventories

Note 9. Other assets

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 10. Property, plant and equipment

Non-current assets

Land and buildings - at Directors valuation

Less: Accumulated depreciation

Plant and equipment - at cost

Less: Accumulated depreciation

Office equipment - at cost

Less: Accumulated depreciation

Valuations of land and buildings

The basis of the valuation of land and buildings is fair value. The land and buildings were revalued on 28 March 2023 and 5 April 2023 and based on independent assessments by a member of the Australian Property Institute having recent experience in the location and category of land and buildings being valued. The Directors do not believe that there has been a material movement in fair value since the revaluation date. Valuations are based on current prices for similar properties in the same location and condition.

Note 11. Intangibles

The goodwill arising from the purchase of the Australian Leisure Media publishing company relates to the trading names, intellectual property and other intangible assets acquired. The consolidated entity also acquired the Perth Expo. No assets or liabilities were acquired, only the rights to host the Expo.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 12. Trade and other payables

Note 13. Employee

Note 14. Other liabilities

On 4 December 2023, the consolidated entity purchased Australian Leisure Media ("ALM"). Part of the full consideration for the purchase of the business included a deferred consideration, calculated on a fixed ratio of the net profits for calendar years 2025 and 2026, less any initial payments. The deferred consideration is to be paid no later than 31 January 2027.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 15. Reserves

Note 16. Key management personnel disclosures

Compensation

The aggregate compensation made to Directors and other members of key management personnel of the consolidated entity is set out below:

Note 17. Related party transactions

Parent entity

Swimming Pool & Spa Association of Australia Ltd is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 20.

Key management personnel

Disclosures relating to key management personnel are set out in note 16.

Transactions with related parties

There were no transactions with related parties during the current and previous financial year.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Note 18. Contingent liabilities

In the opinion of the Directors, the consolidated entity did not have any contingencies as at 31 December 2023 (31 December 2022: None).

Note 19. Commitments

In the opinion of the Directors, the consolidated entity did not have any capital commitments as at 31 December 2023 (31 December 2022: None)

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 20. Subsidiaries

Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2:

Note 21. Parent entity information

Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

For the year ended 31 December 2023

Note 22. Business combinations

During the year, the parent entity ("SPASA AU") entered into two (2) merger agreements and one (1) business agreement. The details of the mergers and acquisition are as follows:

On 14 October 2022, Spa Association of Australia Ltd ("SPASA AU") signed a Heads of Agreement to amalgamate with Spa Association of Western Australia Inc. ("SPASA WA"). The Heads of Agreement highlighted that the assets and liabilities of SPASA WA will be acquired for nil consideration. The trustee of the Completion Guarantee Trust ("WA CGT") was changed from SPASA WA to SPASA AU through the amalgamation process.

The amalgamation process was completed on 1 January 2023, by which the members of SPASA WA had their memberships transferred to SPASA WA.

On 17 May 2023, Spa Association of Australia Ltd ("SPASA AU") signed a Heads of Agreement to amalgamate with Master Pool Builders Association Australia ("MPBAA"). The Heads of Agreement highlighted that the assets and liabilities of MPBAA will be acquired for nil consideration. The date of the amalgamation is when SPASA AU gained effective control over MPBAA. This was deemed to be 26 September 2023 being the date of resignation of the Directors of MPBAA and appointment of new Directors according to ASIC records.

On 4 December 2023, Spa Association of Australia Ltd ("SPASA AU") acquired the business and assets (being the intangible assets of Australian Leisure Media Pty Ltd ("ALM") for an initial consideration of $50,000 and deferred consideration of $82,450 to be made no later than 31 January 2027. ALM is a media publishing business in Australia.

Details of the acquisition are as follows:

Note 23. Events after the reporting period

No matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Swimming Pool & Spa Association of Australia Ltd

Directors' Declaration

For the year ended 31 December 2023

In the Directors' opinion:

● the attached financial statements and notes comply with the Corporations Act 2001, the Australian Accounting Standards - Simplified Disclosures, the Australian Charities and Not-for-profits Commission Act 2012, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

● the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2023 and of its performance for the financial year ended on that date; and

● 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 Directors.

On behalf of the Directors: Director

24 April 2024

Director

Swimming Pool & Spa Association of Australia Ltd

Independent auditor’s report to the Director’s

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Swimming Pool & Spa Association of Australia Ltd (the Company and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards 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 Group in accordance with the auditor independence requirements of 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter – Basis of Accounting

We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

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 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 ability of the Group 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 Group 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 these financial statements is located at the Auditing and Assurance Standards Board website at:

http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

This description forms part of our independent auditor’s report.

William Buck (SA) ABN 38 280 203 274

G.W. Martinella Partner

Adelaide, 24th April 2024

Swimming Pool & Spa Association of Australia Ltd

8/13 King William Road, Unley SA 5061

AU: 1300 021 482 NZ: 09 801 8223

askus@spasa.com.au

www.spasa.com.au