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C. Capital Management

This section provides information relating to the Company’s capital structure and its exposure to financial risks, how they affect the Company’s financial position and performance and how the risks are managed.

  • C.1 Share capital
  • C.2 Financial risk management

C.1 Share capital

(a) Capital management

The Company’s objectives when managing capital are to safeguard the ability of the Company to continue as a going concern while maximising the return to the Commonwealth of Australia and maintaining an optimal capital structure.

The capital structure of the Company consists of cash disclosed in Note E1 and contributed equity.

(b) Movements in share capital

Number of shares


Opening balance as at 1 July



Shares issued



Closing balance as at 30 June



On 5 October 2017, the Commonwealth of Australia and WSA entered into an Equity Subscription Agreement, whereby the Commonwealth of Australia will provide funding up to $5.3b to the Company.

As at 30 June 2019, total equity of $594.0m had been provided.


Balance at 1 July 2018


Non-cash equity contributions


Cash-settled equity contributions


Balance at 30 June 2019


Non-cash equity contributions wholly relate to CPA, refer to note B1.

(c) Dividends declared

No dividends were declared or paid during the financial year.

Recognition and measurement

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Transactions with the Commonwealth, as owner, that are designated as equity injections for the financial period, are recognised directly in contributed equity and do not form part of comprehensive income in that financial period.

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number and amounts paid on the shares held. Ordinary shares have no par value and the Company does not have a limited amount of authorised capital,

C.2 Financial risk management

The Company’s risk management policy is to identify, assess and manage risks which are likely to adversely affect the Company’s financial performance, continued growth and ability to continue as a going concern. The Company takes an approach to minimise risk in a cost effective way.

The Company’s financial instruments comprise of cash and trade and other payables.

The risks arising from the Company’s financial instruments and the Company’s assessment of the impact of the risk are summarised below.


Potential impact

Interest rate risk

The Company is exposed to interest rate risk due to changes in market interest rates associated with interest-bearing cash and cash equivalents.

Given the nature and quantum of interest-bearing instruments any possible movements in interest rates would have an immaterial impact on profit or loss.

Liquidity risk

Liquidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial liabilities.

The Company is exposed to liquidity risk through its trade and other payables liabilities. The Company manages this exposure by ensuring sufficient funds are available to meet financial commitments in a timely manner and plans for unforeseen events which may curtail cash flows and cause pressure on liquidity. This is achieved through the Equity Subscription Agreement with the Commonwealth of Australia (refer to note A) by drawing down sufficient funding with a forward looking two-month expenditure profile.

At year-end, all trade and other payables are classified as current and due for payment in the next 12 months.

The Company does not have any material exposure to credit risk or other market risks such as foreign currency risks.