Renewal SA

In reply to Mr COWDREY (Colton) (20 June 2024). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries): I have been advised:

1. Renewal SA pays a dividend in June each year, based on the forecast profit for the financial year. Where there is a variation between the forecast and final audited profit, a dividend adjustment is made in the following financial year.

Renewal SA's estimated 2023-24 dividend of $98.8 million, as reported in table 5.2 of the 2024-25 Budget Statement, includes:

$18.5 million in relation to the estimated profit for the 2023-24 financial year; and

an $80.3 million dividend adjustment as a result of the final audited profit for the 2022-23 financial year being $80.3 million higher than the June 2023 forecast.

The estimated profit for 2023-24 includes up-front revenue recognition in 2023-24 for the development agreement for a land sale at Aldinga in accordance with accounting standard AASB15 (revenue from contracts with customers).

The higher than estimated final audited profit for 2022-23 was mainly due to material year end valuation adjustments to Renewal SA's property assets.

2. Renewal SA is acting as the master developer for the Seaton redevelopment. The South Australian Housing Trust (SAHT) will transfer 388 vacated public housing dwellings/lots to Renewal SA on a staged basis for nil consideration. Renewal SA will create serviced allotments for transfer back to SAHT on a staged basis for nil consideration for SAHT to construct 388 new public homes.

3. If any surplus is generated from Renewal SA's development activities at Seaton, funds will be provided to SAHT for the construction of additional public housing.