ANNUAL REPORT 2015-16

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The Nature Conservation Trust of NSW is a not-for-profit organisation committed to private land conservation. With a combination of the best science available and

sound commercial skills, we protect our special places, forever.

We identify important tracts of private land, assess their conservation value, purchase them, and apply binding perpetual conservation agreements. These properties are

on-sold to like-minded private owners.

The sale proceeds are used to buy and protect more land with high conservation values. This becomes a Revolving Fund to drive our conservation dollar further.

We also provide binding conservation agreements on private lands already being managed with conservation in mind.

Unique amongst conservation organisations in NSW, the NCT is creating an ever-growing network of landowners and privately-owned properties that protect our unique

native animals and plants for future generations..

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ContentsA Message from the Chair 2 A Message from the CEO 3 About Us 4 How to get Involved 5 Our Achievements 7 Our Revolving Fund Programs 8 Where We Work 12 Our Covenanting Programs 16 Yellowbox 18 Marketing & Communications 19 Our Supporters 20 Our Board 22 Financial Report 24

The Hon. Mark Speakman Minister for the Environment Parliament House Macquarie Street Sydney NSW 2000

Dear Minister

It is my pleasure to forward to you for presentation to the New South Wales Parliament the Annual Report of the Nature Conservation Trust of New South Wales for the period 1 July 2015 to 30 June 2016, in accordance with the provisions of the Nature Conservation Trust Act 2001.

Yours sincerely,

John V McCarthy AO Chair

19th day of October 2016

Cover: Blue Dragonfly, Photo: Scott Hartvigsen. Inside Cover: Highfields, Photo: Angie Goodfellow.

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A Message from the Chair

2015-16 has been another excellent year for the NCT’s primary function of purchasing,

protecting and then selling high conservation value properties in NSW

through our Revolving Fund.

Prevailing wisdom suggests that applying a conservation agreement to a property will have a negative impact on the value of that property and much of the literature

from around the world reflects this experience with Revolving Funds.

This, of course, is a key challenge if the capital fund used to purchase properties is

ever diminishing as properties with conservation agreements are sold at below the value for which they are purchased.

The Board has worked hard with management over the last three years to focus our attention on improved financial management of the Revolving Fund to retain as much capital as possible, which in turn enables further acquisition and protection of conservation properties.

We have focused on improved purchasing strategies, targeting acquisitions made at or below valuation, with “capital light” options used where possible. This approach coupled with a creative marketing campaign focused on social media and quality imagery to sell the properties effectively, has resulted in a remarkable turnaround in the performance of the Revolving Fund.

I am pleased to advise that analysis of the performance of our Revolving Fund over the last three years indicates a 4.7% increase in capital between purchase and sale price of the properties we have protected. This compares with historic losses on average of 7.9% of capital between purchase and subsequent resale.

Perhaps even more exciting for the Trust is the speed with which we are revolving properties, with the average time between acquisition and resale of the properties reduced from historic averages of 1160 days to 350 days. This almost four-fold reduction results in significantly less holding and management costs for the Trust and consequently more funds being retained in the Revolving Fund for further, more rapid, property acquisitions.

The end result is more permanently protected private areas being created across NSW that provide habitat and refuge for a vast array of endangered and threatened species which are described in detail later in this annual report.

This year has also seen the development of the new Biodiversity Conservation Bill which proposes to establish a new Biodiversity Conservation Trust which will replace the Nature Conservation Trust. The Bill is expected to go before Parliament in October 2016 with a commencement date for the new Trust in July 2017.

The development of the new Biodiversity legislation has been a complex and time consuming process during 2015/16 and I take the opportunity to thank the Office of Environment & Heritage for engaging with the NCT to source the knowledge and experience of both the Board and management to assist in the development of the new Bill.

I would also like to make special mention of the landholders who take on the management of their properties with one of our conservation agreements. I had the privilege to meet with quite a number of our landholders this year at functions held across the State to recognise their efforts. It was humbling to see the dedication of all of our landholders and their selfless commitment to the protection of vulnerable plants and animals on their properties. They are protecting some of the most at risk ecosystems in the State and are central to our efforts to retain our biodiversity for future generations. We look forward to continuing to work closely with them and I welcome those new landholders who have joined us in 2015/16.

Finally I would like to thank the Board for its engagement and thoughtful governance of the organisation during a period of some considerable change, and of course our dedicated staff who continue to respond to challenges and adapt to change while delivering excellent results for the organisation.

John V McCarthy AO Chair

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A Message from the CEOThe release of the Independent Panel’s Review of Biodiversity Legislation in NSW in late 2014 and the NSW Government’s commitment to implement its recommendations in early 2015 commenced the process of developing a new legislative framework for the management of biodiversity in NSW.

During 2015/16 a new draft Biodiversity Conservation Bill was developed by the NSW Government, was publicly exhibited and is proposed to be put to the Parliament in the last quarter of 2016.

The proposed new legislation, if passed in 2016/17, will result in the establishment of a new Biodiversity Conservation Trust (BCT) which will replace the Nature Conservation Trust (NCT). The new BCT will have a significantly expanded role in biodiversity management in NSW.

The NCT Board and management have been involved in consultation with the NSW Government during 2015/16 regarding the new legislation and I thank them both for taking on the quite significant task of reviewing and providing feedback on the draft Bill in addition to undertaking our business as usual.

There were a number of highlights in 2015/16 for the Trust including continuing success with the Revolving Fund, substantial increases in our social media market penetration, our creative marketing initiative, “Yellowbox” being extended nationally through our sister trusts in QLD, VIC, TAS and SA, and formal recognition of our landholders with presentation of property certificates evidencing their commitment to protect their properties.

But the ultimate success of the Trust is measured by the biodiversity that is protected on the private properties secured by our Trust Agreements. Our achievements in this regard are detailed later in this annual report but in summary the NCT has now protected 54,669 Ha in 122 private reserves across NSW. These reserves protect 21 animal and 34 plant species that are threatened with extinction nationally and 82 animal and 54 plant species threatened with extinction in NSW.

Importantly, more than 90% of our protected properties fall within bioregions with less than 17% protected in the public reserve system, and about 75% of our properties are within bioregions with less than 10% protected.

Our 5 yearly stewardship visits have reinforced our relationships with landholders and indicated that virtually all landholders are meeting their obligations to manage the biodiversity on their properties effectively. I would like to take this opportunity to recognise our landholders’ efforts to protect our threatened wildlife and commend them once again for the excellent job they are doing.

The delivery of new private protected areas every year in NSW would not occur without the generous support of the NSW Office of Environment & Heritage, whom we thank, or without the combined effort of the Board and the staff of the NCT. I thank both the Board and the staff for making my job easy through their professionalism and cooperative approach and the positive culture that permeates everything we do.

The next 12 months are likely to bring significant change to the NCT, if the draft Biodiversity Conservation Bill is enacted, with the establishment of the new Biodiversity Conservation Trust and the repeal of our current Act. Times of change provide opportunities and I look forward to working productively with the Board and the staff of the NCT to assist in the establishment of the new Trust to deliver the best outcome we can for the future of biodiversity in NSW.

Gary Wells Chief Executive Officer

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About UsNew South Wales is home to an incredible array of native animals and plants. But with more than 1,000 native species, populations and ecological communities in NSW threatened with extinction and many others in decline, the importance of the Nature Conservation Trust (NCT) has never been so apparent.

With over 80 per cent of land in NSW under private management our threatened species and endangered ecological communities’ hope for the future rests on protecting their habitats on private land. Their survival is challenged by threats like land clearing and degradation, climate change, weeds and feral animals. In short, the private NCT reserves provide key corridors enabling species to move more freely.

And it is on this private land that the NCT is playing a vital role in protecting the unique natural heritage of NSW by buying, selling and protecting properties with high conservation value. We continue supporting the landowners to look after their land for future generations and in so doing leave a lasting legacy.

High Conservation Value can be defined by a number of criteria which we use to assess a property: It may contain flora and fauna listed as threatened or endangered, support one of the last remaining patches of intact bushland in an area, form part of an important

wildlife corridor, or act as a buffer to protect a neighbouring national park or nature reserve.

In effect, the NCT is creating a network of protected private nature reserves across NSW. We do this in three ways:

• Through our Revolving Fund Program, we asses and buy a high conservation value property, protect it with a perpetual Trust Agreement, manage the property to maintain and improve the conservation and other values, and on-sell it to supportive new owners. The proceeds from the sale are returned to the Revolving Fund and used to buy and protect more high conservation value properties. We focus on two key target audiences: 1. ConAg (Conservation Agriculture) which targets farmers interested in mixing the two together at scale and 2. Lifestyle (Treechangers) which targets people who are looking at a rural property from a predominantly non-agricultural perspective.

• Through our Covenanting Programs, we work with existing landowners who have a deep love for the land and are keen to protect the work they’ve already done over many years through the use of an in perpetuity Trust Agreement. A perpetual Trust Agreement is a voluntary conservation agreement between a landowner and the NCT to help the landowner protect and look after the natural values of their property forever. Our conservation agreements are given legislative force through the Nature Conservation Trust Act 2001 and are registered on the land titles, binding current and all future owners. The conservation agreement can apply to all or part of the property. A separate plan of management, detailing practical strategies such as weed and pest control, is also developed in consultation with the landowner.

• After a conservation agreement has been registered, the NCT provides on-going support to the landowner through its Stewardship Program.

The NCT is the only organisation in NSW operating a nature conservation focused Revolving Fund with perpetual Trust Agreements attached to property titles.

Wedge-tailed eagle. Photo: Sam Niedra.

Buying and Selling High Conservation Value PropertiesRevolving Fund Programs

Covenanting Programs

Assess

Assess Buy Manage SellProtect Support

Protect Support

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How to Get InvolvedBy supporting or getting involved with the NCT, you are playing a vital role in ensuring that the unique animals and plants of NSW, and the habitats they rely on, are protected forever.

DonateThrough our Revolving Funds, we buy and protect private land, resell newly protected properties to supportive private landowners, and use the proceeds from the sales to buy, protect and resell more special places. When you donate to the NCT, you have the satisfaction of knowing that your contribution will be used over and over again to acquire and protect more properties across NSW.

To donate to the NCT, please visit our website at www.nct.org.au/get-involved/donations to make a secure online donation or contact us on 1300 330 717. All donations over $2 are tax deductible

Make a BequestIf you are interested in making a bequest to the NCT in your will, please visit our website at www.nct.org.au/get-involved/bequests or contact us on 1300 330 717 or email info@nct.org.au.

Workplace GivingWorkplace Giving lets employees donate to charity from their pre-tax pay. The employee receives an immediate tax refund and is not required to keep a receipt. To learn more about workplace giving visit our website at www.nct.org.au.

Business PartnershipsBusiness partnerships are a valuable way to build community links, raise awareness and funds. If you would like to align your business to the valuable work of the NCT, contact us on 1300 330 717.

YellowboxYellowbox is a way for every Australian to play a direct role in helping to protect biodiversity on private land. A Yellowbox is a 10 sqm parcel of land that you are helping to protect for $10. You can see it on a map, online, at any time. It will be there as your lasting legacy. Visit www.yellowbox.org.au to learn more.

Buy a PropertyNCT properties range in size from under 100 hectares to more than 8,000 hectares, and include large agricultural holdings, large conservation properties and small lifestyle conservation properties. If you would like to find out more about our properties for sale, please go to our website – www.nct.org.au – or contact our Property Sales Manager on 02 6626 0303 or 0448 801 391.

Protect Your Own PropertyIf you are an existing landowner who is interested in protecting part or all of your property forever, you may be eligible for one of our covenanting programs. For information about our current programs, please send an email to info@nct.org.au or call us on 1300 330 717..

Stay InformedLastly, if you would like to stay informed about the work we do, you can subscribe to our e-newsletter online at www.nct.org.au, like our facebook page at www.facebook.com/natureconservationtrustofnsw Twitter @NCT_NSW, Instagram @natureconservtrust or Youtube NatureTrustofNSW or send your name, address, email address and phone number to info@nct.org.au or call us on 1300 330 717.

By supporting or getting involved with the NCT, you are playing a vital role in ensuring that the unique animals and plants of NSW, and the habitats they rely on, are protected forever.

Visit to Woomargama Station. Photo: NCT supplied

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Our Achievements

To date, the NCT has protected 54,669 hectares across 122 private reserves in NSW. These reserves include lands with registered covenants and land held for sale in the NCT revolving fund. NCT private reserves protect a wide range of endangered ecological communities and habitat for many animal and plant species threatened with extinction.

These include:

• habitat for 21 fauna species listed as threatened with extinction nationally, including the critically endangered Golden Sun Moth;

• habitat for 82 animal species also listed as threatened with extinction in NSW, such as the Grassland earless dragon, the Border thick tailed gecko and the Kultarr;

• habitat for 34 plant species listed as threatened with extinction nationally, including the McKie’s Stringy bark and Mauve Burr Daisy;

• habitat for 54 plant species also listed as threatened with extinction in NSW, such as narrow leaved black peppermint and Wollomi mint bush;

• protection of 7 nationally threatened ecological communities, with more than one third of NCT covenant properties protecting examples of the critically endangered White Box-Yellow Box-Blakely’s Red Gum Grassy Woodlands;

• 22 ecological communities threatened in NSW, including protection of coastal saltmarsh and River-Flat Eucalypt Forest on Coastal Floodplains;

• Sale of 3 Revolving Fund properties protecting 1055ha, including habitat for the Long nosed potoroo and the Bredbo gentian;

• 12 Revolving Fund properties held by the NCT protecting a total of 5,171 hectares, with 5 of these properties under contract for sale;

• 25 Revolving Fund properties now in private ownership protecting 19,567 hectares.

The NCT has protected 50,853 hectares within bioregions that have less than 17% within the public reserve system.

Left: Top row: Wirran Bioblitz, Photo: NCT supplied; Death adder, Photo: Damian Michael; Rose-crowned fruit-dove, Photo: Georgia Beyer. Middle row: Wompoo fruit-dove, Turpentine bush; Golden whistler, Photos: Georgia Beyer. Bottom row: Eucalyptus buds, Photo: Georgia Beyer. Dusky wood swallows, Photo: Denise Allen, Tawny frogmouth, Photo: Georgia Beyer.

Area ProtectedCUMULATIVE AREA PROTECTED BY THE NCT SINCE 2004 (IN HECTARES)

60,00050,00040,00030,00020,00010,000

04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

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Our Revolving Funds ProgramsSince 2003, the NCT has purchased 35 properties under its Revolving Fund programs, protecting 23,847 hectares of high conservation value land. At 30 June 2016 the NCT has sold 25 of these properties. Funds are reinvested into the revolving fund programs to make additional high conservation value purchases.

The Revolving Fund is a market based instrument the NCT utilises to buy, sell and protect high conservation value lands in accordance with the objectives and functions of the Nature Conservation Trust Act of NSW.

The NCT Revolving Fund has continued to focus on high conservation value lands which are on-sold into three distinct property markets: (a) lifestyle properties that contain important native vegetation (b) income producing agricultural properties that have areas of high conservation value vegetation; and (c) large private nature reserves that contribute to the National Reserve System.

2015-2016 has been a successful year for the NCT revolving fund with the sale of three properties:

“Sunoora”, “Wanggaali” and “Wannowong Farm”. These properties provide habitat for endangered species such as natural temperate grasslands, River-Flat Eucalypt Forest, the Spotted-tailed Quoll and Scarlet Robin and together protect a total of approximately 370 hectares. The successful property sales allow the NCT Revolving Fund to continue to assess properties for procurement throughout the year.

2015-2016 was also a successful year for the NCT in relation to property procurement, with 5 properties purchased during the year.

The NCT is continuing to investigate and, negotiate the procurement of properties which will result in the protection of endangered ecological communities through the NSW rural agricultural landscape.

Properties For Sale at 30 June 2016Blackbutt (480 ha) Uralla - Set across 580 hectares 20 minutes from the historic township of Uralla and under an hour from Armidale, Blackbutt is a conservation agriculture property where you can undertake your passion for a sustainable farm while protecting vitally important Box Gum Grassy Woodland. Visit www.nct.org.au/blackbutt

Estuary Creek (1,450 ha) Grafton - located minutes to the Clarence River, this property offers seclusion, recreation and sustainable development opportunities. With sandstone outcrops, mature eucalypt trees, diverse heathlands, melaleuca wetlands, sandy creeks and spotted gum forests. The property provides habitat for 5 of the 6 Australian glider species and protects habitat for many threatened species including the koala. Visit www.nct.org.au/estuary-creek

Garadi Hills (97ha) Howes Valley - is an ideal family weekend bush retreat with a cabin and fire pit. Only 2 hours drive from Sydney or Newcastle and adjoins Yengo National Park and Wilderness Area, and the Greater Blue Mountains World Heritage Area, making it a perfect weekend getaway. The property offers recreational and lifestyle opportunities and protects known refuge and habitat of the glossy black-cockatoo and gang gang cockatoo. Visit www.nct.org.au/garadi-hills

Garuwanga (276ha) Winifred – With rare and sought after frontage to the Numeralla River and Winifred Creek, Garuwanga is a magnificent 276 hectares south-eastern highlands property providing excellent habitat for numerous threatened species including Diamond Firetail, Little Eagle, Gang-gang Cockatoo, Alpine Tree Frog, and Hooded Robin.. Visit www.nct.org.au/garuwanga

“I loved the idea that when you buy

though the NCT the funds go around

again and enable another property to be

purchased”

Margaret England, owner of Billagul

Top: Woomargama Station. Photo: Scott Hartvigsen.

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Harts Road (81ha) Braidwood – Manageable sized property) only 25 minutes from the historic township of Braidwood (1839). Positioned to take in sweeping views to the west of the Tallaganda Ranges National Park, you could be forgiven for thinking you were gazing across the moors of Scotland. Protecting habitat for Diamond Firetail, Powerful Owl, White-footed Dunnart, Spotted-tailed Quoll, and Eastern Bentwing-bat. Visit www.nct.org.au/hartsroad

Oak Valley (360ha) Wagga Wagga – the property is private with outstanding views of the Riverina, and is conveniently located to services and schools. Rarely is such seclusion offered so close to town. The property comes with management funding to assist the new owner restore some of Australia’s most endangered vegetation communities, offering the purchaser an opportunity to be actively involved in the conservation of the box gum woodlands. Visit www.nct.org.au/oakvalley

Llanelly (760ha) Michelago - is approximately 55km south of Canberra and 5 mins drive to the village of Michelago. The topographical structure of the property includes steep snow gum ridgelines, moderately timbered slopes with a shrub and grassy understory. Pastured slopes give way to gentle valleys and flats giving easy access to the long boundary with Michelago Creek. Visit www.nct.org.au/llanelly

Mt Wareng (300ha) Howes Valley - adjoining the Yengo National Park. This property is a known refuge and habitat for the glossy black-cockatoo and gang gang cockatoo. The property is located 55km south-west of Singleton making it possible to spend days visiting the vineyards and restaurants in the nearby Hunter Valley, and retreat to the bush for evenings under the stars. The property has long frontage to Howes Valley Creek and extends into the foothills of the culturally significant Mt Wareng (Little Yengo). This property provides an ideal opportunity for families to create their own private reserve within 2 hours of Sydney and Newcastle. Visit www.nct.org.au/mtwareng

Westbrook (572ha) – west of Guyra on the New England Tablelands, of which 470ha is proposed for covenant. It is situated in the Moredun Volcanics sub-bioregion where formal reservation levels are below 4%. The property has extensive frontage to Moredun Creek, which runs for over 4.5kms along the northern boundary providing opportunities for fishing, swimming and canoeing. The neighbouring property to the east, Barn Gully, has a Trust Agreement; this property in turn adjoins the New Valley State Forest and there is excellent connectivity across the landscape to Inwarra National Park in the west and The Basin Nature Reserve in the south.

Wirran (345ha) Howes Valley - adjoining Yengo Wilderness and Greater Blue Mountains World Heritage. The property protects habitat of the threatened glossy black cockatoo. Sitting in the shadow of Mt Yengo, the property protects the headwaters of the MacDonald River and features include impressive views, sandstone escarpments and unique Sydney eucalypt forest. Plenty of opportunities to set up a camera to capture some of our most iconic native species including wallabies and wombats. The property is about 115 kilometres north of Windsor and 55 km south-west of Singleton making it an easy weekend commute from Newcastle, the Central Coast or Sydney. Visit www.nct.org.au/wirran

Severn Park, East (1017ha) is a property that sits on the sweeping Monaro Plateau running off the eastern flank of Mount Kosciuszko and is close to the hamlet of Dalgety which sits on the mighty Snowy River - part of the nation’s folklore. Protecting two Nationally Endangered Ecological Communities - Natural Temperate Grasslands and Upland Wetlands of Monaro Plateau including species like Snow Gum, Black Sallee, Candlebark and Ribbon Gum Grassy Woodland, Severn Park (East) also protects a known population of Grassland Earless Dragon (Tympanocryptis pinguicolla) listed as endangered nationally. Visit www.nct.org.au/severn-park-east

The NCT has protected 38,819 hectares within bioregions that have less than 10% within the public reserve system.

Top: Scarlet honeyeater. Photo: Victoria Graham.

Above: Echidna. Photo: Georgia Beyer.

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Top: Billagul. Photo: Ben Lynch

Above: “It has been a very encouraging experience and we have really appreciated the ongoing help and support.” Ken Rippin. Photo: NCT supplied.

NCT REVOLVING FUND PROPERTIESProperty Nearest Major

CentreIBRA Bioregion Conservation

Area (ha)Status

NCT REVOLVING FUNDEuroka Inverell New England Tablelands, Nandewar 952 SOLDSandy Wells Coonabarabran Brigalow Belt South 328 SOLDBora Creek Inverell Nandewar 505 SOLDRockview Inverell New England Tablelands 1,957 SOLDWestbrook Armidale New England Tablelands 572 FOR SALEBillagul Armidale New England Tablelands 226 SOLDBlackbutt Armidale New England Tablelands 580 FOR SALEParlour Grasslands Braidwood South Eastern Highlands 48 SOLDBunhybee Grasslands Braidwood South Eastern Highlands 48 SOLDHarts Road Braidwood South Eastern Highlands 81 FOR SALESunoora Cooma South Eastern Highlands 111 SOLDGaruwanga Cooma South Eastern Highlands 276 FOR SALECaladenia Ridge Albury NSW South Western Slopes 109 SOLDShark Creek Grafton South Eastern Queensland 210 SOLDBezzants Lease Tenterfield New England Tablelands 2,535 SOLDSevern Park East Cooma South Eastern Highlands 1017 FOR SALEMt Wareng Singleton Sydney Basin 307 FOR SALEGaradi Hills Singleton Sydney Basin 96 FOR SALEWirran Singleton Sydney Basin 344 FOR SALELittle Yengo Singleton Sydney Basin 65 SOLD500 Possums Grafton NSW North Coast Bioregion 130.5 SOLDOak Valley Wagga Wagga NSW South Western Slopes 300 FOR SALESiena Holbrook NSW South Western Slopes 307 SOLDLlanelly Canberra Southern Tablelands 340 FOR SALEWanggaali Batemans Bay South East Corner 105 SOLDWannowong Farm Merimbula South East Corner 173 SOLD

FARMER EXIT ASSISTANCE PROGRAMKewilpa Casino South Eastern Queensland 792 SOLDSundew Grafton South Eastern Queensland 157 SOLDEstuary Creek Grafton South Eastern Queensland 1,458 FOR SALEHartwood Station Deniliquin Riverina 3,143 SOLDCarwell Station Coonamble Darling Riverine Plains 5,032 SOLD

LACHLAN CMA REVOLVING FUNDFernhill Cowra NSW South Western Slopes 423 SOLD

CENTRAL WEST CMA REVOLVING FUNDStanley Coonamble Darling Riverine Plains 1,735 SOLD

RTA HUME HIGHWAY DUPLICATION BIODIVERSITY OFFSET PROGRAMSlate Hill Albury NSW South Western Slopes 87 SOLDHighfields Tumut NSW South Western Slopes 223 SOLDSnowview Holbrook NSW South Western Slopes 119 SOLD

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Revolving Fund Properties sold during 2015 to 2016During the 2015 -2016 financial year three properties were sold increasing the NCT’s protected area by approximately 370ha.

Sunoora (111ha) Jerangle Wanggaali (105ha) Dignam’s Creek Wannowong Farm (250ha) Wyndham

All Properties sold through the NCT Revolving FundBezzants Lease (2,535ha) Deepwater, NSN - protects old growth forest, with rocky outcrops, wetland systems, endangered ecological communities and habitat of many threatened species.

Billagul (231ha) Uralla, NSW - protects endangered Box Gum Grassy Woodland, Carex sedgelands of the New England Tablelands and habitat for the spotted-tailed quoll.Bora Creek (560 ha) Bingara - provides a wildlife corridor and large protected area in an under reserved bioregion and protects endangered semi-evergreen vine thicket ecological community.

Bunhybee Grasslands (49ha) Braidwood - protects areas of the nationally threatened natural temperate grassland and the nationally threatened mauve burr-daisy and also stands of snow gum woodland.

Caladenia Ridge (110ha) Albury - a wildlife sanctuary for rare birds and native Australian flowers and is home to the extremely rare crimson spider orchid.

Carwell Station (8,071ha) Quambone - protects endangered weeping myall open woodlands and coolibah-black box woodlands, and native grasslands, little of which is represented within the NSW public reserve system.

Euroka (1072ha) Bingara - protects granite outcrops with the endangered ecological community Howell Shrub lands. The vegetation supports threatened species, such as the turquoise parrot and diamond fire tail.

Fernhill (678ha) Cowra - supports large areas of critically endangered box gum grassy woodland. So far, 93 native plant species and 86 native animal species, including the threatened regent honeyeater, superb parrot and diamond firetail, have been recorded.

500 Possums (150ha) Dalmorton/Grafton – forms part of a continental scale conservation corridor protecting wildlife such as lyrebirds, possums and the yellow bellied glider.

Hartwood Station (6,767ha) Conargo/Deniliquin - contains a number of endangered ecological communities, including white cypress pine woodland, buloke woodland and weeping myall woodlands. The property supports threatened animal and plant species including the grey-crowned babbler, slender darling pea and silky swainson-pea, along with key habitat for the plains-wanderer, bush stone-curlew. Scar trees, middens and other Aboriginal sites are protected in the conservation areas.

Highfields (332ha) Adelong - contains nationally threatened box gum grassy woodland and derived grasslands ecological community and a range of structurally diverse vegetation types, all of which provide good foraging habitat for threatened and declining woodland birds such as the regent honeyeater and swift parrot.

Kewilpa (832ha) Casino - supports eight vegetation communities, six of which are recognised as endangered ecological communities. It is also home to an endangered emu population in the NSW North Coast bioregion.

Little Yengo (65ha) Howes Valley - contains habitat for the threatened fauna species gang-gang cockatoo, glossy black-cockatoo and little lorikeet both listed as vulnerable under the Threatened Species Conservation Act 1995 (NSW). The property also protects indigenous Cultural Heritage.

Top: Southern swamp orchid. Above: Eastern rosella. Photos: Georgia Beyer.

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Parlour Grasslands (49ha) Braidwood - protects areas of the nationally threatened natural temperate grassland and the nationally threatened mauve burr-daisy and also stands of snow gum woodland.

Rockview (1,957ha) Bundarra - supports significant areas of old growth forest, including the nationally threatened box gum grassy woodland ecological community.

Sandy Wells (389ha) Coonabarabran - is densely vegetated with a mix of box, ironbark, stringy bark and pine, and features abundant habitat for birds, reptiles and amphibians.

Shark Creek (215ha) Grafton - the property contains extensive examples of endangered coastal freshwater wetlands, swamp, and floodplain forest and protects habitat for threatened species dependent upon these ecosystems, such as osprey, grey-crowned babbler and brolgas.

Siena (327ha) Holbrook -supports areas of box gum grassy woodland and some key threatened species like the black chinned honey eater, diamond fire tail and the squirrel glider.

Slate Hill (100ha) Albury - contains stands of nationally threatened box gum grassy woodland and derived grasslands and provides habitat for threatened animals and birds such as the brown tree creeper, diamond fire tail and squirrel glider.

Snowview (136ha) Holbrook - protects endangered box gum grassy woodland habitat and threatened woodland bird species.

Stanley (2,418ha) Quambone - comprising episodic freshwater wetlands, grasslands and woodlands and supports up to five known threatened species and potential habitat for a further 29 species. Stanley also contains the nationally endangered weeping myall woodlands ecological community. The Aboriginal heritage of the property is prevalent with 52 sites registered.

Sundew (156ha) Grafton - protects rare and threatened birds, gliders and frogs including the squirrel glider and the glossy black cockatoo.

Sunoora (111ha) Jerangle - Protection of endangered natural temperate grasslands, tablelands woodlands, and the nationally threatened Bredbo Gentian

Wanggaali (105ha) At just a notch over 105 hectares, Wanggaali truly is the best of both worlds. Located 15 minutes from the historic heritage listed village of Tilba, the property is part of the region nestled near the majestic Gulaga (Mt Dromadery). This mountain and the region is a site of great spiritual significance to the local Yuin People.

Wannowong Farm (172.9) Wyndham - provides important habitat for the following species threatened with extinction such as the Spotted-tailed Quoll, Scarlet Robin and the Big Badja Gum

Top: Harts Road near Braidwood is protecting habitat for diamond firetails. Photo: Ben Lynch.

Below: Diamond Firetail. Photo: Chris Tzaros.

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Our LandholdersThroughout the year the NCT ran three landholder events which gave the CEO and Board the chance to thank them for the often unacknowledged work they do. The three events (Capertee Valley, Woomargama and Lismore) were well attended and gave landholders a chance to meet other landholders, catch up on new information and share stories.

At the Capertee event, landholder April Mills gave everyone a special tour of her property, Binalong, which has seen nothing less than a transformation in habitat which is helping to support many threatened species including the Regent Honeyeater. See April above in the red pants.

But throughout the year we also learned more about some of our landholders and their stories. Here are a couple.

Ken Rippin & Mia Barbieri – Close to the Edge “Initially, we bought the property as a retreat and managed to visit only a couple of times a year”, Ken recalls. “We were living in Shanghai where I had been for the best part of 20 years so we wanted to find somewhere we would eventually come home and settle. We got to know the area, and people, and really fell in love with the place”.

“I had in mind regenerating rainforest - the property is a mix of rainforest and wet sclerophyll - but the additional advantage was the second block could be serviced by the same entrance as the first”.

“Doing all this at a distance was a challenge but what impressed me about the Nature Conservation Trust was the Plan of Management. It was so thorough and clear that not only did it give me the confidence that I was dealing with a professional organisation but that the Plan of Management would be, and as it has turned out is, a very useful tool”.

For the full story on Ken & Mia, visit www.nct.org.au/news-stories

Margaret & Dirk - BillagulFor Margaret and Dirk finding the property Billagul, one of the NCT properties on the market last year, it was love at first sight. Dirk wanted a place of beauty, enough space to find solitude and water.

“I’ve always been attracted to water and I’ve spent my life chasing the bush”, he reflected.

“I loved the idea that when you buy though the NCT the funds go around again and enable another property to be purchased”, Margaret said.

Billagul’s frontage to a creek and distance from neighbours was the perfect match. Margaret on the other hand, while she also wanted a place of beauty was drawn to the idea of learning as much she could about native plants and the NCT’s Revolving Fund.

For more of Margaret and Dirk’s story visit www.nct.org.au/news-stories

Top: April Mills showcasing her property Binalong to other NCT landholders, board members and staff. Photos: Luke Stambouliah.

Above from top: Ken Rippin. Photo: Ben Lynch. Margaret and Dirk. Photo: NCT supplied

SOLD

Garadi Hills 97ha weekend camping retreat with cabin $190,000

Llanelly 760ha grazing and conservation property near Canberra $1,078,000

Estuary Creek 1,470ha wilderness property near north coast beaches $595,000

Oak Valley 360ha rolling hills and sweeping vistas near Holbrook $440,000

Protecting Private Land

Mt Wareng 300ha stunning camping hideaway with creek frontage $200,000

Sunoora 135ha new property coming online soon near Cooma $265,000 SOLD

Wirran 345ha sanctuary adjoining two National Parks - a private wilderness $215,000

Severn Park (East) 1017ha heritage grazing and grassland conservation $1,012,000

For Sale

Covenanted

Sold Reserves

Cities

Program Extent

Border Ranges program protecting

Capertee Valley covenants protecting

Central West LLS & Woodland Birds for Biodiveristy protecting

RMS Hume Offsets protecting

Slopes to Summit protecting

Mawonga IPA & Conservation Covenant protecting

NSW South Coast and Koala program

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2

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6

4

5

7

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Covenants by RegionAs of 30 June 2016 the NCT has enabled 109 landholders to register perpetual Trust Agreements on their own land, protecting approximately 30,000 hectares of high conservation value land, in addition to the conservation agreements on the 25 sold Revolving Fund properties.

Northern RegionIn northern NSW, landowners have protected a total of 31 private conservation areas to date. This includes Motherland; a 375ha covenant near Dorrigo protecting large areas of sub-tropical rainforest and known to be home to nearly 40 threatened plants and animals including Koalas.

Central Region NCT work in central NSW continues to expand with 3 covenants being signed by landowners during the 2014/15 year. There are now 27 NCT covenants in the Central Region. These include another high priority patch of remnant vegetation in the Capertee Valley which protects habitat for the critically endangered Regent Honeyeater. Mawonga Station was registered in January 2015 and is the largest NCT Conservation Area registered to date, being 20,000ha. Mawonga was also the first NCT

covenant to be registered on a Western Lands Lease, and is a great model for partnerships with Aboriginal communities and organisations in other areas of NSW.

Southern RegionIn southern NSW, the NCT has partnered with landowners to establish 21 private nature reserves to date. Covenanting programs are continuing under the RMS Hume Highway offset Program protecting large areas of Box Gum Grassy Woodland and linking to existing covenants protected with NCT. This includes a property in the Woomargama – Benambra priority landscape which enables a link from the Hume Highway to the National Park via 4 other covenanted properties. Many of these properties are continuing works under five year programs such as fencing, revegetation, and weed control.

Covenants in ProgressWe have a number of covenants progressing at the moment, with the RMS Pacific Highway Biodiversity Offsets project having 20 covenants in progress; totalling ~3,500ha, with more expected to be completed in 2016. We will also use funds raised from the spot-tailed quoll fundraising campaign to assist landholders to protect priority habitat for quolls and implement works such as feral animal control in the 15/16 year.

Top: Sunset on the magnificent 22,000 ha Mawonga Station, Photo: Georgia Beyer

Above: Gecko on Mt Wareng. Photo: Victoria Graham

Mawonga StationTraditional owners, the Ngiyampaa Wangaaypuwan people celebrated the handback of 22,000 hectares of land, with government and partner organisations at a ceremony on the land on 26 September. Not only was this an important and historic occasion, the Mawonga property will become the largest, declared Indigenous Protected Area in south eastern Australia.

As the Ngiyampaa Wangaaypuwan people have long fought for access and rights to look after country and to continue the role of their ancestors, the ceremony marked a very important occasion for the community. The covenant the NCT applied, in consultation with community Elders, was the largest in the organisation’s history.

The Hon. Peter Garrett was the special guest at the event.

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Covenanting ProgramsDuring the year the Nature Conservation Trust (NCT) has worked in partnership with many organisations ranging from the Commonwealth Government to non-government organisations such as Birdlife Australia. Most projects involve strategic consideration of priority areas to target land containing important threatened species or vegetation communities, or patches of bush that link existing protected areas.

Cumberland Plains Conservation Program Through this project, funded by the Commonwealth Government we are protecting critically endangered Cumberland Plains Woodland and threatened species habitat in western Sydney. The areas targeted may be small in comparison to the rest of the state (sometimes <5ha), however they are under significant threat as Sydney is rapidly expanding to the west. This project considers the use of either land purchase or covenanting with landholders to achieve land protection. To date, two covenants have been secured totalling 45 hectares via land purchases at Mulgoa and Londonderry, with further funding of an additional $3 million allocated as part of an election commitment to extend the project’s outcomes in the upcoming year.

Quoll Appeal ProgramNCT raised more than $50,000 from donations during its Quentin the Quoll campaign. This money will be used to assist landholders with fox control who are registering covenants under the project. Three covenants have been developed during the year, totalling 376Ha. The covenants are located near Tenterfield, Kangaroo Valley and Tumut, and all include high quollity habitat.

Regent Honeyeater (Saving our Species)

This ten year partnership with Birdlife Australia and Taronga Zoo is funded by the NSW Environmental Trust “Saving Our Species” initiative to protect key

habitat in the three New South Wales hotspots for the Regent Honeyeater (Lower Hunter, Bundarra/Barraba and Capertee Valley). We have developed two covenants under this project during the year, and hope to assist landholders to secure more areas into the future, especially in the Bundarra region.

Central West NCT has continued the Central West Local Land Services (LLS) project where we have helped landholders to protect 640 hectares near Nyngan, and continue to work with the LLS on this successful project. Under this project we have helped to protect significant areas of the nationally endangered Inland Grey Box woodland.

Other CovenantsNCT has assisted landholders to register covenants in other priority areas this year, including important sections of coastal woodlands adjoining National Parks along the NSW South Coast.

Great Eastern RangesNCT continues to focus on key areas for protection where possible in the priority regional projects in NSW. During the year we protected nearly 700ha within the Great Eastern Ranges corridor, with a notable focus within the Kosciusko to Coast area of four covenants totalling over 400 hectares. We continue to aim to protect areas bordering the national parks estate, and key under-reserved vegetation types, especially woodlands and natural temperate grasslands. In December 2015, due to a lack of ongoing funding, NCT completed its last stint in hosting regional partnership facilitator Jane Baldwin for the Border Ranges Alliance. We thank Jane Baldwin for her terrific contributions to GER and NCT over the years.

Top: Wayne Olling and Lisa Harrold of the Cumberland Land Conservancy celebrating the NCT purchase of Wallaroo on the Cumberland Plain. Photo: DoE&E

Top images, from top: Easten quoll, Photo: Esther Beaton; Regent honeyeater. Photo: Dean Ingwersen; “Munda” near Nyngan was part of a program funded by the Central West LLS. Photo: Tiffany Mason; RTA Hume Hwy Duplication Program. Photo: Scott Hartvigsen

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Yellowbox can deliver improved customer

perception for a brand as a cornerstone of

sustainability

Above: Yellowbox homepage yellowbox.org.au. Below: Yellowbox voucher, created by Stubbs Design Tribe for their customers. Image: Stubbs Design Tribe.

The Nature Conservation Trust of NSW (NCT) was established to assist landholders to protect high conservation value areas on their properties. Private land conservation also has a vital role in creating what is known as “connectivity” in the landscape. This is where a smaller private property acts as a link between larger public reserves like National Parks.

The reality is that most of us won’t be in a position to own a large enough piece of land to create a protected area and this is where Yellowbox comes in. It gives you the chance to protect our land by purchasing or receiving as a gift your very own Yellowbox.

A Yellowbox is a 10 square metre block of land that is linked to a unique GPS (Global Positioning System) code. When you purchase or receive this code as a gift you enter the code into the Yellowbox website and this small parcel of land is now symbolically yours. You will be able to see the property where your code is actually located online and every time you return you can learn more about what your Yellowbox is helping to protect.

“Your action today will help build a world where our natural environment, our farms and our communities, prosper. This is your Yellowbox. For Ten Bucks.”

Partnerships with businesses to help drive support for the NCT is a key strategy to help expand awareness and raise funds. For $10 a business can reward their customers or staff with a Yellowbox

which is helping the NCT to protect more habitat than ever before.

When a business becomes involved they can access a pool of stories that are not only authentic but also convey a strong message about the power of ‘giving back’.

Yellowbox can deliver improved customer perception for a brand as a cornerstone of sustainability.

For customers and clients they can demonstrate their environmental credentials which can help drive purchase considerations; they can surprise and delight customers through a conversation about biodiversity related to their brand or even via a competition; and they can generate sales when a target amount of yellowboxes is attained.

For staff engagement they can improve employee commitment and pride by inspiring staff through a gift matching program or as a CSR initiative; improve perceptions by gifting yellowboxes as part of an internal sustainability campaign; or increased productivity by incentivising staff to reach a target.

Currently we have four businesses who have joined Yellowbox and as we go to print an exciting evolution in the Yellowbox platform as Queensland, Victoria, Tasmania and South Australia have agreed to join the inititive which will enable people to buy yellowboxes in any of these states.

For more information visit www.yellowbox.org.au or to enquire about partnerships email info@yellowbox.org.au

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Marketing & Communications In 2015-16 the NCT communicated its message via a number of channels. Interestingly, a decision to drop all print media in favour of digital only channels saw a flattening of website activity this financial year over the previous. And while website traffic still grew by 38% to over 116,000 website sessions, it demonstrates that print advertising still has a complementary role to play in any marketing plan.

Below are some of the key activities undertaken throughout the year:

Quoll Campaign – it soft launched in May 2014 and by 30 June 2015 reached 94% of its target. In the final six month through to December 2015 the campaign wound up raising $57,098 towards the quoll covenant program. At the time of publication the NCT has 911 hectares protected with covenants signed and lodged; with a further 234 hectares in the pipeline.

Social Media – our facebook page facebook.com/natureconservationtrustofnsw continued to grow and increase the number of engaged users. At 30 June we had reached 4,069 supporters on our fan page – a 34% increase but down in growth by 3%. Twitter went from just over 800 followers to cracking the 1,000 barrier. While our newsletter reached out to over 1,400 subscribers. The Instagram account @natureconservtrust launched last year with over 100 followers, now has 243. And finally our Youtube channel has experienced a 7,000% increase in traffic as video production continues to build with some 19,800 views over a range of videos including property promotion as well as species videos.

Property Marketing – as mentioned we undertook our spring and autumn property marketing campaigns through digital channels only including via Domain, Facebook Ads, Google Adwords and Outbrain. Holding time for Revolving Fund properties has continued to drop with an increasing number of properties being sold prior to listing. During 2015-16 we sold three properties including Estuary Creek which represented the oldest property still held by the NCT.

Yellowbox - has continued to grow and has seen some $15,000 raised since its inception. We have secured three small businesses as partners who use the platform to thank clients for their support. As we go to print we are in the process of upgrading the website to enable the other State Land Trusts in Queensland, Victoria, Tasmania and South Australia to become involved in yellowbox.org.au.

Media Relations - throughout 2015-16 we also worked with Momentum2 on two major media events: the Mawonga Station buy back celebration for the Winangkirri Aboriginal Corporation who has taken the responsibility of managing a 22,000 hectare covenant area; and the NCT celebrating reaching its 50,000 hectare target. In both cases major mastheads, television, radio and online outlets picked up the stories resulting in $395,000 equivalent advertising value which included a feature story on the 6pm SBS news bulletin.

Landholder events - two out of three landholder events were held in 2015-16. The first was held in the hamlet of Glen Davis in the Capertee Valley with 14 landholders in attendance while the second, at Flyfaire Winery near Holbrook enjoyed the same. The events were a platform to recognise the amazing efforts of landholders while also enabling them to meet other staff and board members, as well as each other.

Top: Quoll campaign Christmas design by Bettina Kaiser art+design. Photo: Esther Beaton.

Above: John V. McCarthy, AO addresses landholders at an event in the Capertee Valley. Photo: Luke Stambouliah.

Consolidating the growth we have achieved in raising awareness of private land conservation has been reflected in the results.

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Our Supporters The NCT would like to acknowledge and thank our supporters for their generous financial and in-kind support of our work during 2015-2016.

Allens Linklaters, our pro-bono lawyers since the establishment of the NCT, continued to provide invaluable legal support.

Charles Sturt University continues to be very generous in its support of the NCT, providing office accommodation in both Albury and Orange, IT support, motor vehicles and associated services. Southern Cross University in Lismore continues to refer enthusiastic final year environmental science students to the NCT, and we are most grateful for the continued access for NCT staff to the University motor vehicle fleet.

Jim Prosser-Fenn and the team at Baldock Stacey and Niven, Orange, has continued to provide us with invaluable legal support assisting us to sell three properties and prepare further properties for contract. We are deeply grateful for the considerable pro bono support provided.

The NCT is very grateful to the NSW Government for its continuing support. A special thanks to the Minister for the Environment, Mark Speakman, for his support throughout the year. We look forward to continuing to work with the NSW Government to increase the area of private land under protection in NSW.

Lyn Tuit and Caitlin Maxwell at Momentum2 have been invaluable in the support they have provided with media liaison especially for the Mawonga Station Event and the celebration of the NCT reaching the 50,000 hectare target.

A special thanks needs to go to Bettina Kaiser who provides marketing, design and web support. Without her very great effort, the NCT machine would grind to a complete halt.

While photographers Ben Lynch and Luke Stambouliah continue to contribute to the great breadth of stunning imagery that brings our story

to life, Geoff Anderson and Tristan Baker from Sonic Sight produced the vision that has gone into a series of videos created for Yellowbox.

A very special mention must go to the Yellowbox business partners including Stubbs Design Tribe, Love Property, Howorth Communications and McGrath Agent, Damian Steele.

The NCT would like to extend a special thank you to the private landowners who have chosen to protect their properties with NCT perpetual Trust Agreements, and to the people and organisations that have purchased properties through our Revolving Fund programs. By doing so these people have made a very generous, admirable commitment, protecting and caring for the natural heritage of NSW.

Special mention to landholders who have willingly provided their time and energy towards the promotion of the NCT. These include: Louise Freckelton and David Bray, Ken Rippin, and Margaret England.

Last, but certainly not least, we would like to thank our donors for their generous support of our work during 2015-16. We have already raised $15,000 from the Yellowbox initiative and the Quoll Campaign finished with $57,000.

The NCT would like to acknowledge and

thank our supporters for their generous

financial and in-kind support of our work during 2015-2016.

Top: Yellowbox business partner, Love Property. Photo: Luke Stambouliah.

Above: Dingo. Photo: Nigel Jones.

Opposite page: a pied currawong and a laughing kookaburra eye each other off. Photo: Georgia Beyer.

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Our Board

Mr John V. McCarthy, AO (Chair)Appointed October 2012

John V. McCarthy is widely recognised as a multi-faceted industry leader. He has a wide breadth of experience in senior management and corporate governance.

John enjoys a close working relationship with major banks,

superannuation funds, institutional investors, financiers and senior professionals and analysts, as well as numerous industry bodies.

He is currently Chairman of Australian Enterprise Holdings Pty Ltd (AEH), The Village Building Co. Ltd (VBC), Sustainable Built Environment National Research Centre (SBE NRC), EP&T Global, Playoust Churcher Architects (PCA) and Catholic Care (NSW) Property Committee. He is also a Director of Tahuvo Pty Ltd (The McGrath Group of Companies)

He is an Honorary Life Member of the Property Council of Australia and the Facilities Management Association and the International Council for Research and Innovation in Building and Construction.

In 2009 John was made an Officer in the Order of Australia

Michael Williams (Deputy Chair)

Appointed August 2004 Reappointed December 2009 & December 2014

Michael is the principal of Michael Williams & Associates Pty Ltd, a Sydney-based natural resource management, strategic planning, facilitation and communications company.

With qualifications in geology and geomorphology, Michael started his career tutoring in the School of Earth Sciences at Macquarie University, Sydney, and then worked with the NSW National Parks and Wildlife Service in education, interpretation and natural area investigation. He has been consulting in natural resource management since 1986 and formed his own consultancy company in 1988.

Michael has had a long-standing commitment to private land conservation through his involvement and consultancies with South Australia’s Heritage

Agreement Scheme, the Tasmanian Regional Forest Agreement, Wet Tropics of Queensland World Heritage Area and private and non-government organisations, natural resource management regional bodies, State, Commonwealth and US-based conservation and philanthropic organisations. In 2009 Michael was instrumental in the collaboration and formation of the Australian Land Conservation Alliance - an alliance of all Australian States’ private land conservation covenanting organisations and was on its inaugural Board from 1999-2014.

Michael is a Fellow and former president of the Environmental Institute of Australia and New Zealand (NSW Division) and is a member of the IUCN’s World Commission on Protected Areas

Jane GibbsAppointed August 2014

Jane Gibbs is appointed as an employee of the Office of Environment and Heritage where she is Senior Manager, Environmental Program Services. She is an experienced policy practitioner with over 20 years’ experience in both the public and private sectors, including with the

United Nations Environment Program in Geneva, Switzerland.

Jane holds a Bachelor of Environmental Science (Honours) degree from the University of Newcastle, a Masters of Environmental Law from the University of Sydney and is currently undertaking an Executive Masters of Public Administration through the Australian New Zealand School of Government.

Scott Hawker Appointed October 2012

Scott joined the Board of the Nature Conservation Trust during 2012, to bring additional financial skills to the organisation. Scott’s background is in Australian and international investment and institutional banking.

Scott worked with a number of international

investment banks over the past 25 years, and spent a decade with Commonwealth Bank in Sydney focussing on financing solutions in the complex telecommunications and media environment. Most recently, Scott has been working at Perpetual, advising high net worth clients and not-for-profit organisations on investment structuring and strategy.

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He has a Masters in Applied Finance from Macquarie University, a Bachelor of Commerce, a Diploma in Financial Services, and is a graduate of the Australian Institute of Company Directors. Scott is also a Board Member of the Cemeteries and Crematoria Agency of NSW. Within the NCT, Scott is Chair of the Finance and Risk Committee.

Virginia Malley Appointed October 2012

Ms Malley has 30 years’ experience in the financial sectors, including 16 years’ experience as a

company director. Her areas of expertise are: financial and environmental markets, risk management, corporate governance, regulatory compliance custody and trusteeship. She is a member of the Clean Energy Regulator, a

non-executive director of Perpetual Superannuation Limited and ASX-listed Perpetual Equity Investment Company Limited, and a member of the Sydney Airport Trust Compliance Committee.

Ms Malley was previously the Chief Risk Officer at Macquarie Funds Management Group, and a member of a number of committees at Macquarie, with focuses on clean technology, the Asia Pacific and global private equity. She also served on the boards of Macquarie Investment Management Limited and Bond Street Custodians Limited and was a staff-elected trustee of the Macquarie Bank Staff Superannuation Fund. She oversaw the risk management of portfolios worth more than $85 billion. She also managed industry regulator and ratings agency relationships.

Ms Malley is a Fellow of the Australian Institute of Company Directors. She holds a Bachelor of Arts and a Master of Applied Finance from Macquarie University, a Master of Laws and Graduate Diploma in Environmental Law from the University of Sydney, and a Juris Doctor from the University of Technology, Sydney.

Russell Taylor, AM Appointed December 2014

An Aboriginal Australian (Kamilaroi), Russell Taylor is the CEO of the Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) in Canberra. AIATSIS is the pre-eminent research, collecting and publishing institution in the

field of Australian Indigenous studies.

Russell has extensive senior managerial experience in the corporate sector as well as a significant career history in public administration of Indigenous affairs. He is a former CEO of the NSW Aboriginal Housing Office and has also worked at the state and national level in senior executive roles in the former Aboriginal and Torres Strait Islander Commission and its predecessor organisation the Aboriginal Development Commission.

Russell is currently a director of the Lowitja Institute and the Aboriginal and Torres Strait Islander Healing Foundation. He is a former member of the Council of the University of Canberra and is currently a member of University of Technology, Sydney. Russell is also a member of the national Indigenous Higher Education Advisory Council, Charles Darwin University Vice Chancellor’s Indigenous Advisory Committee and the National Museum of Australia’s Indigenous Advisory Committee.

His tertiary qualifications include a Master of Business Administration (MBA) Degree as well as a Graduate Diploma in Public Sector Management from the University of Technology Sydney and a Graduate Diploma in Arts (Anthropology) from the Australian National University.

Matthew Toohey Appointed October 2012

Matthew has over 20 years commercial property experience in the areas of valuation, town planning, investment, acquisition, development, construction and asset management. Matthew has held several previous senior executive roles

including being General Manager of Property for Bunnings for 10 years as well as being on the board of Bunnings Group Limited.

Matthew is a Certified Practising Valuer, a Fellow of the Australian Property Institute, Senior Associate of the Financial Services Institute of Australia and a Fellow of the Australian Institute of Company Directors. He holds a Master of Commerce (Property Inv) from the University of Western Sydney and has completed the Advance Management Program at INSEAD (France) as well as an Executive Leadership Program at Harvard Business School (USA).

Matthew is also a non-executive director of the NSW Crown Holiday Parks Trust.

He has a keen interest in conservation and environmental preservation.

NATURE CONSERVATION TRUST OF NEW SOUTH WALES ABN 22 526 891 208

Financial Report for the Year Ended 30 June 2016

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BOARD MEMBERS’ REPORT FOR THE YEAR ENDED 30 JUNE 2016The Board Members present their report together with the financial report of the Nature Conservation Trust of New South Wales (NCT) for the year ended 30 June 2016 and the auditor’s report thereon.

1. Board MembersThe Board Members of the NCT at any time during or since the end of the financial period are detailed below:

Director Period Special Responsibility EligibleMeetings

Meetings Attended

John V McCarthy Oct 2012 to present Chair 10 10

Michael Williams Oct 2012 to present Deputy Chair 10 9

Aug 2012 to Oct 2012 Chair

Aug 2006 to Aug 2012 Board Member

Scott Hawker Oct 2012 to present Board Member 10 9

Virginia Malley Oct 2012 to present Board Member 10 9

Matthew Toohey Oct 2012 to present Board Member 10 10

Russell Taylor Dec 2014 to present Board Member 10 9Jane Gibbs Aug 2014 to present Board Member 10 8

2. Principal ActivitiesThe principal activity of the NCT is to promote nature conservation on private land in New South Wales. The NCT buys, protects and sells high conservation value properties, on its own and for third parties, supporting the owners in maintaining and enhancing the ecological value of their land.

3. Review and results of operations The NCT’s operations for the year resulted in a deficit of $605,561 (surplus of $264,846 in 2015).

4. State of affairsIn the opinion of the Board Members, there were no significant changes in the state of affairs of the NCT during the financial year under review.

5. Environmental regulationThe NCT’s activities are regulated by the Nature Conservation Trust Act 2001. Otherwise, the NCT is not subject to any significant environmental regulation under either Commonwealth or State Legislation. However, the Board believes that the NCT has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the NCT.

6. Possible developmentsThe NSW Government’s review of Biodiversity Legislation, including the Nature Conservation Trust Act 2001, may have a significant impact on the roles and responsibilities of the NCT in the future as indicated in the recommendations from the Biodiversity Legislation Review Panel and in the draft Biodiversity Conservation Bill, on which public consultation closed on the 28th June 2016, and which is proposed to go before Parliament in October/November 2016. The new Biodiversity Conservation Act, if passed by Parliament, is proposed to commence on 1st July 2017. The proposed Biodiversity Conservation Act will establish the Biodiversity Conservation Trust (BCT) from the date of commencement of that Act. The Nature Conservation Trust Act 2001 will be repealed on the commencement of the Biodiversity Conservation Act.

The changes from this legislative review may affect the operations of the NCT in the 2016-17 financial year with NCT expecting a reduction in revenue from external sources due to uncertainty in advance of the proposed legislation.

Information about other possible developments in the NCT’s operations and the expected results of those developments in future financial years have not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the NCT.

7. Events subsequent to balance date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the Board Members, to affect substantially the operation of the NCT, the result of those operations or the state of affairs of the NCT in subsequent financial years, other than the legislative review mentioned above.

8. Indemnification of officers and auditorsSince the end of the previous financial year, the NCT has not indemnified or made a relevant agreement for indemnifying against a liability, any person who is or has been an officer or auditor of the NCT.

Signed in accordance with a resolution of the Board Members:

_________________ __________________

John V. McCarthy AO Scott Hawker Chair Board Member

Signed in Sydney this 4th October 2016.

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THOMAS NOBLE & RUSSELLCHARTERED ACCOUNTANTS

G W DWYER (Partner)Registered Company Auditor

AUDITOR'S INDEPENDENCE DECLARATION

We declare that, to the best of our knowledge and belief, there have been no contraventions of anyapplicable code of professional conduct in relation to the audit of the financial report of the NatureConservation Trust of New South Wales for the year ended 30 June 2016.

Signed at Lismore this 4th day of October 2016.

- 4 -

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Report on the Financial Report

Board Members Responsibility for the Financial Report

Auditor's Responsibility

NATURE CONSERVATION TRUST OF NEW SOUTH WALESA.B.N. 22 526 891 208

INDEPENDENT AUDITOR'S REPORTFOR THE YEAR ENDED 30 JUNE 2016

Our audit did not involve an analysis of the prudence of business decisions made by Board Members ormanagement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

We have audited the accompanying financial report of the Nature Conservation Trust of New SouthWales (the NCT), which comprises the statement of financial position as at 30 June 2016, the statementof surplus and deficit and other comprehensive income, the statement of changes in equity and thestatement of cash flows for the year then ended, notes comprising a summary of significant accountingpolicies and other explanatory information and the Board Members' declaration.

The NCT's Board Members are responsible for the preparation and fair presentation of the financialreport in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, theAustralian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and for such internalcontrol as the Board Members determine is necessary to enable the preparation and fair presentation ofthe financial report that is free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on the financial report based on our audit. We conducted ouraudit in accordance with Australian Auditing Standards. Those Standards require that we comply withrelevant ethical requirements relating to audit engagements and plan and perform the audit to obtainreasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial report. The procedures selected depend on the auditors' judgement, including theassessment of the risks of material misstatement of the financial report, whether due to fraud or error. Inmaking those risk assessments, the auditor considers internal control relevant to the NCT's preparationand fair presentation of the financial report in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the NCT'sinternal control. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by the Board Members, as well as evaluating theoverall presentation of the financial report.

To the Members of the Nature Conservation Trust of New South Wales.

- 5 -

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Independence

Opinion

a)

b)

THOMAS NOBLE & RUSSELLCHARTERED ACCOUNTANTS

G W DWYER (Partner)Registered Company Auditor

Signed at Lismore this 4th day of October 2016.

This Auditor's Report relates to the financial report of the NCT for the financial year ended 30 June2016 published in the annual report and included on NCT's website. The NCT's Board Members areresponsible for the integrity of the NCT's website. We have not been engaged to report on the integrityof this website. The auditor's report refers only to the financial report identified above. It does notprovide an opinion on any other information which may have been hyperlinked to/from the financialreport. If users of the financial report are concerned with the inherent risks arising from publication on awebsite they are advised to refer to the hard copy of the audited financial report to confirm theinformation contained in this website version of the financial report.

In conducting our audit, we have complied with the independence requirements of the Australianprofessional accounting bodies.

In our opinion, the financial report of the Nature Conservation Trust of New South Wales has beenprepared in accordance with Division 60 of the Australian Charities and Not-for-profits CommissionAct 2012 , including:

complying with Australian Accounting Standards – Reduced Disclosure Requirements andDivision 60 of the Australian Charities and Not-for-profits Commission Regulations 2013.

Matters Relating to the Electronic Presentation of the Audited Financial Report

giving a true and fair view of the NCT’s financial position as at 30 June 2016, and of its financialperformance and cash flows for the year ended on that date; and

Emphasis of Matter

Without modifying our opinion, we draw attention to note 1(p) in the financial report which describesthe uncertainly related to the outcome of the NSW Government's review of Biodiversity Legislation.

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BOARD MEMBERS’ DECLARATION FOR THE YEAR ENDED 30 JUNE 2016

In the Board Members opinion:

1. The financial statements and notes set out on pages 30 to 41 satisfy the requirements of the Australian Charities and Not-for-profits Commission Act 2012, including:

(a) complying with Accounting Standards - Reduced Disclosure Requirements, and the Australian Charities and Not for profits Commission Regulations 2013; and

(b) giving a true and fair view of the financial position as at 30 June 2016 and of its performance for the financial year ended on that date; and

2. There are reasonable grounds to believe that the NCT is able to pay all of its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board Members

Signed in Sydney this 4th day of October 2016. For and on behalf of the Board

_________________

John V. McCarthy AO Chair

_________________

Scott Hawker Board Member

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Notes 2016 2015$ $

Revenue and other income from continuing operations 2 2,262,275 2,991,753 Expenses from continuing operations 3 (2,867,837) (2,726,907)Surplus (deficit) from continuing operations before income tax (605,561) 264,846 Income tax expense 1(c) - - SURPLUS (DEFICIT) FROM CONTINUING OPERATIONS AFTER INCOME TAX

(605,561) 264,846

Other comprehensive income - - TOTAL COMPREHENSIVE INCOME FOR THE YEAR (605,561) 264,846

STATEMENT OF SURPLUS OR DEFICIT AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016Notes 2016 2015

$ $ CURRENT ASSETS

Cash and cash equivalents 4 10,294,340 13,915,144 Financial assets 5 1,029,944 1,050,000 Property held for resale 6 4,707,751 2,567,667 Trade and other receivables 7 373,869 213,965

Other assets 8 22,709 147,187 TOTAL CURRENT ASSETS 16,383,613 17,893,963

NON-CURRENT ASSETSProperty, plant & equipment 9 117,164 47,698Intangibles 10 8,785 14,511

TOTAL NON-CURRENT ASSETS 125,949 62,209

TOTAL ASSETS 16,509,562 17,956,172

CURRENT LIABILITIESTrade & other payables 11 894,219 851,092 Other liabilities 12 2,088,459 2,989,197 Provisions 13 129,747 126,363

TOTAL CURRENT LIABILITIES 3,112,425 3,966,652

NON-CURRENT LIABILITIESProvisions 13 59,684 46,506

TOTAL NON-CURRENT LIABILITIES 59,684 46,506

TOTAL LIABILITIES 3,172,109 4,013,158

NET ASSETS 13,337,453 13,943,014

EQUITYGeneral reserve 18 1,692,604 1,923,909 Stewardship reserve 18 1,068,325 979,944 Restricted reserve 18 10,576,524 11,039,161

TOTAL EQUITY 13,337,453 13,943,014

This Statement of Financial Position should be read in conjunction with the accompanying notes

This Statement of Surplus or Deficit and Other Comprehensive Income should be read in conjunction with the accompanying notes

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Notes GENERAL RESERVE

STEWARDSHIP RESERVE

NCT REVOLVING FUND RESERVE

TOTAL EQUITY

$ $ $ $

Balance at 1 July 2014 1,495,959 853,207 11,329,002 13,678,168

Surplus/(Deficit) for the year 576,631 - (311,785) 264,846

Transfers (148,681) 126,737 21,944 -

Balance at 30 June 2015 18 1,923,909 979,944 11,039,161 13,943,014

Surplus/(Deficit) for the year (199,924) - (405,637) (605,561)

Transfers (31,381) 88,381 (57,000) -

Balance at 30 June 2016 18 1,692,604 1,068,325 10,576,524 13,337,453

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016

Notes 2016 2015$

Inflows (Outflows)

$ Inflows

(Outflows)CASH FLOWS FROM OPERATING ACTIVITIESGovernment funding and other services 804,448 2,370,178 CWCMA funds transferred to CW LLS Covenant Program Funds - 1,256,383

Interest received 369,019 411,783Payments to suppliers/employees (2,764,729) (2,286,730)NET CASH PROVIDED BY/ (USED IN) OPERATING ACTIVITIES

(1,591,262) 1,751,614

CASH FLOWS FROM INVESTING ACTIVITIESNet proceeds/(payments) from held to maturity investments 20,056 (1,050,000)Proceeds from sale of property held for re-sale 821,119 489,965Payments for property held for re-sale (2,919,513) (1,731,692)Payments for deposits on property held for re-sale - (123,000)Receipts for deposits on property held for re-sale 100,000 -Payments for property, plant and equipment (96,204) (24,851)

NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES

(2,074,541) (2,439,578)

Net movement in cash and cash equivalents (3,665,804) (687,964)Cash and cash equivalents at the beginning of the financial year 13,915,144 14,603,108

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

17 (i) 10,249,340 13,915,144

This Statement of Cash Flows should be read in conjunction with the accompanying notes

This Statement of Changes in Equity should be read in conjunction with the accompanying notes

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

The financial report was authorised for issue by the Board on the 4th day of October 2016.

BASIS OF PREPARATION

The Nature Conservation Trust of New South Wales (NCT) applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Australian Charities and Not-for-profits Commission Act 2012. The NCT is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements, except for cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

SIGNIFICANT ACCOUNTING POLICIES

a) Property Plant and Equipment All such assets are recorded at cost and are depreciated on a reducing balance basis so as to write off their cost each year as a constant proportion of the remaining value and produces a progressively smaller decline over time.

Major depreciation ranges for various classifications of assets are:-

Office Equipment 15%-40% Motor Vehicles 19%

The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in surplus or deficit in the period in which they arise.

b) Impairment of Assets At the end of each reporting period, the NCT reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of each asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in surplus or deficit, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment deficit of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

c) Income Tax The NCT is exempt from income tax as it is deemed to be an exempt charitable organisation under the Income Tax Assessment Act 1997.

d) Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term highly liquid investements with original maturities of three months or less.

e) Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Trust commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss” in which case transaction costs are recognised as expenses in profit or loss immediately.

Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over the relevant period

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

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and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

The Trust does not designate any interests in subsidiaries, associates or joint ventures as being subject to the requirements of Accounting Standards specifically applicable to financial instruments. Accordingly, such interests are accounted for on a cost basis.

(i) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Trust’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

Impairment At the end of each reporting period, the Trust assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

Financial guarantees Where material, financial guarantees issued that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due are recognised as a financial liability at fair value on initial recognition.

The fair value of financial guarantee contracts has been assessed using a probability-weighted discounted cash flow approach. The probability has been based on:

• the likelihood of the guaranteed party defaulting during the next reporting period;

• the proportion of the exposure that is not expected to be recovered due to the guaranteed party defaulting; and

• the maximum loss exposure if the guaranteed party were to default.

Financial guarantees are subsequently measured at the higher of the best estimate of the obligation in accordance with AASB 137: Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less, when appropriate, cumulative amortisation in accordance with AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118.

Derecognition Financial assets are derecognised when the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset.

f) Trade and Other Receivables Trade receivables are recognised at their cost less impairment losses and a sale is recorded when goods have been dispatched to a customer pursuant to a sales order, or services have been provided and the associated risks have passed to the carrier or customer. All trade debtors are recognised at the amounts receivable as they are due for settlement no more than 30 days from the date of recognition.

g) Employee Benefits

Short-term employee benefits Provision is made for the NCT’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The NCT’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position.

Other long-term employee benefits The NCT classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the NCT’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate

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anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in surplus or deficit classified under employee benefits expense.

The NCT’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the NCT does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities.

Retirement benefit obligations

Defined contribution superannuation benefits All employees of the NCT receive defined contribution superannuation entitlements, for which the NCT pays the fixed superannuation guarantee contribution (currently 9.5% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised as an expense when they become payable. The NCT’s obligation with respect to employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the NCT’s statement of financial position.

h) Trade and Other Payables Trade and other payables represent the liabilities for goods and services received by the NCT during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

i) Property Held for Resale Property held for resale is valued at the lower of its carrying amount and fair value less costs to sell. Property improvement costs of a capital nature have been included in property costs while holding costs of these properties have been expensed to surplus or deficit.

j) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised as part of the costs of acquisition of the assets or as part of an item of expense. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial position.

Cash flows are included in the statement of cash flows on an overall gross basis. The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

k) Intangibles

Software Software is recorded at cost. It has a finite life and is carried at cost less accumulated amortisation and any impairment losses. Software has an estimated useful life of between one and three years. It is assessed annually for impairment.

l) Provisions Provisions are recognised when the NCT has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

m) Revenue All revenue is stated net of the amount of goods and services tax (GST).

Rendering of Services Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Grant Revenue Non-reciprocal grant revenue is recognised in surplus or deficit when the NCT obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the NCT and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

When grant revenue is received whereby the NCT incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Donations and bequests are recognised as revenue when received.

n) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current year.

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o) Economic Dependency The NSW Government has provided the NCT with a grant of $650,000 a year from 1st July 2011 until 30th June 2015. The NSW Government has provided the NCT with a grant of $975,000 for 18 months from 1 July 2015 to 31 December 2016 together with a commitment for a further grant of $325,000 through to 30th June 2017. The Government has continued to provide $125,000 per annum for non-Government Board Members stipend which extends through to 30th June 2017. The NCT is in continuing discussions with the NSW Government regarding additional funding pending the passage of the Biodiversity Conservation Bill.

p) Going Concern

The NSW Government’s review of Biodiversity Legislation, including the Nature Conservation Trust Act 2001, may have a significant impact on the roles and responsibilities of the NCT in the future as indicated in the recommendations from the Biodiversity Legislation Review Panel and in the draft Biodiversity Conservation Bill, on which public consultation closed on the 28th June 2016, and which is proposed to go before Parliament in October/November 2016. The new Biodiversity Conservation Act, if passed by Parliament, is proposed to commence on 1st July 2017. The proposed Biodiversity Conservation Act will establish the Biodiversity Conservation Trust (BCT) from the date of commencement of that Act. The Nature Conservation Trust Act 2001 will be repealed on the commencement of the Biodiversity Conservation Act.

The changes from this legislative review may affect the operations of the NCT in the 2016-17 financial year with NCT expecting a reduction in revenue from external sources due to uncertainty in advance of the proposed legislation.

q) Fair Value of Assets and Liabilities The NCT measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

“Fair value” is the price the NCT would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability). In the absence of such a market, market information is extracted from the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity’s own equity instruments (if any) may be valued, where there is no observable market price in relation to the transfer of such financial instrument, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and where significant, are detailed in the respective note to the financial statements.

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NOTE 4 - CASH AND CASH EQUIVALENTS 2016 2015$ $

CurrentCash on hand 259 259 Cash at bank 10,249,081 13,914,885

10,249,340 13,915,144

NOTE 3 - EXPENSES 2016 2015$ $

CHARGING AS AN EXPENSE - BY NATUREEmployment related expenses 1,352,542 1,275,602 Direct operational costs 491,844 393,685 Legal expenses 81,265 20,414 Board member stipend 125,001 123,798 Travel expenses 125,842 121,661 Depreciation/amortisation

Office equipment 8,006 8,762Computer software 5,726 2,839Motor vehicles 16,724 7,020Property assets 369 1,089

Property operating costs 128,931 115,769Program payments* 347,322 409,725 Impairment expense 96,392 181,352 Audit fee 20,640 16,500 Conservation market development 67,233 48,691

TOTAL EXPENSES 2,867,837 2,726,907

* Devolved grant payments and payments to landowners for conservation management and on-ground works.

NOTE 2 - REVENUE & OTHER INCOME 2016 2015

$ $OPERATING REVENUEGovernment grants

Conservation market development 67,233 48,692 Covenant/other funding program 858,992 1,261,512 Organisational support funding 650,000 650,000 Board member stipend 125,000 125,000

Other RevenueManagement fee income 151,725 322,000 Property income 10,050 - Profit on sale of properties 15,450 84,026 Property management fees 4,183 20,194 Sundry income 5,294 22,501

1,887,927 2,533,925

NON-OPERATING REVENUEInterest received 341,326 434,385 Gifts & donations 33,022 23,443

374,348 457,828

TOTAL REVENUE 2,262,275 2,991,753

TOTAL REVENUE & OTHER INCOME 2,262,275 2,991,753

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Properties held in the NCT Revolving Fund are being actively marketed for sale in the next 12 months.

NOTE 6 - PROPERTY HELD FOR RESALE 2016 2015$ $

CurrentNCT Revolving Fund 4,707,751 2,567,667

NOTE 5 - FINANCIAL ASSETS 2016 2015$ $

Current - Held-to-maturity investments

Term deposits 1,029,944 1,050,0001,029,944 1,050,000

NOTE 7 - TRADE AND OTHER RECEIVABLES 2016 2015$ $

CurrentTrade receivables 131,825 46,167 Interest receivable 48,784 76,475 Accrued income 15,364 709 GST receivable 6,363 - Revolving fund receivables 171,533 90,614

373,869 213,965

NOTE 8 - OTHER ASSETS 2016 2015$ $

CurrentPrepayments 22,709 24,187 Deposits on properties - 123,000

22,709 147,187

NOTE 9 - PROPERTY, PLANT AND EQUIPMENT 2016 2015$ $

Non-CurrentPlant & equipment at cost 66,432 69,606 Less: accumulated depreciation (52,760) (52,431)

13,672 17,175Motor vehicles at cost 168,217 78,524 Less: accumulated depreciation (64,725) (48,001)

103,492 30,523TOTAL PROPERTY, PLANT AND EQUIPMENT 117,164 47,698

NOTE 10 - INTANGIBLES 2015 2014$ $

Non - CurrentComputer software:Cost 17,350 17,350Accumulated amortisation (8,565) (2,839)Net carrying amount 8,785 14,511

Plant and Equipment

Motor Vehicles Total

$ $ $Balance at 1 July 2015 17,175 30,523 47,698 Additions 6,510 89,693 96,203 Net disposals (2,007) - (2,007)Depreciation expenses (8,006) (16,724) (24,730)Balance at 30 June 2016 13,672 103,492 117,164

Movement in Carrying Amount

The movement in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year is as follows:

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NOTE 12 - OTHER LIABILITIES 2016 2015$ $

CurrentDeposits on properties 100,000 -Revenue received in advance 1,988,459 2,989,197

2,088,459 2,989,197

NOTE 11 - TRADE AND OTHER PAYABLES 2016 2015$ $

CurrentAccounts payable 37,512 96,360Accrued expenses 212,433 98,233GST payable - 13,457Program funds payable 592,703 598,894Other liabilities 51,571 44,148

894,219 851,092

NOTE 13 - PROVISIONS 2016 2015$ $

CurrentEmployee benefits - annual leave and long service leave 129,747 126,363 Non-currentEmployee benefits - long service leave 59,684 46,506

Provision for Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave and long service leave.The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the NCT does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the NCT does not have an

unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(g).

NOTE 14 - RELATED PARTY INFORMATION 2016 2015$ $

Key Management Personnel CompensationTotal key management personnel compensation 271,412 260,517

Key management personnel include the Board Members and the Chief Executive Officer.

Related Party Transactions There were no other transactions with key management personnel during the year ended 30 June 2016.

Computer Software

Total

$ $Balance at 1 July 2015 14,511 14,511Amortisation expense (5,726) (5,726)Balance at 30 June 2016 8,785 8,785

Movement in Carrying Amount

The movement in carrying amounts for each class of intangibles between the beginning and the end of the current financial year is as follows:

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NOTE 18 - RESERVES 2016 2015$ $

General reserve (a)Opening balance 1,923,909 1,495,959 Movement for the year (231,305) 427,950 Closing balance 1,692,604 1,923,909

Stewardship reserve (b)Opening balance 979,944 853,207 Movement for the year 88,381 126,737 Closing balance 1,068,325 979,944

NCT Revolving Fund reserve (c)Opening balance 11,039,161 11,329,002 Movement for the year (462,637) (289,841)Closing balance 10,576,524 11,039,161

NCT Revolving Fund Reserve is made up of the following restricted funds:

AssetsCash 5,007,009 7,304,402 Financial assets 1,029,944 1,050,000Interest receivable 21,418 38,410 Property held for sale 4,707,751 2,567,667 Deposits on property - 123,000

LiabilitiesDeposits received on property 100,000 -Revolving funds payable 89,598 44,318

a) The general reserve represents unrestricted accumulated funds.b) The stewardship reserve is used to meet on-going support to landholders and to monitor compliance with

conservation agreements in perpetuity. c) The NCT Revolving Fund reserve is used to buy, sell and protect high conservation value properties.

NOTE 17 - STATEMENT OF CASH FLOWS 2016 2015$ $

(i) Reconciliation of Cash Cash at the end of the financial year as shown in the Statement of Cash Flows are reconciled to the related items in the Statement of Financial Position as follows:Cash at bank 10,249,081 13,914,885 Cash on hand 259 259

10,249,340 13,915,144

(ii) Non-cash Finance and Investing Activities During the year the NCT did not acquire any property, plant and equipment by means of finance lease. There are no finance leases in place at 30 June 2016.

There are nil contingent liabilities as at 30 June 2016 (2015: Nil).

NOTE 16 - CONTINGENT LIABILITIES

NOTE 15 - CAPITAL AND LEASE COMMITMENTS 2016 2015$ $

Capital commitmentsThere are nil capital commitments as at 30 June 2016 (2015: nil).

Operating lease commitmentsPayable - minimum lease payments

Within 1 year 33,642 34,302 Between 1 and 5 years 4,199 4,864 After 5 years - -

37,841 39,166 Leases are largely for the rental of premises for operations. Property leases are generally linked to CPI movements with periodic reviews to market prices.

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Refer to Note 20 for detailed disclosures regarding the fair value measurement of the NCT’s financial assets and financial liabilities.

NOTE 19 - FINANCIAL RISK MANAGEMENT 2016 2015$ $

The NCT’s financial instruments consist mainly of deposits with banks and fund managers, accounts receivable, and payable.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:Financial assetsCash and cash equivalents 10,249,340 13,915,144 Financial assets 1,029,944 1,050,000 Receivables 373,869 213,965

11,653,153 15,179,109

Financial liabilitiesFinancial liabilities at amortised cost

- Trade & other payables 37,512 96,36037,512 96,360

NON-RECURRING FAIR VALUE MEASUREMENTS 2016 2015$ $

Current AssetsProperty held for resale 4,707,751 2,567,667

For Property Held for Resale, values have been determined based on the lower of carrying amount or fair value less costs to sell. Fair value less costs to

sell is based on executed sales contracts or external independent valuations performed in the current year.

The NCT has the following assets, as set out in the table below, that are measured at fair value on a non-recurring basis. The NCT does not subsequently

measure any assets or liabilities at fair value on a recurring basis and has no liabilities that are measured at fair value on a non-recurring basis.

NOTE 20 - FAIR VALUE MEASUREMENTS

No matter or circumstance has arisen since the end of the financial year to the date of this report which has or may significantly affect, the operations of the NCT, the

results of those operations or the state of affairs of the NCT in future financial years.

NOTE 21 - POST BALANCE DATE EVENTS

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The NCT holds cash and property on behalf of third parties in the form of Revolving Funds and Covenant Program Funds.These amounts are excluded from the financial statements as the NCT does not have ultimate control

of these Revolving Funds and Covenant Program Funds.

The following is a summary of the transactions and balances of the amounts held on behalf of third parties for the year ended 30 June 2016.

NOTE 22 - FUNDS AND ASSETS HELD ON BEHALF OF THIRD PARTIES

2016 2015$ $

CURRENT ASSETSCash and cash equivalents

Roads and Maritime Services 404,760 558,481 Lachlan Catchment Management Authority 1,016,809 1,003,783 Cumberland Conservation Corridor 17,787 2,600,000

Total cash & cash equivalents 1,439,356 4,162,264 Property held for resale

Cumberland Conservation Corridor 1 -

Roads and Maritime Services 385,000 385,000

Total property held for resale 385,001 385,000 TOTAL CURRENT ASSETS 1,824,357 4,547,264 TOTAL ASSETS 1,824,357 4,547,264 CURRENT LIABILITIES

Other payables 171,733 90,814 TOTAL CURRENT LIABILITIES 171,733 90,814 TOTAL LIABILITIES 171,733 90,814 NET ASSETS 1,652,624 4,456,450 CLOSING FUNDS & ASSETS HELD

Roads and Maritime Services 618,027 852,667 Lachlan Catchment Management Authority 1,016,809 1,003,783 Cumberland Conservation Corridor 17,788 2,600,000

TOTAL CLOSING FUNDS & ASSETS HELD 1,652,624 4,456,450

STATEMENT OF FINANCIAL POSITION FOR FUNDS AND ASSETS HELD ON BEHALF OF THIRD PARTIES AS AT 30 JUNE 2016

RMS LACHLAN CMA

COMMONWEALTH

GOVERNMENT CUMERLAND

CONSERVATION CORRIDOR

TOTAL

$ $ $ $Opening cash balance 558,481 1,003,783 2,600,000 4,162,264

Receipts 5,788 13,026 17,787 36,601 Expenditure (159,510) - (3,460,000) (3,619,510)Transfers - - 860,000 860,000 Closing cash balance 404,760 1,016,809 17,787 1,439,356

Opening property held for resale 385,000 - - 385,000 Purchases 2,648 - 3,205,049 3,207,697 Cost of sales /impairment (2,648) - (3,205,048) (3,207,696)Closing property held for resale 385,000 - 1 385,001

Payable to NCT (171,733) - - (171,733)Total closing funds & assets held on behalf of third parties 618,027 1,016,809 17,788 1,652,624

REVOLVING FUNDS AND COVENANT PROGRAM FUNDS

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NATURE CONSERVATION TRUST OF NEW SOUTH WALESOffices in Albury, Lismore, Orange and Sydney

ALBURYPO Box 789Albury NSW 2640 Ph: 02 6051 9794Fax: 02 6051 9897

Report compiled by the Nature Conservation Trust of NSW, designed by Bettina Kaiser art + design Printed on recycled paper.

LISMOREPO Box 1121 Lismore NSW 2480Ph: 02 6626 0333Fax: 02 6621 6899

ORANGE PO Box 883Orange NSW 2800 Ph: 02 6365 7543Fax: 02 6365 7768

SYDNEYPO Box 553North Sydney NSW 2059Ph: 02 9954 9368Fax: 02 9923 2232

Ph: 1300 330 717www.nct.org.auinfo@nct.org.auABN 22 526 891 208

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