SPASA Australia Annual Report 2022

Swimming Pool & Spa Association

Welcome to the 2022 Annual General Report for the Swimming Pool & Spa Association of Australia Ltd (SPASA) and its consolidated entities.

SPASA is a member-based organisation dedicated to advancing the pool, spa and outdoor living industries.

Our members enhance the lives of many communities by providing the healthy and enjoyable benefits of swimming.

Malibu Pools & Spas

Our 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 trades who deliver exceptional products that 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.

Directors

SPASA Team

Anna Kraulis

Region Manager – East Coast

Charlotte McGrath

Finance Administration

Daena Bougoure-Latchford Brand Manager – Pool & Spa

David Stennett

Brand Manager – SPLASH!

Keeta Scown Operations & Events Coordinator

Lindsay McGrath

Chief Executive Officer

Luke Daly Chief Information Officer

Michelle Marks

Region Manager New Zealand

Nicole Daws

RTO Administrator

Paul Kimber Finance Manager

Rachael Bambry

IRLearning RTO Manager

Rebecca Smith

Region Manager WA, SA & NT

Sadie Stevenson

General Manager – Sustainable Initiatives

Spiros Dassakis

Chief Policy Officer

Tanya Khan

Executive Manager – New Ventures & Innovation

Terry Mwase

Member Services

Steven Humphris Focus Products (Deputy Chair)

Amanda Stephenson Hydrilla

Andrew Pullen Vortex Leisure Spa World

Anthony Cross Compass Pools

Anthony Grice Clark Rubber

Jacqueline Patterson Narellan Pools Waikato

Lynley Papineau Aquatic Leisure Technologies

Tom Boadle Sunbather

Stefan Ossenberg R & R Solutions (Chair)

Report from the Chair

We celebrate the tenth full calendar year for SPASA Australia and the sixth calendar year since the merger of the regions NSW, ACT, SA, QLD and the SPRAA.

We are excited to welcome SPASA WA whose members have voted to join SPASA Australia from January 2023.

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 and 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 services, support and achievements to our members and wider community.

Stefan Ossenberg Chairperson

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 with 2022 no exception. The low unemployment figures saw SPASA’s staffing severely affected like many of our members. Several of our people found new opportunities to explore, and we wish them the very best. SPASA has an active program to grow and educate our team members with new industry leaders emerging such as SPASA’s Chief Information Officer Luke Daly who sits alongside the other senior leaders in Spiros Dassakis the Chief Policy Officer and CEO of the Institute of Research and Learning, and our Chief Executive Officer Lindsay McGrath. I extend my appreciation on behalf of the Board for Lindsay and the teams tireless and unwavering commitment to leadership of our industry.

I am honoured to be reporting on this year of achievement for the Association.

Along with delivering expos, awards and meeting the day to day demands, the SPASA team launched new websites for SPASA , Climate Care Certified, IRLearning and Pool & Spa Lifestyle

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 forum Scoop Community.

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, services and trainers who are supporting the ever-increasing number of future trade professionals seeking national recognised qualifications.

The strategy to build a consumer brand further expanded with a new Pool & Spa Lifestyle expo in Victoria and the merger announcement of SPASA WA. Six key locations now have a yearly Pool & Spa Lifestyle Expo along with a full 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 lobbying across both Australia and New Zealand.

Our continued investment in all regions saw membership growth across Australia and New Zealand. SPASA is actively recruiting staff as we are committed to supporting our members.

SPASA continues to advocate for better standards across the pool and spa industry and be recognised as an essential service delivering important health and safety benefits to the community. SPASA Australia continues to advocate for one united industry body across Australia, seeking collaboration with other industry Associations. SPASA stands by its assertion that our greatest impact can be achieved by working in unison.

Congratulations to all industry members and staff on the tenth year of SPASA. We look forward to continuing our collaboration in 2023.

This report highlights the organisation’s achievements over the past year as we continued to deliver a wide range of services, support and achievements.

AlohaPools

Message from the Finance Committee

SPASA reports all entities in a consolidated manner, including the Institute of Research and Learning Ltd (IRL), SPASA Benefits Trust and the Pool and Spa Association Limited (NZ). This provides a total true and correct report of all financial operations within SPASA’s responsibility.

Revenue saw a 70% increase over the prior year with events playing a large part. With no pandemic restrictions all consumer expos along with the trade expo SPLASH! ran for the first time in 3 years.

Membership revenue followed the growth in new organisations joining SPASA with an increase in income of 19%. An income diversification strategy which has been adopted over the last five years has included acquisitions, amalgamations and regional, product and services expansions.

SPASA continues to invest in its people to further increase the benefits to members while asset building in brands, products and services including education and training. This resulted in record levels of engagement, training and awards.

The Association’s external Auditors, William Buck Accountants and Advisors, conducted the Audit Report for the year ending 31 December 2022, the highlights of which are featured on the next page.

SPASA continues to focus on expansion of diverse revenue streams and 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 I would like to take this opportunity to thank Paul, Lindsay and the whole SPASA team for another year of growth and congratulate them on the foundation achieved for the Association, Members and Industry as a whole.

Tom Boadle (Finance Chair) on behalf of the Finance, Audit and Compliance Committee including Anthony Cross and Steven Humphris

It is my pleasure to submit to members the 2022 consolidated Annual Report of the Swimming Pool & Spa Association of Australia Ltd (SPASA).

Key Highlights

Strong return on members funds with a net surplus of $889,593

Balance sheet continues to improve with a Net Asset and Equity base of $5,954,758

and Cash or Cash Equivalents of $3,873,197

Growth in event income increased by $2.6 million over the prior year with consumer expos going ahead including a new event in Melbourne and the biennial event, SPLASH! Trade expo.

Research & education investment continues with the Institute of Research and Learning Registered Training Organisation subsidiary managing expenses while transitioning out of the old swimming pool building qualification.

Professional fees from revenue generated in areas separate to membership and events include training and media brands increased by $529,189 a 20% increase over 2021

Membership revenue reflected the new applications, increasing for the 6th consecutive year

Member Services

Consistently improving member services through research, networking, and leadership opportunities.

Strong membership growth continues to be the basis for our reputation as the leading voice in representing, supporting and promoting the industry.

Our numbers have grown steadily over the year and by the end of 2022 SPASA has 1,444 organisational members across Australia and New Zealand.

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.

Platinum Partner Gold Partners

Silver Partners

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:

Education & Training

› IRLearning

Finance Services

› AB Phillips

› Handypay

› Payright

› Westpac

Insurance Services

› AB Phillips

› Runacres Insurance (NZ)

› Westfund Health Insurance

Business Management

› HR Anywhere

› McDonaldHR (NZ)

› Podium

› Pool Site Quote

› ProTrade United

› Uprise

Vehicle Expenses

› AutoTender

› Caltex StarCard

› Hyundai Fleet Advantage

Legal & Regulatory Services

› Construct Law Group

Member Promotion

Increasing pool and spa ownership through member promotion.

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 1,000 entries received in 2022.

16% increase in businesses who nominated

19% increase in quantity of categories nominated for 72% increase in attendance at the Awards Dinners compared to 2019 – our last uninterrupted year

26% increase in businesses who attended the Awards Dinners

SPLASH! Magazine and Trade Expo

www.splashmagazine.com.au

› Readership from every sector and region across the industry.

› The largest Pool & Spa trade expo in the southern hemisphere. 2022 saw a Sold Out Expo –35% larger than previous shows.

› SPLASH! Magazine website saw 41.6M brand impressions, and 38,500 click throughs were generated.

Pool & Spa Lifestyle Expos

www.poolspalife.com.au/expo

› Over 20 thousand consumers attend the Pool & Spa Lifestyle Expos.

› Pool & Spa brand expanded with a partnership with the Home Shows resulting in 7 Consumer expos.

Australia’s Best Pools

www.9now.com.au/australiasbest-pools

Members and Award winners reaching new audience members with a partnership with Northlight Productions getting more of our members on TV more often.

Research & Education

The Institute of Research & Learning (IRLearning) is dedicated entirely to the swimming pool and spa industry across Australia and New Zealand.

To maintain the strength of its scope, the team at IRLearning works with a variety of stakeholders and government, to ensure that a forecasted increase in workforce is underpinned by upgrading existing swimming pool and spa qualifications.

This year we welcomed a new RTO Manager Rachael Bambry who delivered the last year of the superseded pool building qualification CPC40808. Rachael has been instrumental along with Nicole Daws and Spiros Dassakis in bringing in the new Qualification CPC40820 that will set up the industry for generations to come.

Qualifications offered

› Aquatic Industry Qualifications

› Certificate III in Landscape Construction

› Certificate III in Retail

› Certificate III in Swimming Pool and Spa Service

› Certificate IV in Swimming Pool and Spa Service

› Certificate in Swimming Pool and Spa Service (NZ)

www.irlearning.com

› Certificate IV in Building and Construction

› Certificate IV in Business

› Certificate IV in Swimming Pool and Spa Building

› Diploma of Business

› NSW – E1 Swimming Pool Inspectors (MU)

› QLD – Pool Safety Inspections

› VIC – Building Inspector (Pool Safety)

Development of our professions and industry by facilitating diverse career paths.

Member Representation

Advocate responsible outcomes for members and the community.

Building tomorrows industry today

A strong foundation has been delivered in recent years with ongoing commitment and resource allocation to advocacy. We are protecting and adding value to our members actively sitting on committees across Australia and New Zealand standards and government departments.

Sustainability

Cutting through current and future crises with leading programs like Climate Care Certified enables us to expand and gain acceptance through engagement with more authorities and regulators.

Policy Development

Ongoing member focused organisation structure sees the continuation of full time dedicated SPASA employees face to face in the field with our members. Local information and knowledge is passed directly through to committees, Executive and Board for accurate and timely decision making in policy development.

Climate Care Certified

www.climatecarecertified.com

Climate Care Certified is a program that aims to create a new standard of sustainability and efficiency for products, systems, and installations within homes and businesses. To be considered Climate Care Certified, a product, system, or installation must demonstrate:

› excellence in water efficiency and sustainability

› energy efficiency

› noise reduction

› environmentally sustainable design

› other innovative measures that promote efficiency and sustainability.

These measures help to reduce the environmental impact of a home or business, while also promoting cost-effective and efficient operation. By choosing Climate Care Certified products, systems, and installations, you can make a positive contribution to the environment, while also enjoying the benefits of cost-effective and efficient operation.

MermaidPools

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 2022 Awards.

Over the page is our Gold winning members. All winners can be viewed at www.spasaawards.com.au

Spa of the Year

Malibu Pools & Spas, NSW

Pool of the Year

Transform Pools and Spas, NSW

Business of the Year

Aloha Pools, VIC

Professional of the Year

Miche Barton – Queensland Family Pools & Spas, QLD

Commercial Project of the Year

Kirratech Lifestyle Pools, QLD

Product of the Year

Fluidra Australia, NSW

Best Supplier

Reece Irrigation & Pools, TAS

Best Mobile Service Business

Your Pool and Spa, NSW

Best Spa Retailer

Spa World Australia, SA

Best Professional Service Business

Newport Consulting Engineers, QLD

Best Prefabricated Composite Pool Builder

Brisbane Prestige Plunge Pools, QLD

Best Fibreglass Pool Builder

Coastline Pools, NSW

Best Concrete Pool Builder

Aloha Pools, VIC

Best Pool Store

Warner Pool & Spa Care, QLD

Australian Capital Territory

Spa of the Year

Spa World Australia

Pool of the Year

Leader Pools

Business of the Year

Europe Imports

Professional of the Year

Sandra Lothian – Aussie UnderCover

Commercial Project of the Year

Capital Country Pools

Product of the Year

ezarri by Europe Imports

Best Supplier

Europe Imports

Best Mobile Service Business

Total Pool Service

Best Spa Retailer

Spa World Australia

Best Fibreglass Pool Builder

Capital Country Pools

New South Wales

Spa of the Year

Malibu Pools & Spas

Pool of the Year

Transform Pools and Spas

Business of the Year

Coastline Pools

Professional of the Year

Nick McCarthy – Urban Escape

Commercial Project of the Year

Shipping Container Pools

Product of the Year

Halo by Fluidra Australia

Best Supplier

Fluidra Australia

Best Mobile Service Business

Your Pool and Spa

Best Spa Retailer

Spa World Australia

Best Professional Service Business

Canibuild

Best Fibreglass Pool Builder

Coastline Pools

Best Concrete Pool Builder

Aquastone Pools and Landscapes

Best Pool Store

Poolwerx Upper North Shore

Northern Territory

Best Supplier

Fluidra Australia

Queensland Spa of the Year

Queensland Family Pools & Spas

Pool of the Year

Norfolk Pools

Business of the Year

Brisbane Prestige Plunge Pools

Professional of the Year

Miche Barton – Queensland Family

Pools & Spas

Commercial Project of the Year

Kirratech Lifestyle Pools

Product of the Year

Evo Force-i by EvoHeat

Best Supplier

The Pool Tile Company

Best Mobile Service Business

Halogen Pools

Best Spa Retailer

Spa World Australia

Best Professional Service Business

Newport Consulting Engineers

Best Prefabricated Composite Pool

Builder

Brisbane Prestige Plunge Pools

Best Fibreglass Pool Builder

Built Right Pools

Best Concrete Pool Builder

Norfolk Pools

Best Pool Store

Warner Pool & Spa Care

South Australia

Pool of the Year

Elite Pools & Landscapes

Business of the Year

Riverscape Landscaping & Pools

Professional of the Year

Patrick Dyson – Adelaide Aquaboys

Commercial Project of the Year

South Pacific Pools

Product of the Year

QB800 by Fluidra Australia

Best Supplier

EvoHeat

Best Mobile Service Business

Jim’s Pool Care Glenelg

Best Spa Retailer

Spa World Australia

Best Fibreglass Pool Builder

Riverscape Landscaping & Pools

Best Concrete Pool Builder

Elite Pools & Landscapes

Best Pool Store

Acacia Pool Service

Tasmania

Best Supplier

Reece Irrigation & Pools

Best Spa Retailer

Spa World Australia

Victoria Spa of the Year

Aloha Pools

Pool of the Year

Striking Pools

Business of the Year

Aloha Pools

Professional of the Year

Catherine Goncalves – Horizon Pools

Commercial Project of the Year

Aloha Pools

Product of the Year

BUBBLER+ by AQUEA

Best Supplier

Waterco

Best Mobile Service Business

Aloha Plus

Best Spa Retailer

Just Spas Hallam

Best Professional Service Business

Pool Safety Co

Best Fibreglass Pool Builder

LDR Pools and Landscapes

Best Concrete Pool Builder

Aloha Pools

Best Pool Store

Poolside Melton

New Zealand

Spa of the Year

Spa World New Zealand

Pool of the Year

Acacia Landscapes & Pool

Construction

Business of the Year

Spa World New Zealand

Professional of the Year

Kobus Olivier – Ultimate Pools

Commercial Project of the Year

Acacia Landscapes & Pool

Construction

Product of the Year

Halo by Fluidra New Zealand

Best Supplier

Austral Pool & Spa Products

Best Mobile Service Business

Poolside Christchurch

Best Spa Retailer

Spa World New Zealand

Best Prefabricated Composite Pool

Builder

Ultimate Pools

Best Fibreglass Pool Builder

Ultimate Pools

Best Concrete Pool Builder

Auckland Inground Pools

Best Pool Store

Aquanort Pools

LivingStyleLandscapes

Swimming Pool & Spa Association of Australia Ltd

Directors' report

31 December 2022

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 2022.

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:

Adam Jaworski (resigned 30 May 2022)

Amanda Stephenson

Andrew Pullen (from 30 May 2022)

Anthony Grice (from 30 May 2022)

Anthony Cross (from 30 May 2022)

Jacque Patterson

Lynley Papineau

Matthew Gavin (resigned 30 May 2022)

Robert Kruber (resigned 30 May 2022)

Stefan Ossenberg (Chair)

Steven Humphris

Tom Boadle

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.

Meetings of Directors

There were 7 meetings of Directors held during the year ended 31 December 2022.

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 $1,444 based on 1,444 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 Director

May 2023 24

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 2022 there have been:

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

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

William Buck (SA)

ABN 38 280 203 274

G.W. Martinella Partner

Adelaide, 24th May 2023

Swimming Pool & Spa Association of Australia Ltd

Statement of profit or loss and other comprehensive income

For the year ended 31 December 2022

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

Swimming Pool & Spa Association of Australia Ltd

The above statement of financial position should be read in conjunction with the accompanying notes

Statement of changes in equity

For the year ended 31 December 2022

The above statement of changes in equity should be read in conjunction with the accompanying notes

Swimming Pool & Spa Association of Australia Ltd

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

31 December 2022

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 30 May 2023.

Note 2. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, 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

In the Directors' opinion, the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd. The directors have determined that the accounting policies adopted are appropriate to meet the needs of the members of Swimming Pool & Spa Association of Australia Ltd.

These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 107 'Statement of Cash Flows', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', 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 17.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 2. Significant accounting policies (continued)

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 2022 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.

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.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 2. Significant accounting policies (continued)

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.

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, other shortterm, 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.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 2. Significant accounting policies (continued)

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 July 2017 and August 2019. 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.

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.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 2. Significant accounting policies (continued)

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.

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.

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.

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

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 31 December 2022. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

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.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 7. Trade and other receivables

Current assets

Trade receivables

Less: Allowance for expected credit losses

Note 8. Inventories

Current assets

Stock on hand - at cost

Note 9. Other assets

Current assets

Prepayments

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 last revalued on 20 July 2017 and 22 August 2019 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.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 11.

The goodwill arise from the purchase of the SPLASH! magazine and Expo, and the Brisbane Expo. No assets or liabilities were acquired, only the right to prepare the magazine and host the Expo.

Note 12. Trade and other payables

The non-current trade payables relate to amounts payable on the purchase of the Brisbane Expo. The balance is payable at the completion of the 2024 Brisbane Expo.

Note 13. Employee benefits

Note 14.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 16. 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 17. Parent entity information

Set out below is the supplementary information about the parent entity.

Swimming Pool & Spa Association of Australia Ltd

Notes to the financial statements

31 December 2022

Note 17. Parent entity information (continued)

Statement

Note 18. Events after the reporting period

No matter or circumstance has arisen since 31 December 2022 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.

Note 19. Reconciliation of surplus to net cash from/(used in) operating activities

Swimming Pool & Spa Association of Australia Ltd

Directors' declaration

31 December 2022

In the Directors' opinion:

● the consolidated entity is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 2 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Corporations Act 2001 requirements to prepare and distribute financial statements to the members of Swimming Pool & Spa Association of Australia Ltd;

● the attached financial statements and notes comply with the Accounting Standards as described in note 2 to the financial statements;

● the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2022 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 Director

May

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 2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of c hanges 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 2022 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 ena ble 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 d etect 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 May 2023

ElitePoolsandLandscapes

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