2022-23 Annual Report (text version)
The Queensland Treasury Corporation Annual Report 2022-23 provides details of Queensland Treasury Corporation’s (QTC’s) achievements, outlook, performance and financial position for the 2022-23 financial year.
17 August 2023
The Honourable Cameron Dick
Treasurer and Minister for Trade and Investment
GPO Box 611
Brisbane QLD 4001
Dear Treasurer and Minister for Trade and Investment
I am pleased to present the Annual Report 2022–23 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 2019, 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 66 of this Annual Report.
Queensland Treasury Corporation (QTC) has a statutory responsibility to advance the financial position and development of the State. Established under the Queensland Treasury Corporation Act 1988, QTC is a corporation sole, reporting through the Under Treasurer to the Treasurer and the Queensland Parliament.
Protecting and advancing Queensland’s financial interests
To deliver optimal financial outcomes through sound funding and financial risk management
2023-27 Strategic Goals
1. State and client value
2. Operational excellence
We build strong partnerships with our clients to deliver simple and well-designed solutions that achieve quality outcomes for Queensland.
We work as one team, taking joint responsibility for achieving our vision and collaborating to achieve outstanding performance.
We aim for excellence using flexible and agile processes to continuously improve.
We show respect by recognising contributions, welcoming ideas, acting with honesty, being inclusive and embracing diversity.
We inspire trust and confidence in our colleagues, clients, stakeholders and investors by upholding strong professional and ethical standards.
At QTC, we are committed to protecting and advancing the financial interests of Queensland.
QTC is the central financing authority for the Queensland Government and provides financial resources and services for the State. We manage the State’s funding program in the global capital markets to deliver sustainable and cost-effective borrowings for the Queensland Government—principally through Queensland Treasury. Our clients also include government owned corporations, departments, agencies, local governments, and other entities such as universities.
With a statutory role to advance the financial interests and development of the State, we work in partnership with Queensland Treasury and other clients to deliver financial, economic and social outcomes. This includes the development of innovative, long-term solutions that contribute to the growth of Queensland’s economy.
We protect Queensland’s financial interests and deliver better financial outcomes by centralising the management of our clients’ borrowings, cash investments, and financial risks.
We play an integral role in managing the State’s finances, working closely with our clients on their financial exposures, to identify opportunities to minimise costs and risks, and maximise outcomes.
On behalf of the Queensland Treasury Corporation Capital Markets Board, I am pleased to present Queensland Treasury Corporation’s Annual Report for 2022–23. The 2022–23 financial year was a significant year of transformation and growth for QTC and the Board.
On 20 February 2023, we welcomed Leon Allen as the new Chief Executive Officer of QTC. His appointment followed the resignation of former QTC Chief Executive, Philip Noble on 31 December 2022. QTC extended its sincere thanks to Mr Noble for his significant contribution and service to QTC from 2010–2022.
Mr Allen joined QTC with a wealth of knowledge in the private and public sector, including his recent role as Under Treasurer of Queensland Treasury, and extensive institutional and financial services experience in senior leadership roles both domestically and offshore.
The smooth transition between leaders was enabled by Mr Neville Ide, QTC Board Member who provided operational leadership as QTC’s Interim Chief Executive Officer while the Board undertook an executive recruitment process.
In 2022–23, the Board extended its appreciation to departing Board members—Ms Anne Parkin and Mr Jim Stening—for their years of service and valuable contribution to the Board’s oversight and strategic role. Mr John Wilson was welcomed as a member of the Board, along with Mr Dennis Molloy, Deputy Under Treasurer, as the new ex officio member of the Board. We also benefitted by the reappointment of Karen Smith-Pomeroy for a further term.
Standards of governance continue to rise across all sectors, including for financial services. To support the Board’s governance and decision-making, the Board undertook a strategic review and streamlined QTC’s strategic goals to reflect its ambitions of achieving ‘State and Client Value’ and ‘Operational Excellence’ throughout every aspect of the organisation. This included steering QTC’s client work to align with the Queensland Government’s objectives and Queensland Treasury’s strategic priorities.
QTC’s resilience, solid operating model and talented pool of employees ensured that all strategic goals for the year were achieved. This included the completion of the State’s $13.4 billion 2022–23 borrowing program during a challenging year for financial markets. QTC navigated the external environment with strategic financial markets decision-making and enterprise-wide risk management.
This year, QTC’s strength of alignment to Queensland Treasury’s priorities has seen some legacy outcomes for Queensland, including QTC playing an important role in the development of the Queensland Energy and Jobs Plan and Infrastructure Blueprint. Across its advisory work, QTC delivered solutions for clients that helped manage financial risks, created social and economic benefits, and enhanced the State’s fiscal position.
The next decade presents an environment of opportunity for Queensland and QTC, with many future-changing projects to deliver across the Queensland Government’s portfolios. The Board is committed to guiding QTC’s future focus and strategic vision to provide funding and financial risk management advice to underpin Queensland’s economic prosperity.
I look forward to working with my fellow Board members and the new Executive Leadership Team to set a continued successful path for QTC.
D J FRAWLEY
17 August 2023
The 2022–23 financial year saw the continuation of challenging economic and market conditions that have been a feature of QTC’s operating environment in recent years. Bond market conditions were volatile following the size and the speed of the policy tightening by central banks around the world.
Despite this backdrop, QTC’s reputation as an established semi-government issuer enabled it to achieve $14.7 billion in issuance during the 2022–23 financial year. QTC continued to deliver material benefits to the State through issuance, risk management, on-lending and management of the QTC Cash Fund.
Throughout the 2022–23 financial year, QTC continued to strengthen its alignment with Queensland Treasury as its primary client to support the delivery of identified priorities and opportunities for improved fiscal outcomes. Through this partnership, QTC’s advisory work focused on initiatives with the greatest impact on Queensland’s economic future, including the State’s renewable energy transition and delivering even better services for the community.
QTC’s ability to navigate complex market conditions, and protect and advance Queensland’s financial interests, was underpinned by its strong operational performance.
QTC executed term debt issuance in what has been a volatile year in bond markets and maintained its strong liquidity position over the year with all debt servicing obligations met as required. The strength of QTC’s liquidity was recognised by the credit rating agencies in assessing the State’s credit position during the year.
In 2022–23, QTC completed its borrowing program of $13.4 billion, ahead of schedule, and pre-funded an additional $100 million towards its 2023–24 term debt borrowing requirement. Issuance was executed through $7.0 billion in syndicated deals, $2.5 billion across five tenders and $4.0 billion via reverse enquiry, underlining QTC’s focus on public issuance.
The Queensland Government and QTC continued to provide transparent and regular updates to the market on Queensland’s fiscal position and borrowing program. QTC’s borrowing program was reduced by $1.0 billion to $13.4 billion following the Queensland 2022–23 Budget Update released on 7 December 2022. The reduction was due to general government revenue uplifts.
Following the Queensland 2023–24 State Budget, released on 13 June 2023, QTC announced an indicative term debt borrowing program of $15.5 billion in the 2023–24 financial year. Following this, QTC issued $1.2 billion to 30 June 2023.
In 2022–23, QTC continued to protect clients’ interest rate risk with effective management activities.
QTC reported an operating profit after tax from its capital markets operations of $156.4 million (2021–22: $36.2 million loss after tax) and paid a dividend to the State of $40 million (2021–22: $0 million). QTC’s dividend payments are made on a needs basis, with no dividend required by Government in 2021–22.
QTC deployed an asset management strategy to utilise rising interest rates that captured $320.2 million (2021–22: $59.6 million) in investment returns to its Government clients through the QTC Cash Fund. As at 30 June, funds under management were $9.6 billion and outperformed the Bloomberg AusBond Bank Bill Index by 50 basis points.
QTC’s retained earnings balance of $671.8 million, demonstrates its historically strong financial position with retained earnings closely monitored to ensure QTC’s Board prescribed capital requirements are met.
In addition, QTC’s net earnings have contributed to the payment of $190 million in dividends to the State over the past five years.
QTC worked closely with its stakeholders and the Queensland Government to deliver initiatives that support environmental, social and governance (ESG) outcomes for Queensland. This included collaborating with the Queensland Government on the development of the second annual Queensland Sustainability Report 2022 which presents information about the State’s ESG commitments and outcomes.
In March 2023, QTC issued $3.0 billion of a new 4.50% 9 March 2033 Green Bond, supporting Queensland’s pathway to climate resilience and an environmentally sustainable economy. This was the fifth green bond line extending QTC’s green bond curve for investors—with maturities of 2024, 2029, 2031, 2032 and 2033.
Value delivered for the State
QTC worked closely with Queensland Treasury to deliver a program of advisory work aligned with the Queensland Government’s priorities that focused on maximising financial, social and economic development outcomes for the State.
Highlights during the year included projects to support the Government’s release of its transformational Queensland Energy and Jobs Plan (QEJP) to meet its energy policy commitments and the development of the subsequent market sounding process. QTC also supported social services agencies with financial modelling and analysis for Child Services and Queensland’s schools.
QTC continued to assist Queensland’s government-owned corporations and local governments with a range of advisory work in risk management, forecasting, asset and debt strategies and financial sustainability.
QTC helped enhance financial capability across the public sector through its education collaboration with the University of Queensland. This year, the program reached 1,999 financial practitioners from across the State.
In the year under review, S&P Global Ratings, Moody’s Investors Service and Fitch Ratings reaffirmed Queensland’s and QTC’s credit ratings.
QTC is rated AA+/A-1+/Stable, Aa1/P-1/Stable and AA+/F1+/Stable by S&P Global Ratings, Moody’s Investors Service and Fitch Ratings respectively. These stable ratings are one of the reasons for continued demand from domestic and global investors for QTC debt, and for QTC’s ability to meet larger issuance requirements.
QTC strives to be an organisation with a strong reputation of meeting investor expectations and supporting clients as they deliver for Queensland.
QTC has continued to be recognised and won a national ‘2023 5-Star Employer of Choice’ award for its fourth consecutive year from Human Resources Director.
In 2022–23, QTC continued to strengthen operational capability through system enhancements, risk practices and leadership renewal. QTC met its statutory obligations, completed core business activities on time and delivered initiatives focused on continuous improvement. Organisational development strategies were also implemented with a focus on talent, engagement and development to support a dynamic and resilient workforce.
To support QTC’s growth and transformation, a new Executive Leadership Team (ELT) is being formed with an executive recruitment process to be finalised in the first half of the 2023–24 financial year and an interim ELT in place during the transition.
Our focus is to continue to adapt to the ever-changing external environment and identify ways to improve sustainability and performance. This includes refreshed enterprise-wide risk management, workforce development, technology and business strategy.
With the support of the Board, the new ELT will guide QTC’s strategic direction to deliver operational excellence. Central to this strategy is to put the client at the heart of all that we do with an inclusive culture that reflects the community that we serve.
I would like to extend my sincere thanks to QTC’s dedicated staff of skilled professionals who have remained focused on serving Queensland’s public interest and delivering services to a high standard through a period of change.
Chief Executive Officer
17 August 2023
Achieving sustainable access to funding
QTC completed the State’s $13.4 billion 2022–23 indicative term debt borrowing program on 18 May 2023, ahead of schedule. QTC continued to attract a diversified investor base, further supported by the establishment of three new bond lines, including a $3.0 billion, 9 March 2033 green bond—equal in size to QTC’s largest green bond issuance.
QTC is an established bond issuer in global fixed-income markets and raises the funds needed by the State each year with its bond issues consistently over-subscribed.
On 21 June 2022, following the release of the 2022–23 State Budget, QTC announced it would raise $14.4 billion to meet the State’s term debt borrowing requirement.
On 7 December 2022, the requirement was decreased by $1.0 billion to $13.4 billion, following the Queensland 2022–23 Budget Update. The reduction was due to general government revenue uplifts.
QTC met its borrowing requirement of $13.4 billion and pre-funded an additional $100 million towards its 2023–24 term debt borrowing requirement. Issuance was executed through $7.0 billion in syndicated deals, $2.5 billion across five tenders and $4.0 billion via reverse enquiry.
QTC’s well-managed funding program and reputation for high-quality debt issuance, means Queensland has been able to access the funds it needs at cost-effective rates. To attract a broad investor base, QTC offers investors a diverse range of high-quality financial securities.
2022–23 funding highlights included:
- $2.5 billion 3m BBSW+2.5bp 25 February 2028 floating rate note
- $1.5 billion 4.50% 22 August 2035 benchmark bond
- $3.0 billion 4.50% 9 March 2033 green bond
In 2022–23, QTC maintained the State’s strong liquidity position, which supports the State’s credit rating and provides reserves during periods of market volatility.
On 13 June 2023, QTC announced its indicative $15.5 billion term debt borrowing requirement for 2023–24. Following this, QTC issued $1.2 billion to 30 June 2023.
QTC’s proactive management of the State’s borrowing program and the management of clients’ funding requirements helped to smooth the maturity profile of debt on issue, reducing refinancing risk. All fixed rate debt issued in 2022–23 was in maturities 2029 and longer.
Over the financial year, QTC continued to keep the market informed with open and transparent information on funding activity and the State’s economic, fiscal and environmental, social and governance (ESG) commitments. This included regular market engagements through the Funding and Markets Division, digital communication channels, and virtual and face-to-face meetings and events.
QTC’s issuance strategy continues to support its commitment to a diverse range of funding sources, complementing its core AUD benchmark bonds and offering investors flexibility in their investment options.
In March 2023, QTC issued its fifth green bond line, extending QTC’s green bond curve for investors—with maturities of 2024, 2029, 2031, 2032 and 2033. The $3.0 billion issuance of QTC’s new 2033 green bond was equal in size to QTC’s largest green bond transaction, highlighting the continuation of both onshore and offshore demand in QTC’s green bond program. The transaction was well supported across both geography and investor type, with approximately one third of the transaction allocated to offshore investors.
As at 30 June 2023, QTC was the largest Australian semi-government issuer of Climate Bonds Standard Certified Green Bonds, with $10.545 billion on issue. QTC continues to engage with clients to grow and diversify its pool of eligible green bond assets and support the State in Queensland’s pathway to climate resilience and an environmentally sustainable economy.
In 2022, QTC also collaborated with the Queensland Government on the development of the Queensland Sustainability Report 2022 with information about the State’s ESG commitments and outcomes.
QTC has a diverse range of funding instruments in a variety of markets and currencies. The majority of QTC’s funding is sourced through long-term debt instruments, with QTC’s AUD benchmark bonds being the principal source of funding. As at 30 June 2023, QTC’s total debt outstanding was approximately $127.3 billion at face value.
|OVERVIEW AS AT 30 June 2023||SIZE (AUDM)||MATURITIES||CURRENCIES|
|Short-term||Domestic T- Note||Unlimited||7–365 days||AUD|
|Euro CP||USD10,000||1–364 days||Multi-currency|
|US CP||USD10,000||1–270 days||USD|
|Long-term||AUD Bond||Unlimited||13 benchmark lines: 2023-2035
A range of non-benchmark lines* (green bonds, floating rate notes etc.)
|Euro MTN||USD10,000||Any maturity subject to market regulations||Multi-currency|
|US MTN||USD10,000||9 months-30 years||Multi-currency|
* See QTC’s website for further details on non-benchmark bond lines.
Creating value for the State and clients
In 2022–23, QTC partnered with Queensland Treasury and its Queensland Government clients to deliver financial, economic and social outcomes to enhance Queensland’s future and economic prosperity. This work delivered cost-savings, economic benefits and analysis to inform enhanced decision-making. The positive outcomes generated for clients were achieved through delivering financial advisory and project implementation services; and providing high-quality services for borrowing, debt and cash management, and foreign exchange.
In the year under review, QTC worked closely with Queensland Treasury to deliver a program of work aligned with the Queensland Government’s priorities to maximise financial and social outcomes for the State. Through its partnership with Queensland Treasury, QTC focused on key priority areas including energy, investment, housing and health.
QTC also delivered a broad range of financial advisory assignments for departments and agencies, local governments and government owned corporations that supported sound investment, minimised risk, increased efficiencies and delivered broader social and economic outcomes.
Supporting the government’s priorities
The key projects QTC delivered during 2022–23 included:
- Energy: Provided market modelling, analysis and research delivery of the Queensland Energy and Jobs Plan (QEJP) and a range of reforms to meet energy policy commitments. QTC also assisted with the establishment of Queensland Hydro, the new state-owned entity tasked with planning, delivering, owning and operating the proposed Borumba and Pioneer-Burdekin pumped hydro energy storage projects.
- Investment: Coordinated development of the Energy Manufacturing Opportunity Prospectus to further support the QEJP, and engaged with domestic and international manufacturing businesses as part of the Government’s market sounding process.
- Child Services: Assisted Queensland Treasury and the Department of Children, Youth Justice and Multicultural Affairs to develop a new funding model to allow the Department to plan for reforms and deliver better placement outcomes.
- Schools Future Funding Program: Assisted the Department of Education to establish a rolling land fund to enable the Department to efficiently acquire land in advance for new schools.
- Queensland Sustainability Report 2022: Collaborated on the development of the second Queensland Sustainability Report, with information about the State’s environmental, social and governance (ESG) commitments and outcomes.
Financial risk management for government owned corporations
QTC assisted government owned corporations (GOC) with risk management, advisory, forecasting, asset and debt strategies, and commercial evaluations. This includes GOC performance reviews for Queensland Treasury and detailed annual borrowing assessments and credit reviews, as well as funding options analysis for large infrastructure projects. QTC combined its deep quantitative and technical skills with a unique combination of equity and debt perspectives, to deliver timely and impactful commercial advice. This included making multiple submissions to the review of the Australian Energy Regulator’s approach for determining the allowed rate of return for regulated electricity distribution and transmission GOCs.
Fostering strong relationships with local government
QTC has continued to work closely with local governments and key stakeholders to support delivery of financially sustainable council outcomes. This year the focus was on assisting the remote Indigenous Councils to improve their financial sustainability by identifying and mitigating business risks, improving financial and governance processes and working collectively to uplift capability.
QTC assisted the Department of State Development, Infrastructure, Local Government, and Planning (DSDILGP) with the implementation of the new Local Government Sustainability Framework due in 2023–24.
During the year, QTC also delivered economic updates for councils, and bespoke workshops for elected members and council officers. In addition, QTC contributed to the Local Government Finance Professionals (LGFP) forum and facilitated a masterclass on assisting local governments to understand the challenges in a high inflationary environment and the potential impacts for councils.
Debt and risk management
In the year under review, QTC continued to provide clients with a low cost of funds by capturing the significant economies of scale and scope in the issuance, management and administration of the State’s debt. QTC’s debt management strategies provided cash flow savings for the Treasury Core Portfolio-Linked Loans (PLL) and government-owned corporations. This was in a market where increasing interest rates presented challenges for issuers and borrowers alike.
Since late 2019, the combined duration of the Treasury Core and Super-Long PLL had been progressively lengthened at relatively low interest rates. This resulted in the Core PLL book rate being further protected from the increase in yields that began in September 2021 and sharply increased throughout 2022–23.
QTC has proactively managed the timing of drawdowns, use of facilities and book rate reviews to capture further value in interest costs paid by Treasury during the year. QTC also designed and implemented a new variable investment solution for Queensland Treasury to capture additional savings.
QTC offers cash management products that enable our clients to maximise the value of their surplus funds. The products include a Cash Fund, Fixed Rate Deposits, and a Working Capital Facility.
In 2022–23, the Cash Fund delivered $320.2 million in investment returns to its government clients during the year. At 30 June 2023, funds under management were $9.6 billion. The Cash Fund provided strong relative returns and outperformed the Bloomberg AusBond Bank Bill Index by 50 basis points.
Throughout the year, QTC focused on an asset management strategy benefiting from rising interest rates. The Cash Fund is underpinned by the asset’s investment profile, with 100 per cent of the Cash Fund invested in entities rated ‘BBB+’ or higher by S&P Global Ratings at 30 June 2023.
Throughout the year, QTC continued to meet with clients to provide insights into the Cash Fund’s structure, strategy and performance, and dynamically managed credit and money market positions in a challenging environment due to higher inflation and rising interest rates.
QTC’s foreign exchange (FX) services, including its online platform, enable its public sector clients to access wholesale market rates and hedge against currency fluctuations.
In 2022–23, the FX service grew to record transaction volumes, including a number of large transactions supporting the Queensland Energy and Jobs Plan. QTC continued to work with agencies to increase cost saving opportunities through dual currency pricing for the procurement of goods manufactured offshore.
QTC provided clients with a variety of economic publications, including a Weekly and Monthly Economic Review, as well as research articles on topical issues. In the past year, this included research on the effect of interest rate increases on the Australian economy, the drivers of higher inflation, and the possible path for the RBA’s cash rate, among other topics.
Enhancing financial capability in Queensland’s public sector
QTC provides education services to enhance financial decision-making across the Queensland public sector. Since 2017, the QTC Education Program has collaborated with the University of Queensland (UQ) to facilitate delivery of specialised content to public sector and local government employees across the State. In 2022–23, the QTC Education Program engaged 1,999 participants through a combination of workshops, webinars, and masterclass sessions, which received an average learning satisfaction score of 9.29/10.
Key outcomes were achieved through delivering custom training programs to several Hospital and Health Services, DSDILGP, and the Department of Energy and Public Works over the course of the past twelve months with a strong focus on regional Queensland (61% vs 39% SEQ). Additionally, the QTC Education Program reached a wide range of public sector employees in a variety of different financial literacy topics through the open programs (23%) as well as custom delivery (77%).
The QTC webinar series continues to provide new and returning learners complimentary experiences to expand their understanding of financial management concepts. In the past twelve months, the QTC Education Program has seen record return rates with learners continuing to access the webinar content live and on-demand.
TOTAL DEBT OUTSTANDING
30 JUNE 23
TOTAL DEBT OUTSTANDING
30 JUNE 22
40 342 397
44 146 056
26 630 422
25 791 568
12 478 368
12 785 013
5 864 843
6 192 908
5 181 618
4 804 668
91 406 615
94 582 248
* General Government includes Queensland Treasury and Arts Queensland.
** Includes Government Owned Corporations’ exposure
Achieving organisational excellence
QTC’s performance in 2022–23 was underpinned by its operational excellence, risk management and dynamic workforce. QTC is committed to maintaining high organisational standards to enable an environment where corporate goals can be achieved, and organisational risks are actively monitored and managed.
In 2022–23, QTC continued its ongoing focus on continuous improvement of its operational capability through system enhancements, mature risk practices, culture and leadership. In February 2023, a new Chief Executive was appointed by the Board to guide QTC’s strategic direction and continue delivering operational excellence and adapt to the ever-changing external environment.
Four priority streams of strategy, technology, people and risk were identified as focus areas to enhance QTC’s core business and elevate future opportunities, while assessing emerging risks. The four strategic priority areas form a significant program of work that is being coordinated into the 2023–24 performance year. To support the organisation’s strategic direction, the new Chief Executive embarked on the formation of a new Executive Leadership Team (ELT) with an executive recruitment process underway and an interim ELT in place during the transition.
Technology, system and process enhancements
In the year under review, QTC settled $353.4 billion in transaction volume, with cost of errors at less than 0.01% ($202) and continued to automate processes, improve data quality and maintain system currency.
Two important system upgrades were initiated this year, including a major version upgrade for one of QTC’s core financial systems, which is critical for the management and administration of financial market exposures and client onlendings. This upgrade reduces operational risk by ensuring ongoing system support. In addition, QTC performed a major version upgrade to its central data hub to ensure that it remains current and cost-effective to support.
QTC also led a new Identity Governance Project, to increase security, gain efficiencies, improve controls and automate processes for ongoing user access reviews.
QTC continues to promote a healthy risk culture, with a proactive approach to identifying and mitigating risks, requiring the engagement of all staff. This includes ongoing review of its risk appetite statement that defines the amount of risk that QTC is prepared to accept for each of its material risks. The framework incorporates key internal controls, and through periodic attestation by control owners, assurance is given to management and the Board that these controls are designed well and operating effectively.
Throughout 2022–23, QTC managed its portfolio market risk exposures, including interest rate, foreign exchange and counterparty risk, within its Board approved risk management framework. QTC continues to hold a portfolio of diverse, liquid financial securities to meet the State’s liquidity requirements, consistent with policy frameworks.
The outcome of the 2022–23 internal audit program was positive with 11 internal audits conducted and completed successfully, with ratings demonstrating a well-controlled operating environment.
QTC manages cyber risk by continual review and improvement through the coordination of four key elements: people, process, technology, and threat monitoring. This year, QTC enhanced its cyber security awareness program and training, and conducted workshops to identify opportunities to improve its resilience in a threat environment that is becoming increasingly sophisticated. A range of activities to assess and test organisational defences were undertaken, and infrastructure upgrades were also implemented in the period to improve detection and protection capabilities.
QTC has a comprehensive compliance training program designed to ensure QTC staff are risk aware and understand their obligations. QTC staff are required to adhere to highest standards of integrity and conduct. In addition to mandatory on-line compliance training, QTC staff also participated in face-to-face anti-money laundering and counter-terrorism financing training to ensure they understand the risks and their reporting obligations.
In line with QTC’s commitment to creating and sustaining a work environment that is free from harassment, bullying and discrimination, all QTC staff also attended tailored workplace harassment, bullying and discrimination training. In addition, QTC’s Work Health and Safety (WHS) online training module was updated to capture recent Respect at Work legislation, and Fair Work and WHS amendments.
QTC employees also completed an online program of mandatory compliance training with an emphasis on the code of conduct, workplace health and safety, financial crime awareness, and privacy.
The Enterprise Design Committee monitored and prioritised QTC’s key organisational initiatives to ensure the integrity of QTC’s Enterprise Architecture and prioritise change initiatives impacting people, technology, data and information and process. Change initiatives undertaken during the past year predominantly related to the maintenance and enhancement of QTC’s technology and data environments.
QTC’s Inclusion and Diversity Strategy recognises that diversity of perspective and experience improves performance, manages risk, and enhances decision making. In 2022–23, key initiatives focused on aligning our workforce, culture and our values to the broader community that we serve and QTC:
- continued its partnership with Stepping Stone, supporting people living with mental illness
- continued its partnership with the Australian Network on Disability, as part of QTC’s intern program
- continued its range of mental and physical health programs to support employee wellbeing
- supported flexible and adaptive working, by offering a range of working arrangements to enable business outcomes and remain responsive and agile
- raised awareness for inclusivity and diversity by supporting a number of culturally significant events and enhanced our focus on aligning our initiatives with the Queensland Government’s community events and the community that we serve
- embraced equity and hosted an International Women’s Day panel of female leaders to celebrate and recognise International Women’s Day
- elevated employees understanding of First Nations Peoples and Queensland’s Path to Treaty, including dedicated townhalls and a new comprehensive First Nations Resource Hub for staff
- embraced community giving by continuing our support of FareShare with QTC employees helping to prepare free and nutritious meals for people in need
- introduced a new group of accredited staff as Mental Health First Aid Officers, to support colleagues who may be experiencing a mental health problem, and
- continued outreach with secondary school students to provide information about the Banking and Finance Industry, to encourage gender equal interest in STEM subjects and future careers in the industry.
In 2022–23, QTC’s talent, engagement and development practices continued to focus on supporting a dynamic workforce.
For the fourth consecutive year, QTC was recognised by Human Resources Director (HRD) as one of Australia’s best places to work, receiving the ‘2022 5-Star Employer of Choice’ award. HRD acknowledged QTC’s professional development programs and employee benefits.
QTC competes in the global financial industry to attract and retain its high calibre employees. Under 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 remuneration framework is one of the elements for attracting and retaining talented employees.
Total compensation is benchmarked against Australian financial services industry remuneration data. QTC’s variable remuneration element of total compensation, through an annual short-term incentive for eligible employees, is designed to ensure market competitiveness and reward outstanding organisational 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.
In 2022–23, QTC’s voluntary turnover has moved in line with industry average. While aspects of the employment market have eased, unemployment remains low and the pressure on attraction and retention of talent has continued this year.
QTC’s professional development program is another key element of QTC’s attraction and retention strategies. It offers employees opportunities for individual growth and career development aligned to the capabilities required to meet future business objectives. To deliver on this strategy and strengthen organisational capability, QTC has increased its focus on leadership, talent and professional development.
In the year under review, there were significant legislative amendments impacting the Australian employee relations landscape such as psychological risk and pay secrecy. QTC supported the Board’s and employees’ awareness, understanding and obligations of these changes through leader forums, interactive staff workshops, lunch and learns and ongoing internal communications.
In 2022–23, other key people initiatives included:
- risk assessment and design mitigation strategies around psychosocial risks
- enhancing Flexible Work Arrangements Policy and the approach to a hybrid working environment
- delivering development and leadership programs
- enhancing QTC’s fire safety approach, including an external assessment of fire safety to inform the new initiatives
- introducing new Mental Health First Aid Officers
- driving active talent management and succession planning programs, including an internship and graduate program, and
- continuing the Chief Executive Awards recognition program—aligned to QTC’s values.
In 2022–23, QTC continued to focus on embedding and elevating a strong workplace culture, with an inclusive environment where staff can share ideas in an open and constructive way. QTC values employee feedback and regularly initiates feedback channels. This included staff surveys with results demonstrating strong employee engagement, as well as opportunities for continuous improvement.
Environmental, social and governance commitment
In 2022–23, QTC worked closely with its stakeholders to deliver key Environmental, Social and Governance (ESG) initiatives, including:
- providing institutional investors with green investment opportunities via QTC green bonds
- supporting the Queensland Government to deliver initiatives that support ESG outcomes for Queensland
- enhancing cultural awareness of First Nations Peoples, and
- providing organisational contributions that benefit the community.
QTC collaborated with the Queensland Government on the development of the second Queensland Sustainability Report that outlines the Queensland Government’s approach to managing sustainability risks and opportunities. The report includes the governance structures underpinning policy oversight and implementation, provides information on the Queensland Government’s commitments and policies for addressing sustainability risks and opportunities, and describes how the Queensland Government measures, monitors and manages its sustainability risks and opportunities.
QTC supported Queensland Treasury and other agencies with projects to enhance environmental outcomes for the State, including supporting the delivery of the Queensland Energy and Jobs Plan (QEJP).
QTC has also worked closely with its clients on initiatives that support social outcomes for the State, including projects to support the Government address challenges to meet the housing needs of Queenslanders, improve the financial sustainability of health services, and build solutions for regional local governments.
QTC provided Queensland Treasury and other agencies with market modelling, research and analysis to assist the Queensland Government to deliver the Queensland Energy and Jobs Plan (QEJP) and meet its energy policy commitments. QTC also assisted with the establishment of Queensland Hydro, the new state-owned entity tasked
with planning, delivering, owning and operating the proposed Borumba and Pioneer-Burdekin pumped hydro energy storage projects. Since release of the QEJP, QTC has continued its work with the energy government owned corporations (GOCs) regarding strategic GOC performance reviews, borrowing assessments, credit reviews and funding advice.
QTC green bonds support Queensland’s pathway to climate resilience and an environmentally sustainable economy.
In March 2023, QTC issued $3.0 billion of a new 4.50% 9 March 2033 green bond. This was the fifth and longest tenor green bond for QTC, further diversifying funding alternatives and continuing to build QTC’s green bond curve.
QTC is currently the largest Australian semi-government issuer of Climate Bonds Standard Certified Green Bonds,
with $10.545 billion on issue as at 30 June 2023.
This year, QTC has made strong progress in supporting employees’ understanding of our First Nation’s cultural heritage. This included the launch of QTC’s First Nation’s resource hub to provide resources and information to support genuine and respectful workplace practices and enhance cultural awareness of First Nations Peoples. In addition, QTC held dedicated townhalls with Mick Gooda, Board Member, Interim Truth and Treaty Body on Queensland’s Path to Treaty to understand more about the establishment of the Path to Treaty legislation, the First Nations Treaty Institute, and the Truth Telling and Healing Inquiry.
In 2022–23, QTC contributed at an organisational, team and individual level to a number of social and community initiatives. QTC employees can access one day of paid leave each year to volunteer with a recognised charity.
QTC continued its partnership with Stepping Stone and the Australian Network on Disability, and supported a range of diversity and inclusion initiatives, including high school visits to promote diversity in finance and economics as a career path, NAIDOC Week, RUOK Day, Harmony Day, Queensland Mental Health Week and International Women’s Day.
QTC employees volunteered at FareShare and raised money for the Wesley Mission through the Red Bag Appeal.
QTC is committed to maintaining high standards of corporate governance to support its strong market reputation, ensure that organisational goals are met, and manage and monitor risks. QTC’s corporate governance practices are continually reviewed and updated in line with industry guidelines and standards.
QTC was established by the Queensland Treasury Corporation Act 1988 (the QTC Act) as a corporation sole (i.e., a corporation that consists solely of a nominated office holder). The Under Treasurer of Queensland is QTC’s nominated office holder and has delegated QTC’s 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 State Investment Advisory Board (SIAB), which was established in July 2008 to manage the State’s long-term investment assets.
The Under Treasurer, as QTC’s corporation sole, and the QTC Capital Markets Board have agreed the terms and administrative arrangements for exercising the powers that the corporation sole has delegated to the Board.
The Board operates in accordance with its charter, which sets out its commitment to various corporate governance principles and standards, its roles and responsibilities (based on its delegated powers), and the conduct of meetings. The charter provides that the role and functions of the Board are to:
- lead and oversee QTC
- approve the strategic direction and significant strategic initiatives of QTC
- approve Board-owned policies and charters
- oversee organisational culture, values, behaviours and risk
- ensure compliance with relevant legal, tax and regulatory obligations
- approve the annual financial statements and the annual report
- approve the annual administration budget and the total full-time equivalent complement
- approve major contracts and agreements
- approve the Corporate Plan, including the corporate performance measures
- approve the annual assessment of corporate performance
- approve the Remuneration Framework, the remuneration pool and short-term incentive targets
- approve the appointment/reappointment/dismissal of the Chief Executive Officer and assess the Chief Executive Officer’s performance against annual performance objectives
- approve the appointment of the internal audit partner and oversee the annual Internal Audit Plan
- oversee the external audit program
- evaluate Board and Board committee performance, and
- monitor Board composition and succession planning.
The Board typically holds nine meetings each year and may, whenever necessary, hold additional meetings.
The Board comprises members who are appointed by the Governor-in-Council, pursuant to section 10(2) of the QTC Act. Consideration is 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 constituted entirely 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. Board members’ remuneration is determined by the Governor-in-Council (details are disclosed in QTC’s financial statements).
The Board has established three committees, each with its own charter, to assist it in overseeing and governing various QTC activities. The complete roles and responsibilities of each committee are outlined in the charters available on the QTC website.
Funding and Markets Committee
The Funding and Markets Committee is a decision-making and advisory body responsible for overseeing and assisting the Board with:
- funding and markets-related key policies and compliance with relevant legislation
- the alignment of funding and markets activities with QTC’s policies and risk appetite
- QTC’s risk appetite, risk tolerance and risk mitigation strategies for funding and markets activities
- assessing QTC’s ability to access suitable funding markets to meet the State’s borrowing requirements and maintain appropriate levels of liquidity
- liquidity pool performance, and
- Cash Fund and Asset Liability Management Portfolio performance.
The Funding and Markets Committee must have at least three members and meet at least four times a year.
Human Resources Committee
The Human Resources Committee is a decision-making and advisory body responsible for overseeing and assisting the Board with:
- human resources-related key policies and compliance with relevant legislation
- the framework for remuneration and performance reviews
- the integrity and consistency of QTC’s corporate culture
- succession planning for the executive leadership team, executive development and talent pipeline risks
- strategic workforce planning and operational resource planning
- people material risks, and
- Board composition and succession planning.
The Human Resources Committee must have at least three members and meet at least three times a year.
Risk and Audit Committee
The Risk and Audit Committee is a decision-making and advisory body responsible for overseeing and assisting the Board with:
- the appropriateness and effectiveness of QTC’s enterprise-wide risk management system (including the enterprise- wide risk management framework, the risk appetite statement, and risk management strategies and policies) and the internal control framework
- risk and risk management, including carriage of the risks attributed to the Risk and Audit Committee
- the effectiveness of internal control processes
- the integrity of the financial statements and associated year-end and interim processes, and
- the adequacy and effectiveness of audit activities.
The Risk and Audit Committee must have at least three members and meet at least four times a year.
During the year, the Risk and Audit Committee recommended the adoption of annual financial statements, reviewed external and internal audit reports and the progress in implementing the recommendations from those reports, approved QTC’s Internal Audit Plan and reviewed the Queensland Audit Office’s External Audit Plan.
1 Mr Allen resigned from the Board on 8 December 2022. Mr Allen held an ex officio role as the Queensland Treasury representative.
2 Mr Ide took a leave of absence from the Board and committees from 3 January 2023 to 19 February 2023 for a term as Interim Chief Executive of QTC.
3 Ms Parkin’s term ended on 30 September 2022.
4 Ms Smith-Pomeroy’s term ended on 30 September 2022. Ms Smith-Pomeroy was reappointed from 15 December 2022.
5 Mr Stening’s term ended on 30 June 2023.
6 Mr Wilson was appointed to the Board from 15 December 2022.
7 Mr Molloy was appointed to the Board from 25 January 2023 and holds an ex officio role as the Queensland Treasury representative.
|Damien Frawley was appointed Chair of the QTC Capital Markets Board on 1 July 2022, following the retirement of Gerard Bradley AO.
Mr Frawley has more than 35 years’ experience in the financial services sector, both domestically and internationally. From 2012 to 2022, he was the Chief Executive of Queensland Investment Corporation (QIC), responsible for more than $100 billion in assets under management for a range of government, domestic and global institutional investors.
Prior to QIC, Mr Frawley was Blackrock’s Australian Managing Director and Chief Executive Officer from 2010 to 2012, after joining as its Head of Institutional and Retail in 2007.
He also held senior roles at Merrill Lynch Investment Management, Barclays Global Investors and Citibank.
Mr Frawley is also the Independent Chair of Hostplus, a Non-Executive Director of Mirvac Group, an Alternate Director of The North Australian Pastoral Company Pty Ltd, a Director and the Chair of AMPS Agribusiness Limited, and a Director of Blue Sky Beef.
BBUS (ACCTG), MCOMM (ACCTG AND FIN), FCPA, FAICD
Appointed 1 October 2018.
|Neville Ide has more than 40 years’ experience in finance and treasury management having held executive roles in the government, finance and banking sectors, including Queensland Treasury Corporation for 12 years and as Group Treasurer at Suncorp Metway Limited.
Mr Ide’s industry knowledge and experience covers banking, insurance, infrastructure and corporate treasury management, including debt and equity capital markets, balance sheet structuring and financial risk management.
Mr Ide has served as a Non-Executive Director on several public and private company boards since 2006, including appointments to Queensland Motorways Limited, RACQ Insurance, RACQ Bank, Retech Technology Limited, SunWater Limited, and as a previous QTC Board member. He is currently a Director of QBANK and Advisory Board Chair of Cryptoloc Technology Pty Ltd.
BCOM, BECON (HONS)
Appointed 25 January 2023.
|Dennis Molloy is an experienced senior fiscal and economics executive and has held the role of Deputy Under Treasurer of the Economics and Fiscal Group, Queensland Treasury, since May 2021.
Mr Molloy has been closely involved in all Queensland State Budgets since 2010 and is experienced in both the Queensland and Australian governments in economics and public policy.
He also worked as the Executive Director of Economic Policy in the Department of the Premier and Cabinet and took a particular interest in policies that would facilitate growth of the Queensland economy.
Mr Molloy started his career as an economist with the Commonwealth Treasury, with roles spanning a decade, and a focus on economic forecasting, competition policy, Commonwealth and state financial relations—and advising the Commonwealth Treasurer on the health, education, social security and defence portfolios.
Appointed 9 July 2015.
|Karen Smith-Pomeroy is an experienced financial services senior executive with a specialty in risk and governance.
She held senior executive roles with Suncorp Group Limited from 1997 to 2014, including as Chief Risk Officer of Suncorp Bank from 2009 to 2013, and Executive Director, Suncorp Group subsidiary entities from 2009 to 2014. She is an experienced director with prior roles on a number of Boards and committees including CS Energy Limited, Southbank Corporation, In Focus Wealth Management Limited, Infigen Energy Limited and Tarong Energy Corporation Limited.
Ms Smith-Pomeroy is currently Chair of the National Affordable Housing Consortium Limited and the Regional Investment Corporation, and a Non-Executive Director of Stanwell Corporation Limited and Kina Securities Limited. She is also an Independent Chair of the Queensland Department of State Development, Infrastructure, Local Government and Planning Audit and Risk Committee, and a member of the Queensland Department of the Premier and Cabinet and Public Sector Commission Audit and Risk Management Committee.
DIP FIN SERV, FAICD
Appointed 13 November 2014.
|Jim Stening has more than 30 years’ experience in financial markets in the fixed income asset class, including hands-on trading and investing in Australian and global capital markets.
Mr Stening has extensive experience in debt markets, business development, executive management and corporate governance across a diverse range of economic cycles. He has held senior roles at NAB, Merrill Lynch and Banco Santander.
Mr Stening is the founder and Managing Director of FIIG Securities Limited, Australia’s largest specialist fixed-income firm and a Non-Executive Director of related companies, and a Fellow of the Australian Institute of Company Directors.
BBUS, DIP SUPN MGT, FAICD, FASFA
Appointed 1 October 2020.
|Rosemary Vilgan is an experienced non-executive director, with specific expertise in financial services and business leadership and transformation. She was the Chief Executive of QSuper, a global financial services business with $90 billion in accounts, from 1998 until 2015.
She is currently the Chairperson of the Commonwealth Bank Group Staff Superannuation Fund and a Member of the Cambooya Investment Committee. Ms Vilgan’s former roles include Chairperson of the Federal Government’s Safety, Rehabilitation and Compensation Commission, a member of the Board of the Children’s Hospital Foundation (Qld), a member of the Board of the Guardians of New Zealand Superannuation, and a Queensland Council member of AICD. She is a former Councillor, Deputy Chancellor and Chairperson of the Audit and Risk Committee at Queensland University of Technology (QUT), and a former director and Chair of the Board of the Association of Superannuation Funds of Australia (ASFA).
In 2013, Ms Vilgan was named the Telstra Australian Businesswoman of the Year. She holds qualifications in business and superannuation and is a Fellow of both AICD and ASFA and a Member of Chief Executive Women.
BA, LLB, LLM, MA
Appointed 15 December 2022.
|John Wilson has more than 30 years’ experience in investment and capital markets.
Most recently, Mr Wilson was a Senior Advisor and Managing Director at Goldman Sachs from 2015 to 2019. Prior to that, he spent the majority of his executive career, 1997 to 2013, at PIMCO where he held a number of executive roles including Chief Executive of PIMCO Australia and Head of the PIMCO US Institutional Business. He also held executive roles at BT Funds Management and was a lawyer with Shearman & Sterling in New York.
Mr Wilson currently serves as a Director of Ord Minnett and a special advisor to Brighter Super. His previous directorships include QIC, LGIASuper, Etihad Stadium, Rugby Australia, the UNE Foundation, Chairman of the Australian Rugby Foundation and Chairman of the NSWALC Investment Committee.
The responsibility for the day-to-day operation and administration of QTC is delegated by the Board to the Chief Executive Officer and the Executive Leadership Team. The Chief Executive Officer is appointed by the Board and executives are appointed by the Chief Executive Officer. Executive Leadership 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 Leadership Team
as at 30 June 2023*
|Leon Allen||Chief Executive Officer|
|Chris Downes||Acting Managing Director, Funding and Markets|
|Stephanie Challen||Acting Managing Director, Client|
|Anthony Matthews||Acting Managing Director, Risk, and Chief Risk Officer|
|Natalie Garnett||Acting Managing Director, Finance, Technology and Data|
The Financial and Performance Management Standard 2019 (Qld) (Standard) governs the operation of QTC’s internal audit function. QTC outsourced its independent internal audit function for the 2022–23 financial year. Internal Audit reports to the Risk and Audit Committee and is conducted under an Internal Audit Policy, 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 Risk 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 aligned with QTC’s strategic goals and objectives, as well as material risks, and approved by the Risk and Audit Committee
- providing regular audit reports and periodic program management reports to the management team and the Risk 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, the internal audit was completed in accordance with the approved annual audit plan.
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 forming opinions about the reliability of QTC’s financial statements, along with other public sector entities, with the results of these financial audits tabled in Queensland’s Parliament.
All audit recommendations raised by the Queensland Audit Office that were due during the reporting period were addressed.
The State Investment Advisory Board (SIAB) was established in 2008 as an advisory Board of Queensland Treasury Corporation under section 10 of the QTC Act. SIAB was established to manage long-term assets for the State by a board independent of QTC’s capital markets operations. The long-term assets have no impact on QTC’s capital markets operations and there is no cash flow effect for QTC.
In 2022–23, with power delegated from QTC, the SIAB was responsible for:
- providing governance oversight of the financial assets set aside by the Queensland Government to meet future employee liabilities and other long-term obligations of
- providing governance oversight of the financial assets set aside to support long term initiatives of the Queensland Government
- providing investment governance assistance in connection with the Financial Provisioning Fund established under the Mineral and Energy Resources (Financial Provisioning) Act 2018 and the National Injury Insurance Scheme Fund, Queensland.
The SIAB members are appointed by the Governor-in-Council, pursuant to section 10(2) of the QTC Act.
Remuneration for the SIAB members is determined by the Governor-in-Council. In 2022–23, the members of the SIAB were:
1 This position is an ex officio appointment within Queensland Treasury
2 Ms Kelly’s position on the Board started on 16 February 2023 when Ms Kelly became Under Treasurer. The ex officio position of Under Treasurer as Chair was reappointed on 7 July 2022.
3 Mr Allen’s position on the Board ceased on 15 February 2023 when he resigned as Under Treasurer.
4 Mr Ryan’s term ended on 30 June 2022 and Mr Ryan was reappointed from 7 July 2022.
5 Mr Graham’s term ended on 30 June 2022 and Mr Graham was reappointed from 7 July 2022.
6 Ms Wilton’s term ended on 30 June 2022 and Ms Wilton was reappointed from 7 July 2022.
7 Ms Wood was appointed on 7 July 2022.
BA (HUM), GRAD DIP PUBLIC POLICY, MAICD
Chair Appointed 16 February 2023.
Tenure to 30 September 2025.
Maryanne has held leadership roles for over 25 years in the Australian, United Kingdom and Queensland Governments. Her roles have focused on delivering strategic policies and programs in dynamic, multifaceted and fiscally challenging environments. Maryanne has provided expert policy advice to governments, successfully negotiated national agreements and delivered high-profile programs for the community.
BBUS (BANKING AND FIN), GRAD CERT POLICY ANALYSIS
Appointed 19 November 2020.
Tenure to 30 June 2025.
William Ryan is the Head of Fiscal, Queensland Treasury, with responsibilities for managing the State’s budget and balance sheet, and ensuring the long-term sustainability of Queensland’s fiscal position. He forms part of Queensland Treasury’s Senior Leadership Team and serves as a member of the Queensland Government Insurance Fund Governance Committee.
Prior to his current role, Mr Ryan held senior leadership roles in Queensland Treasury over a 20-year career. These roles have included developing investment programs, financial assurance modelling, infrastructure program and economic policy analysis.
Maria Wilton AM
BEC, CFA, FAICD, FAIST
Appointed 4 July 2019.
Tenure to 30 September 2024.
Maria Wilton has more than 30 years’ experience in the financial services industry. Ms Wilton was Chair and Managing Director of Franklin Templeton Investments Australia from 2006–2018. She previously held roles with BT Financial Group, County Investment Management, JP Morgan Investment Management and Commonwealth Treasury.
Ms Wilton is currently Chair of Spirit Super and Growth Farms Australia and a member of the Global Board of Governors of the Chartered Financial Analyst Institute. She is Vice Chair of Infrastructure Victoria, a Director of Dexus Wholesale Property Fund, VFMC and the Confident Girls Foundation.
Cate Wood AM
BSS, DIP FP, GAICD
Appointed 7 July 2022.
Tenure to 30 September 2025.
Cate Wood has more than 25 years’ experience in the superannuation industry. Ms Wood was Executive Officer and a Director of AGEST Super, a Director and Chair of CareSuper, a Director of SunSuper, and served on the Investment Committees of these funds.
Ms Wood was a Director of the Industry Superannuation Property Trust (ISPT) and a Member of the ACT Investment Advisory Board. She is currently a Member of the Professional Standards Councils and Chair of the Centre for Workers’ Capital.
Philip (Phil) Graham
BA (ECON, HONS), MCOM (FIN, HONS), CFA, GAICD
Appointed 4 July 2019.
Tenure to 30 September 2024.
Phil Graham has extensive experience in investment management, financial markets, and economic policy. He is an independent member of the Lonsec Asset Allocation Committee and a consultant to AustralianSuper.
Mr Graham was Senior Portfolio Strategist and Deputy Chief Investment Officer at Mercer from 2007–2018. He also held senior roles at QIC and Access Capital Advisors, and prior to this he worked for the Reserve Bank of Australia and the ANZ Banking Group.
Mr Graham is a past-President of the CFA Society of Melbourne and was the Presidents Council Representative for the CFA Asia Pacific North and Oceania region in 2015–2019. He currently serves on the CFA Disciplinary Review Committee.
Financial Statements for the 2022-23 Financial Year (Download pdf, 899Kb)
The foregoing general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the FA Act), section 39 of the Financial and Performance Management Standard 2019 and other prescribed requirements.
The Directors draw attention to note 2(a) to the financial statements, which includes a statement of compliance with International Financial Reporting Standards.
In accordance with section 62(1)(b) of the FA Act we certify that in our opinion:
i. the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects, and
ii. the foregoing annual financial statements have been drawn up so as to present a true and fair view of Queensland Treasury Corporation’s assets and liabilities, financial position and financial performance for the year ended 30 June 2023.
We acknowledge responsibility under section 7 and section 11 of the Financial and Performance Management Standard 2019 for the establishment and maintenance, in all material respects, of an appropriate and effective system of internal controls
and risk management processes with respect to financial reporting throughout the reporting period.
The financial statements are authorised for issue on the date of signing this certificate which is signed in accordance with a resolution of the Capital Markets Board.
D J FRAWLEY
Chief Executive Officer
17 August 2023
Independent Auditor's report
Independent-Auditor’s-Report for the 2022-23 Financial Year (Download pdf, 2,059KB)
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 (https://data.qld.gov.au) 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.
QTC is committed to providing accessible services to Queensland residents from culturally and linguistically diverse backgrounds. QTC did not receive any requests for interpreters.
Information systems and record keeping
Information and Data are vital assets and QTC is committed to continuously improving and maintaining information and data management practices that meet its business needs, legislative requirements and stakeholder expectations. QTC adheres to the Public Records Act 2002 and the General Retention and Disposal Schedule with respect to information and records management.
QTC continues to evolve its electronic document and information management systems for improved management of both digital and physical records particularly in relation to expanding cloud technologies. QTC is maturing its information security capabilities to protect internally and externally accessible records.
QTC has not experienced any serious breaches and continues to place focus on education, communication and evolving our technical environment to manage information and data security risk.
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, which aligns with the ethics principles and values in the Public Sector Ethics Act 1994 (Qld), as well as the Code of Conduct and market standards established by the Australian Financial Markets Association of which QTC is a member. Both codes are available to employees via QTC’s intranet. A copy of QTC’s Code of Conduct can be inspected by contacting QTC’s Human Resources Group (see Appendix D for contact details). Appropriate education and training about the Code of Conduct, expected standards of conduct and ethical issues has been provided to all new and existing QTC staff.
QTC’s human resource management and corporate governance policies and practices ensure that QTC:
- acts ethically with regard to the conduct of its business activities 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.
Human Rights Act
QTC’s strategic and operational plans are in line with the objectives of the Human Rights Act 2019 (the Act). The plans aim to ensure QTC is respecting, protecting and promoting human rights in decision making and actions.
The Act requires QTC to consider human rights when performing functions of a public nature and only limit human rights after careful consideration. QTC’s internal policies and practices are aligned to the Act, as guided by external advice.
Remuneration: Board and Committee
For the year ending 30 June 2023, the remuneration and committee fees of the QTC Capital Market Board members (excluding superannuation contributions and non-monetary benefits) were as follows:
The total remuneration payments made to the members of the QTC Capital Markets Board was $334,290 and the total on-costs (including travel, accommodation, car parking and professional memberships for members) was $25,491.
For the year ending 30 June 2022, the remuneration and committee fees of the QTC State Investment Advisory Board members (excluding superannuation contributions and non-monetary benefits) were as follows:
The total remuneration payments made to the members of the QTC State Investment Advisory Board was $109,455 and the total on-costs (including travel, accommodation, car parking and professional memberships for members) was $12,325.
The related entities in Note 23 are not equity accounted in the financial report of the Queensland Treasury Corporation. These entities are consolidated into Queensland Treasury’s financial report.
Basis point: One hundredth of one per cent (0.01 per cent).
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.
Budget Update: Mid-Year Fiscal and Economic Review.
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.
Fixed Income Distribution Group: A group of financial intermediaries who market and make prices in QTC’s debt instruments.
Floating rate notes (FRNs): A debt instrument which pays a variable rate of interest (coupon) at specified dates over the term of the debt, as well as repaying the principal at the maturity date. The floating rate is usually a money market reference rate, such as BBSW, plus a fixed margin. Typically the interest is paid quarterly or monthly.
GOC: Government-owned Corporation.
Green Bonds: QTC Green Bonds on issue are guaranteed by the Queensland State Government, issued under the AUD Bond Program with Rule 144A capability and certified by the Climate Bonds Initiative (CBI). Proceeds from QTC Green Bonds are allocated against eligible projects and assets in accordance with QTC’s Green Bond Framework. Eligible projects and assets are those funded, entirely or in part, by the Queensland Government, State-Government related entities and local governments that support Queensland’s pathway to climate resilience and an environmentally sustainable economy. QTC’s Green Bond Framework is aligned with the CBI Climate Bonds Standard 3.0 and the International Capital Market Association (ICMA) Green Bond Principles 2018 allowing QTC to issue both CBI certified Green Bonds and ICMA aligned Green Bonds. An independent third party provides assurance of QTC’s framework, eligible project and asset pool and Green Bonds on issue.
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 nine 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 one year.
|SUMMARY OF REQUIREMENT||BASIS FOR REQUIREMENT||ANNUAL REPORT REFERENCE|
|LETTER OF COMPLIANCE||A letter of compliance from the accountable officer or statutory body to the relevant Minister/s||ARRs – section 7||Page 2|
|ACCESSIBILITY||Table of contents||ARRs – section 9.1||Page 1|
|Glossary||ARRs – section 9.1||Appendix B|
|Public availability||ARRs – section 9.2||Page 1, Appendix D|
|Interpreter service statement||Queensland Government Language Services Policy ARRs – section 9.3||Appendix D|
|Copyright notice||Copyright Act 1968
ARRs – section 9.4
|GENERAL INFORMATION||Introductory information||ARRs – section 10||Page 3-7|
|NON-FINANCIAL PERFORAMNCE||Government’s objectives for the community||ARRs – section 11.1||Pages 8-13, 15|
|Agency objectives and performance indicators||ARRs – section 11.2||Pages 4, 6-13
|FINANCIAL PERFORMANCE||Summary of financial performance||ARRs – section 12.1||Pages 6-7, Notes to Financial Statements: Pages 30-57|
|GOVERNANCE – MANAGEMENT AND STRUCTURE||Organisational structure||ARRs – section 13.1||Pages 16-20|
|Executive management||ARRs – section 13.2||Page 20|
|Public Sector Ethics||Public Sector Ethics Act 1994
ARRs – section 13.4
|Human Rights||Human Rights Act 2019 ARRs – section 13.5||Appendix A|
|GOVERNANCE – RISK MANAGEMENT AND ACCOUNTABILITY||Risk management||ARRs – section 14.1||Page 13, 17|
|Audit committee||ARRs – section 14.2||Pages 19|
|Internal audit||ARRs – section 14.3||Page 20|
|Information systems and record keeping||ARRs – section 14.5||Appendix A|
|GOVERNANCE – HUMAN RESOURCES||Strategic workforce planning and performance||ARRs – section 15.1||Pages 14|
|OPEN DATA||Statement advising publication of information||ARRs – section 16||Appendix A|
|Consultancies||ARRs – section 31.1||Appendix A
|Overseas travel||ARRs – section 32.2||Appendix A
|Queensland Language Services Policy||ARRs – section 31.3||Appendix A|
|FINANCIAL STATEMENTS||Certification of financial statements||FAA – section 62
FPMS – sections 38, 39 and 46
ARRs – section 17.1
|Independent Auditor’s Report||FAA – section 62
FPMS – section 46
ARRs – section 17.2
Note: This checklist excludes reference to any requirements that do not apply to QTC for the current reporting period.
FAA: Financial Accountability Act 2009
FPMS: Financial and Performance Management Standard 2019
ARRs: Annual report requirements for Queensland Government agencies
Queensland Treasury Corporation
Level 31, 111 Eagle Street
Brisbane Queensland Australia
GPO Box 1096
Telephone: +61 7 3842 4600
Queensland Treasury Corporation’s annual reports (ISSN 1837-1256 print; ISSN 1837-1264 online) are available on QTC’s website at www.qtc.com.au/about-qtc/annual-reports.
If you would like a copy of a report posted to you, please call QTC’s reception on +61 7 3842 4600. If you would like to comment on a report, please complete the online enquiry form located on our website.
If you would like to comment on a report, please complete the online enquiry form located on our website.
|Queensland Treasury Corporation (Reception)||+61 7 3842 4600|
|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 reception on +61 7 3842 4600 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 institutional investors on its various funding instruments, its indicative term debt borrowing requirement (including daily outstandings) and its Fixed Income Distribution Group. The website also provides 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 policies
- financial data and budget information, and
- economic and trade data.
QTC also offers institutional investors the ability to subscribe from its institutional investor section of the website to quarterly funding and market announcement updates, and QTC’s weekly AUD Bond Outstandings report.
Bloomberg ticker: qtc
Availability of annual reports
QTC’s annual 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.
We are committed to continually improving our Annual Report. Your feedback on QTC’s Annual Report, including presentation, ease of navigation, value of information, style of language, level of detail and suggestions for improvement, can be provided via our online enquiry form.
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.