Annual Report 2014-15

In 2014-15, Queensland Treasury Corporation successfully funded the State’s $7 billion term debt borrowing program, provided significant whole-of-State and client benefits, and achieved an operating profit from its capital markets operations of $41.3 million.

2014-15 Annual Report (Text version)

The Queensland Treasury Corporation Annual Report 2014-15 provides details of Queensland Treasury Corporation’s (QTC’s) achievements, outlook, performance and financial position for the 2014-15 financial year.

Letter of compliance

22 September 2015

The Honourable Curtis Pitt MP
Treasurer, Minister for Employment and Industrial Relations, and
Minister for Aboriginal and Torres Strait Islander Partnerships
GPO Box 611
Brisbane QLD 4001

Dear Treasurer

I am pleased to present the Annual Report 2014–15 and financial statements for Queensland Treasury Corporation.

I certify that this Annual Report complies with:

  • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and
  • the detailed requirements set out in the Annual Report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found at page 56 of this annual report or accessed at www.qtc.com.au.


Gerard Bradley

Vision, mission and values


Securing Queensland’s financial success


To deliver optimal financial outcomes through sound funding and financial risk management


Client focus: We build strong partnerships with our clients to deliver simple and well-designed solutions that achieve quality outcomes for Queensland.

Team spirit: We work as one team, taking joint responsibility for achieving our vision and collaborating to achieve outstanding performance.

Excellence: We aim for excellence using flexible and agile processes to continuously improve.

Respect: We show respect by recognising contributions, welcoming ideas, acting with honesty, being inclusive and embracing diversity.

Integrity: We inspire trust and confidence in our colleagues, clients, stakeholders and investors by upholding strong professional and ethical standards.

Queensland Treasury Corporation

What is QTC?

Queensland Treasury Corporation has a statutory responsibility to advance the financial position of the State, and a mandate to manage and minimise financial risk in the public sector and provide value-adding financial solutions to its public sector clients. Established under the Queensland Treasury Corporation Act 1988, QTC is a corporation sole, reporting through the Under Treasurer to the Treasurer and Queensland Parliament.

2015-19 Strategic Plan

Strategic Goals

  1. State and client value
  2. Sustainable funding
  3. Organisational excellence

Performance indicators

  1. Value added
  2. Investor/market support
  3. Client satisfaction
  4. Employee engagement

Role and responsibilities

As the Queensland Government’s central financing authority, Queensland Treasury Corporation (QTC) plays a pivotal role in securing the State’s financial success.

With a focus on whole-of-State outcomes, QTC provides a range of financial services to the State and its public sector entities, including local governments. These services include debt funding and management, cash management facilities, financial risk management advisory services, and specialist public finance education.

Debt funding and management

QTC borrows funds in the domestic and global markets in the most cost-effective manner and in a way that minimises liquidity risk and refinancing risk. QTC achieves significant economies of scale and scope by issuing, managing and administering the State’s debt funding.

QTC works closely with Queensland’s public sector entities, including local governments, to assist them to effectively manage their financial transactions, minimise their financial risk and achieve the best financial solutions for their organisation and the State.

Cash management facilities

QTC assists the State’s public sector entities to make the best use of their surplus cash balances within a conservative risk management framework. It offers overnight and fixed-term facilities and a managed short-term fund.

Financial risk management advisory services

QTC offers a range of financial risk management advisory services to clients, including:

  • support to ensure financial risks are identified and effectively managed
  • advice on financial and commercial considerations
  • expertise in financial transactions and structures
  • project management support to deliver key fiscal outcomes, and
  • collaboration with the financial markets and private sector institutions.

Specialist public finance education

QTC offers a range of education and training courses that complements its products and advisory services and allows it to share its specialist financial, commercial, treasury management and risk management expertise with clients. Courses are developed and delivered by QTC’s experienced professionals and industry experts.

Chairman and Chief Executive Report

In 2014-15, Queensland Treasury Corporation successfully funded the State’s $7 billion term debt borrowing program, provided significant whole-of-State and client benefits, and achieved an operating profit from its capital markets operations of $41.3 million.

2014-15 funding requirements achieved

With strong investor demand for primary issuance, and despite some increasing volatility within the global financial markets, QTC successfully completed its $7 billion term debt borrowing program for 2014–15 in March—and by year end had raised an additional $2 billion towards the 2015–16 funding requirement. This proactive management of QTC’s borrowing program will underwrite the success of its funding activities for the coming year.

Issuance by quarter over the year included:

  • In the September quarter, the launch of QTC’s $600 million November 2018 Floating Rate Note via syndication, issue of $1 billion of July 2023 benchmark bonds via syndicated tap, and issue of $300 million of July 2024 benchmark bonds via tender.
  • In the December quarter, the issue of $1.3 billion of July 2024 benchmark bonds via syndicated tap.
  • In the March quarter, the issue of $1.25 billion of November 2018 Floating Rate Notes, and $1.4 billion of July 2025 benchmark bonds via syndicated tap.
  • In the June quarter, the issue of $750 million of July 2023 benchmark bonds, and $1 billion of July 2024 benchmark bonds via syndicated tap.

On 14 July 2015, the Queensland Government announced its 2015–16 State Budget, which was followed by QTC’s announcement of its 2015–16 borrowing program with a requirement for $6.5 billion in term debt (around $4 billion less than previously forecast).

QTC’s AUD benchmark bonds will remain its principal source of funding to meet the State’s borrowing requirements. While funding activity is subject to client requirements and market conditions, QTC will target term debt issuance to smooth its maturity profile and potentially launch new term debt maturities. Issuance in its benchmark curve will be complemented by floating rate notes and other instruments, and a minimum of approximately $5 billion in short-term debt outstandings will be maintained.

QTC’s long-standing and highly-respected global reputation with investors and market intermediaries is essential to its ongoing ability to fund the State. In 2015–16, as in previous years, QTC’s interactions within the global debt capital markets will be exemplified by its commitment to open and transparent communication.

Credit ratings affirmed

Queensland’s and QTC’s credit ratings were reaffirmed by both Standard & Poor’s and Moody’s Investors Service during the year.

On 10 October 2014, Standard & Poor’s affirmed Queensland’s and QTC’s credit rating at AA+/A-1+ with the outlook remaining stable, citing Australia’s strong institutional framework, Queensland’s strengthening economy, positive financial management and strong liquidity position.

On 3 December 2014, Moody’s Investors Service released its credit opinion for Queensland and QTC, with no change to the current Aa1/P1 credit rating and the negative outlook.

Whole-of-State contribution prioritised

QTC has a statutory responsibility to advance the financial position of the State, which it does through the management and minimisation of financial risk in the public sector and provision of value-adding financial solutions to its public sector clients. With its whole-of-State focus, and unique position as the Government’s independent financial advisor, QTC has a strong understanding of the financial opportunities and risks facing the State’s public sector entities.

In the year under review, QTC demonstrated its agility and breadth of capabilities as it responded to the priorities and requirements of the former and current governments, as well as the broader economic landscape, and strengthened its long-term business relationships and networks across all levels of government. These strong relationships continue to enhance QTC’s ability to provide valuable insights into the trends, issues and opportunities facing the State, and advice that helps deliver the Government’s key priorities.

Significant client assignments increased

QTC has worked closely with its clients to optimise their financial outcomes.

The number and scope of client advisory assignments has continued to increase, with the completion of 130 significant assignments and another 50 underway at year’s end. Assignments ranged from financial modelling to support decision-making, through to credit assessments and advice on procurement options. Highlights for the year included the provision of strategic advice to a number of clients on major debt and refinancing issues, each of which resulted in positive outcomes for the client and the State, and the development of a suite of financial tools and frameworks that support clients’ growing needs in project decision making, and financial forecasting and assessment.

Operating results

For the 2014–15 year, QTC recorded an operating profit after tax from its capital markets operations of $41.3 million (2013–14: $119.2 million), mainly attributable to earnings on capital, plus fair value accounting gains associated with the management of QTC’s funding task and balance sheet.

QTC borrows in advance of requirements to ensure public sector entities have ready access to funding when required, to reduce the risk associated with refinancing maturing loans, and for liquidity management purposes. As a consequence of market changes, realised and unrealised accounting gains or losses may be recorded during the year which, depending on whether these transactions are held to maturity, may be reversed in subsequent accounting periods.

Separate from QTC’s capital markets operations, QTC’s long-term assets, which comprises the investments set aside to fund the State’s defined benefit superannuation and other long-term employee liabilities, recorded a profit of $151.3 million (2013–14: $3.1 billion). Managed by QIC, these assets were transferred to QTC by the Queensland Government under an administrative arrangement in 2008; in return, QTC issued fixed-rate notes to the State that provide a fixed rate of return. While QTC bears the fluctuations in the value and returns on the asset portfolio, there is no cash flow effect for QTC. Any losses incurred by this segment have no impact on QTC’s capital markets activities or its ability to meet its obligations.

Operational enhancements on track

To ensure its capacity to meet the Government’s emerging financial needs, QTC has successfully continued its program of work to implement new technologies to enhance its financial and risk management systems and processes. This program of work is on track to deliver organisational efficiencies that will streamline processes and free-up expert resources for the front-line delivery of services.

Employee engagement increased

Solid results have been achieved through QTC’s well-rounded program of work to engage employees in its high performance culture. With the implementation of key initiatives to enhance leadership, learning and development, succession planning, recognition, remuneration, diversity and health and wellbeing, the significant improvement in QTC’s employee engagement survey results was particularly pleasing. In 2014–15, employee engagement increased by nine percentage points to 71 per cent, placing QTC within Aon Hewitt’s ‘Best Employer’ range and in the top quartile of surveyed financial institutions in Australia and New Zealand.

Board and management strengthened

Over the last year, two highly experienced directors have joined the QTC Board, bringing their considerable expertise and insight to benefit the organisation and the State; Jim Stening was appointed on 13 November 2014, and Karen Smith-Pomeroy was appointed on 9 July 2015.

Executive management has also been bolstered, with Richard Jackson moving into an executive-level role responsible for market relations, and Grant Bush accepting QTC’s offer to lead its Funding and Markets Division (see below).

Looking ahead

With a clear focus on its three key goals —to deliver value to the State and its clients; to ensure access to sustainable funding; and to achieve organisational excellence—and its highly talented leaders and staff, QTC is well-positioned to provide tangible financial value to the State in 2015-16, and the years to come.

G P Bradley

P C Noble
Chief Executive
Grant Bush
After a global selection process, Grant Bush was appointed QTC’s Executive General Manager, Funding and Markets, effective 17 August 2015.

Grant has extensive experience in the fixed income markets having spent 23 years in the investment banking industry across a range of markets and disciplines. He spent the last 16 years at Deutsche Bank, most recently as their Managing Director, Co-Head of Corporate Coverage & Head of Capital Markets and Treasury Solutions. Grant has also worked with BZW (former investment banking arm of Barclays Bank PLC), and ABN AMRO.

He joins QTC with proven senior management experience in broad organisational decision making, and funding and markets strategy.

Creating value for the State and clients

In 2014–15, QTC achieved significant financial outcomes for the State and its public sector entities through the delivery of its debt funding and management, cash management, financial risk management advisory, and specialist public finance education services.

These outcomes ranged from identifying optimal funding and refinancing solutions from a cost and debt management perspective, through to support in identifying and managing financial risks in major projects.

QTC’s enhanced service delivery model, which facilitates client access to the full range of skills and expertise that its highly skilled people offer, has been integral to the achievement of these outcomes.

Increased scope in advisory assignments

In 2014–15, QTC completed a broad range of financial advisory assignments that assisted its clients and the State to address financial risk management issues and deliver meaningful whole-of-State outcomes that contributed to the achievement of the Government’s fiscal priorities and objectives.

By year end, QTC had completed 130 major advisory assignments, and had another 50 underway, to assist its clients and the State to maximise the financial value, mitigate the financial risk, and minimise the financial costs in their projects. As client demand for its advisory services continued, QTC delivered services to address emerging challenges and opportunities, and assignments that ranged from financial modelling for decision making, through to credit assessments, procurement advice, business case development and project evaluation.

Refinancing advice prioritised

In the year under review, QTC completed a number of major assignments to address clients’ debt and refinancing issues, providing advice and developing and implementing strategies that resulted in positive financial outcomes and the mitigation of associated risk implications. For example, QTC partnered with two of its largest energy clients —Ergon and Energex—to develop and implement a new approach and strategies to refinance their $13 billion of debt, in line with regulatory requirements of the Australian Energy Market Commission. This new approach significantly decreased the current and future refinancing and regulatory mismatch risk for these clients and the State.

New suite of financial management tools delivered

The reach and accessibility of QTC’s financial risk management and advisory expertise was enhanced, through the development of a suite of new financial management tools for clients to use that further extended the application of some of QTC’s well-established financial frameworks and models. This included financial forecasting tools, standardised credit frameworks and project decision-making frameworks for clients from all areas of government. These best-practice financial models and tools are integral to the delivery of QTC’s advisory services across the State, providing additional support to clients in their financial and commercial decision-making.

Better outcomes for Queenslanders delivered

As QTC delivers its range of financial risk management advisory services across the full spectrum of the Queensland public sector, a number of its assignments in the past year have been completed for clients that have a significant role in providing better outcomes for Queenslanders.

For example, QTC continued its partnership with the Department of Housing and Public Works on its community housing reform program, including the financial and commercial assessments for the first two major social housing outsourcing projects, the Logan Renewal Initiative and the Gold Coast Management Transfer Initiative.

This work was complemented by subsequent assignments for contract management education, and the financial assessment of providers and training programs for the national regulation body.

Infrastructure project evaluation and procurement supported

QTC maintained its commitment to the Government’s Projects Queensland office, with employees leading and participating in the evaluation and procurement of some of the State’s most important infrastructure and service delivery initiatives to achieve value-for-money outcomes, deliver projects within tight time frames, and enable an appropriate transfer of risk to the private sector.

Debt management

In 2014–15, QTC continued to provide clients with a lower cost of funds—through low-interest loans combined with a high level of interest rate risk protection. With responsibility for all of the State’s debt raising, QTC continues to capture significant economies of scale and scope in the issuance, management and administration of debt. Despite ongoing market volatility, QTC’s capital markets expertise ensures clients have access to borrowing products at comparatively low interest rates.


Cash management

QTC offers cash management products that enable its clients to maximise the value of their surplus funds. In 2014–15, QTC’s Capital Guaranteed Cash Fund provided strong returns and outperformed its benchmark, the Bloomberg AusBond Bank Bill Index, by 0.80 percentage points.


Client feedback

As part of its commitment to ensuring it has strong and professional client relationships that deliver simple and well-designed solutions and achieve quality outcomes for Queensland, QTC constantly seeks client feedback to improve its services.

In 2014–15, QTC’s post-advisory survey results remained high, achieving a satisfaction score of 8.6 out of a possible 10. Similarly, in its annual client survey, QTC’s established goodwill with clients continued, as 74 per cent of clients who were asked to provide feedback completed the survey, providing results that indicated their sentiment score towards QTC remained strong and steady at 8.4 out of a possible 10. In addition, QTC’s client value score increased from 7.3 to 7.9 out of a possible 10.


Specialist public sector finance education

QTC has prioritised the delivery of its public sector finance education this year, increasing the range and frequency of courses to provide additional, cost-effective opportunities for clients to improve their financial, risk and decision-making skills. Facilitated by QTC’s team of highly-skilled finance education experts, these courses foster an environment of continuous improvement and provide practical skills, tools and techniques to support public sector service delivery and the Government’s achievement of its fiscal objectives.


Achieving sustainable access to funding

In the year under review, QTC raised $7 billion of term debt to meet the State’s funding requirements. Proactive management of its funding strategy helped minimise spread volatility and smoothed QTC’s maturity profile in a time of relative market uncertainty.

Meeting the State's funding requirements

In 2014–15, through its high-quality execution of term debt issuance, QTC affirmed its reputation as a premium issuer with investors and the Fixed Income Distribution Group, particularly given its capacity to successfully launch and close large deals at attractive pricing levels. QTC’s activities to complete the annual borrowing program and support its bonds in the market included:

  • the issuance of $2.8 billion of floating rate notes at yields below its equivalent fixed-rate curve, as well as creating a smoother maturity profile—this issuance was targeted at maturity dates that avoided large refinancing periods
  • the issuance of $5.5 billion of syndicated fixed rate funding on average at QTC’s fair value curve, and
  • the utilisation of QTC’s balance sheet to enhance liquidity in QTC bonds (turnover in QTC bonds held on balance sheet of $2.6 billion in 2014–15).

QTC continues to provide the market with diverse, liquid lines that have been issued using the strength of its AA+ credit rating.

Funding performance

QTC’s proactive management of the borrowing program, its client funding and balance sheet activities helped contain QTC’s spreads, and was supported by market confidence in QTC’s ability to manage its future funding programs, evident through strong investor demand for each of its public issuances.

In 2014–15, QTC capitalised on historically low interest rates by materially lengthening the duration of the Government Debt Pool in an efficient and prompt manner, thereby providing the State with significant stability of interest cost and protection against rising interest rates for the foreseeable future.

Funding, debt management, refinancing, client transaction and rebalancing activities for the State provided estimated savings of $66 million during 2014–15.

In 2014–15, QTC’s Fixed Income Distribution Group of 14 banks, traded $154 billion of QTC’s bonds in the secondary market—demonstrating the strength of QTC’s strong, liquid benchmark bond program.

QTC’s Fixed Income Distribution Group*

  • ANZ Banking Group Limited
  • Bank of America Merrill Lynch
  • Barclays (withdrew 30 June 2014)
  • BNP Paribas
  • Citi
  • Commonwealth Bank of Australia
  • Deutsche Bank
  • JP Morgan
  • National Australia Bank Limited
  • Nomura International plc
  • RBC Capital Markets
  • UBS Investment Bank
  • Westpac Banking Corporation

*From 1 July 2015, TD Securities and HSBC were no longer part of QTC’s Fixed Income Distribution Group.

Funding principles





2015-16 term debt indicative borrowing program


AUD m*

State (includes general government and government-owned corporations)


Local Government and other clients #


Total new money


Net term debt refinancing


Total term debt requirement


* Numbers are rounded to the nearest $100 million. ** Other clients include: universities, grammar schools, retail water entities and water boards. Note: Funding activity may vary depending upon actual client requirements, the State’s fiscal position and financial market conditions.
Funding facilities

As at 30 June 2015

Facility Size
Maturities Currencies On issue
Short-term Domestic T-Note Unlimited 7–365 days AUD 4 900
Euro CP USD10,000 1–364 days Multi-currency 115
US CP USD10,000 1–270 days USD 163
Long-term AUD Bond Unlimited 11 benchmark lines: 2015-2025 AUD 69 713
4 AGG4 lines: 2015-2021 AUD 7 281
Preferred line: 2033 AUD 905
Capital Indexed Bond: 2030 AUD 847
Floating rate notes: 2016-2018 AUD 7 055
Global AUD Bond AUD20,000 2 AGG* lines 2015-2017 AUD 487
Multi-currency Euro MTN USD10,000 Various Multi-currency 1 089
Multi-currency US MTN USD10,000 Various Multi-currency  –
* AGG – Australian Government Guaranteed

Striving for organisational excellence

QTC is committed to maintaining high organisational standards to provide an environment where corporate goals can be achieved and organisational risks are actively monitored and addressed.

Corporate risk management and efficiency

QTC manages its risks within an enterprise-wide risk management framework. The framework supports the achievement of QTC’s corporate strategies and objectives by providing assurance that QTC’s risks are being appropriately and effectively identified and managed, using a consistent and well-understood approach for evaluating and reporting risks. QTC’s Chief Risk Officer is responsible for embedding QTC’s risk management policy and program.

On 1 July 2014, EY (Ernst & Young) was appointed as QTC’s internal auditor. Internal audit results for the year were very positive; out of 14 audits completed, two audits were rated 5 out of 5, ten were rated 4 out of 5, and two rated 3 out of 5.

QTC has successfully implemented a framework that identifies key internal controls; control owners provide periodic assurance that the control is effective. In the year under review, all control assurances were positive. In addition, QTC’s internal auditors assessed that each control is operating effectively.

Throughout 2014–15, QTC managed its portfolio market risk exposures, including interest rate, foreign exchange and counterparty risk, within Board-approved risk parameters. It also managed its financial markets risks in line with industry best practice and Basel Committee recommendations. QTC continues to hold a portfolio of diverse, liquid financial securities to meet the State’s liquidity requirements, consistent with its internal and external policies.

Operational excellence

In 2014–15, initiatives to improve the efficiency and effectiveness of operations remained a major priority for the organisation, with the implementation of the organisation’s longer-term strategy to ensure sustainability in its products, processes and systems.

The first systems within this program of work were successfully implemented during the year, and included straight-through processing to fully automate market transactions and optimise efficiencies, systems for enterprise content and print management, and improved secure remote-access functionality.

Through the provision of funding for clients, QTC efficiently and accurately completed more than 78,000 transactions, with a combined turnover of $1 trillion, and an error rate of only 0.036 per cent.

High performance workforce

QTC competes with the global financial industry to attract and retain its high calibre of employees. Pursuant to the Queensland Treasury Corporation Act 1988, QTC employees are hired on individual contracts, with employment practices aligned to the financial markets in which it operates.

QTC’s Board regularly reviews the performance-based remuneration system, which comprises fixed and variable remuneration and is benchmarked against the market median of remuneration data from similar-sized organisations in the Financial Institutions Remuneration Group (FIRG provides salary survey data for the Australian finance industry). QTC’s variable remuneration framework provides an opportunity for an annual short-term incentive for eligible employees, aligned to financial-year performance, and designed to ensure market competitiveness and reward outstanding organisational, group and individual performance. The QTC Board approves the entitlement to, and the quantum of, the annual review of fixed remuneration and variable short-term incentives.

Activities to enhance the capability and engagement of QTC’s workforce and further embed high-performance into the organisation’s culture were prioritised, with the implementation of a number of new initiatives, as well as the continuation of the targeted leadership, culture and workplace programs.

New initiatives included the ‘onboarding’ program and new talent development programs, providing internship, work experience and six-week summer placement opportunities, as well as QTC’s formal learning programs.

Leadership development continues to be an area of organisational priority; in the year under review, QTC delivered five development programs, with a total of 126 participants across all programs.

With the implementation of its Diversity and Inclusion Strategy, the benefits of a culture that welcomes diversity and inclusion were embraced in the QTC workplace, helping to enrich employees’ perspective and experience, improve performance, manage risk, improve decision-making and, ultimately, achieve the organisation’s objectives. Under the strategy’s three priority streams of culture, disability and gender, ten new initiatives were implemented, including:

  • activities to celebrate the 26 nationalities represented in QTC’s workforce
  • two new partnerships with external organisations to provide employment opportunities for people with a disability, and
  • an increase in the number of women appointed to senior leadership roles (now 38 percent, up from 20 per cent in 2013–14) and general manager roles (now 50 per cent).

Employee engagement again improved, increasing to 71 per cent, a nine percentage point improvement on the 2014 survey score (62 per cent) and a 33 percentage point improvement since the first engagement survey in 2011. Conducted by Aon Hewitt, this result places QTC within their ‘Best Employer’ range, and in the top quartile of the Australian and New Zealand Financial Services group (well above its norm of 55 per cent).

QTC continued its practice of regularly reviewing and updating its policies and procedures to comply with changes in the legislative and regulatory environment and to ensure employees have access to avenues through which to raise concerns, including an internal grievance process.


Workforce profile 2014–15

Full-time equivalent staff 203
Permanent retention rate 78.07%
Permanent separation rate 22.88%
Permanent average tenure 7.12 yrs

Ensuring corporate governance

QTC is committed to maintaining high standards of corporate governance to support its strong market reputation and ensure that organisational goals are met and risks are monitored and appropriately addressed. QTC’s corporate governance practices are continually reviewed and updated in line with industry guidelines and standards.

QTC and its boards

QTC was established by the Queensland Treasury Corporation Act 1988 (the QTC Act) as a corporation sole (ie, a corporation that consists solely of a nominated office holder). The Under Treasurer of Queensland is QTC’s nominated office holder. QTC has delegated its powers to its two boards:

  • the Queensland Treasury Corporation Capital Markets Board (the Board), which was established in 1991 and manages all of QTC’s operations except those relating to certain superannuation and other long-term assets, and
  • the Long Term Asset Advisory Board, which was established in July 2008 and advises in relation to certain superannuation and other long-term assets that were transferred to QTC from Queensland Treasury on 1 July 2008.
QTC Capital Markets Board

QTC and the Capital Markets Board have agreed the terms and administrative arrangements for the exercise of the powers that have been delegated to the Board by QTC (as the corporation sole).

The Board operates in accordance with its charter, which sets out its commitment to various corporate governance principles and standards, the roles and responsibilities of the Board and its members (based on its delegated powers), and the conduct of meetings. The charter provides that the role and functions of the Board include:

  • overseeing QTC’s operations, including its control and accountability systems
  • developing and monitoring QTC’s strategic and corporate plans, operational policy and yearly budget
  • monitoring and measuring financial and operational performance
  • monitoring and measuring organisational and staff performance
  • monitoring key risks and risk management processes, and
  • ensuring that QTC’s compliance is appropriate for an organisation of its type.

The Board typically holds monthly meetings (except in January) and may, whenever necessary, hold additional meetings.

Board appointments

The Board comprises directors who are appointed by the Governor-in-Council, pursuant to section 10(2) of the QTC Act, with consideration given to each Board member’s qualifications, experience, skills, strategic ability and commitment to contribute to QTC’s performance and achievement of its corporate objectives. QTC’s Board is entirely constituted of non-executive directors.

Conflict of interest

Board members are required to monitor and disclose any actual or potential conflicts of interest. Unless the Board determines otherwise, a conflicted Board member may not receive any Board papers, attend any meetings or take part in any decisions relating to declared interests.

Performance and remuneration

To ensure continuous improvement and to enhance overall effectiveness, the Board conducts an annual assessment of its performance as a whole. Board members’ remuneration is determined by the Governor in Council (details are disclosed in QTC’s financial statements).

Board committees

The Board has established three committees, each with its own terms of reference, to assist it in overseeing and governing various QTC activities.

Accounts and Audit Committee

The Accounts and Audit Committee has responsibility for the:

  • adequacy and effectiveness of internal controls, including for the prevention of fraud
  • integrity of financial statements
  • adequacy and effectiveness of compliance monitoring, and
  • audit effectiveness.

The Accounts and Audit Committee must have at least three members and meet at least four times a year.

During the year the Accounts and Audit Committee recommended the adoption of the half year and annual financial statements, reviewed external and internal audit reports and the progress in implementing the recommendations from those reports, and reviewed the Queensland Audit Office’s Client Service Plan and QTC’s Internal Audit Plan.

As required by the Audit Committee Guidelines: Improving Accountability and Performance issued by Queensland Treasury, QTC’s Accounts and Audit Committee has observed its terms of reference and has had due regard to the Audit Committee Guidelines.

Human Resources Committee

The Human Resources Committee has responsibility for:

  • the appropriateness of any new or amended human resources policy
  • the framework for, and review of, employee remuneration and performance, and
  • employment terms and conditions.

The Human Resources Committee must have at least three members and meet at least four times a year. The Human Resources Committee has observed its terms of reference.

Funding and Markets Committee

The core responsibilities of the Funding and Markets Committee is to assist the Board by making recommendations about the policy to enhance the performance and management of risk in the areas of funding accessibility (including liquidity), and pool performance and to support QTC’s risk appetite with a focus on effectiveness and performance.

The Committee must have at least three members and meet at least four times a year. The Funding and Markets Committee has observed its terms of reference.

Board Accounts
& Audit
& Markets
Meetings held 10 5 4 4
Gerard Bradley 10 2 4 4
Warwick Agnew 6 4 2
Alex Beavers* 3 1
Stephen Bizzell 10 5 4
Gillian Brown** 2 1
Tonianne Dwyer 10 1 3
Bill Shields 9 5
Jim Stening 7 2
*Alex Beavers resigned from the QTC Board on 13 November 2014.
**Gillian Brown resigned from the QTC Board on 20 August 2014.
Long Term Asset Advisory Board

The Long Term Asset Advisory Board (LTAAB) was established in July 2008, following the transfer of certain superannuation and other long-term assets from Treasury to QTC (primarily for reasons relating to market volatility).

The LTAAB has power delegated from QTC to:

  • manage the sufficiency of the funding of the long-term assets
  • set investment objectives and strategies for the long-term assets
  • set the appropriate investment structure for the long-term assets, and
  • monitor investment performance of the long-term assets.

The LTAAB holds meetings at least four times per year and held five in the year under review.

The LTAAB members are appointed by the Governor in Council, pursuant to section 10(2) of the QTC Act.

The members of LTAAB are:

Name Position
Under Treasurer Chairperson
Chief Executive, QSuper Member
Chief Executive, QTC Member
State Actuary Member
Assistant Under Treasurer Member
Assistant Under Treasurer Member
Deputy Under Treasurer Member
The LTAAB has observed its terms of reference.

In accordance with the provisions of the Auditor-General Act 2009, the Queensland Audit Office is the external auditor for QTC. The Queensland Audit Office has the responsibility for providing Queensland’s Parliament with assurances as to the adequacy of QTC’s discharge of its financial and administrative obligations.

QTC has an independent internal audit function that was outsourced to Ernst and Young (EY) for the 2014–15 financial year. Internal audit reports to the Accounts and Audit Committee. Internal audit is conducted under an Internal Audit Charter that is consistent with the relevant audit and ethical standards. The role of internal audit is to support QTC’s corporate governance framework by providing the Board (through the Accounts and Audit Committee) with:

  • assurance that QTC has effective, efficient and economical internal controls in place to support the achievement of its objectives, including the management of risk, and
  • advice with respect to QTC’s internal controls and business processes.

Internal audit is responsible for:

  • developing an annual audit plan, based on the assessment of financial and business risks (based on QTC’s approved significant risks and internal workshops) aligned with QTC’s strategic goals and objectives, and approved by the Accounts and Audit Committee
  • providing regular audit reports and periodic program management reports to the management team and the Accounts and Audit Committee, and
  • working constructively with QTC’s management team to challenge and improve established and proposed practices and to put forward ideas for process improvement.

In the year under review, EY completed its internal audits in accordance with the approved annual audit plan.

QTC has had due regard to Treasury’s Audit Committee guidelines, in establishing and supervising its outsourced internal audit function and, together with the Accounts and Audit Committee, in overseeing and monitoring the internal audit function.

Management Team

The responsibility for the day-to-day operation and administration of QTC is delegated by the Board to the Chief Executive and the Executive Management Team. The Chief Executive is appointed by the Board. Executives are appointed by the Chief Executive. As with the Board, all Executive Management Team appointments are made on the basis of qualifications, experience, skills, strategic ability, and commitment to contribute to QTC’s performance and achievement of its corporate objectives.


QTC’s Executive Management Team 2015–16

Philip Noble Chief Executive
Steven Tagg Chief Operating Officer Executive General Manager, Corporate Services
Sandie Angus Executive General Manager, Business Services
Grant Bush Executive General Manager, Funding and Markets
John Frazer Executive General Manager, Risk Analysis
Rupert Haywood Executive General Manager, Client Services

Financial Statements


Appendix A: Loans to clients

Appendix A: Loans to clients (Download pdf, 152.86 Kb)

Appendix B: Statutory and mandatory disclosures

QTC is required to make various disclosures in its Annual Report. QTC is also required to make various disclosures on the Queensland Government’s Open Data website (qld.gov.au/data) in lieu of inclusion in its Annual Report. This Appendix sets out those mandatory disclosure statements that are not included elsewhere in the report or made available on the Open Data website.

Information systems and record keeping

During the year, QTC continued its compliance with the provisions of the Public Records Act 2002, and its implementation of the Information Standard 40: Recordkeeping and Information Standard 31: Retention and Disposal of Public Records.

QTC has continued its work with State Archives on the development of a QTC-specific Local Retention and Disposal Schedule, and provides training to staff in the appropriate management of public records in all formats, including email.

During the year, QTC implemented a new electronic document management system for improved information management and storage cost reduction.

Public Sector Ethics Act

QTC provides the following information pursuant to obligations under section 23 of the Public Sector Ethics Act 1994 (Qld) to report on action taken to comply with certain sections of the Act.

QTC employees are required to comply with QTC’s Code of Conduct for employees, which aligns with the ethics principles and values in the Public Sector Ethics Act 1994, as well as the Code of Ethics and Code of Conduct established by the Australian Financial Markets Association of which QTC is a member. Both codes are available to employees via QTC’s intranet. Copies of these codes can be inspected by contacting QTC’s Human Resources Group (see Appendix E for contact details). Appropriate education and training about the code of conduct has been provided to QTC staff.

QTC’s human resource management and corporate governance policies and practices ensure that QTC:

  • acts ethically with regard to its Code of Conduct and within appropriate law, policy and convention, and
  • addresses the systems and processes necessary for the proper direction and management of its business and affairs.

QTC is committed to:

  • observing high standards of integrity and fair-dealing in the conduct of its business, and
  • acting with due care, diligence and skill.

QTC’s Compliance Policy requires that QTC and all employees comply with the letter and the spirit of all relevant laws and regulations, industry standards, and relevant government policies, as well as QTC’s own policies and procedures.

Remuneration: Board and Committee

For the year ending 30 June 2015, the remuneration and committee fees of the QTC Capital Market Board members (excluding superannuation contributions and non-monetary benefits) were as follows:

Board Committee
Chairperson $100,527 Chairperson $6,658
Member $33,551 Member $5,152

The total remuneration payments made to the members of the QTC Capital Market Board was $305,909 and the total on-costs (including travel, accommodation, and hiring of motor vehicles for the members) was $36,623.

No payments in relation to remuneration or on-costs (including travel, accommodation, and hiring of motor vehicles for the members) were made to members of the Long Term Asset Advisory Board in the year ending 30 June 2015.

Related entities

The related entities in Note 22 (except City North Infrastructure Pty Ltd) are consolidated into Queensland Treasury’s financial report.

Appendix C: Glossary

Australian Government Guarantee (AGG):Also known as the Commonwealth Government Guarantee. In response to the global financial crisis, on 25 March 2009, the Australian Government provided a time-limited, voluntary guarantee over existing and new Australian state and territory government borrowing. On 16 June 2009, the Queensland Government took up the guarantee on all existing QTC AUD denominated benchmark bond lines (global and domestic) with a maturity date of between 12 months and 180 months (1-15 years). The RBA approved QTC’s application on 11 December 2009. The AGG was withdrawn for new borrowings after 31 December 2010.

Basis point: One hundredth of one per cent (0.01%).

Bond: A financial instrument where the borrower agrees to pay the investor a rate of interest for a fixed period of time. A typical bond will involve regular interest payments and a return of principal at maturity.

Commonwealth Government Guarantee (CGG): See Australian Government Guarantee above.

CP (commercial paper): A short-term money market instrument issued at a discount with the full face value repaid at maturity. CP can be issued in various currencies with a term to maturity of less than one year.

Credit rating: Measures a borrower’s creditworthiness and provides an international framework for comparing the credit quality of issuers and rated debt securities. Rating agencies allocate three kinds of ratings: issuer credit ratings, long-term debt and short-term debt. Issuer credit ratings are among the most widely watched. They measure the creditworthiness of the borrower including its capacity and willingness to meet financial obligations. QTC has a strong rating from two rating agencies—Standard & Poor’s, and Moody’s.

Distribution group: A group of financial intermediaries who market and make prices in QTC’s debt instruments.

GOC: Government-owned corporation.

Issue price: The price at which a new security is issued in the primary market.

Liquid: Markets or instruments are described as being liquid, and having depth, if there are enough buyers and sellers to absorb sudden shifts in supply and demand without price distortions.

Market value: The price at which an instrument can be purchased or sold in the current market.

MTN (Medium-Term Note): A financial debt instrument that can be structured to meet an investor’s requirements in regards to interest rate basis, currency and maturity. MTNs usually have maturities between 9 months and 30 years.

QTC: Queensland Treasury Corporation.

RBA: Reserve Bank of Australia.

T-Note (Treasury Note): A short-term money market instrument issued at a discount with the full face value repaid at maturity. T-Notes are issued in Australian dollars with a term to maturity of less than 1 year.

Appendix D: Compliance checklist
Appendix E - Contacts

Queensland Treasury Corporation

Level 6, 123 Albert Street

Brisbane Queensland Australia

GPO Box 1096

Brisbane Queensland Australia 4001

Telephone: +61 7 3842 4600

Facsimile: +61 7 3221 4122

Email: enquiry@qtc.com.au

Internet: https://www.qtc.com.au/

Queensland Treasury Corporation’s annual and half-yearly reports (ISSN 1837-1256 print; ISSN 1837-1264 online) are available on QTC’s website. If you would like a copy of a report posted to you, please call QTC’s Corporate Affairs group on +61 7 3842 4685.

If you would like to comment on a report, please complete the online enquiry form located on our website.

Reception +61 7 3842 4600
Executive Office +61 7 3842 4611
Business Services +61 7 3842 4872
Client Services +61 7 3842 4901
Corporate Services +61 7 3842 4833
Funding & Markets +61 7 3842 4647
Strategic Alignment & Implementation +61 7 3842 4736
Stock Registry (Link Market Services Ltd) 1800 777 166

QTC is committed to providing accessible services to Queensland residents from culturally and linguistically diverse backgrounds. If you have difficulty understanding this report, please contact QTC’s Corporate Affairs group on +61 7 3842 4685 and we will arrange for an interpreter to assist you.

Information for institutional investors

Core to its key funding principles, QTC is committed to being open and transparent with investors and its partners in the financial markets.

Through its website, QTC provides a range of information for investors on its various funding facilities and annual borrowing program. The website also hosts an analysts’ centre with information and links about Australia and Queensland to help investors gain a better understanding of:

  • the different levels of government in Australia
  • the forms of fiscal support the Australian Government provides to the states and territories
  • relevant governance practices, legislation and polices
  • financial data and budget information, and
  • economic and trade data.

QTC also offers investors the ability to subscribe to quarterly funding updates in English, Japanese, as well as Modern Chinese and Traditional Chinese.

Website: Click here

Quarterly investor updates: Subscribe from the institutional investor section of the website

Analysts’ centre: Click here

Bloomberg ticker: qtc

Open data

In accordance with the Annual report requirements for Queensland Government agencies: Requirements for the 2014-15 reporting period, with which we have to comply under the Financial and Performance Management Standard 2009, QTC publishes details of its annual expenditure on consultants and overseas travel.

Availability of annual reports

QTC’s annual and half-yearly reports (ISSN 1837-1256) are available on QTC’s website for the past five financial years, earlier years are available by request. Printed copies can also be provided; please contact us for further information.

Compliance checklist

The compliance checklist outlines the governance, performance, reporting and other specific requirements for annual reports in accordance with the Annual report requirements for Queensland Government agencies: Requirements for the 2014-15 reporting period.


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The materials presented on this site are provided by the Queensland Treasury Corporation for information purposes only. Users should note that the electronic versions of the Annual Report on this site are not recognised as the official or authorised version. The official copy of the Annual Report, as tabled in the Legislative Assembly of Queensland, can be accessed from the Queensland Parliament tabled papers website database.