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Rémy Cointreau

rmc · ASX Financial Services
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Employees 201-500
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FY2021 Annual Report · Rémy Cointreau
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20
21ANNUAL REPORT

Resimac 
Group Ltd

ABN 55 095 034 003
Australian Credit Licence 247829
ASX: RMC

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Who we are

Chairman's message

CEO's message

Board of Directors

Directors' report

Remuneration report

Financial statements

Notes to the consolidated financial statements

4

6

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10

12

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36

42

Directors' declaration

9
10 Independent auditor's declaration
11 Independent auditor's report
12 Environment, social and governance
13 Shareholder information
14 Managing your shareholding
15 Corporate information

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116

117

122

126

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Who 
we are

Resimac Group Ltd ('Resimac Group') is a leading 
non-bank lender and multi-channel distribution 
business, recognised as Non-Bank of the Year 2020 
by the Australian Mortgage Awards. 

Its fully integrated business model comprises 
originating, servicing and funding prime, non-
conforming residential mortgages and asset finance 
products in Australia and New Zealand. 

With a history dating back to 1985, Resimac Group 
has a proven track record of growth and stability.  
We are pleased to service over 50,000 customers 
with a portfolio of home loans on balance sheet of 
close to $14 billion and assets under management 
of over $15 billion.

As a pioneer of the Residential Mortgage-Backed 
Securities ('RMBS') industry we have one of 
Australia’s most respected securitisation programs, 
having issued in excess of $35 billion in domestic 
and global markets since 1987. 

Resimac Group has access to a diversified funding 
platform with multiple warehouse lines provided by 
domestic and offshore banks for short-term funding 
in addition to a global securitisation program to fund 
its assets longer term.

Thanks to our flexible funding programme, we 
provide solutions to a wide range of customers 
including the self-employed and contractors, as 
well as customers with previous credit impairments 
through our network of over 12,000 broker partners. 
Customers with a Resimac Group loan are entitled 
to an exclusive customer benefits program offering 
discounts on a vast array of products and services in 
Australia and New Zealand.

Resimac Group is a profitable organisation with 
diverse income streams - net interest margin on 
principally funded loans, annuity trail income on 
non-principally funded loans and other fee income. 
We operate a proprietary servicing platform and 
have been issued a Standard & Poor's ('S&P') 
"STRONG" Servicer Ranking, which was reaffirmed 
in April 2021.

OVER

$15b

ASSETS UNDER 
MANAGEMENT

2020
AUSTRALIAN 
MORTGAGE 
AWARDS 

N

O

N-BANK OF   T H E   Y E

R

A

I

I

N
O
T
S
O
P
O
R
P
E
C
V
R
E
S
R
U
O

I

ORIG INATION

Wholesale, 3rd Party, 
Direct & White Label 
distribution channels

SERVICING

Underwriting, loan 
management, arrears 
management

OPERATIONS

Support functions, 
geographies

FUNDING

Warehouse and a 
global capital markets 
programme

OUR BRAND AMBASSADOR

Adam Gilchrist is the ambassador for our corporate 
brand. He is also the face of our direct channel, 
homeloans.com.au.

When partnering with an 
organisation I look for 
credibility, the approach 
that the business takes to 
supporting its customers 
and how it conducts itself in 
the community. 

- Adam Gilchrist, Resimac brand ambassador

ISSUED IN
EXCESS OF

$35b

RMBS IN DOMESTIC 
& GLOBAL MARKETS

  A full range of home loans from Prime 

Lending and Specialist Lending products

  Strong funding capabilities - long standing 
warehouse relationships for short-term 
funding

  Diversified long-term funding platform 
with global multi-currency issuance 
programmes

  Well established white label arrangement 

with leading domestic banks

  Assets Under Management of over $15 

billion

  Diversified distribution platform 

originating $4 billion+ p.a.

4

RESIMAC GROUP LTD

ANNUAL REPORT 2021

5

 
 
|  MESSAGE FROM OUR CHAIRMAN

|  MESSAGE FROM OUR CHAIRMAN

Message
from our Chairman

Warren McLeland

Dear shareholder,

Resimac produced a remarkable financial result for the year to 30 June 2021. A net profit after tax of $103 million, was a record 
for your company, representing an astonishing growth of 87% over the previous year.

2021, was however, a roller coaster year in respect to 
operating conditions. Notwithstanding the positive impact 
of benign low interest rates, rising employment across 
the nation and high levels of liquidity in the economy 
(all of which manifested in an unexpectedly high level of 
demand for home finance), industry competitiveness 
was increasingly challenging. The six major banks were 
particularly aggressive in their eagerness to rebuild market 
share in home lending by squeezing pricing at every 
available opportunity. This behaviour reduced margins 
for all participants including the non-bank sector, which is 
basically reliant on wholesale funding. 

In the second half of 2021, we were forced to contend with 
the ongoing impact of COVID-19 and in particular, the new 
dramatically more infectious and severe Delta variant. 
Notwithstanding the business having to switch to full time 
working from home again, we were largely uninterrupted by 
COVID-19 and produced record business flow. 

By June, financial stress amongst borrowers had 
resurfaced, necessitating Resimac to once again provide 
mortgage repayment relief to support borrowers’ financial 
stress. Fortuitously, State/ Territories and Federal 
Governments have also provided much sought-after relief 
programmes to help lessen the burden on borrowers.  

The buoyant industry activity, not of all which favoured 
a trend for achieving low risk growth ambitions, 
demonstrates how outstanding our annual performance 
was to exceed our budgeted expectations. 

A major contributor to our success in 2021 has been stellar 
performance in our medium-term funding programmes, 
where once again Resimac’s pre-eminence in securitisation 

stood out!  Our ability to consistently bring an increasingly 
wider variety of structures and diversified pools of 
mortgages to the Australian and international bond 
markets, attracts returning investors as well as encourages 
new investors into one of the world’s most stable, secure 
and low risk markets.

The following summary demonstrates the diversity 
of our activities and the scope and size of our funding 
achievements for 2021.  Resimac issued $5.8 billion across 
four currencies; AUD, JPY, NZD and USD. The bonds were 
distributed over seven jurisdictions including Australia 
(55%), USA (20%), Japan (10%), Asia ex Japan (10%), UK 
(4%), Europe (1%) and New Zealand (1%).  Resimac’s global 
banking capacity exceeds $5 billion from major domestic 
banks and five international banks spread across Asia, 
Japan, Europe and the USA.

Our dedicated team of professionals incessantly focuses 
on improving and enlarging our investor relations activities. 
Shareholders should understand that it is Resimac’s 
responsibility to satisfy investor needs. This means a 
necessity to maintain daily activity and be on top of trends 
in the world’s bond markets and to have the ability to reflect 
investor requirements when we bring a new securitisation 
transaction to the market.

Resimac’s 30+ years of experience in securitisation 
is unequivocally a powerful competitive advantage, 
irrespective of whether the funding markets are liquid 
or tight. We are renowned for our conservatism and our 
long-standing partnership relationships with major local 
and international banks are testament to our stature in the 
world’s biggest markets.

A major contributor 
to our success 
in 2021 has been 
stellar performance 
in our medium-
term funding 
programmes, 
where once 
again Resimac's 
pre-eminence 
in securitisation 
stood out.

I wish to draw shareholders’ attention to one business 
transformation initiative we have been undergoing for 
the last 2+ years.  We are coming to an end of our biggest 
project capital investment in the company’s history 
with the digitalisation of our core operating IT systems 
capability providing end to end processing for our loan 
application to settlement procedure and processes. 

Subsequent to year end, the first phase of implementation 
went live in our New Zealand business in August with 
the totality of the project expected to be operational by 
January 2022. The productivity, efficiency and borrower 
experience benefits are profound, creating a paradigm shift 
in our ability to manage future growth in new business.  Our 
new digital engine will be driving the power for creating 
fast workaround solutions to facilitate new product 
developments, solve existing bottlenecks and problems, 
and ultimately sustain top tier customer satisfaction 
benefits to enhance trust and loyalty from our chosen 
customer segments. 

Along with our securitisation capability, we expect 
digitalisation and our renewed focus on the customer will 
overall be our principal source of competitive positioning 
especially when combined with our low cost product 
manufacture, sharp pricing and distribution.

On behalf of my colleagues on the Board, I acknowledge 
the incessant and major contribution of our CEO, Scott 
McWilliam to your company throughout the year. All 
successful organisations, especially when operating 
under conditions of stress and challenge, require effective 
leadership and superior consistent management. Scott has 
delivered that to Resimac in spades! 

To our employee team, we express our gratitude for 
their professionalism, enduring commitment, loyalty 
and teamwork.  The pleasure has been ours to count 
them as colleagues and partners, working as one team to 
successfully fulfil our ambitious objectives.  

Warren J McLeland
Chairman

6

RESIMAC GROUP LTD

ANNUAL REPORT 2021

7

|  MESSAGE FROM OUR CEO

|  MESSAGE FROM OUR CEO

Message
from our CEO

Scott McWilliam

FY21 was a watershed year for Resimac Group. While the pandemic continued to plague our economy, particularly in the second 
half due to the highly transmissible Delta strain, the housing market continued to boom, seeing double-digit growth nearly 
everywhere in Australia. 

Home Loan AUM
Increased

11%

New Zealand AUM
Increased

35%

Direct Channel AUM
Increased

10%

Resimac Group has been, and continues 
to be, well-placed to service the 
market’s momentum, with a strong value 
proposition across multiple customer 
segments - some of which are under-
serviced by the major banks. 

initiatives we implemented to ensure staff 
continued to feel connected and included 
while working remotely. Importantly, we 
didn’t draw on JobKeeper or any other 
government support to subsidise our 
working capital. 

Our focus on meeting the needs and 
wants of customers has contributed in 
no small part to Resimac Group’s success 
in FY21. We continued to grow our book 
above system, leading to another record 
normalised NPAT of $104 million (up by 
87% on FY20). 

We have achieved many milestones 
throughout the year, celebrating 35 years 
in business, winning Non-Bank of the Year 
at the 2020 Australian Mortgage Awards, 
launching our new homeloans.com.au 
direct channel, and acquiring 100% of 
International Acceptance Group (which 
we subsequently relaunched as Resimac 
Asset Finance). 

An unwavering commitment to our long-
term growth will see us continue to invest 
in our people, our technology, and our 
operating model, all of which will support a 
more diversified business in the future. 

We’re proud of the support we’ve given 
our staff throughout the year, particularly 
with the various work/life balance 

Our investments in technology have 
been driven by the need to position our 
business as not just accommodating the 
needs and wants of customers today, 
but ensuring that we’re flexible enough 
to meet and exceed their expectations 
in the future. This digital transformation 
has been ongoing throughout FY21, with 
the initial staged rollout expected to 
complete in early 2022. But this is really 
just the start of an ongoing journey of 
evolving our business to remain relevant 
to our customers.

Diversity of product has always been 
one of Resimac Group’s core strengths, 
and the launch of Resimac Asset Finance 
builds on this by enabling us to offer a full 
suite of lending products to consumers 
and commercial borrowers. We’re 
excited about the opportunities in this 
under-serviced market as we expand our 
footprint in asset finance and leverage the 
digital investments we’ve made in other 
areas of our business. 

Our focus on 
meeting the 
needs and wants 
of customers has 
contributed in 
no small part to 
Resimac Group's 
success in FY21.

The value proposition offered by brokers remains as strong 
as ever, particularly within the current landscape, and their 
importance to our business cannot be underestimated. 
We have shown our support to the third party distribution 
channel in many ways this year, such as continuing to pay 
trail commissions for customers on payment moratoriums, 
and restructuring our product suite to support our 
wholesale distribution partners following the Best Interests 
Duty. 

With a growing market of customers who are comfortable 
transacting online, channel diversity is another key focus 
for Resimac Group. Increasingly, we’re seeing customers 
move away from traditional bricks and mortar retail 
distribution towards the flexibility and convenience of 
digital retail distribution. Recognising this opportunity, 
we’ve complemented our third party distribution channel 
with a new direct-to-consumer homeloans.com.au brand, 
giving customers choice in the way they interact and 
engage with us.

Pleasingly, investor demand continues to be strong for our 
global funding program, which provides our business with 
a platform for future growth. Throughout FY21, we issued 
close to $6 billion of prime and non-conforming RMBS at 
the lowest senior margins since before the GFC. Stable 
funding markets and lower cost of funds provide us with a 
runway to aggressively target future growth in FY22 and 
beyond. 

We’re deeply thankful to the management team and staff 
for the formative role they have played in our success, 
notwithstanding the challenges posed this year by the 
pandemic. We’re also thankful for the continued support of 
our brokers, aggregators and other third-party distribution 
partners, all of whom are critical to the ongoing growth of 
our business. I would also like to extend my sincere thanks 
to our board for the invaluable service and support they 
have provided to our business over the last 12 months. 

Scott McWilliam
CEO

8

RESIMAC GROUP LTD

ANNUAL REPORT 2021

9

|  BOARD OF DIRECTORS

|  BOARD OF DIRECTORS

Board of
Directors

Resimac Group Ltd

Warren
McLeland

Susan
Hansen

Wayne
Spanner

Duncan
Saville

Caroline
Waldron

Peter
Fitzpatrick

Chairman

Independent

Independent

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive

Director

Independent

Non-Executive Director

Company

Secretary

Warren is a former stockbroker and 
investment banker with over 35 
years of experience in domestic and 
international financial services. In 
addition, Warren acts as an adviser 
in funds management and business 
strategy to companies operating 
in the Asia Pacific region. Warren is 
the former Executive Chairman of 
Resimac Limited.

Susan is a Chartered Accountant 
and holds a Bachelor of Commerce 
degree and an MBA from the 
University of Cape Town. Susan has 
35 years of experience including 
a Big Four Accounting firm and an 
investment bank (financial analysis 
and risk assessment). Susan is 
a Principal of a financial training 
organisation based in New Zealand. 

Wayne is currently the Global Chief 
Strategic Alignment, Innovation 
and People Officer of Norton Rose 
Fulbright. He was previously the 
Managing Partner of the Australian 
firm from 2012 to 2020. Wayne has 
extensive experience in executive 
management and corporate 
governance at Board level. 

Duncan is a Chartered Accountant 
and an experienced Non-Executive 
Director. He is chairman of ICM 
Limited, an international fund 
manager. Duncan is a fellow of the 
Institute of Chartered Accountants 
Australia and New Zealand, the 
Australian Institute of Company 
Directors and the Financial Services 
Institute of Australasia.

Caroline is a Non-Executive 
Director and cross border advisor 
with over 30+ years’ experience 
in regulated consumer sectors 
such as technology, retail and 
health. Caroline brings to Resimac 
commercial and governance 
experience in many areas including 
technology rollouts and complex 
transactions. Caroline holds an 
LLB Hons (London), and has been 
admitted to the Bars of England and 
Wales, Malaysia, Australia and New 
Zealand.

Peter is a Chartered Accountant who 
worked for a chartered accounting 
firm and oil explorer prior to joining 
Resimac Limited in 1987. Peter is 
responsible for the Group’s company 
secretariat function. He is a member 
of the Governance Institute of 
Australia and the Financial Services 
Institute of Australasia. Australia and 
New Zealand.

10

RESIMAC GROUP LTD

ANNUAL REPORT 2021

11

|  DIRECTORS' REPORT

|  DIRECTORS' REPORT

Directors'
report

Resimac Group Ltd
and its controlled entities

The Directors of Resimac Group Ltd (“Resimac” or “the Company”) and its controlled entities (“the Group”) submit herewith the 
financial report for the financial year ended 30 June 2021. In order to comply with the provisions of the Corporations Act 2001, 
the Directors’ Report as follows:

Information about the Directors

Names and particulars of the Directors of the Company during or since the end of the financial year are:

Mr Warren McLeland

Chairman since February 2020
Non-Executive Director

Mrs Susan Hansen

Independent Non-Executive Director 
since October 2016

Warren is a former stockbroker and investment banker with 
over 35 years of experience in domestic and international 
financial services. In addition, Warren acts as an adviser in 
funds management and business strategy to companies 
operating in the Asia Pacific region. Warren is the former 
Executive Chairman of Resimac Limited.

Susan is a Chartered Accountant and holds a Bachelor of 
Commerce degree and an MBA from the University of Cape 
Town. Susan has 35 years of experience including a Big Four 
Accounting firm and an investment bank (financial analysis 
and risk assessment). Susan is a Principal of a financial 
training organisation based in New Zealand. 

Other listed directorships (last three years):

Other listed directorships (last three years):

   Chairman of Thorn Group Limited (since October 2019, 

   Non-Executive Director of Utilico Emerging Markets 

Director since August 2019)

Limited (since September 2013)

   Former Chairman of Somers Limited incorporated in 

Bermuda (resigned February 2021)

Special responsibilities:

   Former non-executive Director of UIL Limited (resigned 

September 2019)

Special responsibilities:

   Chairman of Resimac Group Ltd (since February 2020)
   Chairman of the Risk and Compliance Committee (since 

February 2017)

   Chair of the Audit Committee (since November 2016)
   Member of the Remuneration and Nomination 

Committee (since November 2016)

   Member of the Risk and Compliance Committee (since 

November 2016)

   Member of the Technology, Digital and Innovation 

Committee (appointed April 2021)

   Member of the Remuneration and Nomination 

   Chair of Resimac NZ Home Loans Limited (since May 

Committee (since November 2016)

2012)

   Member of the Audit Committee (since August 2017)

Mr Wayne Spanner

Independent Non-Executive Director 
since February 2020

Wayne is currently the Global Chief Strategic Alignment, 
Innovation and People Officer of Norton Rose Fulbright. 
He was previously the Managing Partner of the Australian 
firm from 2012 to 2020. Wayne has extensive experience 
in executive management and corporate governance at 
Board level. 

Other listed directorships (last three years):

   Nil

Special responsibilities:

experience in many areas including technology rollouts 
and complex transactions. Caroline holds an LLB Hons 
(London), and has been admitted to the Bars of England and 
Wales, Malaysia, Australia and New Zealand.

Other listed directorships (last three years):

   Nil

Special responsibilities:

   Chair of the Technology, Digital and Innovation 

Committee (appointed April 2021)

   Member of the Remuneration and Nomination 

Committee (appointed January 2021)

   Chair of the Remuneration and Nomination Committee 

Company Secretary

(since February 2020)

   Member of the Risk and Compliance Committee 

(appointed July 2020)

   Member of the Audit Committee (appointed July 2020) 

Mr Duncan Saville

Non-Executive Director 
since November 2017

Duncan is a Chartered Accountant and an experienced 
Non-Executive Director. He is chairman of ICM Limited, 
an international fund manager. Duncan is a fellow of the 
Institute of Chartered Accountants Australia and New 
Zealand, the Australian Institute of Company Directors and 
the Financial Services Institute of Australasia.

Other listed directorships (last three years):

   Non-Executive Director of West Hamilton Holdings 

Limited (since 2012); and

   Former Non-Executive Director of Somers Limited 

(retired February 2019).

Special responsibilities:

   Member of the Technology Digital and Innovation 

Committee (appointed April 2021)

Mrs Caroline Waldron

Independent Non-Executive Director 
appointed November 2020

Caroline is a Non-Executive Director and cross border 
advisor with over 30+ years’ experience in regulated 
consumer sectors such as technology, retail and health. 
Caroline brings to Resimac commercial and governance 

Mr Peter Fitzpatrick 

since November 2016

Peter is a Chartered Accountant who worked for a 
chartered accounting firm and oil explorer prior to joining 
Resimac Limited in 1987. Peter is responsible for the 
Group’s company secretariat function. He is a member 
of the Governance Institute of Australia and the Financial 
Services Institute of Australasia.

The abovenamed Directors held office during the financial 
year and since the end of the previous financial year.

Directors’ shareholdings

The following table sets out each Director’s relevant 
interest in shares and rights of the company or in a related 
body corporate as at 30 June 2021:

Directors

Fully paid 
ordinary shares

Number of 
rights over 
ordinary shares

Warren McLeland

12,126,338

Susan Hansen

203,730

Wayne Spanner

15,732

Duncan Saville

254,468,487

Caroline Waldron

Nil

Nil

Nil

Nil

Nil

Nil

12

RESIMAC GROUP LTD

ANNUAL REPORT 2021

13

|  DIRECTORS' REPORT

|  DIRECTORS' REPORT

Remuneration of key management personnel

Results and dividends

Information about the remuneration of Key Management Personnel (KMP) is set out in the Remuneration Report section of 
this Directors’ Report. The term ‘KMP’ refers to those persons having authority and responsibility for planning, directing and 
controlling the activities of the Company and its controlled entities or indirectly, including any Director whether executive or 
otherwise of the consolidated entity.

The information appearing on pages 15 to 18 forms part of the Directors’ Report for the financial year ended 30 June 2021 and is 
to be read in conjunction with the following information:

FY21

$'000

FY20

$'000

Share options or rights granted to Directors and senior management

PROFIT

An aggregate of 387,478 shares were granted/exercised:

   87,478 shares under the Employee Share Plan on 12 April 2021;

Profit attributable to ordinary equity holders of the parent 

107,557

55,908

   300,000 options exercised by Scott McWilliam on 28 April 2021 in relation to the FY18 Long Term Incentive Plan. Further 

DIVIDENDS

details included in the Remuneration report.

Directors’ meetings 

The following dividends have been paid by the Company or declared by the Directors since 
the commencement of the financial year ended 30 June 2021:

The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held during the 
financial year and the number of meetings attended by each Director (while they were a Director or committee member).

(a)   out of the profits for the year ended 30 June 2020 and retained earnings on the fully-paid 

ordinary shares:

7,334      

6,087

Board meetings

Audit

COMMITTEES

Risk  and 
compliance

Remuneration and 
nomination

Technology, 
digital and 
innovation2

   fully-franked final dividend of 1.80 cents (FY19: 1.00 cents) per share paid on 25 

September 2020. 

   fully-franked one off special dividend of nil cents (FY19: 0.50 cents) per share.

(A)

(B)

(A)

(B)

(A)

(B)

(A)

(B)

(b)   out of the profits for the half-year ended 31 December 2020 and retained earnings on the 

fully-paid ordinary shares:

DIRECTOR

Warren McLeland

Susan Hansen

Wayne Spanner

Duncan Saville

Caroline Waldron1

(A)

14

14

14

14

8

(A)  Number of meetings eligible to attend.
(B)  Number of meetings attended.

(B)

14

14

14

14

8

3

3

3

-

-

3

3

3

-

-

5

5

5

-

-

5

5

5

-

-

4

4

4

-

2

4

4

4

-

2

-

2

-

2

2

-

2

-

2

2

1  Appointed Independent Non-Executive Director in November 2020.
2  The Technology, Digital & Innovation committee was formed in April 2021 to provide oversight on the Group’s strategic direction.

   fully-franked interim dividend of 2.40 cents (HY20: 1.20 cents) per share paid on 31 

March 2021.

(c)   out of the profits for the full year ended 30 June 2021 and retained earnings on the fully-

paid ordinary shares:

9,786

4,879

16,336

7,334

   fully-franked final dividend of 4.00 cents (FY20: 1.80 cents) per share declared on 30 

August 2021

The Company’s Dividend Reinvestment Plan (DRP) was applied to all dividends.

Principal activities

The Group is a residential mortgage and asset finance 
lending business, distributing Prime and Specialist products 
across multiple channels. The Group operates in Australia 
and New Zealand, originating a high quality loan portfolio, 
loan servicing capability, and global funding program.

The Group’s core capabilities include:

   Product manufacturing: The Group applies its detailed 
knowledge of the Australian and New Zealand markets 
to offer products to address demand, with attractive 
risk and return profiles

   Distribution: Distributing loans in Australia and New 

Zealand through relationships with accredited brokers, 
wholesale partners and a direct-to-consumer channel; 

   Treasury and funding expertise: Strong long-term 

relationships with global funding partners, the Group is 
an experienced issuer in the global and domestic term 
securitisation markets; and

   Risk management: Operating a holistic enterprise risk 
management and governance framework utilising the 
three lines of defence model.

14

RESIMAC GROUP LTD

ANNUAL REPORT 2021

15

|  DIRECTORS' REPORT

|  DIRECTORS' REPORT

Debt funding

The Group maintains access to a diversified funding 
platform supported by established funding relationships 
and a Board approved funding strategy.

The following funding channels are used to support the 
Group’s lending activities:

   Corporate debt facility: Utilised for investment in 

business growth;

   Term securitisations: Loans that are initially funded 
via a warehouse facility, are pooled and refinanced by 
being sold to new funding vehicles that issue limited-
recourse independently rated asset-backed securities 
to institutional investors in multiple jurisdictions; 

   Warehouse facilities: Third-party funders provide 

limited-recourse financing to special purpose vehicles 
established by the Group. At 30 June 2021, the Group 
had three onshore and four offshore warehouse 
funders; and

   Wholesale funding partners: Provide white-label 

funding with the Group receiving net interest margin. 

Principal risks

The Group’s key risks include but are not limited to:

   Funding risk: The funding platform currently comprises 
a mix of warehouse facilities, term securitisations and 
corporate debt. The Group depends on these sources 
to fund mortgage originations;

   Capital and liquidity requirements: The Group is 

required to maintain sufficient liquidity levels under 
Australian Financial Services Licence requirements;

 A risk exists that the Group could be required to 
contribute additional ‘first loss’ equity capital to support 
the credit position of senior ranking note holders in the 
warehouse facilities and term securitisations which 
could impact the Group’s profitability, ability to grow 
and/or could force it to raise additional capital;

   Regulatory and licence compliance: The Group 
is subject to extensive regulation in each of the 
jurisdictions in which it conducts business. The Group 
holds eight Australian Credit Licences. Changes in laws 
or regulations in a market in which the Group operates 
could impact the business. The Group is licensed and/
or registered to operate a number of its services across 
a range of jurisdictions. Changes to these licensing 
regimes, the revocation of existing licences, an inability 
to renew or receive necessary licences or a change in 
capital requirements could have a material adverse 

effect on the Group’s business, operating and financial 
performance; 

   Macroeconomic environment: A material downturn or 
increase in unemployment, decreases in house prices, 
higher interest rates, general reduction in demand for 
credit and/or a reduction in borrowers’ ability to service 
their debt (credit risk); and

   COVID-19: The Group will continue to monitor the 

effects of COVID-19 on business performance and take 
action as required. COVID-19 enforced lockdowns and 
border closures continue to provide macroeconomic 
headwinds to the economy, with pockets of financial 
stress evident. The Group’s diversified portfolio and 
conservative credit policies is assisting the Group to 
manage COVID-19 headwinds.

Review of operations 

The Group generated a net profit after tax (NPAT) of 
$107,557,000 for the year ended 30 June 2021. To 
reflect the Group’s normalised earnings the NPAT has 
been adjusted to separate one-off items. Management 
believe the disclosure of the normalised NPAT provides 
additional insight into the underlying performance for 
the year, by excluding one off, non-recurring revenue 
items.

The following table reconciles the unaudited normalised 
earnings to the statutory NPAT for the year in 
accordance with International Financial Reporting 
Standards (IFRS). 

FY21

Business strategy

UNAUDITED NON-IFRS INFORMATION

$'000

Statutory NPAT1

Fair value gain on investment in 
financial asset (Athena)

107,557

(5,110)

Tax effect of normalised items

1,533

Normalised NPAT

103,980

1  Excludes $249k NPAT attributable to Non-Controlling interest.

Net interest income increased 29% to $242,744,000 
on prior year driven by higher net interest margin and 
assets under management growth.

Operating expenses of $70,677,000 increased 14% 
on prior year driven by core banking and origination IT 
project, higher employment and marketing costs.

Loan impairment expense decreased 88% to $2,676,000 
on prior year due to COVID-19 provision in FY20. 

Total home loan settlements across the Group’s direct 
and third party distribution channels were $4.8 billion, up 
3% on prior year.

The Group is focused on a number of growth strategies to 
continue to drive revenue and profitability.

1.  Organic lending growth 

The Group is well-positioned to continue strong volume 
growth driven by:

   Customers favourably viewing the Group as an 

alternative to the major lenders;

   Opportunity to grow volume in the Specialist and Prime 

segments of the residential mortgages market;

   Opportunity to grow volume in the asset finance 

segment under the newly acquired Resimac Asset 
Finance brand;

   Launch of the new direct to consumer brand 

homeloans.com.au;

   Launch of the new digital customer banking 

environment in FY22; 

   Further investment in the Group’s brand positioning; 

and

   Pursuing diversification opportunities in Australia and 

New Zealand.

2.  Growth through acquisition 

   Management has demonstrated an ability to identify 
and execute profit accretive acquisitions in targeted 
markets consistent with the Group’s strategy; 

   On 1 February 2021 Resimac acquired the remaining 

40% interest in Resimac Asset Finance (“RAF”, formerly 
known as “IA Group”), increasing its ownership from 
60% to 100%. RAF is a finance company participating 
in both secured commercial and consumer lending. 
The investment aligns with Resimac’s diversification 
strategy and facilitates expansion into new secured 
asset classes.

The Group’s assets under management at 30 June 2021 
comprise: 

   On balance sheet home loans and advances to 

customers of $13.8 billion, up 11% compared to 30 
June 2020; 

   On balance sheet asset finance loans of $0.1 billion 

   White label portfolio of $1.9 billion, down 24% 

compared to 30 June 2020 in line with the Group’s 
strategy to cease originating White label loans; and

   Combined these make up the total assets under 

management of $15.8 billion. 

COVID-19

The impact of COVID-19 on customer serviceability 
decreased during the year, however continues to 
present challenges to a small portion of the Group’s 
customers.  Resimac’s conservative approach to credit 
risk and strong funding relationships have mostly 
insulated the impacts of COVID-19.  Resimac remains 
committed to the safety of employees and supporting 
customers and the broader community through the 
ongoing challenges COVID-19 poses. 

Resimac continues to support customers throughout 
their home loan journey, particularly where impacted by 
one off events. Resimac provided financial assistance 
to customers impacted by COVID-19 in the form 
of hardship payment moratoriums and repayment 
flexibility during the year and continues to work with 
individual customers who require ongoing assistance. 

Whilst the economic rebound in FY21 in Australia 
was comforting, we expect FY22 to provide further 
macroeconomic challenges. Australia’s vaccine rollout 
remains slow in comparison to other countries, whilst 
State lockdowns and border closures continue to 
drive economic headwinds. Furthermore, international 
borders are expected to remain closed for the majority 
of FY22 stifling the recovery in a number of industries. 

Political Donations

In the year ended 30 June 2021, the Group’s political 
contributions totalled $10,000 to the Liberal National 
Party of Australia.

16

RESIMAC GROUP LTD

ANNUAL REPORT 2021

17

|  DIRECTORS' REPORT

Funding programmes

During the year ended 30 June 2021, the following new 
Residential Mortgage Backed Securities (RMBS) and 
Medium Term Notes (MTNS) were issued to facilitate 
assets under management growth, optimise term duration 
and funding costs: 

   The RESIMAC Bastille Series 2020-1NC transaction 
was settled on 30 July 2020 and is a domestic non-
conforming issue with a total issuance size of $1 billion; 

   The RESIMAC Versailles Series 2020-1 transaction was 
settled on 10 September 2020 and is a New Zealand 
prime and non-conforming issue with a total issuance 
size of NZ$300 million;

   The RESIMAC Premier Series 2020-1 transaction was 

settled on 1 October 2020 and is a multi-currency prime 
issue with a total issuance size of $1 billion equivalent; 

   The RESIMAC Premier Series 2020-3 transaction was 
settled on 10 December 2020 and is a multi-currency 
prime issue with a total issuance size of $1 billion 
equivalent; 

   The RESIMAC Premier Series 2021-1 transaction was 

settled on 11 March 2021 and is a multi-currency prime 
issue with a total issuance of $1.5 billion equivalent; and

   The RESIMAC Bastille Series 2021-1NC transaction 
was settled on 29 April 2021 and is a domestic non-
conforming issue with a total issuance size of $1 billion 
equivalent. 

Indemnification of officers and auditors

During the financial year, the Company paid a premium 
in respect of a contract insuring the Directors of the 
Company, the Company Secretary and all executive 
officers of the Company against a liability incurred as such 
a Director, Secretary or executive officer to the extent 
permitted by the Corporations Act 2001. The contract of 
insurance prohibits disclosure of the nature of the liability 
and the amount of the premium.

The Company has not otherwise, during or since the 
financial year, except to the extent permitted by law, 
indemnified or agreed to indemnify an officer or auditor of 
the Company against a liability incurred.

18

RESIMAC GROUP LTD

Subsequent events

Final dividend declared

The Board of Resimac Group Ltd has declared a fully 
franked final dividend of $0.04 per share. The Record 
Date is 3 September 2021. The payment date will be 21 
September 2021. The dividend has not been provided for in 
this financial report. 

Sale of White Label portfolio 

On 27 July 2021 Resimac executed the sale of $0.2b of 
White label loans (off balance sheet) for consideration 
of $1.6m plus GST. The net present value of this loan 
tranche future trail commission receivable is $1.4m, and 
is recognised on the Statement of Financial Position at 30 
June 2021. A gain of $0.2m on the sale will be recognised in 
FY22. 

Non-audit services 

Details of amounts paid or payable to the auditor for non-
audit services provided during the year by the auditor are 
outlined in Note 28 to the financial report.

The Directors are satisfied that the provision of non-audit 
services during the year, by the auditor is compatible with 
the general standard of independence for auditors imposed 
by the Corporations Act 2001.

The Directors are of the opinion that the services as 
disclosed in Note 28 to the financial report do not 
compromise the external auditor’s independence, based 
on advice received from the Audit Committee, for the 
following reasons:

   All non-audit services have been reviewed and 
approved to ensure that they do not impact the 
integrity and objectivity of the auditors; and

   None of the services undermine the general principles 

as set out in APES Code of Ethics for Professional 
Accountants issued by the Accounting Professional and 
Ethical Standards Board, including reviewing or auditing 
the auditor’s own work, acting in a management or 
decision making capacity for the Company, acting as 
advocate for the Company or jointly sharing economic 
risks and rewards.

Auditor’s independence declaration

The auditor’s independence declaration is included on page 
116 of this financial report.

Rounding off amounts

Unless otherwise indicated, the Company has rounded off 
amounts in this Directors’ Report and the accompanying 
financial statements to the nearest thousand dollars in 
accordance with ASIC Corporations Instrument 2016/191.

Total home loan 
settlements 
across the 
Group's direct 
and third party 
distribution 
channels were 
$4.8 billion, up 
3% on prior year.

|  REMUNERATION REPORT

|  REMUNERATION REPORT

Remuneration
report

2021
(Audited)

KMP remuneration policy (excl. Non-Executive Directors)

Remuneration objectives, strategy and principles

Remuneration and cultural activities

Summary

Key management personnel

S 1
T
2
N
E
3
T
4
N
O
5
C
6
7
8
9
10 Other remuneration information

Statutory remuneration

FY21 outcomes

Non-Executive Director remuneration

Long-term and short-term incentive plans

21

21

21

22

22

24

24

26

28

31

R
U
O

S
E
U
L
A
V

QUALITY

PASSION

RESPECT

AGILITY

PROFESSIONALISM & INTEGRITY

ACCOUNTABILITY

1. Summary

This Remuneration Report provides shareholders with an 
overview of Resimac Group’s (the Group) remuneration 
strategy and framework that applies to the Group’s 
Directors, Key Management Personnel (KMP), Executive 
Management and employees (referred to collectively as 
Employees) for the year ended 30 June 2021.

Resimac’s mission is to be a customer focused 
organisation, leveraging technology and data analytics 
coupled with expansion of our sustainability and 
Environment, Social and Governance (ESG) footprint. 
This mission is facilitated by promoting a culture of 
transparency, innovation and empowerment and 
establishment of a remuneration framework that provides 
positive outcomes for our customers, shareholders and 
employees while providing fair and equitable benefits. 

2. Remuneration objectives,    
strategy and principles

The Group’s objective is to rewards its employees with a 
level of remuneration and benefits that is commensurate 
with their individual responsibilities and position within the 
business.  

The Board’s remuneration strategy is aligned to the 
following objectives:

   To attract, motivate and retain high calibre employees 

to drive outcomes;

   Total remuneration for KMP is achieved by a balance of 

fixed and variable components;

   Key Performance measures for Resimac management 

(i.e. KMP and executive management) are linked to both 
financial and non-financial measures, and designed 
to be in the best interest of all stakeholders including 
customers and shareholders;

   Fixed and variable remuneration for KMP are periodically 
benchmarked to ensure remuneration is in line with the 
external market;

   Pay parity is paramount. Fair and equitable 

remuneration is applied to all employees regardless 
of gender, sexual identity, age, religion, ethnicity or 
disability.

3. Remuneration and cultural activities

Continuous review and assessment of our remuneration 
and benefits continued throughout FY21 with a number of 
initiatives being included as part of the Renumeration and 
Cultural Activities plan.

These activities included:

   Employee Diversity & Inclusion survey; 

   Pay parity reporting;

   Establishment of an Employee Share Scheme offered in 
March 2021 to all permanent employees with more than 
6 months tenure;

   Introduction of Purchased Leave for employees with 

   To provide fair and equitable remuneration to all 

more than 6 months tenure;

employees in line with the Group’s Diversity & Inclusion 
Policy;

   To promote and reward behaviours within the business 

that are in the interest of all stakeholders which 
includes customers and shareholders;

   Align effective risk management and demonstration of 

appropriate behaviours, values and ethics; 

   To reinforce a culture of continual employee growth and 

skills development;

   To ensure the Group’s Governance framework operates 

within and above industry best practice.

The following principles provide the basis of the 
remuneration framework at Resimac:

   Resimac remunerates its employees in a manner that 
is market competitive whilst being acceptable to its 
shareholders;

   Flexible working arrangements expanded to allow for 

eligible employees to work from home 2 days per week

   Active encouragement of ‘Keeping in Touch Days’ for 

employees on parental leave;

   Expansion of existing Wellbeing Program including 
wellness hours, mindfulness program, professional 
online exercise classes and senior leadership health 
assessments; 

   Workforce planning by identifying individual career 

development plans, training and development 
and shadowing opportunities. The purpose of the 
activity is to enhance career development through 
the identification of skills, interests and learning 
opportunities, and to assist with succession planning. 
This activity enabled risk mitigation strategies 
and further employee engagement activities to 
be implemented after gaining an understanding of 
modernised workforce motivators.   

ANNUAL REPORT 2021

21

 
|  REMUNERATION REPORT

|  REMUNERATION REPORT

4. Key management personnel

The KMP are the people who have the authority and responsibility for planning, directing, implementing and controlling the 
activities of the Resimac business. The KMP are:

Position

Term as KMP

Name

CURRENT

Scott McWilliam

Jason Azzopardi

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Andrew Marsden

General Manager - Treasury and Securitisation

Danielle Corcoran

General Manager - Governance, Change and Culture

Majid Muhammad

General Manager - Technology

FORMER

Full term

Full term

Full term

Full term

Full term

Mary Ploughman

Joint Chief Executive Officer (Joint CEO)

N/A1

1  Referenced due to Remuneration drawn in FY20, did not serve as KMP in FY21.

The Directors classified as KMP and required to be disclosed as part of this report are:

Name

CURRENT

Position

Term as KMP

Warren McLeland

Chairman, Non-Executive Director

Susan Hansen

Duncan Saville

Independent Non-Executive Director

Non-Executive Director

Wayne Spanner

Independent Non-Executive Director

Full term

Full term

Full term

Full term

Remuneration is based on the:

5.3.  Long-term incentive (LTI)  

   role in which the person is performing (i.e. 

accountability, responsibility, qualifications, skills and 
experience required); 

    market benchmarking;

    performance against set Key Performance 

Indicators (KPIs); and

The LTI is a combination of an equity arrangement of 
options over ordinary shares and a cash component 
(pursuant to the Resimac Group Ltd Employee Share 
Option and Rights Plan Rules). The grant of options 
relies on the satisfaction of service and performance 
conditions over a 3 year period.

    achievement of performance hurdles which includes 

The aim of the LTI is:

tenure.

The KMP remuneration arrangements are as follows:

5.1.  Fixed remuneration 

The fixed component includes base salary and 
superannuation and is known as Total Fixed 
Remuneration (TFR).   Annually the TFR for the role 
in which the KMPs and Executive Managers are 
performing is reviewed to market and considered by the 
Remuneration and Nomination Committee. 

5.2.  Short-term incentive (STI) 

Each KMP and Executive Manager is eligible to receive 
an annual STI.  The Committee approves annual STI, 
corporate and personal objectives for each KMP and 
Executive Manager which comprise financial and non-
financial targets at the end of each performance period 
(i.e. 1 July to 30 June).  The Committee measures KMP 
and Executive Managers performance against those 
objectives.  The amount of an STI award will depend 
on whether and to what extent those objectives are 
achieved.  The STI assessment is undertaken in July of 
each year and any award is payable in September of the 
same year.  

   to retain key talent;

   to link performance measures that align with 

sustainable long-term growth;

   to align long-term company performance with 

shareholders expectations; and

   to ensure continual regulatory and compliance 

adherence.

The graphs below set out the relative mix of TFR, STI 
and LTI for:

   Scott McWilliam, CEO

   Other KMP

37%

42%

CEO

21%

OTHER
KMP

54%

32%

14%

TFR

STI

LTI

TFR

STI

LTI

Caroline Waldron

Independent Non-Executive Director

Appointed 17 November 2020

KPIs include:

FORMER

Chum Darvall

Chairman, Independent Non-Executive Director

Michael Jefferies

Independent Non-Executive Director

N/A1

N/A1

1  Referenced due to Remuneration drawn in FY20, did not serve as KMP in FY21.

5.  KMP remuneration policy (excl. Non-Executive Directors)

Resimac’s remuneration strategy for KMP and Executive Management focuses on both financial and non-financial measures and 
the Board’s Remuneration & Nomination Committee assist with reviewing and recommending remuneration arrangements for 
KMP and Executive Management that is both consistent and competitive with the market. The total remuneration of the KMP 
and Executive Management comprise a fixed component and an at-risk variable component. The at-risk variable component is 
comprised of a short-term and long-term incentive. 

   Strategic (brand awareness and acquisition activity);

   Financial metrics including NPAT growth, cost to 
income ratio and demonstrated innovative cost 
initiatives;

   Innovation and technology initiatives and 

enhancements to allow for scale and digitalisation;

   Operational efficiency and effectiveness to allow 

scale;

   People and culture; and

   Governance through Resimac’s Risk and Compliance 

frameworks which focuses on adherence to 
obligations, reduction of customer complaints, 
incidents and breaches.  

22

RESIMAC GROUP LTD

ANNUAL REPORT 2021

23

|  REMUNERATION REPORT

|  REMUNERATION REPORT

6. Long-term and short-term incentive plans

6.2.  Short-term incentive plan (STIP)  

7.1.  Overview of company performance  

The table below summarises details of Resimac’s performance for key financial measures over the past four financial years. 

FY21

FY20

FY19

FY18

FINANCIAL YEAR ENDED 30 JUNE

NPAT ($'000)1

107,557

55,908

47,185

     25,332

Total dividends per share (cents)

Dividend payout ratio (%)

4.00

24.3

2.70

19.6

1.90

        1.65

16.1

         25.9

Basic earnings per share (cents)

26.37

13.75

11.75

         6.37

Return on equity (ROE) (%)2

Return on assets (%)3

36.9

7.3

25.5

4.3

 17.3

4.4

17.2

2.8

6.1.  Long-term incentive plan (LTIP)  

FY18 LTI Plan: CEO

The CEO, Scott McWilliam, was offered a LTI in FY18. The 
details of the offer were:

   Granted 900,000 Options pursuant to the Resimac 
Group Employee Share Options and Rights Plan;

   Grant Date 18 August 2017;

   Exercise price of $0.55 per option;

   Options vest in equal tranches of 300,000 on each 

anniversary of the Grant Date: 

   First tranche of 300,000 vested on 1 July 2018 and 

was exercised on 26 April 2021, 

   Second tranche of 300,000 vested on 1 July 2019 

and is exercisable,

   Third tranche of 300,000 vested on 1 July 2020 and 

is exercisable.

   Exercise period was 3 years for every tranche vesting; 

and

   Vesting condition was 100% tenure.

FY20 LTI Plan: KMPs and Executives

In 2019 the Board established a Long-Term Incentive 
Plan (LTIP) for the CEO, KMPs and executive management 
pursuant to the Resimac Group Ltd Employee Share Option 
& Rights Plan Rules. The CEO, KMPs and eligible executives 
were offered options over ordinary shares, and a combined 
total cash component of up to $2.4m. 3,900,000 options 
were granted on 15 August 2019 (900,000 allocated to the 
CEO and 375,000 for each eligible Executive).

The vesting date for all options is 31 August 2022, subject 
to the Group achieving:

   Net Profit After Tax (NPAT) growth hurdles;

   Digital transformation;

   Compliance hurdles; and

   Participant remaining employed with the Group until 

the vesting date.  

KMPs and executives participate in the annual STIP 
whereby they have an opportunity to earn up to a capped 
percentage of their TFR.   

CEO, Scott McWilliam is eligible for a STI up to a cap of 
75% of his TFR. Mr McWilliam’s performance is assessed 
against predetermined KPIs by the Remuneration and 
Nomination Committee at the end of each performance 
period.  Any STI awarded is paid in cash; 66.7% at the 
end of the performance period with the remaining 33.3% 
in cash deferred for 12 months subject to a look back 
being undertaken by the Remuneration and Nominations 
Committee. 

The performance of KMPs and Executives are measured 
against predetermined KPIs assessed by the CEO at the 
end of each performance period and the Remuneration and 
Nomination Committee are responsible for reviewing and 
approving any awarded STI which will be paid 100% in cash 
at the end of the performance period.

KPIs and relevant measurements will be set at the 
commencement of the performance period and will be 
assessed by the Remuneration and Nomination Committee 
at the end of each performance period.

7. FY21 outcomes

With consideration of the uncertain economic environment 
due to the impact of COVID-19 in FY21, the Remuneration 
and Nominations Committee determined that KMPs 
(including the CEO) would not receive an increase in fixed 
remuneration for FY21 however remained eligible to 
participate in the short-term incentive plan for FY21. The 
long-term incentive plan granted to eligible executives 
remains in place.

In July 2021, the Remuneration & Nominations Committee 
resolved to recommend to the Board that the KMPs 
(including the CEO) be eligible for a remuneration review, 
resulting in an increased to the fixed remuneration for 
KMPs for FY22.

24

RESIMAC GROUP LTD

ANNUAL REPORT 2021

25

1   NPAT excludes non-controlling interest (FY21: $249k, FY20: $99k)

2  ROE based on normalised NPAT and average shareholders’ equity per consolidated statement of financial position.

3   ROA based on statutory NPAT and total assets. As a result of the requirement under AASB 10 - Consolidated Financial Statements, the parent 

company exercises control over the Special Purpose Vehicles (SPVs) and securitisation trusts, therefore significant assets have been added to the 
consolidated statement of financial position without any appreciable increase in net profit.  

|  REMUNERATION REPORT

|  REMUNERATION REPORT

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26

RESIMAC GROUP LTD

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7

ANNUAL REPORT 2021

27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|  REMUNERATION REPORT

|  REMUNERATION REPORT

9.1.4.  Board skills

A key objective for Resimac is to ensure that we have a 
Board of Directors that is balanced (i.e. independence), 
diverse, with a complementary mix of skills and 
experience. The Board undertakes an assessment of the 
skills that each Director holds biennially which is then 
summarised in a skills matrix. 

Although it is not expected that all Directors will have 
the same skills and experience, the purpose of the 
matrix is to ensure there is a balance within the board 
to ensure we have diversity of thought. The matrix skills 
categories include:

   Strategy, planning, monitoring and policy 

development

   Governance

   Risk and compliance

   Relevant technical and industry knowledge

   Stakeholder relations

   Finance and audit

   Commitment and contribution

   Leadership

   Ethics and integrity

   Technology, digital and innovation

The assessment of skills ties into board succession and 
selection of Directors.

9.1.5.  Board evaluation reporting

The Board is committed to transparency in 
determining board membership and in assessing 
the performance of Directors.  The Board 
undertook performance reviews in 2018 and 2020. 
At the conclusion of the last full evaluation in 2020 
the board determined to undertake more frequent 
assessments which resulted in an assessment 
at the conclusion of each board meeting. By 
rotation a Director is responsible for collation 
of the feedback and change recommendations. 
In addition, the Board carries out an evaluation 
on their effectiveness at the conclusion of each 
Board meeting. The purpose of this is to assess 
the performance of the Board as a whole with 
respect to time keeping, relevance, preparation and 
outcomes.

The performance of Directors are assessed 
against a range of criteria including contribution at 
meetings, understanding the major risks affecting 
the Group, contributing to the development of the 
strategy, committing the time required to fulfill the 
role and perform their responsibilities effectively, 
listening and respecting the ideas of fellow 
Directors and management and consistently taking 
the perspective of creating shareholder value. 

The Board with the assistance of the Remuneration 
and Nominations Committee conducts a review 
of the performance of each Director seeking re-
election at the Annual General Meeting. 

9. Non-Executive Director remuneration

9.1.   Overview of Non-Executive Directors’ remuneration 

arrangements 

9.1.1.  Policy objectives

   To be market competitive: aim to set Directors’ 

fees competitive with Non-Executive Directors in 
comparable businesses with respect to product 
mix, market capitalisation, geographical market and 
employee size;

    To ensure complementary skills: aim to ensure that the 
mix of Directors at any one time is diverse and adequate 
to carry out the objectives of the business; and

    To safeguard independence: to exclude any 

performance related element in order to preserve the 
independence of the Non-Executive Directors.

9.1.2.  Aggregate fees approved by shareholders

At the Annual General Meeting (AGM) of shareholders 
held on 25 November 2016, the shareholders approved 

the maximum aggregate fee pool per annum for non-
executives of $550,000. The Board will be proposing an 
increase to the aggregate fees at the 2021 AGM. 

9.1.3.  Regular reviews of Directors’ fees

The Board reviews the level of Directors’ fees annually to 
ensure the fees are in line with market and are suitable 
for the level of skill and expertise required to carry out the 
duties of Directors in a listed environment in conjunction 
with holding an Australian Financial Services Licence and 
several Australian Credit Licences.

The agreed fee structure is that a fee is paid to reflect the 
Chairman’s responsibilities. Each Director receives a base 
fee and if a Director chairs a Board committee, an additional 
fee is applied. Superannuation is payable in addition to the 
base fee where a Director is paid via the Resimac employee 
payroll system. No fee is paid for committee membership.

The FY21 fee levels inclusive of superannuation where applicable were as follows:

Position

Maximum fee ($)

NAME

Warren McLeland

Chairman and Risk & Compliance Chair

131,400 p.a.

Susan Hansen

Independent Non-Executive Director, Audit Chair and New Zealand Chair

134,955 p.a.

Wayne Spanner

Independent Non-Executive Director and Remuneration & Nomination Chair

82,125 p.a.

Duncan Saville1

Non-Executive Director

Caroline Waldron2

Independent Non-Executive Director

70,000 p.a.

82,125 p.a.

1  Duncan Saville’s fee is exclusive of superannuation.
2  Caroline Waldron commenced on 17 November 2020.

28

RESIMAC GROUP LTD

|  REMUNERATION REPORT

|  REMUNERATION REPORT

9.1.6.  Non-Executive Director remuneration

The fees paid or payable to the Non-Executive Directors in relation to the 2021 financial year are set out below:

10. Other remuneration information

10.1.  Remuneration governance 

Committee changes:

CURRENT

Warren McLelend2

FY21

FY20

Susan Hansen3

FY21

FY20

Wayne Spanner4

FY21

FY20

Duncan Saville

FY21

FY20

Caroline Waldron5

FY21

FY20

FORMER

Chum Darvall6

FY20

Michael Jefferies7

FY20

TOTAL REMUNERATION

FY21

FY20

SHORT-TERM
BENEFITS

POST-EMPLOYMENT 
BENEFITS

Fees
($)

Superannuation1
($)

120,000

90,000

126,880

127,056

75,000

25,288

70,000

70,000

46,635

-

11,400

8,550

8,075

8,075

7,125

2,283

-

-

4,430

-

Total
($)

131,400

98,550

134,955

135,131

82,125

27,571

70,000

70,000

51,065

-

10.1.1.  Remuneration governance and responsibility

The Resimac Board of Directors has responsibility for 
setting and overseeing the Company’s remuneration 
policies, practices and structure. The Board considers 
recommendations made by the Remuneration and 
Nomination Committee.

The remuneration framework and matters considered by 
the Remuneration and Nomination Committee and the 
Board include:

   Review of Board size and composition (mix of skills, 

qualifications, experience, independence, diversity and 
other competencies);

   Identification and recommendation of candidates to the 
Board for nomination as members of the Board or its 
Committees;

   Development and implementation process for 
induction and orientation of new Directors;

   Review and approval of Company objectives and 

appropriate KPIs relevant to the KMP annual short-term 
incentive arrangement, and evaluate KMP performance 
in light of those KPIs; 

   Review and approval of the remuneration of KMP, 

Directors and senior management (including total fixed 
remuneration, short-term incentives and long-term 
incentives); 

   Approval of executive recruitment practices;

   Succession planning and talent management; and

   Caroline Waldron appointed 17 November 2020.

The Remuneration and Nomination Committee reviews and 
makes recommendations to the Board on remuneration 
governance, policies, practices and structure which 
will apply to the KMP, senior management and the 
Non-Executive Directors. The Committee also makes 
recommendations to the Board on the Company’s 
overall remuneration framework. The Remuneration and 
Nomination Committee receives regular reports from 
Human Resources and ensures it is abreast of all regulatory 
change. The Committee meets at least 4 times per year.

10.1.3.  Board changes

Caroline Waldron was appointed to the Board in 
November 2020. Caroline’s appointment brings increased 
independence to the Board and provides further skill with 
respect to governance and technology.  

Other changes to the structure of the Board and its 
committees was the establishment of a Technology, 
Digital and Innovation committee chaired by Caroline. 
Further information on board committees is set out in the 
Directors’ Report. 

10.1.4.  Services from remuneration consultants

The Remuneration and Nomination Committee may 
request advice from independent external consultants 
where appropriate. These consultants will be engaged 
directly by the Remuneration and Nomination Committee. 
The Company did not engage any remuneration 
consultants during the year.

80,000

7,600

87,600

   Diversity and inclusion in the workplace.

28,359

2,694

31,053

438,515

420,703

31,030

29,202

469,545

449,905

10.1.2.  Remuneration and nomination committee

The Board has established a Remuneration and Nomination 
Committee. This Committee has a formal charter and is 
available on the Company’s website www.resimac.com.au. 

The Remuneration and Nomination Committee members 
are:

   Wayne Spanner - Chair; and

   Susan Hansen

   Warren McLeland

1  Australian superannuation is paid where applicable. New Zealand Kiwisaver is not paid. 
2  Appointed Chairman on 28 February 2020, fee reflects a prorated increase received from this date.
3  Director remuneration paid in NZD, FY21 variance due to exchange rates, no changes to base fees.
4  Appointed Independent Non-Executive Director on 28 February 2020, FY20 fee is prorated.
5  Appointed Independent Non-Executive Director on 17 November 2020. 
6  Resigned as Chairman & Independent Non-Executive Director on 28 February 2020.
7  Resigned as Independent Non-Executive Director on 26 November 2019.

30

RESIMAC GROUP LTD

ANNUAL REPORT 2021

31

|  REMUNERATION REPORT

|  REMUNERATION REPORT

10.1.5.  KMP share ownership 

The table below sets out the number of shares held directly, indirectly or beneficially by the current and former KMP (including 
their related parties):  

NON-EXECUTIVE DIRECTORS

Warren McLeland

Susan Hansen

Wayne Spanner

Duncan Saville

Caroline Waldron

SENIOR EXECUTIVES

Scott McWilliam

Jason Azzopardi

Andrew Marsden

Danielle Corcoran

Majid Muhammad

TOTAL

Held at 
1 July 2020

Net 
change

Held at 
30 June 2021

12,159,222

(32,884)

12,126,338

199,941

-

254,468,487

-

3,789

15,732

-

-

203,730

15,732

254,468,487

-

266,827,650

(13,363)

266,814,287

1,001,600

300,000

1,301,600

190,000

(110,000)

-

90,351

-

-

2,291

-

80,000

-

92,642

-

1,281,951

192,291

1,474,242

268,109,601

178,928

268,288,529

10.1.6.  Share trading restrictions

Resimac Securities Trading Policy reflects the 
Corporations Act 2001 prohibition on KMP and their 
closely related parties entering into any arrangement 
that would have the effect of limiting the KMP’s 
exposure to risk relating to an element of their 
remuneration that remains subject to restrictions on 
disposal.

Resimac Directors, management team, and certain 
members of their immediate family and controlled 
entities are also required to obtain written consent and 
clearance for security trading during trading windows 
from the Chairman. All other employees must adhere 
to the Securities Trading Policy and are restricted from 
trading within the blackout periods.

The policy is available on the Corporate Governance 
section of the Company’s website at www.resimac.com.
au. Breaches of the policy are subject to disciplinary 
action, which may include termination of employment.

10.1.7.  Further information on remuneration

10.1.7.1.  Service agreements

Each KMP has entered into an employment contract with 
the Company (Resimac Limited). These contracts have 
unlimited duration however may be terminated with 
relevant notice as set out below unless in the case of 
serious misconduct in which the KMP may be terminated 
immediately. 

All KMPs are entitled to receive payment in lieu of notice 
of any accrued statutory entitlement (i.e. annual and 
long service leave) on cessation of their employment.

Notice period / 
Termination payment

NAME

Scott McWilliam

   Six months' notice (or 

payment in lieu)

   May be terminated 

immediately for serious 
misconduct

Jason Azzopardi

   Three months' notice (or 

payment in lieu)

   May be terminated 

immediately for serious 
misconduct

Andrew Marsden

   Three months' notice (or 

payment in lieu)

   May be terminated 

immediately for serious 
misconduct

Danielle Corcoran

   Three months' notice (or 

payment in lieu)

   May be terminated 

immediately for serious 
misconduct

Majid Muhammad

   One month notice (or 

payment in lieu)

   May be terminated 

immediately for serious 
misconduct 

10.1.8.  Related party transactions

Loans to KMP and their related parties are secured 
residential mortgage loans provided in the ordinary 
course of the Group’s mortgage lending business. All 
loans have normal commercial terms. No amounts have 
been written down or recorded as specific provisions as 
the balances are considered fully collectable. 

32

RESIMAC GROUP LTD

ANNUAL REPORT 2021

33

|  REMUNERATION REPORT

Details regarding loans outstanding at the reporting date to KMP and their related parties, where the aggregate loan balance 
exceeded $100,000 at any time during the reporting period, are outlined below.

Balance
1 July 2020

Balance
30 June 2021

Interest payable 
for the year1

Highest balance
during the year

NON-EXECUTIVE DIRECTORS

($)

($)

($)

($)

Duncan Saville

9,548,343

9,322,631

334,826

9,571,874

SENIOR EXECUTIVES

Scott McWilliam

Jason Azzopardi

Danielle Corcoran

1   Interest charged on an arm’s-length basis.

1,500,000

1,925,541

1,577,079

1,620,914

379,201

370,080

43,361

45,045

11,837

1,929,059

1,623,693

379,699

13,004,623

13,239,166

435,069

13,504,325

10.1.8.1.  Other transactions and balances with KMP

From time to time, Directors of the Company or its controlled entities, or their Director-related entities may obtain loans or ad 
hoc services from the Group, on the same terms and conditions as those entered into by other group employees or customers.

This Directors’ report, including the remuneration report, is signed in accordance with a resolution of the Directors made 
pursuant to s.298 (2) of the Corporations Act 2001.

On behalf of the Directors of Resimac Group Ltd.

Warren McLeland
Chairman 
Sydney
30 August 2021

34

RESIMAC GROUP LTD

Resimac’s 
mission is to be a 
customer focused 
organisation, 
leveraging 
technology and 
data analytics 
coupled with 
expansion of our 
sustainability and 
Environment, 
Social and 
Governance (ESG) 
footprint. 

|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

Financial
statements

Consolidated statement of profit or loss
for the year ended 30 June 2021

Note

FY21
$'000

FY20
$'000

PROFIT AFTER TAX

107,806

56,007

Other comprehensive income, net of income tax

Items that will not be reclassified subsequently to profit or loss:

Fair value movement on investment in BNK Banking Corporation Limited 
(“BNK”) through OCI, net of tax

126

(657)

Interest income

Interest expense

Net interest income

Fee and commission income

Fee and commission expense

Other income

Employee benefits expense

Other expenses 

Loan impairment expense

Profit before tax

Income tax expense

PROFIT AFTER TAX

Attributable to:

Owners of the parent

Non-controlling interest

1

2

1

2

1

2

2

2

3

Note

FY21
$'000

FY20
$'000

Items that may be reclassified subsequently to profit or loss:

Changes in fair value of cash flow hedges  

467,637

459,305

Tax effect

(224,893)

(270,680)

Currency translation differences 

242,744

188,625

Other comprehensive income, net of tax

(6,294)

1,888

(204)

(4,484)

522

(157)

(508)

(800)

9,856

11,340

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

103,322

55,207

(35,193)

(36,088)

Attributable to:

8,022

658

(37,489)

(35,886)

(33,188)

(26,358)

(2,676)

(22,012)

152,076

80,279

(44,270)

(24,272)

107,806

56,007

107,557

55,908

249

99

107,806

56,007

Owners of the parent

Non-controlling interest

Earnings per share

Basic 

Diluted 

103,072

55,112

250

95

103,322

55,207

FY21
cents per 
share

FY20
cents per 
share

                21

                21

26.37

26.21

13.75

13.72

36

RESIMAC GROUP LTD

ANNUAL REPORT 2021

37

Notes to the consolidated financial statements are included on pages 42 to 114.  

|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

Note

FY21
$'000

FY20
$'000

ASSETS

Cash and cash equivalents

Trade and other receivables 

Loans and advances 

Contract assets

Other financial assets

Derivative financial assets

Other assets

Plant and equipment

Right-of-use assets

Deferred tax assets

Goodwill and intangible assets

LIABILITIES

4        

5      

6 

1

7    

23

10

9         

8         

3

11    

Trade and other payables                                                                                                         

12       

Current tax payable

Provisions

Interest-bearing liabilities

Lease liabilities

Other financial liabilities

Derivative financial liabilities

Other liabilities

Deferred tax liabilities

NET ASSETS

EQUITY

Share capital

Reverse acquisition reserve                  

Total issued capital

Reserves

Retained earnings

Equity attributable to owners of the parent

Non-controlling interest

Notes to the consolidated financial statements are included on pages 42 to 114.  

3

17

13

14

15      

23  

16

3

20

20

20

20

20

619,809

365,987

4,581

5,974

13,925,760

12,506,012

33,299

15,083

2,256

3,773

1,919

41,954

7,181

52,592

3,627

2,192

10,638

12,279

482

-

27,566

28,893

14,645,166

13,026,691

34,537

20,437

5,218

25,891

24,293

4,630

14,170,651

12,685,616

12,482

15,789

60,976

3,545

392

13,622

20,797

3,277

3,339

3,540

14,324,027

12,785,005

321,139

241,686      

181,675

181,895

(61,541)

(61,541)

120,134

120,354

(18,126)

219,131

321,139

-

(7,556)

128,694

241,492

194

321,139

241,686

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38

RESIMAC GROUP LTD

ANNUAL REPORT 2021

39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

|  CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2021

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CASH FLOWS FROM OPERATING ACTIVITIES

Interest received

Interest paid

Receipts from loan fees and other income

Payments to suppliers and employees 

Payments of net loans to borrowers

Income tax paid

Note

FY21
$'000

FY20
$'000

478,160

471,027

(211,859)

(263,991)

49,781

46,728

(167,742)

(154,961)

(1,545,974)

(3,573,593)

(49,827)

(9,079)

Net cash used in operating activities

4

(1,447,461)

(3,483,869)

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for plant, equipment and intangible assets

Repayment of loans to related parties

Payments for new investments

Acquisition of subsidiary (RAF)

Cash acquired on acquisition of subsidiary (RAF)

Balance of proceeds on disposal of Paywise

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

Repayment of borrowings

Proceeds of loans sold to external party (Athena)

Proceeds from exercise of options

Payment of lease liabilities

Swap payments

Payment of dividends

Payment for acquisition of treasury shares

Net cash provided by financing activities

(200)

(2)

(1,403)

(8,240)

-

1,700

(279)

(2,408)

(3,000)

(6,000)

1,087

250

(8,145)

(10,350)

11,793,151

9,560,872

(10,201,002)

(7,364,980)

138,849

1,453,212

165

(1,679)

(2,502)

(16,169)

(1,336)

330

(1,671)

(2,090)

(9,949)

-

1,709,477

3,635,724

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253,871

141,505

Cash and cash equivalents at the beginning of the financial year (1 July)

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224,790

Effects of exchange rate changes on cash balances held in foreign currencies

(49)

(308)

Cash and cash equivalents at end of year

4

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365,987

Notes to the consolidated financial statements are included on pages 42 to 114.  

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40

RESIMAC GROUP LTD

ANNUAL REPORT 2021

41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

ABOUT THIS REPORT

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

ABOUT THIS REPORT

Notes to the consolidated 
financial statements

About this report
for the year ended 30 June 2021

About this report

Resimac Group Ltd (“Resimac” or “the Company”) is a 
for-profit company limited by shares incorporated and 
domiciled in Australia whose shares are publicly traded 
on the Australian Securities Exchange. The nature of the 
operations and principal activities of Resimac and entities 
that it controls (referred to as “the Group”) are described in 
the segment information.

The consolidated general purpose financial report of the 
Group for the year ended 30 June 2021 was authorised for 
issue in accordance with a resolution of the Directors on 30 
August 2021. The Directors have the power to amend and 
reissue the financial report.

The financial report is a general purpose financial report 
which:

   has been prepared in accordance with the 

requirements of the Corporations Act 2001, 
Australian Accounting Standards (AAS) and other 
authoritative pronouncements of the Australian 
Accounting Standards Board (AASB) and International 
Financial Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board (IASB);

   has been prepared on a historical cost basis, and certain 
financial instruments which have been measured at 
fair value. The carrying values of recognised assets and 
liabilities that are the hedged items in fair value hedge 

relationships, which are otherwise carried at amortised 
cost, are adjusted to record changes in the fair values 
attributable to the risks that are being hedged;

   is presented in Australian dollars with all values 
rounded to the nearest thousand dollars ($’000) 
unless otherwise stated, in accordance with ASIC 
Corporations (Rounding in Financial/Directors’ Reports) 
Instrument 2016/191;

   presents reclassified comparative information where 

required for consistency with the current year’s 
presentation; 

   adopts all new and amended Accounting Standards and 
Interpretations issued by the AASB that are relevant to 
the Group and effective for reporting periods beginning 
on or before 1 July 2020. Refer to Note 32 for further 
details.

Key judgements and estimates

In the application of the Group’s accounting policies, the 
Directors are required to make judgements, estimates 
and assumptions about the carrying value of assets and 
liabilities that are not readily apparent from other sources. 
The estimates and associated assumptions are based on 
historical experience and various other factors that are 
believed to be reasonable under the circumstances, the 
results of which form the basis of making judgements. 
Actual results may differ from these estimates.

Judgements and estimates which are material to the 
financial report are found in the following notes:

   the ability to use its power over the investee to affect 

its return.

Relates to

Recognition of revenue from contracts with 
customers

Net present value (NPV) of future trail 
commission: recognition of future 
commissions receivable and payable

Recognition of Deferred Tax Assets (DTA) 
and Deferred Tax Liabilities (DTL)

Impairment of other financial assets

NOTE

1

1 & 15

3

7

11

Goodwill impairment

22 & 23

Impairment of financial assets

Basis of consolidation

The consolidated financial statements comprise the 
financial statements of the Group. A list of controlled 
entities (subsidiaries) at year end is contained in Note 24.

The financial statements of subsidiaries are prepared for 
the same reporting period as the parent company, using 
consistent accounting policies. Adjustments are made to 
bring into line any dissimilar accounting policies that may 
exist.

Subsidiaries are consolidated from the date on which 
control is obtained to the date on which control is disposed. 

The Group controls an investee if and only if the Group has: 

   power over the investee (i.e. existing rights that give it 
the current ability to direct the relevant activities of the 
investee);

   exposure, or rights, to variable returns from its 

involvement with the investee; and 

In preparing the consolidated financial statements, all 
inter-company balances and transactions, income and 
expenses and profits and losses resulting from intra-Group 
transactions have been eliminated.

The acquisition of subsidiaries is accounted for using the 
acquisition method.

Refer to Note 24 for detail on the consolidation of special 

purpose vehicles.

COVID-19 impact

COVID-19 has significantly impacted equity, debt, 
commodity markets and the overall global economy. The 
Group has considered the impact of COVID-19 and other 
market volatility in preparing its financial statements.

The Group’s process to determine the impact of COVID-19 
for these financial statements is consistent with the 
process disclosed and applied in its 30 June 2020 and 31 
December 2020 financial statements. While the specific 
areas of judgement as noted on the previous page remain 
unchanged, COVID-19 resulted in the application of further 
judgement within those identified areas. Expected credit 
losses (Note 23) and the assessment of the impairment 
of other financial assets (Note 7) required continued 
judgement as a result of the impact of COVID-19. 

Given the uncertainty associated with these assumptions 
and estimates, actual outcomes may differ to those 
forecasted which may impact the accounting estimates 
included in these financial statements. Other than adjusting 
events that provide evidence of conditions that existed at 
the end of the reporting period, the impact of events that 
arise after the reporting period will be accounted for in 
future reporting periods. The impact of COVID-19 has been 
discussed further in each of the related notes. 

42

RESIMAC GROUP LTD

ANNUAL REPORT 2021

43

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

ABOUT THIS REPORT

Foreign currency

As at the reporting date, assets and liabilities of 
overseas subsidiaries are translated into Australian 
dollars at the rate of exchange at the balance sheet 
date and the income statements are translated at the 
average exchange rates for the year. The exchange 
differences arising on the retranslation are taken 
directly to a separate component of equity.

Transactions in foreign currencies are initially recorded 
in the functional currency at the exchange rates 
ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies are 
translated at the rate of exchange ruling at the balance 
sheet date. Exchange differences arising from the 
application of these procedures are taken to the income 
statement, with the exception of differences on foreign 
currency borrowings that provide a hedge against a net 
investment in a foreign entity, which are taken directly to 
equity until the disposal of the net investment, and then 
recognised in the income statement. Tax charges and 
credits attributable to exchange differences on those 
borrowings are also recognised in equity.

Other accounting policies

Significant and other accounting policies that 
summarise the measurement basis relevant to an 
understanding of the financial statements are provided 
throughout the notes to the financial statements.

The notes to the financial statements

The notes include information required to understand 
the financial statements and is material and relevant 
to the operations, financial position and performance 
of the Group. Information is considered material and 
relevant if, for example:

   the amount in question is significant because of its 

size or nature;

44

RESIMAC GROUP LTD

   it is important for understanding the results of the 

Group;

   it helps to explain the impact of significant changes 
in the Group’s business – for example, acquisitions 
and impairment write-downs; or

   it relates to an aspect of the Group’s operations that 

is important to its future performance.

The notes are organised into the following sections:

Key numbers: provides a breakdown of individual line 
items in the financial statements that the Directors 
consider most relevant and summarises the accounting 
policies, judgements and estimates relevant to 
understanding these line items;

Capital: provides information about the capital 
management practices of the Group and shareholder 
returns for the year; 

Risk: details the Group’s exposure to various financial 
risks, explains how these affect the Group’s financial 
position and performance, and what the Group does to 
manage these risks; 

Group structure: explains the Group structure and 
how changes have affected the financial position and 
performance of the Group;

Unrecognised items: provides information regarding 
items not recognised in the financial statements but 
could potentially have an impact on the Group’s financial 
position and performance; and

Other: provides information on items which require 
disclosure to comply with AAS and other regulatory 
pronouncements, however, are not considered critical in 
understanding the financial performance or position of 
the Group.

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

SEGMENT INFORMATION

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

SEGMENT INFORMATION

Notes to the consolidated 
financial statements

Segment information
for the year ended 30 June 2021

Segment Information

The Group has identified two reportable segments based on the nature of the products and services provided, the type of 
customers for those products and services, the geographies where the business operates and the existence of discrete and 
separate reporting and management teams. The internal reports of the reportable segments are regularly reviewed by the 
Board and executive management team in order to allocate resources to the segment and to assess its performance.

The Group’s reportable segments under AASB 8 Operating Segments are therefore as follows:

1. Australian Lending business

2. New Zealand Lending business

Represents the distribution and lending businesses 
currently captured under the Resimac, Resimac Asset 
Finance and homeloans.com.au brands. 

The segment contains the bulk of the Australian based 
income and expense. It incorporates the new business 
settled through the Australian distribution channels, the 
margin net of funding costs of the On balance sheet home 
loan portfolios, and the upfront and trail commission on the 
White label portfolio.

The Group’s fully owned subsidiary Resimac Asset 
Finance (RAF) specialises in both Australian based secured 
commercial and consumer lending. Management have 
assessed the impact of the RAF business on its Group 
results as not material, and therefore does not represent 
a reportable segment for the year ended 30 June 2021, 
notwithstanding RAF is considered a separate operating 
segment by Management. 

Whilst the nature of the customers and products are similar 
to the Australian Lending segment, given the different 
jurisdiction and market conditions, management believe it 
is appropriate to distinguish the result of New Zealand from 
Australia.

Separating the Australian and New Zealand trading 
business is supported by the operation of a dedicated 
NZ board, NZ segment monthly management reporting, 
separate regulatory requirements/oversight, and staff 
solely accountable for the NZ business including a locally 
based Head of NZ.

The following is an analysis of the Group’s revenue and results by reportable operating segments:

AUSTRALIAN  LENDING

NEW ZEALAND LENDING

CONSOLIDATED

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

Revenue from external customers

456,616

447,982

28,899

23,321

485,515

471,303

Total segment revenue

456,616

447,982

28,899

23,321

485,515

471,303

Segment results before tax, 
depreciation, amortisation, 
finance costs and impairment 

157,400

106,740

8,247

3,227

165,647

109,967

Depreciation and amortisation 

(3,009)

(1,021)

Loan impairment 

Finance costs 

(2,750)

(21,653)

(7,386)

(6,283)

Segment results before income tax  

144,255

77,783

(85)

74

(415)

7,821

(11)

(359)

(361)

(3,094)

(1,032)

(2,676)

(22,012)

(7,801)

(6,644)

2,496

152,076

80,279

Income tax expense1

PROFIT AFTER TAX 

(44,270)

(24,272)

107,806

56,007

The following is an analysis of the Group’s assets and liabilities by reportable operating segment:

AUSTRALIAN  LENDING

NEW ZEALAND LENDING

CONSOLIDATED

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

Segment assets

13,857,991

12,444,285

786,693

582,406

14,644,684

13,026,691

13,857,991

12,444,285

786,693

582,406

14,644,684

13,026,691

Segment liabilities

(13,547,634)

(12,201,825)

(755,564)

(555,347)

(14,303,198)

(12,757,172)

Net assets excluding tax

310,357

242,460

31,129

27,059

341,486

269,519

Tax assets2

Tax liabilities2

NET ASSETS

482

-

(20,829)

(27,833)

321,139

241,686

1  Income tax expense is disclosed on a consolidated basis, not by reportable operating segment.
2  Tax assets and liabilities are disclosed on a consolidated basis, not by reportable operating segment.

46

RESIMAC GROUP LTD

ANNUAL REPORT 2021

47

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

Notes to the consolidated 
financial statements

Key numbers
for the year ended 30 June 2021

1. Revenue

1.1.  Revenue streams

The Group generates revenue primarily from net interest margin, annuity trail income on White label loans and other fee income. 
Net interest income is derived from the difference between interest income on originating residential and asset finance loans, 
and interest expense incurred on RMBS and warehouse facilities. 

FY21
$'000

FY20
$'000

RECOGNITION & MEASUREMENT

Revenue from contracts with customers

Revenue is based on the consideration specified in a 
contract with a customer. The Group recognises revenue 
when it transfers control over a good or service to a 
customer.

The following table provides information about the nature 
and timing of the satisfaction of performance obligations 
in contracts with customers, including significant payment 
terms, and the related revenue recognition policies. 

Interest income - loans and advances

Loans and advances are initially recognised at fair value. 
Subsequent to initial recognition, the loans are measured 
at amortised cost using the effective interest method 
over the estimated actual (but not contractual) life of 
the mortgage loan, taking into account all income and 
expenditure directly attributable to the loan.

Interest income on loans and advances is recognised as it 
accrues using the effective interest method. The rate at 
which revenue is recognised is referred to as the effective 
interest rate and is equivalent to the rate that effectively 

discounts estimated future cash flows throughout the 
estimated life of the net carrying value of the loan. 

Acquisition costs representing mortgage insurance 
premiums and upfront broker commissions related to 
originating On balance sheet loans are capitalised on the 
statement of financial position of the Group. These costs 
are amortised to the statement of profit or loss across the 
expected life of the loan in interest income. 

Loans and advances in arrears or hardship at 30 June 2021 
continue to accrue interest income. Consideration for 
potential future credit losses on loans in arrears or hardship 
is reflected in Note 23.

Interest income - bank deposits

This comprises interest income on cash-held with 
Australian ADIs. Interest income is recognised as it accrues, 
using the effective interest method.

Other income

Other income includes various items including but not 
limited to payment received under operating leases as 
income on a straight-line basis over the lease (office sub-
lease).

Revenue from contracts with customers

9,856

11,340

CLASSIFICATION & MEASUREMENT OF REVENUE

Interest income

Loans and advances 

Bank deposits

Discount unwind on NPV of trail commission

Other income

Fair value gains on financial assets

Fair value gains/(losses) on interest rate swaps

Other

464,787

454,962

592

2,258

1,625

2,718

467,637

459,305

5,110

1,721

1,191

8,022

-

(1,180)

1,838

658

TOTAL REVENUE

485,515

471,303

Timing

Type of service

At a point 
in time

Mortgage 
origination 
revenue

Nature, timing of satisfaction of performance 
obligations, significant payment terms, 
significant judgements used

Commission from originating White label 
loans.

The performance obligations are satisfied 
at the point in time the loan is settled. 
Non-ongoing performance conditions are 
attached to the upfront fee. 

At a point 
in time

Loan 
management 
revenue 

Trail commission income on White label loans, 
based on the individual monthly loan balance 
outstanding each month. Trail ceases once 
the loan is discharged. 

At a point 
in time

Lending fee 
income

The contracts with the funders include 
performance obligations which must be 
satisfied in order to be paid trail commission 
(e.g. the loan not being in arrears).

Loan fees paid by the borrower such as 
application, discharge, settlement fees etc. 
The performance obligation for these fees is 
met at a point in time (settlement, discharge 
etc) when the fee is charged to the borrower.

Revenue recognition policy under AASB 15

Once the Group has referred a successful loan 
application to the lender, its performance obligations 
have been met. As such, revenue is recognised at the 
point in time the loan is settled. The expected value is 
estimated based on historic experience.

Provisions for clawback of the upfront fee are 
recognised within a period of time post-settlement and 
is a variable consideration.

Revenue is recognised at the point in time the loan is 
being settled and performance obligations are satisfied 
according to the contracts with the funders.

The present value of the trailing commission receivable 
is recognised as a contract asset and measured using 
the expected value method with variable consideration 
at a point in time.

Revenue is recognised when the transaction is 
completed and the performance obligations are met. 

48

RESIMAC GROUP LTD

ANNUAL REPORT 2021

49

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

1.2.  Disaggregation of revenue from contracts with customers 

In the following table, revenue from contracts with customers is disaggregated by primary geographical market, major service 
lines and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s 
reportable segments (See “Segment Information” on page 47).

RECOGNITION & MEASUREMENT

1.3.  Assets related to contract with customers 

The Group has recognised the following assets related to contracts with customers.  

AUSTRALIAN  LENDING

NEW ZEALAND LENDING

CONSOLIDATED

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

FY21

$'000

FY20

$'000

Contract assets – present value of future trail commission receivable

Current

Non-current

FY21
$'000

FY20
$'000

9,093

24,206

33,299

11,587

30,367

41,954

Primary geographical markets

Australia

New Zealand

Major service lines

Mortgage origination 

Loan management

Lending fee income

8,928

10,934

-

-

8,928

10,934

2,375

2,243

4,310

-

7,307

3,627

8,928

10,934

-

928

928

-

-

928

928

928

928

-

406

406

-

-

406

406

406

406

8,928

10,934

928

406

9,856

11,340

2,375

2,243

5,238

-

7,307

4,033

9,856

11,340

9,856

11,340

9,856

11,340

Timing of revenue recognition

Service transferred at a point in time

8,928

10,934

Revenue from contracts with 
customers

8,928

10,934

Interest income

Other income

External revenue as reported in 
segment information

442,483

434,497

25,154

24,808

467,637

459,305

5,205

2,551

2,817

(1,893)

8,022

658

456,616

447,982

28,899

23,321

485,515

471,303

Contract assets - present value of future trail 
commission receivable

The contract assets primarily relate to the Group’s rights 
to receive trail commissions from lenders on White 
label settled loans, over the life of the loan based on the 
monthly loan balance outstanding. The contract assets 
are transferred to receivables when the rights become 
unconditional. 

Initial recognition 

Expected value of future trail commission receivable is 
recognised on the origination of White label settlements. 
This represents the NPV of the expected future trail 
commission receivable under the origination and 
management agreement, less ongoing servicing costs not 
covered by transaction fees.  

The initial expected value of trail commission receivable 
is determined by using the discounted cash flow valuation 
technique. 

Subsequent measurement

Subsequent to initial recognition, the future trail 
commission receivable is measured at expected value. 

The carrying amounts of the trail commissions receivable 
are adjusted to reflect actual and revised estimated 
cash flows by recalculating the carrying amount through 
computing the present value of estimated future cash 
flows at the effective interest rates. The resulting 
adjustment is recognised as income or expense in the 
statement of comprehensive income.

A remeasurement of the underlying cash flows relating to 
the trail commission receivable occurs at each reporting 
date. 

Key estimates and assumptions

The key estimates and assumptions underlying the 
remeasurement of the estimated future cash flows include 
the:

   prepayment rate; and
   discount rate.  

FY21

FY20

Weighted average loan life (years)

3.4

        3.5

Discount rate 

6%

6%

Weighted average loan life

The methodology in calculating the weighted average loan 
life continues usage of the commonly accepted Standard 
and Poor’s definition. 

Prepayment rate

In order to manage both volatility of rates over time and the 
uncertainty associated with this modelling, a conservative 
run-off buffer of 25% is included in the valuation by 
management, and remains unchanged compared with 
FY20.

Discount rate

The discount rate remains unchanged for each individual 
year tranche of loans for the remainder of the loan’s life. 
The discount rate is currently set at 6%, incorporating risk 
free rates and estimates of the credit risk associated with 
the counterparties providing the trail income, and remains 
unchanged compared with FY20. 

50

RESIMAC GROUP LTD

ANNUAL REPORT 2021

51

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

2. Expenses

INTEREST

Bond and warehouse facilities

Amortisation – bond issue costs

Discount unwind on NPV of trail commission

Corporate facility

Interest on lease liabilities

FEE & COMMISSION 

Mortgage origination 

Loan management 

Borrowing costs

RMBS financing costs

EMPLOYEE BENEFITS 

Remuneration, superannuation and on-costs

Share-based payments

OTHER 

Marketing

Technology expenses1 2

Audit and other professional fees1

Rent and occupancy costs

Insurance

Depreciation and amortisation

Depreciation charge of right-of-use assets

Other

Loan impairment expense

FY21
$'000

FY20
$'000

213,675

259,467

9,154

1,098

440

526

8,517

1,311

767

618

RECOGNITION & MEASUREMENT

Borrowing costs

2.1.  Interest

Bond and warehouse facilities

Recognised in the profit or loss in the period in which 
they are incurred. Borrowing costs include:

224,893

270,680

   interest on deposits; 

   coupon payments on notes issued; and 

   other interest paid on non-securitised funding 
facilities and are recognised under the effective 
interest rate method. See further details under 
Note 1.

Amortisation – bond issue costs

Transaction costs incurred by the Group in facilitating 
the issue of debt securities by the special purpose 
vehicles, are capitalised on the statement of financial 
position of the parent entity as bond issue costs. 
These costs are amortised to the statement of profit 
or loss over the average expected life of the debt 
securities using the effective interest rate method. 

2.2.  Fee and commission

Mortgage origination

Upfront commission payments for White label 
home loans to mortgage originators, are recognised 
at settlement as the services performed by the 
originator are principally performed upfront.

Loan management

Includes monthly trail commission payments 
to brokers for originating On balance sheet and 
While label loans based on individual loan balances 
outstanding. 

279

434

20,495

22,898

7,144

7,275

6,730

6,026

35,193

36,088

36,697

35,305

792

581

37,489

35,886

4,805

15,722

2,399

1,294

1,801

1,199

1,895

4,073

3,277

9,669

2,611

1,395

1,369

1,032

1,920

5,085

33,188

26,358

2,676

22,012

333,439

391,024

Fees directly related to the Group’s global funding 
program.

Other financing costs

Other financing costs include trustee and servicer 
fees, liquidity fees, rating agency fees, and other 
financing related fees. 

2.3.  Employee benefits

Employee benefits expense includes fixed and variable 
remuneration, superannuation, and associated on-
costs.

The policy relating to share-based payments is set out 
in Note 31.

2.4.  Other

This mainly comprises bank fees, general 
administration expenses and unrecoverable GST. 
These items are expensed when incurred. 

2.5.  Loan impairment

Loan impairment expenses relates to the movement 
in the:

   specific provision; 

   collective provision movements for loan 

impairment; 

   direct loan write-offs recognised during the year; 

and

   recoveries of previously impaired loans.

See Note 6 for detail on impairment of loans and 
advances.

1  Reclassified FY20 IT consulting expenses from professional fees to technology expenses.
2  Core banking IT project costs (FY21: $7.8m; FY20: $0.2m). 

52

RESIMAC GROUP LTD

ANNUAL REPORT 2021

53

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

3. Income tax

3.1.  Income tax recognised in profit or loss

CURRENT TAX

In respect of the current year

In respect of prior years

Translation loss on foreign currency assets and liabilities

DEFERRED TAX

In respect of the current year

In respect of prior years

FY21
$'000

FY20
$'000

45,156

26,754

822

12

35

22

45,990

26,811

290

(2,494)

(2,010)

(1,720)

(45)

(2,539)

3.3.  Deferred tax balances

The following is the analysis of deferred tax assets (DTA) and deferred tax liabilities (DTL) presented in the consolidated 
statement of financial position:

Deferred tax assets

Deferred tax liabilities

Net deferred tax assets/(liabilities)

FY21

Deferred tax assets / (liabilities)

FY21
$'000

FY20
$'000

482

(392)

90

-

(3,540)

(3,540)

Opening 
balance

Current year 
recognised in 
profit or loss

Previously 
unrecognised 
in profit or loss

Recognised 
directly in 
equity

Recoup tax 
loss against 
tax liability

Acquisition 
of RAF

Closing 
balance

$’000

$’000

$’000

$’000

$’000

Total income tax expense recognised in the current year

44,270

24,272

Doubtful debts

The income tax expense for the year can be reconciled to the accounting profit as follows:

Profit before tax

Income tax expense calculated at 30% (FY20: 30%) 

Effect of expenses that are not deductible in determining taxable profit

Effect of different tax rates of subsidiaries operating in other jurisdictions

Employee Share scheme

Other items

152,076

45,623

41

(120)

(584)

498

80,279

24,084

344

1

(54)

(93)

Plant, equipment and software

Deferred mortgage insurance

Employee entitlements

Net provision for lease make good

Other accrued expenses 

Blackhole expenditure  

Discount on loan

Tax losses carried forward

$’000

9,582

2

252

1,130

60

1,982

234

(1)

416

324

2,543

(89)

85

(1)

235

(178)

-

(414)

Adjustments recognised in the current year in relation to the deferred tax of prior years

Adjustments recognised in the current year in relation to the current tax of prior years

Income tax expense recognised in profit or loss

(2,010)

822

(45)

35

44,270

24,272

Lease liability

Shares

Share-based payments

Lease incentives

319

323

343

30

The tax rate used for FY21 and FY20 reconciliations above is the corporate tax rate of 30% payable by corporate entities in 
Australia and 28% in New Zealand on taxable profits respectively.

Accrued income and other

(741)

73

(1,533)

174

-

444

45,458

24,282

Trail commission payable

6,317

(1,418)

3.2.  Current tax assets and liabilities

CURRENT TAX

Current tax payable

FY21
$'000

FY20
$'000

(20,437)

   (24,293)

(20,437)

        (24,293)

Capitalised incentive commission  

(12,441)

(1,042)

Loans and advances 

2,476

(1,270)

Deferred bond issue cost 

(2,617)

(1,172)

Derivatives 

Unpaid superannuation

Trail commission receivable

1,337

50

(12,593)

(3,540)

349

3

2,597

(290)

-

806

-

-

-

(52)

(47)

1

(2)

(1)

124

842

-

(30)

367

-

-

2

-

-

-

(3)

-

-

-

-

-

(1)

-

-

(1)

-

(1,259)

1,285

-

-

-

-

1

1,888

-

-

2,010

1,910

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$’000

9,903

3,351

163

1,215

59

2,165

8

-

-

4,897

516

(1,627)

1,802

-

70

(13,483)

1,206

(3,786)

3,574

53

(9,996)

90

54

RESIMAC GROUP LTD

ANNUAL REPORT 2021

55

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

FY20

Opening 
balance

Current year 
recognised in 
profit or loss

Previously 
unrecognised 
in profit or loss

Recognised 
directly in 
equity

Recoup tax 
loss against 
tax liability

Acquisition 
of RAF

Closing 
balance

RECOGNITION & MEASUREMENT

Income tax expense represents the sum of the tax currently payable and deferred tax.

Deferred tax assets / (liabilities)

$’000

$’000

$’000

$’000

$’000

$’000

$’000

3.4.  Current tax

Doubtful debts

4,111

5,330

Plant, equipment and software

Deferred mortgage insurance

Employee entitlements

82

358

1,069

Net provision for lease make good

60

Other accrued expenses 

2,142

Blackhole expenditure  

Discount on loan

Tax losses carried forward

437

(1)

103

(49)

(106)

39

-

(164)

(203)

-

77

Trail commission payable

7,091

(799)

 Lease liability

 Shares

 Share-based payments

 Lease incentives

92

41

-

30

40

-

173

-

Capitalised incentive commission  

(10,513)

(1,942)

Loans and advances 

4,219

(1,743)

Deferred bond issue cost 

(2,736)

116

Derivatives 

1,663

(170)

Unpaid superannuation

40

7

Trail commission receivable

(14,594)

2,001

Accrued income and other

1

(113)

-

-

-

(1)

-

-

-

-

-

25

7

-

13

-

1

-

-

-

-

-

-

(8)

-

-

-

-

-

-

-

-

-

145

282

157

-

13

-

3

(156)

-

-

-

-

-

-

-

-

-

-

-

149

(31)

-

23

-

4

-

-

(106)

342

-

35

-

-

-

-

-

-

-

3

-

-

-

-

-

-

-

-

-

-

-

-

-

9,582

2

252

1,130

60

1,982

234

(1)

416

6,317

319

323

343

30

(12,441)

2,476

(2,617)

1,337

50

(12,593)

(629)

(741)

Tax payable is based on taxable profit for the year. Taxable 
profit differs from ‘profit before tax’ as reported in 
the consolidated statement of profit or loss and other 
comprehensive income due to a mix of timing and non-
assessable items.  The Group's current tax is calculated 
using tax rates that have been enacted or substantively 
enacted by the end of the reporting period. 

3.5.  Deferred tax

Deferred tax is recognised on temporary differences 
between the carrying amounts of assets and liabilities 
in the consolidated financial statements and the 
corresponding tax base used in the computation of taxable 
profit.

Deferred tax liabilities (DTLs) are generally recognised for 
all taxable temporary differences. 

Deferred tax assets (DTAs) are generally recognised for all 
deductible temporary differences to the extent that it is 
probable that taxable profits will be available against which 
those deductible temporary differences can be utilised. 
Such DTAs and DTLs are not recognised if the temporary 
difference arises from the initial recognition (other than 
in a business combination) of assets and liabilities in a 
transaction that affects neither the taxable profit nor the 
accounting profit.

In addition, DTLs are not recognised if the temporary 
difference arises from the initial recognition of goodwill.

DTLs are recognised for taxable temporary differences 
associated with investments in subsidiaries and associates, 
and interests in joint ventures, except where the Group is 
able to control the reversal of the temporary difference and 
it is probable that the temporary difference will not reverse 
in the foreseeable future.

DTAs arising from deductible temporary differences 
associated with such investments and interests are only 

recognised to the extent that it is probable that there 
will be sufficient taxable profits against which to utilise 
the benefits of the temporary differences and they are 
expected to reverse in the foreseeable future.

The carrying amount of DTAs is reviewed at the end of 
each reporting period and reduced to the extent that it is 
no longer probable that sufficient taxable profits will be 
available to allow all or part of the asset to be recovered.

DTLs and DTAs are measured at the tax rates that are 
expected to apply in the period in which the liability is 
settled or the asset realised, based on tax rates (and tax 
laws) that have been enacted or substantively enacted by 
the end of the reporting period.

The measurement of DTLs and DTAs reflects the tax 
consequences that would follow from the manner in which 
the Group expects, at the end of the reporting period, to 
recover or settle the carrying amount of its assets and 
liabilities.

3.6.  Current and deferred tax for the year

Current and deferred tax are recognised in the statement 
of comprehensive income, except when they relate to 
items that are recognised in other comprehensive income 
or directly in equity, in which case, the current and deferred 
tax are also recognised in other comprehensive income 
or directly in equity respectively. Where current tax or 
deferred tax arises from the initial accounting for a business 
combination, the tax effect is included in the accounting for 
the business combination.

3.7.  Tax consolidation

On 1 February 2021, RAF joined the Resimac tax 
consolidated group. 

The assets of RAF were taken to have been acquired by 
Resimac Group and the tax cost base of these assets were 
reset under the Allocable Cost Amount tax consolidation 
rules. 

(6,305)

2,494

45

436

(106)

(104)

(3,540)

56

RESIMAC GROUP LTD

ANNUAL REPORT 2021

57

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

3.8.  Tax effect accounting by members of the tax 
consolidated group

Resimac Group Ltd and its wholly-owned Australian 
controlled entities have implemented the tax 
consolidation legislation. The head entity Resimac 
Group Ltd, and the controlled entities in the tax 
consolidated group continue to account for their own 
current and deferred tax amounts. The Group has 
applied the group allocation approach in determining 
the appropriate amount of current taxes and 
deferred taxes to allocate to members of the tax 
consolidated group. The current and deferred tax 
amounts are measured in a systematic manner that 
is consistent with the broad principles in AASB 112 
Income Taxes.  

In addition to its own current and deferred tax 
amounts, the head entity also recognised current 
tax liabilities (or assets) and the deferred tax assets 
arising from unused tax losses and unused tax 
credits assumed from controlled entities in the 
Resimac tax consolidated group.

3.9.  Nature of the tax funding agreement

Members of the Group have entered into a tax 
funding agreement. Under the funding agreement 
the allocation of tax within the Group is based on 
a group allocation. The tax funding agreement 
requires payments to/from the head entity to be 
recognised via an inter-entity receivable (payable) 
which is at call. 

The allocation of taxes under the tax funding 
agreement is recognised as an increase or decrease 
in the subsidiaries’ intercompany accounts with 
the tax consolidated group head company, Resimac 
Group Ltd. The amounts receivable or payable under 
the tax funding agreement are due upon receipt 
of the funding advice from the head entity, which 
is issued as soon as practical after the end of each 
financial year. 

KEY JUDGEMENT

The Group’s accounting for taxation requires 
management’s judgement in assessing whether 
deferred tax assets and certain deferred tax liabilities 
are recognised on the statement of financial 
position. Deferred tax assets, including those arising 
from unrecouped tax losses, capital losses and 
temporary differences, are recognised only where 
it is considered more likely than not that they will be 
recovered, which is dependent on the generation of 
sufficient future taxable profits.

Assumptions about the generation of future taxable 
profits depend on management’s estimates of 
future cash flows. These depend on estimates of 
future income, operating costs, capital expenditure, 
dividends and other capital management 
transactions. 

Judgements and assumptions are also required 
about the application of income tax legislation. 
These judgements and assumptions are subject 
to risk uncertainty, hence there is a possibility that 
changes in circumstances will alter expectations, 
which may impact the amount of deferred tax 
assets and deferred tax liabilities recognised on the 
statement of financial position and the amount of 
other tax losses and temporary differences not yet 
recognised. In such circumstances, some or all of the 
carrying amounts of recognised deferred tax assets 
and liabilities may require adjustment, resulting in a 
corresponding credit or charge to the consolidated 
statement of profit or loss and other comprehensive 
income.  

4. Cash and cash equivalents

Cash at bank and on hand

Cash collections account1

Restricted cash2

Reconciliation of profit after tax to the net cash flows from operating activities

Profit after tax 

Non-cash items

Depreciation and amortisation

Depreciation charge of right-of-use assets

Amortisation of bond issue costs

Fair value gain on financial assets

Fair value movement on interest rate swaps

Loan impairment movement

Net loss on disposal of non-current assets

Present value of future trail commission income

Present value of future trail commission expense

Share-based payments expense

Discount on mortgage

(Increase) / decrease in assets

Trade and other receivables

Loans and advances

Other assets

Impairment allowance account

Increase / (decrease) in liabilities

Trade and other payables

Current tax payable

Interest-bearing liabilities

Provisions

Deferred tax liabilities

Note

FY21
$'000

FY20
$'000

50,622

27,757

567,687

336,730

1,500

1,500

22

619,809

365,987 

107,806

56,007

2

2

2

1

2

2

1,199

1,895

9,154

(5,110)

780

2,676

944

8,655

(5,008)

792

(550)

1,032

1,920

8,517

-

3,271

22,012

-

6,694

(2,104)

581

(442)

(358)

2,147

(1,559,645)

(3,583,219)

60

23

(1,809)

(2,254)

8,646

(3,615)

(380)

19,522

(12,244)

(13,007)

212

168

(1,941)

(4,357)

Net cash flows used in operating activities

(1,447,461)

(3,483,869)

1   Cash collections account includes monies in the Special Purpose Vehicles and securitisation trusts on behalf of members in those trusts and various clearing 

accounts. These funds are not available for operational use.

2  Cash held in trust as collateral. 

58

RESIMAC GROUP LTD

ANNUAL REPORT 2021

59

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

RECOGNITION & MEASUREMENT

Cash comprises cash deposits and cash equivalents that are short-term, liquid investments readily convertible to known 
amounts of cash, not subject to significant risk of changes in value, and have a maturity of three months or less.  

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying 
periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest 
at the respective short-term deposit rates.

5. Trade and other receivables

CURRENT

Fee and commission receivable

Prepayments

GST receivable

Deferred consideration for sale of Paywise 

Sundry receivable

NON-CURRENT

Deferred consideration for sale of Paywise 

Note

FY21
$'000

FY20
$'000

843

2,371

743

-

624

1,050

2,088

641

750

445

22

22

4,581

4,974

-

1,000

RECOGNITION & MEASUREMENT

All receivables are derived from the normal course of business. No maturity dates are specified as they are normally settled 
within twelve months. There are no long term outstanding receivables as at the reporting date.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
method, less an allowance for impairment. The credit risk of trade receivables is considered limited as they are due from 
Australian financial institutions with high credit ratings.

Fee and commission receivable

This balance comprises trail commission receivables that have settlement terms of 30 days. This is initially recognised at the fair 
value of the consideration receivable. 

Sundry receivable

This relates to amounts received within the SPV’s on the last day of the reporting period.

6. Loans and advances 

GROSS LOANS & ADVANCES

Loans and advances

Capitalised upfront commissions

Capitalised mortgage insurance costs

Deferred mortgage fee

Loans from related parties

Note

FY21
$'000

FY20
$'000

13,934,440

12,518,394

45,125

41,624

-

94

(16,240)

(17,400)

-

(2)

13,963,325

12,542,710

Less: allowance for impairment

(37,565)

(36,698)

Current 

Non-current

IMPAIRMENT ALLOWANCES 

Collective allowance 

Specific allowance 

MOVEMENT IN IMPAIRMENT ALLOWANCES

Balance at 1 July 

Acquisition of RAF 

Provided for during the year

   Specific

   Collective

Write-offs

BALANCE AT 30 JUNE

22

13,925,760

12,506,012

3,630,465

2,884,823

10,332,860

9,657,887

13,963,325

12,542,710

32,126

30,641

5,439

6,057

37,565

36,698

36,698

16,445

-

495

1,096

1,580

1,891

20,121

(1,809)

(2,254)

37,565

36,698

60

RESIMAC GROUP LTD

ANNUAL REPORT 2021

61

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

RECOGNITION & MEASUREMENT

COVID-19

7. Other financial assets

All loans and advances are initially recognised at fair 
value plus directly attributable transaction costs, and 
subsequently measured at amortised cost using the 
effective interest method.

Amortised cost is calculated by taking into account 
any fees paid or received between parties to the 
contract that are an integral part of the effective 
interest rate, transactions costs, and all other 
premiums or discounts on acquisition, over the 
period to maturity. 

Gains and losses are recognised in the statement of 
comprehensive income when the loans and advances 
are derecognised or impaired, as well as through the 
amortisation process.

Loans past due but not impaired 

Payment terms of these loans have not been 
renegotiated, however no further advances are 
provided until payment is made. The Group is in 
direct contact with relevant borrowers to enter into 
payment arrangements which will bring the account 
fully up to date within an acceptable period.

For Prime Insured loans expected recoverable 
amounts are adjusted to reflect lower than 100% 
Lenders Mortgage Insurance (LMI) recovery 
where applicable e.g. due to costs associated with 
maintaining the security value within the terms of 
the LMI agreement (i.e. other than fair wear and tear). 
They are also reduced by the amount of higher rate 
(penalty) interest and fees related to loans in arrears 
which are not covered by LMI.

Loans with payments outstanding less than one 
month are generally rectified by the borrower 
within a short period of time, i.e. within the same 
month. Loans in this category are less likely to be 
representative of loans with underlying repayment 
problems.

Impairment and provisioning

AASB 9 requires an Expected Credit Loss model (ECL) 
at each reporting date to reflect changes in credit risk 
since initial recognition of the loans and advances. 
Impairment policy of loans and advances are included 
in Note 22.

The impact of COVID-19 on customer serviceability 
decreased during the year, however continues to 
present challenges to a small amount of the Group’s 
customers.  Resimac’s conservative approach to 
credit risk and strong funding relationships have 
mostly insulated the impacts of COVID-19.  Resimac 
remains committed to supporting customers 
and the broader community through the ongoing 
challenges COVID-19 poses. 

Whilst the economic rebound in FY21 in Australia 
was comforting, we expect FY22 to provide further 
macroeconomic challenges.  Australia’s vaccine 
rollout remains slow in comparison to other 
countries, whilst State lockdowns and border 
closures continue to drive economic headwinds.  
Furthermore, international borders are expected to 
remain closed for the majority of FY22 stifling the 
recovery in a number of industries.  

Security properties repossessed

As at 30 June 2021, the Group had exercised their 
right to liquidate 16 residential properties (FY20: 41) 
being the security for securitised loans. The Group 
intends to sell these properties with the proceeds to 
go towards clearing the outstanding balance of the 
underlying loans. It is expected that the outstanding 
balance will be recovered in full, unless a Stage 3 
specific provision has been raised against the loan. 

The transition from a COVID-19 overlay to 
calculating expected future credit loss within the 
ECL model for all customers is detailed in Note 23.

Listed shares – BNK Banking Corporation Limited (ASX: BBC)

Unlisted shares – Athena

Unlisted shares – Positive Group

Short-term investment

Current 

Non-current

Note

FY21
$'000

FY20
$'000

22

22

22

22

4,713

7,110

3,000

260

15,083

260

14,823

15,083

1,921

2,000

3,000

260

7,181

260

6,921

7,181

Listed shares

BNK is an investment the Group intends to hold for long 
term strategic purposes. As permitted by AASB 9, the 
Group designated this investment at the date of initial 
application as measured at fair value through other 
comprehensive income. The accumulated fair value reserve 
related to this investment will not be reclassified to profit 
or loss. Dividends from this investment will be recognised 
in profit or loss as other income when the Group’s right 
to receive payment is established.  At 30 June 2021, the 
Group held 6,412,621 shares in BNK at a share price of 
$0.735 (30 June 2020: 4,468,902 shares). 

Unlisted shares

Investments that are not traded in an active market, 
however classified as fair value through profit or loss 
(FVTPL) are disclosed at fair value at the end of each 
reporting period. The fair value testing conducted on 
the unlisted shares, included assessing the impact of 
COVID-19 on the current and future operating models. 
The fair value assessments included comparisons against 

forecasted operating performance at time of investment. 
The valuation methodology for these investments is 
disclosed in Note 22.

Resimac holds shares in Athena Financial Pty Ltd (“Athena”) 
& Positive Finance Holdings Pty Ltd (“Positive”).

Athena recently completed a Series D capital raise at an 
increased valuation compared to the Series A capital raise 
Resimac invested in. Management believe it is appropriate 
to increase the fair value of the 1.8% investment in Athena 
to $7.1m, representing the mid-range of the pre and post 
money Series D valuation. 

The fair value of the 15% investment in Positive Group 
remains unchanged.   

Short-term investment

Term deposit with fixed or determinable payments and 
fixed maturity date which the Group has the intent and 
ability to hold to maturity.

ANNUAL REPORT 2021

63

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

8. Right-of-use assets

Lease - buildings

Balance at 1 July

Additions

Acquisition of RAF 

Depreciation

Foreign exchange

Balance at 30 June

Lease - buildings

Right-of-use assets at cost

Less: accumulated depreciation

TOTAL RIGHT-OF-USE ASSETS

FY21
$'000

FY20
$'000

9. Plant and equipment

Carrying amounts of:

12,279

-

Plant and equipment 

256

-

14,015

191

(1,895)

(1,920)

(2)

(7)

10,638

12,279

14,510

14,256

(3,872)

(1,977)

10,638

12,279

1,919

1,919

Computer 
equipment

Office 
furniture

Operating 
lease 
equipment

Leasehold 
improvement

$’000

$’000

$’000

FY21
$'000

FY20
$'000

2,192

2,192

Total

$’000

2,192

496

(17)

(751)

(1)

1,919

$’000

1,245

-

-

-

981

(217)

(264)

283

296

(3)

-

359

-

4

403

(124)

-

283

1,481

2,110

-

26

(262)

-

1,245

211

494

(622)

(1)

2,192

Balance at 1 July 2020

Additions

Disposals

Depreciation expense

Foreign exchange

BALANCE AT 30 JUNE 2021

Balance at 1 July 2019

Additions

Acquisition of RAF 

Depreciation expense

Foreign exchange

BALANCE AT 30 JUNE 2020

541

176

(10)

(249)

(1)

457

590

149

25

(223)

-

541

123

24

(4)

(21)

-

122

39

58

40

(13)

(1)

123

Right-of-use assets

The Group lease offices with lease terms between 3 to 8 
years. Right-of-use assets are initially measured at cost 
comprise the following:

  the amount of the initial measurement of lease liability;

   any lease payments made at or before the 

commencement date less any lease incentives 
received;

   any initial direct costs; and 

   restoration costs.

The right-of-use asset is subsequently depreciated using 
the straight-line method from the commencement date 
to the end of the lease term, unless the lease transfers 
ownership of the underlying asset to the Group by the lease 
term or the cost of the right-of-use asset reflects that 
the Group will exercise a purchase option. In that case the 
right-of-use asset will be depreciated over the useful life 
of the underlying asset, which is determined on the same 
basis as those of property and equipment. In addition, the 
right-of-use asset is periodically reduced by impairment 
losses, if any, and adjusted for certain remeasurements 
of the lease liability. Depreciation of right-of-use asset is 
recognised in the consolidated statement of profit or loss. 

RECOGNITION & MEASUREMENT

Plant and equipment stated at cost less accumulated depreciation and impairment losses.

Depreciation and amortisation

Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives, using 
the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each 
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

64

RESIMAC GROUP LTD

ANNUAL REPORT 2021

65

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

The following useful lives are used in the calculation of depreciation:

11. Goodwill and intangible assets

Computer equipment

Office furniture

Operating lease equipment

Leasehold improvement

Years

3-4

10

3-7

Up to 40 years or life of lease, 
whichever is shorter

Derecognition

Impairment

An item of plant and equipment is derecognised upon 
disposal or when no future economic benefits are expected 
to arise from the continued use of the asset. Any gain or 
loss arising on the disposal or retirement of an item of plant 
and equipment is determined as the difference between 
the sale proceeds and the carrying amount of the asset and 
is recognised in profit or loss.

At each reporting date, the Group reviews the carrying 
amounts of plant and equipment to determine whether 
there is any indication that those assets have suffered 
an impairment loss. If any such indication exists, the 
recoverable amount of the asset is estimated to determine 
the extent of the impairment loss (if any). 

10. Other assets

Reinsurance claim receivable

Other 

Current

Non-current

RECOGNITION & MEASUREMENT

Reinsurance claim receivable

FY21
$'000

FY20
$'000

3,545

228

3,773

228

3,545

3,773

3,339

288

3,627

288

3,339

3,627

Prime Insurance Group Limited was purchased as part of the RHG Mortgage Corporation Limited (RHG) acquisition in 2014. Its 
sole purpose is to provide insurance service and re-insurance facilities for the RHG mortgage assets and process any shortfall 
claims received.

The reinsurance claim receivable is available to utilise against the reinsurance claim reserve amount in Note 16.

Goodwill

Balance at 1 July 

FY21
$'000

FY20
$'000

27,430

21,766

Additional amounts recognised from business combinations occurring in the current year

-

5,664

BALANCE AT 30 JUNE

27,430

27,430

Other intangible assets

Balance at 1 July 2020

Amortisation for the year

Write-offs

BALANCE AT 30 JUNE 2021

Balance at 1 July 2019

Additions

Acquisition of RAF 

Amortisation for the year

BALANCE AT 30 JUNE 2020

Software

Brand name

$'000

1,386

(397)

(879)

110

1,691

68

11

(384)

1,386

$'000

77

(51)

-

26

-

-

103

(26)

77

Total

$'000

1,463

(448)

(879)

136

1,691

68

114

(410)

1,463

11.1.  Goodwill 

Goodwill arising on an acquisition of a business is carried 
at cost as established at the date of acquisition of the 
business (less accumulated impairment losses, if any). 

Impairment testing

At 30 June 2021, the Group has performed the impairment 
testing, which included consideration of the impact of 
COVID-19. Goodwill of $21.7m has been allocated for 
impairment assessment purpose to the Australian Lending 
Business segment. This segment is considered to be the 
Group of cash-generating units (CGU) that are expected 
to benefit from the synergies of the business combination 
to which that goodwill relates. The RAF goodwill of $5.7m 

is considered a separate CGU, and the associated goodwill 
has been assessed for impairment testing. 

A CGU to which goodwill has been allocated is tested for 
impairment annually, or more frequently when there is an 
indication that the unit may be impaired. If the recoverable 
amount of the CGU is less than its carrying amount, the 
impairment loss is allocated first to reduce the carrying 
amount of any goodwill allocated to the unit and then to 
the other assets of the unit pro rata based on the carrying 
amount of each asset in the unit. Any impairment loss 
for goodwill is recognised directly in profit or loss. An 
impairment loss recognised for goodwill is not reversed in 
subsequent periods.

66

RESIMAC GROUP LTD

ANNUAL REPORT 2021

67

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

Recoverable amount of the asset

Impairment assessment

The recoverable amount is equal to the greater of:

   fair value less costs to sell; and

   value in use (‘VIU’). 

It is not always necessary to determine both the fair 
value less cost to sell and its VIU. If either of these 
amounts exceed the carrying amount of the CGU, there 
is no impairment of the goodwill and it is not necessary 
to estimate the other amount.

As a result, the VIU methodology is considered to be 
most appropriate as there is no readily available market 
outside specific business sales of an equivalent sized 
business to the Australian Lending business segment. 

The VIU calculation requires management to estimate 
future cash flows expected to arrive from the CGU and 
a suitable discount rate in order to calculate present 
value. For RAF, management have determined that 
the fair value less cost to sell (FV) is considered most 
appropriate, as the controlling interest was purchased at 
arms-length in the current financial year.

Indicators of impairment

The minimum indicators of impairment have been 
considered by management. These include both internal 
and external sources of information such as:

   significant changes (historical and future) in 
the market, economic, legal or technological 
environment which would have an adverse impact on 
the Group;

   interest rate changes which impact the discount rate 

used in modelling; 

   evidence of a worsening financial position;

   plans to discontinue operations; and

   economic conditions as a result of COVID-19.

Management have assessed that there are no such 
indicators which would impair the goodwill balance as at 
30 June 2021. 

Inputs to impairment calculations

Cash flow projections

For VIU calculations, cash flow projections are based 
on corporate plans and business forecasts prepared 
by management and approved by the Board. Cash flow 
projections are for four years and a terminal growth rate 
beyond this has been applied.

In assessing VIU, the estimated future cash flows are 
discounted to their present value using a discount rate 
that reflects current market assessments of the time 
value of money and the risks specific to the CGU.

Furthermore, each unit or group of units to which the 
goodwill is allocated shall:

   represent the lowest level at which the goodwill is 
monitored for internal management purposes; and

   not exceed the operating segments.

The allocation of goodwill to these CGU’s is considered 
appropriate. 

Key judgements and assumptions

The key assumptions used for assessing the recoverable 
amount of the Australian Lending Business CGU are as 
below:

FY21

FY20

Growth rate for 4-year 
forecast period (p.a.) 

2.5%

5.3%

Discount rate (post-tax)

11.0%

11.0%

Terminal growth rate

2.0%

2.0%

The post-tax discount rate of 11% has been determined 
by estimating the cost of equity that applies to the 
Australian lending segment. The terminal growth rate 
of 2% does not reflect the expected growth trajectory 
of the Group, it is management’s conservative growth 
assumption for goodwill impairment testing only.

Management conducted the following when testing the 
impairment of goodwill:

   revised budgets, forecasts and other assumptions 
from previous impairment testing to reflect the 
economic conditions at the balance date, especially 
to address increased risk and uncertainty;

   considered the macroeconomic impact of COVID-19 
and considered outcomes where future cash flows 
are reduced or operating costs increase.

In assessing the VIU for goodwill impairment assessment, 
the potential impact of COVID-19 on cash flows and profit 
growth have been considered under different scenarios:

1)   Base case: Current management view of 

macroeconomic environment:

   Loan volume: Growth trajectory in line with post 

COVID-19 growth

   Margins: Conservative view to declining to flat margin 

scenario

   Costs: Growth based on CPI assumptions and 

investments required to support organic growth of the 
business

2)   Stress scenario: Assumes severe macroeconomic 

downturn resulting in a sustained downturn in Resimac 
profitability of -5% CAGR over a 4 year period. The 
stress scenario indicated sufficient headroom remains 
for goodwill impairment purposes. 

The volatility in the current financial markets due to 
COVID-19 introduces challenges to impairment testing. 
A second layer of stress testing was added with discount 
rates ranging from 10-20% which were applied to the 
base case and stress scenarios. Management tested the 
stress scenario and applied a discount rate of 20%, the 
recoverable amount of the CGU exceeded the recorded 
carrying value for the Australian Lending Business. The full 
sensitivity range is outlined as follows:

Headroom ($m)

Discount rate

Base Case 

Stress Test Case 

10%

694

439

11%

574

352

12%

479

282

20%

105

7

The recoverable amount of the CGU would not be less than 
its carrying value in any scenario. Resimac management 
do not believe there are any other assumptions based on 
internal or external sources whereby the quantum of the 
change will eliminate the available headroom.

For Resimac Asset Finance Group, using the Calibration 
methodology within the FV concept, management believe 
there are no indicators of impairment mainly due to the 
following:

   Resimac Asset Finance Group have outperformed initial 

NPAT expectations; and

   robust portfolio management and cost controls are 
embedded to protect the business in the current 
COVID-19 macroeconomic environment.  

Impairment charge

Management believe potential impacts of COVID-19 have 
been adequately considered for goodwill impairment 
testing purposes at 30 June 2021.  Based upon the 
impairment testing performed, there is no impairment 
charge for FY21 (FY20: nil). 

11.2.  Other intangible assets 

Intangible assets with finite useful lives that are 
acquired separately are carried at cost less accumulated 
amortisation and accumulated impairment losses. 
Amortisation is recognised on a straight-line basis over 
their estimated useful lives. 

The estimated useful life and amortisation method are 
reviewed at the end of each reporting period, with the 
effect of any changes in estimate being accounted for on a 
prospective basis. Intangible assets with indefinite useful 
lives that are acquired separately are carried at cost less 
accumulated impairment losses.

Intellectual property

Software

Brand name

Useful life

7 years

3-5 years

2 years

ANNUAL REPORT 2021

69

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

Recognise as an operating expense as the service is 
received

13. Interest-bearing liabilities

Software-as-a-Service (SaaS) arrangements

SaaS arrangements are service contracts providing 
the Group with the right to access the cloud provider’s 
application software over the contract period. As such, the 
Group does not receive a software intangible asset at the 
contract commencement date.

The following outlines the accounting treatment of costs 
incurred in relation to SaaS arrangements:

Recognise as an operating expense over the term of the 
service contract

   Fee for use of application software

12. Trade and other payables

Revenue collected in advance

Collections owed to trusts

Other creditors and accruals 

Commissions

   Customisation costs 
   Configuration costs
   Data conversion and migration costs
   Testing costs
   Training costs

Costs incurred for the development of software code that 
enhances or modifies, or creates additional capability, to 
existing on-premise systems and meets the definition 
of and recognition criteria for an intangible asset are 
recognised as intangible software assets.

Note

FY21
$'000

FY20
$'000

436

11,132

326

7,900

17,654

13,371

5,315

4,294

22

34,537

25,891

Current

34,537

25,891

RECOGNITION & MEASUREMENT

Trade creditors and other payables are generally settled 
within 30 day terms and are unsecured. Trade creditors and 
other payables are carried at amortised cost and represent 
liabilities for goods and services provided to the Group 
prior to the end of the financial year, are unpaid, and arise 
when the Group becomes obliged to make future payments 
in respect of the purchase of these goods and services.

Collections owed to trusts

Relates to loan repayments received from borrowers that 

reside in clearing accounts not yet allocated to a trust at 
balance date.

Commissions 

Relates to upfront and trail commission payable to 
aggregators and brokers.

Other creditors and accruals

Other creditors and accruals are unsecured payables 
relating to expenses arising in the ordinary course of 
business. 

Debt securities on issue 

Corporate debt facility

Issuance facilities 

Current 

Non-current

Note

FY21
$'000

FY20
$'000

13,780,348

12,421,861

-

5,000

390,303

258,755

22

14,170,651

12,685,616

3,684,369

2,917,692

10,486,282

9,767,924

14,170,651

12,685,616

RECOGNITION & MEASUREMENT

All borrowings are initially recognised at fair value of the 
consideration received less direct transaction costs, 
and subsequently measured at amortised cost using the 
effective interest method.

Amortised cost is calculated by taking into account any 
fees paid or received between parties to the contract 
that are an integral part of the effective interest rate, 
transaction costs, and all other premiums or discounts on 
acquisition, over the period to maturity.

Gains or losses are recognised in the statement of profit or 
loss when the liabilities are derecognised and also through 
the amortisation process.

For further detail on the amortised cost basis of accounting 
see Note 1 and 2. Details of the Group’s interest-bearing 
liabilities are set out in Note 22.

13.1.  Debt securities on issue 

Warehouse facilities

The warehouse facilities provide funding for the initial 
financing of loans and advances to customers within the 
warehouse Special Purpose Vehicles (SPV). Refer to Note 
24 for the consolidation of the SPVs. The security for 
advances under these facilities is a combination of fixed 
and floating charges over all assets of the warehouse SPVs. 
If the warehouse facility is not renewed or should there 
be a default under the existing terms and conditions, the 

warehouse facility funder will not have a right of recourse 
against the remainder of the Group. Warehouse facilities 
are secured against the underlying mortgages only.

During the financial year there were no breaches to the 
warehouse agreements. All warehouse facilities were 
renewed, at equal or higher limits, on or before their 
maturity date.

Bonds

RMBS provide duration funding for loans and advances 
(securitised assets) originated by the Group. The RMBS 
notes generally have a legal final maturity of 31.5 years 
from issue, and a weighted average life of up to 6 years. 

The RMBS SPV security is a combination of fixed and 
floating charges over all assets of the RMBS SPV. Credit 
losses arising from securitised assets will not result in the 
bondholders having a right of recourse against the Group 
(as Originator, Manager or Servicer). 

During the year ended 30 June 2021, AUD $5.50 billion 
and NZD $300 million of new Residential Mortgage Backed 
Securities (RMBS) and Medium Term Notes (MTNS) were 
issued (FY20: AUD $3.47 billion). These RMBS issuance paid 
down warehouse facilities creating capacity to underwrite 
new mortgages.  During the financial year, there were no 
breaches to the terms of the RMBS. 

Collateral

Certain RMBS and warehouse SPV’s are supported by cash 
collateral reserves.

70

RESIMAC GROUP LTD

ANNUAL REPORT 2021

71

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

13.2.  Corporate debt facility

13.3.  Issuance facilities

14.1.  Leases

As at 30 June 2021, the Company had a $30 million 
corporate facility with National Australia Bank maturing 
in September 2021. The Group had an undrawn balance 
of $30 million at 30 June 2021 (FY20: $25 million). In 
accordance with the terms of the Group’s corporate debt 
facilities, the Group is required to comply with certain 
covenants. During the period and as at 30 June 2021, the 
Group was compliant with these covenants.

The corporate debt facility is secured by a first-ranking 
charge over the trust assets of the Group. See Note 23.7 
for further detail.

The Group maintains a series of subsidiary SPV’s for the 
purpose of raising financing for its RMBS-related credit 
risk retention (“CRR”) obligations. CRR is a mandatory 
requirement for the Group’s RMBS issuance activities in the 
U.S., European, Japanese and U.K. jurisdictions where, in 
general, the Group is required to hold an economic interest 
of at least 5% in value of an RMBS issuance. The subsidiary 
SPV’s hold a 5% vertical strip of bonds of an individual 
RMBS issuance and raises secured financing from banks 
and credit investors.

14. Lease liabilities

Lease liabilities included in the Statement of Financial Position

Balance at 1 July 

Addition

Acquisition of RAF 

Interest incurred

Payment of lease liabilities

Foreign exchange

BALANCE AT 30 JUNE 

Current 

Non-current

Amounts recognised in Statement of Comprehensive Income

Depreciation charge of right-of-use assets

Interest expense on lease liabilities

Amounts recognised in Statement of Cash Flows

FY21
$'000

FY20
$'000

13,622

-

541

-

526

14,803

497

618

(2,205)

(2,289)

(2)

(7)

12,482

13,622

1,520

1,566

10,962

12,056

12,482

13,622

1,895

526

1,920

618

Total cash outflows for leases

(2,205)

(2,289)

The Group assesses whether a contract is or contains 
a lease, at inception of the contract. The Group 
recognises a right-of-use asset and a corresponding 
lease liability with respect to all lease arrangements 
in which it is the lessee, except for short-term leases 
(defined as leases with a lease term of 12 months or 
less) and leases of low value assets. For these leases, 
the Group recognises the lease payments as an 
operating expense on a straight-line basis over the term 
of the lease unless another systematic basis is more 
representative of the time pattern in which economic 
benefits from the leased assets are consumed.

The lease liability is initially measured at the present 
value of the lease payments that are not paid at the 
commencement date, discounted by using the rate 
implicit in the lease. If the rate cannot be readily 
determined, the lessee uses its incremental borrowing 
rate.

Lease payments included in the measurement of the 
lease liability comprise:

   Fixed lease payments (including in-substance fixed 
payments), less any lease incentives receivable;

   Variable lease payments that depend on an index or 
rate, initially measured using the index or rate at the 
commencement date

   The amount expected to be payable by the lessee 

under residual value guarantees;

   The exercise price of purchase options, if the lessee 
is reasonably certain to exercise the options; and

   Payments to penalties for terminating the lease, if 
the lease term reflects the exercise of an option to 
terminate the lease

The lease liability is presented as a separate line in the 
consolidated statement of financial position.

The lease liability is subsequently measured by 
increasing the carrying amount to reflect interest on 
the lease liability (using the effective interest method) 
and by reducing the carrying amount to reflect the lease 
payments made.

The Group remeasures the lease liability and makes a 
corresponding adjustment to the related right-of-use 
asset whenever:

   The lease term has changed or there is a significant 
event or change in circumstances resulting in a 
change in the assessment of exercise of a purchase 
option, in which case the lease liability is remeasured 
by discounting the revised lease payments using a 
revised discount rate.

   The lease payments change due to changes in an 

index or rate or a change in expected payment under 
a guaranteed residual value, in which cases the lease 
liability is remeasured by discounting the revised 
lease payments using an unchanged discount rate 

   A lease contract is modified and the lease 

modification is not accounted for as a separate 
lease, in which case the lease liability is remeasured 
based on the lease term of the modified lease by 
discounting the revised lease payments using a 
revised discount rate at the effective date of the 
modification.

The Group did not make any such adjustments during 
the year presented.

Variable rents that do not depend on an index or rate are 
not included in the measurement of the lease liability 
and the right-of-use asset. The related payments are 
recognised as an expense in the period in which the 
event or condition that triggers those payments occurs 
and are included in “Other expenses” in profit or loss 
(see note 2).

The Group has applied judgement to determine the 
lease term for some lease contracts in which it is a 
lessee that include renewal options. The assessment 
of whether the Group is reasonably certain to exercise 
such options impacts the lease term, which significantly 
affects the amount of lease liabilities and right-of-use 
assets recognised.

72

RESIMAC GROUP LTD

ANNUAL REPORT 2021

73

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

KEY NUMBERS

15. Other financial liabilities

17. Provisions

Note

FY21
$'000

FY20
$'000

Present value of future trail commission payable

15,789

20,797

Current 

Non-current

22

15,789

20,797

4,528

5,750

11,261

15,047

15,789

20,797

Employee benefits 

Make good

Current

Non-current

FY21
$'000

FY20
$'000

4,760

458

5,218

4,401

817

5,218

4,116

514

4,630

3,902

728

4,630

RECOGNITION & MEASUREMENT

The Group makes trail commission payments to mortgage 
originators based on monthly loan balances outstanding. 

Initial Recognition

Fair value of future trail commission payable is recognised 
on the origination of White label loans. This represents the 
NPV of the expected future trail commission payable under 
the origination and management agreement, less ongoing 
servicing costs not covered by transaction fees. 

Subsequent payment

Subsequent to initial recognition, the future trail 
commission payable is measured at amortised cost.

The carrying amounts of the trail commissions payable are 
adjusted to reflect actual and revised estimated cash flows 
by recalculating the carrying amount through computing 
the present value of estimated future cash flows at the 
effective interest rates. The resulting adjustment is 
recognised as income or expense in the statement of 
comprehensive income.

A remeasurement of the underlying cash flows relating to 
the trail commission payable occurs at each reporting date.

Key judgements and assumptions

Refer to Note 1 for the key estimates and judgements 
underlying the remeasurement of the estimated future 
cash flows. 

16. Other liabilities

Reinsurance claim reserve

Non-current

FY21
$'000

FY20
$'000

3,545

3,545

3,339

3,339

3,545

3,339

The reinsurance claim reserve offsets with the reinsurance claim receivable amount in Note 10.

Balance at 1 July 2020

Additional provisions recognised

Provision utilised

BALANCE AT 30 JUNE 2021

Employee benefits

Make good

$'000

4,116

2,035

(1,391)

4,760

$'000

514

17

(73)

458

Total

$'000

4,630

2,145

(1,557)

5,218

RECOGNITION & MEASUREMENT

Provisions are recognised when:

   the Group has a present obligation (legal or 
constructive) as a result of a past event;

   it is probable that the Group will be required to settle 

the obligation; and

   a reliable estimate can be made of the amount of the 

obligation.

The amount recognised as a provision is the best estimate 
of the consideration required to settle the present 
obligation at the end of the reporting period, taking 
into account the risks and uncertainties surrounding 
the obligation. When a provision is measured using the 
cash flows estimated to settle the present obligation, its 
carrying amount is the present value of those cash flows 
(when the effect of the time value of money is material).

17.1.  Employee benefits

A liability is recognised for benefits accruing to employees 
where the liability can be measured reliably and payment is 
probable, in respect of:

   wages and salaries; 
   annual leave; 
   long service leave; and
   on-costs relating to the above.

Liabilities recognised in respect of employee benefits 
expected to be settled within 12 months, are measured at 
their nominal values using the remuneration rate expected 
to apply at the time of settlement.

Liabilities recognised in respect of employee benefits which 
are not expected to settle within 12 months are measured 
at the present value of the estimated future cash outflows 
to be made by the Group in respect of services provided by 
employees up to the reporting date.

The liability for long service leave is recognised in the 
provision for employee benefits. It is measured as the 
present value of expected future payments for the services 
provided by employees up to the reporting date. 

Expected future payments are discounted using market 
yields at the reporting date on high quality corporate bonds 
with terms to maturity that match, as closely as possible, 
the estimated future cash outflows.

17.2.  Make good

Where a condition of the Group’s lease premises is to 
return the property in its original condition at the end of a 
lease term. The Group recognises a provision for the make 
good as the expected cost of the refurbishment at the end 
of the lease.

74

RESIMAC GROUP LTD

ANNUAL REPORT 2021

75

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

Notes to the consolidated 
financial statements

Capital
for the year ended 30 June 2021

18. Capital management

The Group’s capital management objectives

The Group manages its capital to ensure that entities 
in the Group will be able to continue as a going concern 
while maximising the return to stakeholders through the 
optimisation of the debt and equity balance.

The Group operates a warehouse to securitisation 
funding model for its lending business and as such makes 
decisions on the amount of capital invested in the notes or 
warehouses based on alternate sources of funding and the 
expected return on amounts invested and with regard to 
the company's cost of capital.

EQUITY

Issued capital

Reserves

Retained earnings

The Group manages its capital through various means, including:

   adjusting the amount of ordinary dividends paid to shareholders;
   maintaining a dividend reinvestment plan;
   raising or repaying capital; and
   reinvesting profits.

The capital structure of the Group consists of net debt 
(borrowings as detailed in Note 13 offset by cash and bank 
balances) and equity of the Group (comprising issued 
capital, reserves, retained earnings and non-controlling 
interests as detailed in Note 20).

The Group is not subject to any externally imposed capital 
requirements.

The Board is responsible for monitoring and approving the 
capital management framework within which management 
operates. The purpose of the framework is to prudently 
manage capital whilst optimising the debt and equity 
structure.

Note

FY21
$'000

FY20
$'000

20

20 

20

120,134

120,354

(18,126)

(7,556)

219,131

128,694

321,139

241,492

19. Dividends 

Declared and paid during the period (fully-franked at 30 percent)

Final dividend for FY20: $0.018 (FY19: $0.010)

Special dividend for FY20: Nil (FY19: $0.005)

FY21
$'000

FY20
$'000

7,334

           4,058

           -

           2,029

Interim dividend for FY21: $0.024 (Interim FY20: $0.012)

           9,786

           4,879

Proposed and unrecognised as a liability (fully-franked at 30 percent)

Final dividend for FY21: $0.04 (FY20: $0.018) 

Franking credit balance

Franking credits available for future years at 30% adjusted for the 
payment of income tax and dividends receivable or payable

Impact on the franking account of dividends proposed before the financial 
report was issued but not recognised as a distribution to equity holders 
during the period. 

20. Issued capital and reserves

Issued capital

Treasury shares

Share capital

Reverse acquisition reserve1

           17,120

           10,966

16,336

16,336

7,334

7,334

57,198

19,170

(7,001)

(3,143)

FY21
$'000

FY20
$'000

183,011

181,895

(1,336)

-

181,675

181,895

(61,541)

(61,541)

120,134

120,354

Issued capital as at 30 June 2021 was $183,011,197 (408,404,461 ordinary shares). 

During the period, the Company issued:

   567,646 shares for $951,191 in respect of the Resimac Dividend Reinvestment Plan (DRP), and
   387,478 shares for $165,000 to provide for LTI share options being exercised and Employee Share Plan

1   As a result of reverse acquisition accounting in the Resimac/Homeloans merger, an account was created as a component of equity. This account called ‘Reverse 

acquisition reserve’ is similar in nature to share capital. The Reverse acquisition reserve is not available for distribution.

76

RESIMAC GROUP LTD

ANNUAL REPORT 2021

77

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

20.1.  Issued capital

20.3.  Reserves (net of income tax) and retained earnings

Balance at 30 June 2020 and 1 July 2020                                                        

    407,449

181,895

Adoption of AASB 16, net of income tax

(339)

-

-

-

Balance at 1 July 2019

Issue of shares under a dividend reinvestment plan

Exercise of options – proceeds received

No. of shares - 
thousands

$'000

405,790

180,548

    1,059

600

1,017

330

Issue of shares under the DRP:

   FY20 Dividend on 25 September 2020

   HY21 Dividend on 31 March 2021

Exercise of options – proceeds received

Employee shares

Balance at 30 June 2021

312

256

300

87

398

553

165

-

408,404

183,011

Fully paid ordinary shares, which have no par value, carry one vote per share and carry a right to dividends.

20.2.  Treasury shares

Treasury shares held in Resimac Group Ltd by Resimac EST Pty Ltd as Trustee for the Resimac Group Limited Employee Share 
Trust, are for the benefit of eligible employees of the Resimac Group Employee Share Option and Rights Plan. Shares issued to 
employees are recognised on a first-in-first-out basis.

Balance at 1 July 2019                                                        

Subscription of shares by the Trust (average price: $0.85 per share)

Allocation of shares under LTI#1

Balance at 30 June 2020                                                        

Subscription of shares by the Trust (average price: $2.13 per share)

Allocation of shares under LTI#1

Acquisition of shares (average price: $2.47 per share)

Balance at 30 June 2021                                                        

-

600

-

510

(600)

(510)

-

-

300

(300)

540

540

639

(639)

1,336

1,336

RESERVES

Cash flow 
hedge 
reserve

Foreign 
currency 
translation 
reserve

Retained 
earnings

Fair value 
reserve

Share-
based 
payment 
reserve

Other 
reserve

Non-
controlling 
interest

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Balance at 1 July 2019

84,314

(5,876)

656

(2,065)

Adjusted balance as at 1 July 2019

83,975

(5,876)

656

(2,065)

Profit after tax

55,908

Acquisition of non-controlling interest

Changes in fair value of cash flow hedges, 
net of tax

Currency translation differences

Fair value movement on investment 
through OCI, net of tax

-

-

-

-

Equity dividends

(10,966)

Share-based payments

Option to acquire shares of subsidiary

Reallocation

-

-

(223)

-

-

365

-

-

-

-

-

-

-

-

-

(504)

-

-

-

-

-

-

-

-

-

(657)

-

-

-

223

88

-

88

-

-

-

-

-

-

402

-

-

-

-

-

-

-

-

-

-

-

-

(188)

-

-

-

-

99

99

-

(4)

-

-

-

-

-

BALANCE AT 30 JUNE 2020

128,694

(5,511)

152

(2,499)

490

(188)

194

(7,982)

(444)

Profit after tax

107,557

Acquisition of non-controlling interest 
without a change in control

Option to acquire shares of subsidiary

Changes in fair value of cash flow hedges, 
net of tax

Currency translation differences

Fair value movement on investment 
through OCI, net of tax

-

-

-

-

-

Equity dividends

Share-based payments

(17,120)

-

-

-

-

(4,406)

-

-

-

-

-

(2)

-

-

(205)

-

-

-

-

-

-

-

-

126

-

-

-

-

-

-

-

-

-

1,711

-

188

-

-

-

-

-

BALANCE AT 30 JUNE 2021

219,131

(9,917)

(55)

(2,373)

2,201

(7,982)

194

249

-

-

1

-

-

-

-

No. of shares - 
thousands

$'000

Balance at 1 July 2020

128,694

(5,511)

152

(2,499)

490

(188)

78

RESIMAC GROUP LTD

ANNUAL REPORT 2021

79

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

CAPITAL

20.3.  Nature and purpose of reserves

Cash flow hedge reserve

The cash flow hedging reserve represents the cumulative 
effective portion of gains or losses arising on changes in 
fair value of hedging instruments entered into for cash flow 
hedges. The cumulative gain or loss arising on changes in 
fair value of the hedging instruments will be reclassified 
to profit or loss only when the hedged transaction affects 
the profit or loss, or included as a basis adjustment to the 
non-financial hedged item, consistent with the Group’s 
accounting policy. 

results and net assets of the Group's New Zealand 
operations from its functional currency to the Group's 
presentation currency are recognised directly in other 
comprehensive income and accumulated in the foreign 
currency translation reserve.

Share-based payment reserve

The share-based payments reserve is used to recognise 
the value of equity-settled share-based payments provided 
to employees, including KMP, as part of their remuneration. 
Refer to Note 31 for further details of these plans.

Foreign currency translation reserve

20.4.  Retained earnings

Exchange differences relating to the translation of the 

See Note 19 in respect of payment of dividends.

21. Earnings per share

FY21
$'000

FY20
$'000

Profit attributable to ordinary equity holders of the parent ($'000) 

107,557

55,908

WANOS1 used in the calculation of basic EPS (shares, thousands) 

407,824

406,536

Dilutive effect of share options

2,592

1,100

WANOS1 used in the calculation of diluted EPS (shares, thousands) 

410,416

407,636

EARNINGS PER SHARE

Basic (cents per share)

Diluted (cents per share)

26.37

26.21

13.75

13.72

1   Weighted average number of shares

80

RESIMAC GROUP LTD

Calculation of earnings per share

21.1.  Basic earnings per share

   From 28 April 2021 to 30 June 2021 (71,610,645) 

Basic earnings per share is calculated as net profit 
attributable to the ordinary equity holders of the parent, 
adjusted to exclude any costs of servicing equity (other 
than dividends), divided by the WANOS adjusted for any 
bonus element.

21.2.  Diluted earnings per share

Diluted earnings per share is calculated by:

   dividing the net profit attributable to ordinary equity 

holders of the parent; by the

   WANOS outstanding during the year; plus

   the WANOS that would be issued on the conversion of 
all the dilutive potential ordinary options or rights into 
ordinary shares.

21.3.  Calculation of WANOS

Twelve months to 30 June 2021

The number of Resimac Group shares issued:

   From 1 July 2020 to 24 September 2020 (96,001,762)

The number of Resimac ordinary shares on issue of 
407,449,337 multiplied by the ratio of days outstanding 
(86/365); plus

   From 25 September 2020 to 30 March 2021 

(208,907,555) 

   The number of Resimac shares on issue 

(407,449,337) at 24 September 2020; plus

   Additional shares issued on 25 September 2020 

under the DRP (311,398)

multiplied by the ratio of days outstanding (187/365).

   The number of Resimac shares on issue 

(408,104,461) at 28 April 2021; plus

   Additional shares issued on 28 April 2021 under the 

LTI (300,000)

multiplied by the ratio of days outstanding (64/365).

Twelve months to 30 June 2020

The number of Resimac Group shares issued:

   From 1 July 2019 to 29 September 2019 (100,893,180) 

The number of Resimac ordinary shares on issue of 
405,790,153 multiplied by the ratio of days outstanding 
(91/366); plus

   From 30 September 2019 to 26 March 2020 

(198,845,864) 

   The number of Resimac shares on issue 

(405,790,153) at 29 September 2019; plus

   Additional shares issued on 30 September 2019 

under the DRP (788,540)

multiplied by the ratio of days outstanding (179/366).

   From 27 March 2020 to 11 May 2020 (51,134,070) 

   The number of Resimac shares on issue 
(406,578,693) at 26 March 2020; plus

   Additional shares issued on 27 March 2020 under the 

DRP (270,644)

multiplied by the ratio of days outstanding (46/366).

   From 12 May 2020 to 30 June 2020 (55,662,478) 

   The number of Resimac shares on issue 

(406,849,337) at 11 May 2020; plus

   From 31 March 2021 to 11 April 2021 (13,414,257) 

   Additional shares issued on 12 May 2020 under the 

LTI (600,000)

multiplied by the ratio of days outstanding (50/366).

   The number of Resimac shares on issue 
(407,760,735) at 30 March 2021; plus

   Additional shares issued on 31 March 2021 under the 

DRP (256,248)

multiplied by the ratio of days outstanding (12/365).

   From 12 April 2021 to 27 April 2021 (17,889,511) 

   The number of Resimac shares on issue 

(408,016,983) at 11 April 2021; plus

   Additional shares issued on 12 April 2021 under the 

Employee Share Plan (87,478)

multiplied by the ratio of days outstanding (16/365).

ANNUAL REPORT 2021

81

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

Notes to the consolidated 
financial statements

Risk
for the year ended 30 June 2021

22. Financial assets and financial liabilities

The Group holds the following financial instruments:

Basis of measurement

Note

FY21
$'000

FY20
$'000

Financial assets

Cash and cash equivalents

Amortised cost   

Trade and other receivables

Loans and advances

Short-term investment 

Investment securities – BNK 

Investment securities – Athena 

Investment securities – Positive Group

Derivative financial assets

Financial liabilities

Trade and other payables

Interest-bearing liabilities

Amortised cost

Amortised cost

Amortised cost

FVOCI-equity 
instrument

FVTPL

FVTPL

FVTPL

Amortised cost   

Amortised cost

Present value of trail commission payable 

Amortised cost

Derivative financial liabilities

FVTPL

4

5

6

7

7

7

7

23

12

13

15

23

619,809

365,987

4,581

5,974

13,925,760

12,506,012

260

4,713

7,110

3,000

2,256

260

1,921

2,000

3,000

52,592

14,567,489

12,937,746

34,537

25,891

14,170,651

12,685,616

15,789

20,797

60,976

3,277

14,281,953

12,735,581

22.1.  Fair values measurements and valuation processes

22.1.1.  Fair value hierarchy

The different levels have been defined as follows: 

   Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; 

   Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or  liability, either directly 

(i.e. as prices) or indirectly (i.e. derived from prices); and 

   Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

The following assets and liabilities are measured at fair value by the Group for financial reporting purposes:

Fair value 
hierarchy

Valuation technique(s) 
and key input(s)

FY21
$'000

FY20
$'000

Financial assets

Listed shares – BNK Banking 
Corporation Limited (ASX: BBC)

Unlisted shares - Athena

Level 1

Level 3

Unlisted shares – Positive Group

Level 3

Most recent traded price and other 
available market information

Acquisition value, financial performance 
since acquisition. Subsequent capital 
raise since acquisition adjusted for 
changes in market and macroeconomic 
factors  

Acquisition value and strategic value from 
synergies

Level 2

Level 2

Discounted cash flow. Forward interest 
rates, contract interest rates

Discounted cash flow. Forward interest 
rates, contract interest rates

4,713

7,110

1,921

2,000

3,000

3,000

2,256

3,330

-

49,262

Level 2

Level 2

Discounted cash flow. Forward interest 
rates, contract interest rates

Discounted cash flow. Forward interest 
rates, contract interest rates

472

3,277

60,504

-

In the year to 30 June 2021 there has been no change in the fair value hierarchy or the valuation techniques applied to any of the 
balances above.

For further information on the use of derivatives refer to Note 23 Financial risk management.

22.1.2.  Fair value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required)

With the exception of the future trail commission payable that is initially recognised at fair value and subsequently carried 
at amortised cost, management consider that the carrying amounts of financial assets and liabilities recognised in the 
consolidated financial statements approximate their fair values. 

Interest rate swaps

Cross currency swaps

Financial liabilities

Interest rate swaps

Cross currency swaps

82

RESIMAC GROUP LTD

ANNUAL REPORT 2021

83

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

22.2.  Financial assets and liabilities 

22.2.1.  Recognition and initial measurement

Loans and advances and receivables (including trade and 
other receivables, bank balances and cash) are non-
derivative financial assets with fixed or determinable 
payments that are not quoted in an active market which 
are initially recognised when they are originated. All 
other financial assets and financial liabilities are initially 
recognised when the Group becomes a party to the 
contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without 
a significant financing component) or finance liability 
is initially measured at fair value plus, for an item not at 
FVTPL, transaction costs that are directly attributable 
to its acquisition or issue. A trade receivable without a 
significant financing component is initially measured at 
the transaction price.

22.2.2.  Classification and subsequent measurement

22.2.2.1.  Financial assets 

On initial recognition, a financial asset is classified as 
measured at:

   amortised cost

   fair value through other comprehensive income 

(FVOCI) – debt instrument

   fair value through other comprehensive income 

(FVOCI) – equity instrument 

   fair value through profit or loss (FVTPL) 

Financial assets are not reclassified subsequent to their 
initial recognition unless the Group changes its business 
model for managing financial assets, in which case all 
affected financial assets are reclassified on the first day 
of the first reporting period following the change in the 
business model.

A financial asset is measured at amortised cost if it 
meets both of the following conditions and is not 
designated as at FVTPL:

   it is held within a business model whose objective is to 

hold assets to collect contractual cash flows; and

   its contractual terms give rise on specified dates to 
cash flows that are solely payments of principal and 
interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both 
of the following conditions and is not designated as at 
FVTPL:

   it is held within a business model whose objective is 
achieved by both collecting contractual cash flows 
and selling financial assets; and

   its contractual terms give rise on specified dates to 
cash flows that are solely payments of principal and 
interest on the principal amount outstanding.

On initial recognition of an equity investment that is 
not held for trading, the Group may irrevocably elect to 
present subsequent changes in the investment’s fair 
value in OCI. This election is made on an investment-by-
investment basis.

All financial assets not classified as measured at 
amortised cost or FVOCI as described above are 
measured as FVTPL. This includes all derivative financial 
assets and investment securities. On initial recognition, 
the Group may irrevocably designate a financial asset 
that otherwise meets the requirements to be measured 
at amortised cost or at FVOCI as at FVTPL if doing so 
eliminates or subsequently reduces an accounting 
mismatch that would otherwise arise. 

22.2.2.2.  Financial assets - Business model 
assessment

The Group determines the business model at the 
level that reflects how groups of financial assets are 
managed. In determining the business model, all 
relevant evidence that is available at date of assessment 
is used including:

   how the performance of the financial assets held 
within that business model are evaluated and 
reported to the Group’s KMP

   the risks that affect the performance of the business 

model (and the financial assets held within that 
business model) and, in particular, the way in which 
those risks are managed; and

   how managers of the business are compensated (for 
example, whether compensation is based on the fair 
value of the assets managed or on the contractual 
cash flows collected).

Financial assets that are held for trading or are managed 
and whose performance is evaluated on a fair value basis 
are measured at FVTPL. 

22.2.2.3.  Financial assets - Assessment whether 
contractual cash flows are solely payments of principal 
and interest

For the purpose of this assessment, ‘principal’ is 
defined as the fair value of the financial asset on initial 
recognition. ‘Interest’ is defined as consideration for the 
time value of money and for the credit risk associated 
with the principal amount outstanding during a 
particular period of time and for other basic lending risks 
and costs (e.g. liquidity risk and administrative costs), as 
well as a profit margin.

In assessing whether the contractual cash flows are 
solely payments of principal and interest, the Group 
considers the contractual terms of the instrument. This 
includes assessing whether the financial asset contains 
a contractual term that could change the timing or 
amounts of contractual cash flows such that it would 
not meet this condition. In making this assessment, the 
Group considers:

   contingent events that would change the amount or 

timing of cash flows;

   terms that may adjust the contractual coupon rate, 

including variable-rate features;

   prepayment and extension features; and

   terms that limit the Group’s claim to cash flows from 

specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely 
payments of principal and interest criterion if the 
prepayment amount substantially represents unpaid 
amounts of principal and interest on the principal 
amount outstanding, which may include reasonable 
additional compensation for early termination of the 
contract. Additionally, for a financial asset acquired at 
a discount or premium to its contractual par amount, 
a feature that permits or requires prepayment at an 
amount that substantially represents the contractual 
par amount plus accrued (but unpaid) contractual 
interest (which may also include reasonable additional 
compensation for early termination) is treated as 
consistent with this criterion if the fair value of the 
prepayment feature is insignificant at initial recognition.

22.2.2.4.  Financial Assets - Subsequent measurement 
and gains and losses

Financial 
assets at 
FVTPL

Financial 
assets at 
amortised 
cost

Debt 
investments 
at FVOCI

Equity 
investments 
at FVOCI

These assets are subsequently 
measured at fair value. Net gains 
and losses, including any interest or 
dividend income, are recognised in 
profit or loss. However, see Note 23.3 
for derivatives designated as hedging 
instruments. 

These assets are subsequently 
measured at amortised cost using 
the effective interest method. 
The amortised cost is reduced by 
impairment loss. Interest income, 
foreign exchange gains and losses 
and impairment are recognised in 
profit or loss. Any gain or loss on 
derecognition is recognised in profit 
or loss.

These assets are subsequently 
measured at fair value. Interest 
income is calculated using the 
effective interest method. Other 
net gains and losses are recognised 
in OCI. On derecognition, gains 
and losses accumulated in OCI are 
reclassified to profit or loss. 

These assets are subsequently 
measured at fair value. Dividends 
are recognised as income in profit 
or loss unless the dividend clearly 
represents a recovery of part of the 
cost of the investment. Other net 
gains and losses are recognised in 
OCI and are never reclassified to 
profit or loss. 

84

RESIMAC GROUP LTD

ANNUAL REPORT 2021

85

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

22.2.2.5.  Financial liabilities – Classification, subsequent 
measurement and gains and losses

Financial liabilities are classified as either financial liabilities 
at FVPTL or other financial liabilities.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL where the 
liability is either held for trading or designated at fair value 
through profit or loss.

A financial liability is held for trading if:

   it has been incurred principally for the purpose of 

repurchasing it in the near term; or

   on initial recognition it is a part of a portfolio of 

identified financial instruments that the Group manages 
together and has a recent actual pattern of short-term 
profit-taking; or 

   it is a derivative that is not designated and effective as a 

hedging instrument.

A financial liability other than a financial liability held 
for trading may be designated as at FVTPL upon initial 
recognition if:

   such designation eliminates or significantly reduces a 
measurement or recognition inconsistency that would 
otherwise arise; or 

   the financial liability forms part of a group of financial 

assets or financial liabilities or both, which is managed 
and its performance evaluated on a fair value basis, 
in accordance with the Group’s documented risk 
management or investment strategy, and  information 
about the grouping is provided internally on that basis; 
or  

   it forms part of a contract containing one or more 

embedded derivatives, and AASB 9 permits the entire 
combined contract to be designated as at FVTPL. 

Financial liabilities at FVTPL are stated at fair value with 
any gains or losses arising on remeasurement recognised 
in profit or loss. The net gain or loss recognised in profit or 
loss incorporates any interest paid on the financial liability 
and is included in the ‘other gains and losses' line item. 

Other financial liabilities

Other financial liabilities (including borrowings and trade 
and other payables) are subsequently measured at 
amortised cost using the effective interest method.

The effective interest method is a method of calculating 
the amortised cost of a financial liability and of allocating 
interest expense over the relevant period. The effective 
interest rate is the rate that exactly discounts estimated 

future cash payments (including all fees and points paid or 
received that form an integral part of the effective interest 
rate, transaction costs and other premiums or discounts) 
through the expected life of the financial liability, or (where 
appropriate) a shorter period, to the net carrying amount 
on initial recognition.

22.2.3.  Derecognition

22.2.3.1.  Financial assets

The Group derecognises a financial asset when the 
contractual rights to the cash flows from the financial asset 
expire, or it transfers the rights to receive the contractual 
cash flows in a transaction in which substantively all of 
the risks and rewards of ownership of the financial asset 
are transferred or in which the Group neither transfers 
nor retains substantially all of the risks and rewards of 
ownership and it does not retain control of the financial 
asset. 

The Group enters into transactions whereby it transfers 
assets recognised in its statement of financial position, but 
retains either all or substantially all of the risks and rewards 
of the transferred assets. In these cases, the transferred 
assets are not derecognised. 

22.2.3.2.  Financial liabilities

The Group derecognises a financial liability when its 
contractual obligations are discharged or cancelled, or 
expire. The Group also derecognises a financial liability 
when its terms are modified and the cash flows of the 
modified liability are substantially different, in which case 
a new financial liability based on the modified terms is 
recognised at fair value. 

On derecognition of a financial liability, the difference 
between the carrying amount extinguished and the 
consideration paid (including any non-cash assets 
transferred or liabilities assumed) is recognised in profit or 
loss.

22.2.4.  Impairment of financial assets

The Group recognises loss allowances for expected credit 
loss (ECL) on:

   Financial assets measured at amortised cost

   Contract assets

   Lease receivable

The Group measures loss allowances for a financial 
instrument at an amount equal to the lifetime ECL for 
stage 2 or stage 3 assets if the credit risk on that financial 
instrument has increased significantly since recognition, 
or if the financial instrument is a purchased or originated 
credit-impaired financial asset.

If the credit risk on a financial instrument has not increased 
significantly since initial recognition (except for a purchased 
or originated credit-impaired financial asset), the Group 
measures the loss allowance for that financial instrument 
at an amount equal to a 12 month ECL for stage 1 assets. 
The Group applies a simplified approach for measuring the 
loss allowance at an amount equal to lifetime ECL for trade 
receivables, contract assets and lease receivable in certain 
circumstances. 

Significant increase in credit risk

An asset moves to stage 2 when its credit risk has 
increased significantly since initial recognition. A significant 
increase in credit risk is identified before the exposure has 
defaulted and at the latest when exposure becomes 30 
days past due.  When determining whether the credit risk 
of a financial asset has increased significantly since the 
initial recognition and when estimating ECLs, the Group 
considers reasonable and supportable information that 
is relevant and available without undue cost effort. This 
includes both quantitative and qualitative information 
and analysis, based on the Group’s historical experience 
and informed credit assessment and including forward-
looking information. As part of the forward-looking 
assessment, the Group has considered factors including 
macro-economic forecast and outlook, GDP growth, 
unemployment rates and interest rates. 

Credit-impaired financial assets

The movement between stage 2 and 3 will be based 
on whether financial assets are credit-impaired at the 
reporting date. A financial asset is credit-impaired when 
one or more events that have a detrimental impact on the 
estimated future cash flows of the financial assets have 
occurred. 

Evidence that a financial asset is credit-impaired includes 
the following observable data:

   significant financial difficulty of the borrower; or

   breach of contract, such us a default or delinquency in 

interest or principal payments; or

   becoming apparent that the borrower will enter 

bankruptcy or financial re-organisation; or 

   past experience of collecting payments; or

   an increase in the number of delayed payments in the 

portfolio past the average credit period; or

   observable changes in national or local economic 

conditions that correlate with default on receivables.

Definition of default

shortfalls (i.e. the difference between the cash flows due 
to the entity in accordance with the contract and the cash 
flows that the Group expects to receive). The key inputs 
used in measuring ECL include:

(a)   probability of default: the PD is the likelihood of default, 

applied to each underlying exposure

(b)   loss given default: the LGD is the magnitude of the 

expected credit loss in the event of default, taking into          
consideration the mitigating effect of collateral assets 
and time value of money

(c)   exposure at default: the EAD represents the estimated 

exposure in the event of a default

The ECL is determined with reference to the following 
stages:

Stage 1: 12 month ECL

At initial recognition, for financial assets without a 
significant increase in credit risk (SICR), or for financial 
assets where an increase in credit risk is considered to 
be low, ECL is determined based on PD over the next 12 
months, adjusted for forward looking estimates (FLE).

Stage 2: Lifetime ECL not credit impaired

Where there has been a SICR, the ECL is determined 
with reference to the financial asset’s lifetime PD and the 
lifetime losses associated with that PD, adjusted for FLE. 
The Group assesses whether there has been a SICR since 
initial recognition based on qualitative, quantitative, and 
reasonable and supportable FLE that includes management 
judgement. Use of more alternative criteria could result in 
significant changes to the timing and amount of ECL to be 
recognised. Lifetime ECL is generally determined based on 
the average maturity of the financial asset. 

Stage 3: Lifetime ECL credit impaired

Financial assets are classified as stage 3 where they are 
determined to be credit impaired, which generally matches 
the Group’s definition of default which includes exposures 
that are at least 90 days past due, and where the obligor is 
unlikely to pay without recourse against available collateral. 

The ECL for credit impaired financial assets is generally 
measured as the difference between the discounted 
contractual and discounted expected cash flows from the 
individual exposure. For credit impaired exposure that are 
modelled collectively, ECL is measured as the product of 
the lifetime PD, LGD, and EAD, adjusted for FLE. Interest 
income is determined with reference to the financial asset’s 
amortised cost carrying value, being the financial asset’s 
net carrying value after the ECL provision. 

The Group considers that default has occurred at 90 days 
past due.

Stage 3: Impaired Assets

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. 
Credit losses are measured as the present value of all cash 

Outside of the ECL, where assets are more than 90 days 
past due and a shortfall between the loan balance and the 
underlying security has been identified, a specific provision 
is raised for the shortfall.  

86

RESIMAC GROUP LTD

ANNUAL REPORT 2021

87

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

23. Financial risk management

23.1.  Financial risk management objectives 

23.2.  Derivative financial instruments

The Group's Corporate Treasury function:

   implements and executes treasury and funding 

strategy; 

   co-ordinates access to domestic and international 

financial markets; and 

   monitors and manages the financial risks relating to the 
operations of the Group through internal monitoring 
tools which analyse exposures by degree and 
magnitude of risks. 

The Group seeks to minimise the effects of currency and 
interest rate risks by using derivative financial instruments 
to hedge risk exposures. 

The use of financial derivatives is governed by the Group's 
Interest Rate Risk Management Policy approved by the 
Board of Directors, which provide written principles on:

   foreign exchange risk;

   interest rate risk; 

   credit risk;

These risks include:

   the use of financial derivatives and non-derivative 

   market risk (including currency risk and interest rate 

financial instruments; and

risk); 

   economic risk;

   interest rate risk;

   credit risk; and

   liquidity risk.

   the investment of excess liquidity. 

Compliance with policies and exposure limits is reviewed by 
the Board on a continuous basis. The Group does not enter 
into or trade financial instruments, including derivative 
financial instruments, for speculative or proprietary 
purposes.

Risk

Exposure arising from

Measurement

Management

Market risk - 
currency

Recognised financial assets and liabilities not 
denominated in Australian dollars. Foreign 
currency denominated profit or losses

Cash flow       
forecasting 
Sensitivity analysis

Cross currency interest rate swaps 
Cash flow management and 
matching

Market risk - 
interest rate

Mismatch in interest rates between
assets and liabilities

Sensitivity analysis

Interest rate swaps 

Market risk - 
equity 
investment 
valuation 

Investments in equity securities 

Sensitivity analysis

Equity investments not held for 
trading

Credit risk

Mortgage portfolio and funding SPV-level 
exposures, counterparty risk

Credit risk analysis
Rating agency 
criteria and 
analyses

Diversification, adaptive capital 
structures, strong collections/
portfolio management, rating 
agency provisions in transactions 
documents

Liquidity risk

Borrowings, derivative financial liabilities 

Rolling cash flow 
forecasts

Availability of committed credit 
lines and borrowing facilities, 
securitisation, capital relief 
transactions, structuring terms of 
obligations

RECOGNITION & MEASUREMENT

Derivatives are initially recognised at fair value at the 
date the derivative contracts are entered into and are 
subsequently remeasured to their fair value at each 
reporting period. 

The resulting gain or loss is recognised in profit or loss 
immediately unless the derivative is designated and 
effective as a hedging instrument, in which event the 
timing of the recognition in profit or loss depends on the 
nature of the hedge relationship. 

23.3.  Hedge accounting

The Group designates certain hedging instruments, 
which includes derivatives in respect of foreign currency 
risk, as cash flow hedges. 

At the inception of the hedge relationship the Group 
documents the relationship between the hedging 
instrument and hedged item, along with its risk 
management objectives and its strategy for undertaking 
various hedge transactions. 

Furthermore, at the inception of the hedge and on 
an ongoing basis, the Group documents whether the 
hedging instrument that is used in a hedging relationship 
is effective in offsetting changes in fair values or cash 
flows of the hedged item attributable to the hedged risk, 
which is when the hedging relationships meet all of the 
following hedge effectiveness requirements:

   there is an economic relationship between the 

hedged item and the hedging instrument;

   the effect of credit risk does not dominate the value 
changes that result from that economic relationship; 
and

   the hedge value is largely reflective of the hedged 

item.

Note 22.1 sets out the details of the fair values of the 
derivative instruments used for hedging purposes.

23.3.1.  Cash flow hedges

The effective portion of changes in the fair value of 
derivatives that are designated and qualify as cash 
flow hedges is recognised in other comprehensive 
income and accumulated under the heading of cash 
flow hedging reserve. The gain or loss relating to the 
ineffective portion is recognised immediately in profit 
or loss and is included in the other expenses or other 
income line item.

Amounts previously recognised in other comprehensive 
income and accumulated in equity are reclassified to 
profit or loss, in the same line as the recognised hedged 
item.

Hedge accounting is discontinued when:

   the Group revokes the hedging relationship; 

   the hedging instrument expires or is sold, terminated, 

or exercised; or

   the Group no longer qualifies for hedge accounting. 

Any cumulative gain or loss recognised in other 
comprehensive income and accumulated in equity at 
that time remains in equity and is recognised when the 
forecast transaction is ultimately recognised in profit or 
loss. When a forecast transaction is no longer expected 
to occur, the gain or loss accumulated in equity is 
recognised immediately in profit or loss.

23.3.2.  Derivative financial assets and liabilities

The carrying values are as follows:

FY21
$'000

FY20
$'000

Derivative financial assets

Cross currency swaps

-

49,262

Interest rate swaps

2,256

3,330

2,256

52,592

Derivative financial liabilities 

Cross currency swaps

60,504

-

Interest rate swaps

472

3,277

60,976

3,277

The Group seeks to minimise the effects of foreign 
currency and some interest rate exposures by using 
derivative instruments to hedge these positions. 
Derivatives are initially recognised at fair value at 
the date derivative contracts are entered into, and 
subsequently measured at their fair value at each 
reporting period.

During the period, currency movements drove changes 
in valuation of the Groups’ cross currency swaps 
hedged to our US RMBS bonds. These movements in 
our derivative balances are matched with our USD bond 
liabilities, with the profit/(loss) on swaps recognised in 
Other Comprehensive Income.

23.4.  Market risk 

Market risk is the risk of an adverse impact on the 
Group’s earnings resulting from changes in market 
factors, such as interest rates and foreign exchange 
rates.

88

RESIMAC GROUP LTD

ANNUAL REPORT 2021

89

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

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|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

The following table details the notional principal 
amounts outstanding at the end of the reporting period:

FY21
$'000

FY20
$'000

Notional principal value

Less than 1 year

6,935

-

1 to 2 years

2 to 5 years

152,722

24,280

694,900

503,503

854,557

527,783

The interest rate swaps settle and reset on a monthly 
basis. The floating rate on the interest rate swaps is the 
Bank Bill Swap Rate (BBSW) local interbank rate. The 
Group will settle the difference between the fixed and 
floating interest rate on a net basis.

23.4.4.  Corporate interest - Sensitivity analysis

The remainder of the Group’s loan portfolio and 
liabilities are held in corporate entities. The impact of a 
potential +/- 10bps change in interest rates on interest 
revenue and borrowing costs on balances held by the 
Group for the year is set out in the table below:

FY21
$'000

FY20
$'000

10bps +/-

Impact on corporate interest revenue

Interest rate + 10bps

620

366

Interest rate - 10bps

(620)

(366)

Impact on corporate funding costs1

Interest rate + 10bps

Interest rate - 10bps

-

-

(5)

5

1   As at 30 June 2021, the corporate debt facility balance is nil.

23.4.1.  Interest rate risk 

Interest rate risk is the risk that the Group will 
experience deterioration in its financial position as 
interest rates change over time.

Interest rate exposure is driven by interest rate 
mismatches between assets and liabilities (i.e. 
borrowing at floating interest rates and lending with 
fixed interest rates). Interest rate risk is managed by 
entering into interest rate swaps subject to the Group’s 
hedging and derivatives policies. 

23.4.2.  Interest rate risk - Sensitivity analysis

The majority of the Group’s liabilities are issued through 
warehouse facilities and term securitisations in special 
purpose and bankruptcy-remote entities. Under such 
arrangements, the repayment profile of the bonds is 
matched to the repayments collected from the loan 
assets.

The Group has calculated the impact of a potential 
increase or decrease in borrowing costs in limited 
recourse entities for the year in the event of a +/- 10bps 
change in interest rates as shown in the table below:

FY21
$'000

FY20
$'000

10bps +/-

Borrowing costs 

14,158

12,669

23.4.3.  Interest rate swap contracts

Under interest rate swap contracts, the Group agrees 
to exchange the difference between fixed and floating 
rate interest amounts calculated on agreed notional 
principal amounts. Such contracts enable the Group 
to mitigate the risk of changing interest rates on the 
cash flow exposures on the issued variable rate debt. 
The fair value of interest rate swaps at the end of the 
reporting period is determined by discounting the future 
cash flows using the curves at the end of the reporting 
period and the credit risk inherent in the contract and is 
disclosed below.

FY21
$'000

FY20
$'000

Fair value asset

Derivative financial assets

2,256

3,330

Fair value liability

Derivative financial liabilities

472

3,277

The following table details the notional principal amounts 
outstanding at the end of the reporting period:

FY21
$'000

FY20
$'000

Notional principal value

2 to 5 years

2,021,479

1,462,711

2,021,479

1,462,711

23.6.  Credit risk management

The Group’s primary credit risk exposures relate to its 
lending activities in its principally-funded mortgage 
portfolio. The Group’s primary lending activities are 
concentrated in the Australian and New Zealand residential 
mortgage market. The underlying credit risk in the Group’s 
lending activities is commensurate with a geographically-
diverse residential mortgage portfolio.    

The Board of Directors is responsible for determining the 
Group’s overall appetite for credit risk and monitoring the 
quality and performance of the mortgage portfolio. The 
credit risk management operational framework and policy 
is governed and managed by the Credit Committee. 

The Group does not have any direct counterparty credit 
exposure arising from its asset financing and securitisation 
activities. Counterparty risk is governed, and mitigated 
where required, by ratings agency criteria within the 
bankruptcy-remote funding SPVs and trusts including 
exposures to banks, lender’s mortgage insurance providers 
and derivative counterparties.    

23.6.1.  Credit risk in lending

The Group has established lending policies and procedures 
to manage the credit risk inherent in lending. The extent 
of credit risk in the Group’s lending activities is managed 
within its two origination and funding programmes, being 
‘Prime’ and ‘Specialist Lending’. The Group maintains 
separate credit policies for each programme and regularly 
reviews and amends policies in line with economic, 
operating and funding conditions.   

23.4.5.  Equity price risk

Equity investments in listed and unlisted shares are held for 
strategic rather than trading purposes. The Group does not 
actively trade these investments. 

23.4.6.  Equity investment valuation risk - sensitivity 
analysis

If equity prices had been 10% higher / lower:

   Net profit for the year ended 30 June 2021 would 

increase / decrease by $1,011,000 as a result of the 
changes in fair value of the investments in unlisted 
shares (FY20: $500,000); and

   Other comprehensive income would increase / 

decrease by $471,000 as a result of the changes in fair 
value of investments in listed shares (FY20: $192,000). 

23.5.  Foreign currency risk 

23.5.1.  Accounting translation

As at reporting date the Group held cash assets 
denominated in New Zealand dollars (NZD). 

Fluctuations in the NZD are not expected to have material 
impact on the consolidated statement of profit or loss or 
the consolidated statement of comprehensive income and 
equity of the Group. 

23.5.2.  Market risk - foreign exchange on monetary items

The Group obtains funding denominated in foreign 
currencies, consequently, exposures to exchange rate 
fluctuations arise. These currencies include USD. The 
Group manages foreign currency risk through the use of 
currency derivatives.

The carrying amounts of the Group’s foreign currency 
denominated assets and liabilities are as follows:

Assets

USD liabilities 
(disclosed in AUD)

Liabilities

USD liabilities 
(disclosed in AUD)

JPY liabilities 
(disclosed in AUD)

FY21
$'000

FY20
$'000

-

49,262

45,738

14,766

-

-

90

RESIMAC GROUP LTD

ANNUAL REPORT 2021

91

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

23.6.2.  Exposure to credit risk

23.6.5.  Credit risk management

The Group’s approach to credit management utilises a 
credit risk framework to ensure that the following principals 
are adhered to:

   independence from risk originators;

   recognition of the different risks in the various Group 

businesses;

   credit exposures are systematically controlled and 

monitored;

   credit exposures are regularly reviewed in accordance 

with current up-to-date credit procedures; and

   credit exposures include such exposures arising from 

derivative transactions.

Each of the divisions are responsible for managing credit 
risks that arise in their own areas with oversight from a 
centralised credit risk management team. It is the policy of 
the Group to monitor the policies of all divisions to ensure 
that the risk of the Group is monitored.

Loans and advances consist of a large number of 
customers, spread across diverse demographic and 
geographical areas. Ongoing credit evaluation is performed 
on the financial condition of loans and advances and 
accounts receivable.

There is no significant concentration of risk to any single 
counterparty.

The credit risk on derivative financial instruments is limited 
because the counterparties are banks with high credit-
ratings assigned by international credit-rating agencies.

23.6.3.  Maximum exposure to credit risk

The carrying amount of the Group’s financial assets 
represents the maximum credit exposure. The Group’s 
exposure to credit risk at the reporting date was:

Cash and cash equivalents

Trade and other receivables

Contract assets

Short-term investment

Derivative financial assets

Loans and advances at amortised cost – balances subject to credit risk

Note

FY21
$'000

FY20
$'000

4

5

1

7

23

6

619,809

365,987

4,581

5,974

33,299

41,954

260

260

2,256

52,592

660,205

466,767

13,934,440

12,518,394

14,594,645

12,985,161

As at 30 June 2021, 100% of the Group’s cash and cash 
equivalents are held with banks or financial institutions with 
a credit rating of AA- or better (FY20: 100%).

23.6.3.1 Residential mortgage borrowers 

The Group manages credit risk by obtaining security over 
residential mortgage property for each loan. 

In monitoring the credit risk, loans are grouped according 
to their credit characteristics using credit risk classification 
systems. This includes the use of the Loan to Value Ratio 
(LVR) to assess its exposure to credit risk from loans 
originated through the securitisation programme. 

For White label loans, some agreements with lenders 
contain provisions requiring the Group to pay instalments 
due from borrowers until securities are enforced or 
an insurance claim has been paid and to purchase the 
mortgage from the lender if the Group is in default. The 
Group’s risk in this area is mitigated by insurance policies 
and a rigorous credit assessment process.

23.6.4.  Financial guarantees

The Group is exposed to credit risk in relation to financial 
guarantees given to banks. The Group's maximum 
exposure in this respect is the maximum amount the Group 
could have to pay if the guarantees are called on. Refer to 
Note 26 for the guarantees in respect of the leases. 

The following table summarises the movement in expected credit loss for loans and advances for the reporting period:

Maximum exposure to credit risk

$'000

$'000

$'000

$'000

Stage 1
Collective

Stage 2
Collective

Stage 3
Collective

Stage 3
Impaired

Total

$'000

Balance as at 30 June 2021

Loans and advances

   Mortgage lending

13,453,244

431,457

36,947

12,194

13,933,842

   Commercial lending

598

-

-

-

598

TOTAL

13,453,842

431,457

36,947

12,194

13,934,440

Balance as at 30 June 2020

Loans and advances

   Mortgage lending

12,433,112

45,248

22,826

16,571

12,517,757

   Commercial lending

637

-

-

-

637

TOTAL

12,433,749

45,248

22,826

16,571

12,518,394

Expected credit loss

Balance as at 30 June 2021

Loans and advances

   Mortgage lending

13,799

14,016

4,310

5,439

37,564

   Commercial lending

1

-

-

-

1

TOTAL

13,800

14,016

4,310

5,439

37,565

Balance as at 30 June 2020

Loans and advances

   Mortgage lending

25,864

2,441

2,335

6,057

36,697

   Commercial lending

1

-

-

-

1

TOTAL

25,865

2,441

2,335

6,057

36,698

92

RESIMAC GROUP LTD

ANNUAL REPORT 2021

93

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

The majority of the Group’s exposure to loans and advances is limited, as they are legally owned by special purpose vehicles 
(trusts) with limited recourse to the Group. Losses on mortgage loans in these entities are therefore limited to the Group’s 
investment in notes in these trusts and the residual income rights of trusts. The trust structures are designed such that losses 
are covered by the income generated from the assets within the trust before the investment notes are impaired. As part of the 
structure the investment notes in the trust holds first right over the loans and advances within the vehicles. 

Collateral held

The value of the collateral held as security for loans in stage 2 and stage 3 collective at 30 June 2021 is $689.6 million (30 June 
2020: $94.5 million).

The value of the collateral held as security for loans in stage 3 specific loans at 30 June 2021 is $8.1 million (30 June 2020: $12.0 
million)

Loans are secured by the Group by having the property titles registered as a financial interest that provide the Group first 
priority over any proceeds becoming available from the sale of the property. For Prime insured loan, LMI policies exist to cover 
100% of the principal amount at default plus interest.

LOANS & ADVANCES AT AMORTISED COST1

0 days and <30 days

30 days and less than 60  days

60 days and less than 90 days

90 days and less than 180 days

180 days and less than 270 days

270 days and less than 365 days

365 and over

TOTAL

FY21
$'000

FY20
$'000

13,458,212

12,438,670

395,691

36,677

23,188

6,278

2,753

35,313

10,038

14,487

4,746

2,145

11,641

12,995

13,934,440

12,518,394

23.6.6.  Credit risk concentrations

An analysis of the Group’s credit risk concentrations on loans and advances is provided in the following table. The amounts in the 
table represent gross carrying amounts:

23.6.8.  Movement in credit exposures 

Stage 1
Collective

Stage 2
Collective

Stage 3
Collective

Stage 3
Impaired

LOANS & ADVANCES AT AMORTISED COST

Concentration by region

New South Wales

Victoria

Queensland

Western Australia 

South Australia

Tasmania

Northern Territory

New Zealand

TOTAL

FY21
$'000

FY20
$'000

5,132,426

4,673,307

3,693,253

3,584,565

2,471,432

2,064,167

1,012,975

918,803

752,651

609,674

100,442

90,275

56,811

48,984

714,450

528,619

13,934,440

12,518,394

Total

$'000

6,057

36,698

Provision for impairment losses

$'000

$'000

$'000

$'000

Balance as at 30 June 2020

Net transfer between stages 

Net re-measurement of opening 
balance net of transfers

Impact of transfers between stages 
and re-measurement

25,865

523

2,441

(49)

2,335

(1,025)

(14,038)

11,301

3,286

551

967

(13,515)

11,252

2,261

1,518

Net Financial Assets Originated

2,790

365

Movements in existing individually 
assessed provisions and write-backs

Write-offs

Discharges/Other

Balance as at 30 June 2021

-

-

(1,340)

13,800

-

-

(42)

14,016

39

-

-

(325)

4,310

-

(301)

(1,809)

(26)

5,439

-

1,516

1,516

3,194

(301)

(1,809)

(1,733)

37,565

23.6.7.  Analysis of loans and advances by past due status

Under the Group’s monitoring procedures, a significant increase in credit risk is identified before the exposure has defaulted and 
at the latest when exposure becomes 30 days past due. The table below provides an analysis of the gross carrying amount of 
loans and advances by past due status that are over 30 days past due.

Credit exposure

Balance as at 1 July 2020

12,433,749

45,248

22,826

16,571

12,518,394

Net transfers between stages and 
financial assets originated

1,020,093

386,209

14,121

(2,568)

1,417,855

Write-offs

-

-

-

(1,809)

(1,809)

Balance as at 30 June 2021

13,453,842

431,457

36,947

12,194

13,934,440

94

RESIMAC GROUP LTD

ANNUAL REPORT 2021

95

1  Includes loans that are collectively and specifically provided for.

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

Stage 1
Collective

Stage 2
Collective

Stage 3
Collective

Stage 3
Impaired

Total

7,016

1,143

(563)

580

2,789

200

-

-

15,882

(602)

25,865

1,750

(958)

1,342

384

112

-

-

-

475

(280)

2,441

2,103

(699)

1,465

766

44

-

-

-

23

(601)

2,335

5,576

514

1,470

1,984

-

295

384

(2,254)

-

72

6,057

16,445

-

3,714

3,714

2,945

495

384

(2,254)

16,380

(1,411)

36,698

Provision for impairment losses

Balance as at 30 July 2019

Net transfer between stages 

Net re-measurement of opening 
balance net of transfers

Impact of transfers between stages 
and re-measurement

Net Financial Assets Originated

Acquisition of RAF

Movements in existing individually 
assessed provisions and write-backs

Write-offs

COVID-19 overlay

Discharges/Other

Balance as at 30 June 2020

Credit exposure

Balance as at 1 July 2019

10,238,294

50,406

24,334

23,986

10,337,020

Net transfers between stages and 
financial assets originated

2,195,455

(5,158)

(1,508)

(5,161)

2,183,628

Write-offs

-

-

-

(2,254)

(2,254)

Balance as at 30 June 2020

12,433,749

45,248

22,826

16,571

12,518,394

COVID-19

The Group discloses expected future credit losses using 
an expected credit loss (ECL) model, in line with AASB 
9 requirements. The ECL model includes an overlay to 
reflect potential impacts on the portfolio from adverse 
macroeconomic scenarios (i.e. rising unemployment, house 
price decline, low wage growth). The macroeconomic 
overlay considers 3 key macroeconomic assumptions:

  Australian GDP 
  Property prices 
  Unemployment rate

Several alternate macroeconomic scenarios were 
considered and applied at an individual loan, dynamic 

underlying security value. Where loans (in the stressed 
scenario) were uninsured and had LVRs of >100%, we 
calculated the shortfall required for these loans. This 
was then used to calculate the macro-economic overlay. 
Hardship accounts were removed for the purpose of 
calculating the Macroeconomic overlay. The underlying 
security value bands used in the macroeconomic overlay 
are in line with the Core Logic Hedonic Index.

At 30 June 2020, the ECL model did not include expected 
delinquencies from customers on COVID-19 hardship 
payment moratoriums. Regulators provided guidance for 
lenders that customers in COVID hardship moratoriums 
were not to be considered in arrears during the 
moratorium. 

Consequently at 30 June 2020, the group provisioned 
a COVID-19 overlay given the ECL model did not 
fully capture credit risk of loans in hardship payment 
moratoriums.  The overlay at 30 June 2020 was $16.4m and 
was included as part of the Collective Provision at 30 June 
2020. 

At 30 June 2021, all COVID hardship payment moratorium 
periods have completed.  For the small subset of customers 
who entered a COVID hardship moratorium and continue 
to require assistance post completion of the moratorium, 
these customers are now treated under the standard 
hardship procedures, and therefore are treated as in 
arrears where payments are not up to date.  The process 
of customers previously under COVID-19 hardship 
payment moratoriums transferring to standard hardship 
arrangements removes the requirement for a COVID-19 
overlay.  All customers expected future credit loss are 
included in the ECL model Collective Provision at 30 June 
2021. 

Management remain cautious of ongoing pockets of 
financial stress in the economy.  Lockdowns and border 
closures continue to provide material headwinds to the 
economy, with the expectation of this continuing in FY22.  
Furthermore, whilst the majority of customers have 
rolled off hardship moratoriums, management believe 
it appropriate to flag these customers as potential for 
increased credit risk in the short term.  

Per the tables below, whilst the trend of customers 
requiring assistance has decreased during the year, 
pockets of financial stress remain.  At 30 June 2020, 
Resimac had 3,195 customers in active COVID-19 
hardship payment moratoriums, of which 355 customers 
subsequently fell into arrears.  At 30 June 2021, Resimac 
continue to provide support to 217 customers under 
standard hardship arrangements. 

Payment moratoriums at 30 June 2020 in standard hardship arrangements at 30 June 2021

Prime

Specialist

NZ & Legacy

Total

% of Portfolio

PRODUCT TYPE #

30 June 2020

30 June 2021

PRODUCT TYPE $'000

30 June 2020

30 June 2021

LOAN PURPOSE #

30 June 2020

30 June 2021

LOAN PURPOSE $'000

30 June 2020

30 June 2021

1,300

94

1,395

95

500

28

3,195

217

664,754

812,708

168,685

1,646,147

33,385

38,847

6,419

78,651

10.0

0.59

13.36

0.57

Owner occupier

Investor

Total

% of Portfolio

2,128

156

1,091,867

56,143

1,067

61

554,280

22,508

3,195

217

1,646,147

78,651

10.0

0.59

13.36

0.57

96

RESIMAC GROUP LTD

ANNUAL REPORT 2021

97

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

RISK

Customers previously in COVID-19 hardship payment moratoriums in standard hardship at 30 June 2021

Prime LMI

Prime No LMI

Specialist LMI

Specialist No LMI

Total

LVR BANDING

<60%

60% - 70%

70% - 80%

80% - 90%

90% - 95%

95% - 100%

100% +

TOTAL

14

2

3

12

2

4

2

39

17

17

10

7

-

2

2

55

19

2

2

2

1

-

3

29

31

16

24

12

4

4

3

94

81

37

39

33

7

10

10

217

23.7.  Liquidity risk management

Ultimate responsibility for liquidity risk management rests 
with the Board of Directors, which has established an 
appropriate liquidity risk management framework for the 
management of the Group's short, medium and long-term 
funding and liquidity management requirements. 

The Group’s funding platform currently comprises a mix of:

  warehouse facilities; 
  term securitisation; 
  a secured corporate debt facility; and
  cash.

The majority of the Group’s liabilities represent bonds 
issued by special purpose trusts through warehouse 
facilities and term securitisation transactions. Under such 
arrangements, bondholder recourse is limited to the assets 
of the relevant special purpose trust to which the liability 
relates and the repayment profile of the bonds is matched 
to the repayments collected from the loan assets. Given 
the limited recourse nature of these borrowings, $13.78 
billion at 30 June 2021 (FY20: $12.42 billion), they have not 
all been included in the table below.

The Group manages liquidity risk by maintaining adequate 
reserves, banking facilities and reserve borrowing facilities, 
by continuously monitoring forecast and actual cash flows, 
and by matching the maturity profiles of financial assets 
and liabilities. 

Note 23.7.2 below sets out details of additional undrawn 
facilities that the Group has at its disposal to further reduce 
liquidity risk. 

23.7.1.  Liquidity risk tables

The following table shows the Group's remaining expected 
maturity for its non-derivative financial liabilities with 
agreed repayment periods. The tables have been drawn up 
based on the undiscounted cash flows of financial liabilities 
based on the earliest date on which the Group can be 
required to pay and hence will not necessarily reconcile 
with the amounts disclosed in the statement of financial 
position.

The tables include both interest and principal cash flows. 
To the extent that interest flows are floating rate, the 
undiscounted amount is derived from interest rate curves 
at the end of the reporting period. The contractual maturity 
is based on the earliest date on which the Group may be 
required to pay.

FINANCIAL LIABILITIES

FY21

Non-derivatives

<6 months 
or on 
demand

6-12 
months

$'000

$'000

1-3 
years

$'000

3-5 
years

$'000

>5
years

$'000

Total cash 
flows

Carrying 
amount

$'000

$'000

Trade and other payables

34,537

-

-

-

-

34,537

34,537

Interest-bearing liabilities

  Issuance facilities

12,203

20,164

96,734

261,202

-

390,303

390,303

Present value of future trail 
commissions payable

2,462

2,066

5,462

2,810

2,989

15,789

15,789

Lease liabilities

1,052

1,049

4,247

4,382

3,677

14,407

12,482

50,254

23,279

106,443

268,394

6,666

455,036

453,111

Derivatives

60,976

-

-

-

-

60,976

60,976

111,230

23,279

106,443

268,394

6,666

516,012

514,087

FY20

Non-derivatives

Trade and other payables

25,891

Interest-bearing liabilities

  Corporate debt facility

  Issuance facilities

Present value of future trail 
commissions payable

-

-

-

-

5,000

-

-

-

258,755

-

-

-

25,891

25,891

5,028

5,000

258,755

258,755

28

-

3,115

2,635

7,053

3,671

4,323

20,797

20,797

Lease liabilities

1,137

1,087

3,946

4,089

5,975

16,234

13,622

30,171

3,722

15,999

266,515

10,298

326,705

324,065

Derivatives

3,277

-

-

-

-

3,277

3,277

33,448

3,722

15,999

266,515

10,298

329,982

327,342

23.7.2.  Financing facilities

Note

FY21
$'000

FY20
$'000

Secured corporate debt facility which may be extended by mutual agreement

Amount used

Amount unused

-

30,000

30,000

5,000

25,000

30,000

98

RESIMAC GROUP LTD

ANNUAL REPORT 2021

99

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

GROUP STRUCTURE

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

GROUP STRUCTURE

Notes to the consolidated 
financial statements

Group structure
for the year ended 30 June 2021

24. Subsidiaries

Details of the Group’s subsidiaries at the end of the reporting period are as follows. 

NAME OF SUBSIDIARY

Controlled companies

PROPORTION OF OWNERSHIP 
INTEREST HELD AND VOTING 
POWER HELD BY THE GROUP 

Principal activity

Place of 
incorporation 
and operation

FY21
%

FY20
%

Access Network Management Pty Ltd 

Auspack Financial Services Pty Ltd

Mortgage manager

Mortgage broker

Australia

Australia

Barnes Mortgage Management Pty Ltd

Mortgage originator and manager

Australia

Clarence Street Finance Pty Ltd

Holder of commission agreements

Australia

Clarence Street Funding No.1 Pty Ltd

Special purpose vehicle

Clarence Street Funding No.2 Pty Ltd

Participation unit holder

Clarence Street Funding No.3 Pty Ltd

Special purpose vehicle 

Clarence Street Funding No.4 Pty Ltd

Special purpose vehicle

Clarence Street Funding No.6 Pty Ltd 

Special purpose vehicle

Clarence Street Funding No.7 Pty Ltd

Special purpose vehicle

Clarence Street Funding No.8 Pty Ltd

Special purpose vehicle

Clarence Street Funding No.9 Pty Ltd

Special purpose vehicle

Clarence Street Funding No.10 Pty Ltd1

Special purpose vehicle

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

FAI First Mortgage Pty Ltd

Trust manager and servicer

Australia

Homeloans.com.au Pty Ltd2

Housing Financial Services Pty Ltd

Mortgage lender

Mortgage originator

Australia

Australia

1  Incorporated 28 July 2020.
2  Homeloans Pty Ltd changed its company name to Homeloans.com.au Pty Ltd on 15 August 2020. 

100

100

100

100

100

100

100

100

99.9

99.9

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

NAME OF SUBSIDIARY (cont'd)

Principal activity

Controlled companies

PROPORTION OF OWNERSHIP 
INTEREST HELD AND VOTING 
POWER HELD BY THE GROUP 

Place of 
incorporation 
and operation

FY21
%

FY20
%

Independent Mortgage Corporation Pty Ltd

Mortgage broker

Resimac Asset Finance Investments Pty Limited3

Holding company

Resimac Asset Finance Holdings Pty Limited4

Holding company

Resimac Asset Finance Pty Limited5

Asset finance originator and 
manager

Evergreen Finance Company Pty Limited

Lender of record

Australia

Australia

Australia

Australia

Australia

RAF Structured Finance Pty Limited6

Consumer and commercial lending

Australia

IASF (NZ) Limited7

SF Mortgage Pty Ltd

Consumer and commercial lending

New Zealand

Lender of record

Australia

Parnell Road Funding No.1 Limited

Special purpose vehicle

New Zealand

Parnell Road Funding No.2 Limited

Special purpose vehicle

New Zealand

Prime Insurance Group Limited

RESIMAC Capital Markets Pty Ltd

LMI captive insurer

Trust manager

Bermuda

Australia

RESIMAC Financial Services Limited

NZ Holding company

New Zealand

RESIMAC Financial Securities Limited

NZ Trust manager and servicer

New Zealand

RESIMAC Home Loans Ltd

NZ Lender of record and trustee

New Zealand

RESIMAC Limited

Non-bank lender

Australia

RESIMAC NZ Home Loans Ltd

NZ Holding company

New Zealand

RESIMAC Premier Warehouse No.1 Pty LTD8

Unit Holder

RHG Mortgage Corporation Ltd8

RHG Mortgage Securities Pty Ltd (RMS)8

RHG Home Loan Pty Ltd9

The Servicing Company Pty Ltd

RESIMAC EST PTY LTD

0508 Home Loans Ltd

0800 Home Loans Ltd

Access Home Loans Pty Ltd

Lender of record

Mortgage trustee

Mortgage Originator

Trust servicer

Initial Trustee

Dormant

Dormant

Dormant

Australia

Australia

Australia

Australia

Australia

Australia

New Zealand 

New Zealand 

Australia

100

100

100

100

100

100

-

100

100

100

100

100

100

100

100

100

100

-

-

-

100

100

100

100

100

100

100

60

60

60

60

60

60

60

100

100

100

100

100

100

100

100

100

-

-

-

-

100

100

100

100

100

3  International Acceptance Investment Pty Limited changed its company name to Resimac Asset Finance Investments Pty Limited on 6 February 2021.
4  International Acceptance Holdings Pty Limited changed its company name to Resimac Asset Finance Holdings Pty Limited on 6 February 2021.
5   International Acceptance Pty Limited changed its company name to Resimac Asset Finance Pty Limited on 5 February 2021.
6   IA Structured Finance Pty Limited changed its company name to RAF Structured Finance Pty Limited on 6 February 2021.
7  Deregistered 31 January 2021
8   Ownership interest is 0% however the Group have Board control.   
9  Acquired 30 June 2021.

100

RESIMAC GROUP LTD

ANNUAL REPORT 2021

101

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

GROUP STRUCTURE

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

GROUP STRUCTURE

NAME OF SUBSIDIARY (cont'd)

Principal activity

PROPORTION OF OWNERSHIP 
INTEREST HELD AND VOTING 
POWER HELD BY THE GROUP 

Place of 
incorporation 
and operation

FY21
%

FY20
%

Controlled companies

Clarence St Funding No.5 Pty Ltd 

Fiduciary Services Pty Ltd

Loan Packaging Australia Pty Ltd10

National Mutual Pty Ltd

RESIMAC Financial Securitisation Ltd

RESIMAC Financial Services Pty Ltd

RESIMAC Leasing Pty Ltd

International Acceptance (NZ) Limited11

Homeloans Pty Ltd12

Controlled trusts

Avoca Master Trust

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Australia

Australia

Australia

Australia

New Zealand

Australia

Australia

New Zealand

Australia

Issuer of RMBS

Australia

NZF Mortgages Warehouse A Trust

Warehouse mortgages

New Zealand

RESIMAC Bastille Master Trust13

RESIMAC Triomphe Master Trust13

Issuer of RMBS

Issuer of RMBS

Australia

Australia

RESIMAC Versailles Master Trust

Issuer of RMBS

New Zealand

RESIMAC Victoire Trust

Warehouse mortgages

New Zealand

RESIMAC Premier Series 2021-214

Issuer of RMBS

New Zealand

RMT Warehouse Trust No.213

Warehouse mortgages

RMT Securitisation Trust No.713

Issuer of RMBS

Australia

Australia

International Acceptance Trust

Consumer and commercial lending

Australia

The Trustee for the Resimac Group Limited Employee 
Share Trust15

Employee share trust

Australia

99.9

100

-

100

100

100

100

-

100

100

100

100

100

100

100

100

100

100

100

-

99.9

100

100

100

100

100

100

60

-

100

100

100

100

100

100

-

100

100

60

-

10  Deregistered 19 August 2020.
11  Deregistered 31 January 2021.
12  Incorporated 3 August 2020.
13  This does not represent holding in capital units, percentage ownership represents control of these Trusts.
14  Incorporated 1 June 2021.
15  Ownership interest is 0% however the Group have Board control.

25.2.  Details of acquisition 

On 1 February 2021, Resimac exercised the option to 
acquire the remaining 40% for cash consideration of 
$8.24m. The carrying amount of RAF’s net assets on the 
date of acquisition was $1.1m.

$'000

Carrying amount of NCI acquired 

444

Consideration paid to NCI

Cash consideration – equity value for 
40% of issued shares

Option to acquire remaining 40%

A decrease in equity attributable to 
owners of the Company

(8,240)

(188)

(7,984)

The decrease in equity attributable to owners of the 
Company comprised:

   a decrease in other reserve of $7,982,000; and

   a decrease in the foreign currency translation 

reserve of $2,000.

Special purpose entities – securitised trusts and 
funding warehouses

Special purpose entities are those entities over which 
the group has no ownership interest but in effect the 
substance of the relationship is such that the Group 
controls the entity so as to obtain the majority of the 
benefits from its operation. 

The Group has established special purpose entities 
to support the specific funding needs of the Group’s 
securitisation programme with the aim to: 

   conduct securitisation activities funded by short 
term warehouse facilities provided by reputable 
lenders; and

   hold securitised assets and issue Residential 

Mortgage Backed Securities. 

The special purpose entities meet the criteria of being 
controlled entities under AASB 10 - Consolidated 
Financial Statements. 

25. Acquisition of Non-Controlling Interest 
(NCI)

25.1 Accounting policies

Subsidiaries 

Subsidiaries are entities controlled by the Group. The 
Group ‘controls’ an entity when it is exposed to, or has 
right to, variable returns from its involvement with the 
entity and has the ability to affect those returns through 
its power over the entity. The financial statements of 
subsidiaries are included in the consolidated financial 
statements from the date on which control commences 
until the date on which control ceases.

Non-controlling interests

NCI are measured initially at their proportionate share 
of the acquiree’s identifiable net assets at the date of 
acquisition.

Changes in the Group’s interest in subsidiary that do 
not result in a loss of control are accounted for as equity 
transactions.

102

RESIMAC GROUP LTD

ANNUAL REPORT 2021

103

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

UNRECOGNISED ITEMS

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

Notes to the consolidated 
financial statements

Unrecognised items
for the year ended 30 June 2021

26. Commitments and contingencies

26.1.  Capital commitments 

The Directors were not aware of any capital commitments as at the end of the financial year or arising since balance date.

26.2.  Contingent liabilities

Lease guarantees

The Group has provided guarantees in respect of the leases over its premises of $585,724 (FY20: $1,415,351). The Directors 
were not aware of any other contingent liabilities as at the end of the financial year or arising since balance date.

27. Subsequent events

27.1.  Final dividend declared

The Board of Resimac Group Ltd declared a fully-franked final dividend of $0.04 per share. The Record Date is 3 September 
2021. The payment date will be 21 September 2021. The dividend has not been provided for in this financial report.

27.2.  Sale of White label portfolio

On 27 July 2021 Resimac executed the sale of $0.2b of White label loans (off balance sheet) for consideration of $1.6m plus GST. 
The net present value of this loan tranche future trail commission receivable is $1.4m, and is recognised on the Statement of 
Financial Position at 30 June 2021.  A gain of $0.2m on the sale will be recognised in FY22. 

Other than the above, there have been no circumstances arising since 30 June 2021 that have significantly affected or may 
significantly affect:

(a)  The operations

(b)  The results of those operations, or

(c)  The state of affairs of Group in future financial years. 

Other
for the year ended 30 June 2021

28. Auditor’s remuneration

Deloitte Touche Tohmatsu

Audit or review of financial reports

   Group

   Subsidiaries 

FY21
$

FY20
$

347,000

357,919

600,899

557,947

947,899

915,864

Statutory assurance services required by legislation to be provided by the auditor

114,000

13,650

Other assurance and agreed-upon procedures under other legislation or contractual 
arrangements

226,000

275,608

Other services 

   Tax consulting services

   Other consulting services

38,850

-

9,550

174,704

48,400

174,704

TOTAL REMUNERATION OF DELOITTE TOUCHE TOHMATSU

1,336,299

1,379,826

Non Deloitte Touche Tohmatsu audit firms

Audit or review of financial reports

   Subsidiaries 

14,000

10,000

Statutory assurance services required by legislation to be provided by the auditor

6,000

-

Other services 

   Tax compliance services

   Tax consulting services

   Other consulting services

173,344

177,648

62,531

-

50,500

44,000

TOTAL REMUNERATION OF NON DELOITTE TOUCHE TOHMATSU AUDIT FIRMS

255,875

282,148

104

RESIMAC GROUP LTD

ANNUAL REPORT 2021

105

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

28.1.  Non-audit services

The auditor of the Group is Deloitte Touche Tohmatsu (Deloitte). It is the Group’s policy to employ Deloitte on assignments 
additional to its statutory audit duties, in compliance with the Group’s independence policies, where Deloitte’s expertise and 
experience with the Group are important.

Amounts owed by related parties are secured and will be settled in cash. No guarantees have been given or received. No 
expense has been recognised in the current or prior years for bad or doubtful debts in respect of the amount owed by related 
parties.

Compensation of KMP

The remuneration disclosures of Directors and other members of KMP during the year are provided in sections one to nine 
of the remuneration report on pages 12 to 28 of this financial report designated as audited and forming part of the Directors’ 
Report.

The remuneration disclosures are for Resimac KMP only as presented in the Remuneration report.

KMP Compensation

Short-term benefits

Post-employment benefits

Long-term benefits

Share-based payments

FY21
$

FY20
$

2,984,062

2,422,142

125,000

102,087

32,208

310,595

413,239

346,928

3,554,509

3,181,752

The remuneration of Directors and KMP is determined by the Remuneration and Nomination Committee having regard to the 
performance of individuals and market trends.

The total non-audit services fees of $274,400 represents 20.5% of the total fees paid or payable to Deloitte and related 
practices for the year ended 30 June 2021 (FY20: $450,312). 

29. Related party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been 
eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related 
parties are disclosed below.

Trading transactions

During the year, Group entities entered into the following trading transactions with related parties that are not members of the 
Group:

REVENUE RECEIVED

EXPENSES PAID

FY21
$'000

FY20
$'000

FY21
$'000

FY20
$'000

Amounts incurred to Director’s related entities1

-

-

-

-

-

-

(123)

(123)

1  Includes interest paid on debt securities on issue to Bermuda Commercial Bank Limited. This interest rate is charged at market related terms.

Sales to related parties occur at arm’s length on commercial terms in the ordinary course of business in accordance with the 
terms and conditions outlined in the relevant commercial agreements with each party.

The following balances were outstanding at the end of the reporting period:

AMOUNTS OWED BY 
RELATED PARTIES

AMOUNTS OWED TO
RELATED PARTIES

FY21
$'000

FY20
$'000

FY21
$'000

FY20
$'000

Other related parties of Resimac Group Ltd1

13,421

13,421

13,176

13,176

-

-

-

-

1  Includes residential mortgages to KMP or related parties lent in ordinary course of business at arm’s lengths. 

106

RESIMAC GROUP LTD

ANNUAL REPORT 2021

107

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

30. Parent disclosures 

The parent company of the Group, as at and throughout the financial year ended 30 June 2021, was Resimac Group Ltd.

Presented below is supplementary information about the parent entity. 

STATEMENT OF FINANCIAL POSITION

Assets

Current 

Non-current 

Liabilities

Current 

Non-current 

NET ASSETS

Equity

Issued capital

Reserves

Accumulated losses

Attributable to members of the parent:

Profit after tax

Total comprehensive income for the period

FY21
$'000

FY20
$'000

37,127

39,745

311,635

201,385

348,762

241,130

27,602

46,047

73,649

34,946

65,876

100,822

275,113

140,308

183,853

182,072

876

485

90,384

(42,249)

275,113

140,308

149,753

149,753

(5,659)

(5,659)

30.1.  Guarantees, contingent liabilities and contingent assets 

At 30 June 2021, there are no financial guarantees, contingent assets or contingent liabilities (FY20: nil).

30.2.  Accounting policies

The accounting policies of the parent entity, which have been applied in determining the financial information shown above, are 
the same as those applied in the consolidated financial statements except as set out above. The significant accounting policies 
relating to the Group are used throughout this financial report. 

31. Share-based payments

31.1.  Employee share option plan of the Company 

The Company has a share option scheme (pursuant to 
the Resimac Group Ltd Employee Share Option and 
Rights Plan) for senior employees of the Company. In 
accordance with the terms of the Plan, as approved 
by shareholders at the 2017 Annual General Meeting, 
senior employees may be granted options to purchase 
ordinary shares.

Each employee share option converts into one ordinary 
share of the Company on exercise. No amounts are paid 
or payable by the recipient on receipt of the option. 
The options carry neither rights to dividends nor voting 
rights. Options may be exercised at any time from the 
date of vesting to the date of their expiry.

Long-Term Incentive (LTI#1) Share Options - CEOs

Resimac offered the joint CEOs Scott McWilliam and 
Mary Ploughman (ceased employment on 17 July 2019) 
the opportunity to purchase 1,800,000 share options 
vesting in three equal tranches on each anniversary of 
the grant date. The options were granted on 18 August 
2017 and all options vest within 12 months, 24 months 
and 36 months of respective grant date associated with 
each tranche. The options expire within 36 months of 
their vesting, or one month after resignation, whichever 
is the earlier.  The sole vesting condition of the options 
is the employees remain employed with the Company 
to the respective vesting date associated with each 
tranche. 

The tranche 3 shares for Mary Ploughman expired due 
to her cessation of employment on 17 July 2019. The 
expiry dates of her tranche 1 and 2 were revised to 17 
July 2020 by the Board.

Long-Term Incentive (LTI#2) Share Options - CEO and 
GMs

Under the Group’s LTI share options and rights plan, 
the CEO and GMs receive options over ordinary shares 
and a potential cash component of $2.4m. The options 
were granted on 15 August 2019 and the vesting date 
for all options is 31 August 2022, subject to the Group 
achieving Net Profit After Tax (NPAT) growth hurdles, 
digital transformation hurdles, compliance hurdles and 
remaining employed with the Group until the vesting 
date. 

Since the current reporting period, the LTI#1 and LTI#2 
are administrated by The Trustee for the Resimac Group 
Limited Employee Share Trust. The trust is consolidated 
in accordance with note 24.

The trustee subscribes for the shares issued by the 
Group and allocates to the employees on exercise of 
options. Shares held by the trust and not yet allocated 
to employees at the end of the reporting period are 
shown as treasury shares in the financial statements.  
During the financial year ended 30 June 2021, 540,000 
(FY20: nil) Resimac shares were purchased on-market 
at an average price of $2.47 per share, for a total 
consideration of $1,336,233, to satisfy employee 
entitlements pursuant to the LTI#1. 

The fair value of share options under LTI#1 and LTI#2 
is recognised as an employee benefits expense with a 
corresponding increase in equity. The total expense is 
recognised over the vesting period, which is the period 
over which all of the specified vesting conditions are 
to be satisfied. At the end of each period, the Group 
revises its estimates of the number of options that are 
expected to vest based on the non-market vesting 
and service conditions. It recognises the impact of the 
revision to original estimates, if any, in the consolidated 
statement of profit or loss with a corresponding 
adjustment to equity.  

The fair value of the amounts payable to CEO and 
GMs in respect of cash component is recognised as 
an expense with a corresponding increase in liabilities, 
over the vesting period. The liabilities are remeasured 
to fair value at each reporting date and are presented 
as employee benefit obligations in the consolidated 
statement of financial position.

Employee Share Plan (ESP)

The Group commenced the Resimac Group Employee 
Share Scheme (ESS) in March 2021 whereby each 
financial year eligible employees are offered up to 
$1,000 worth of fully paid Resimac ordinary shares for no 
cash consideration.

Shares allocated under the ESS cannot be sold until the 
earlier of three years after allocation or the time when 
the participant is no longer employed by the Group. 

The first offer under the ESS was made during April 
2021. A total of 191 staff participated in this offer. 

On 12 April 2021, the participants were each allocated 
458 fully allocated shares based on the offer amount 
of $1,000 and the 5 day volume weighted average price 
(VWAP) of $2.18, resulting in a total of 87,478 shares 
being allocated. The shares were allocated to staff for no 
cash consideration. For the financial year ended 30 June 
2021, share-based payment expense relating to the ESS 
totalled $187 thousand. 

108

RESIMAC GROUP LTD

ANNUAL REPORT 2021

109

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

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110

RESIMAC GROUP LTD

ANNUAL REPORT 2021

111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

31.3.  Movements in share options during the period

The following reconciles the share options outstanding at the beginning and the end of the period:

Number of 
LTI options 
LTI#1

Number of 
LTI options 
LTI#2

Number 
of ESP 
options

Number 
of options 
Total

Weighted 
average 
fair value $ 
LTI#1

Weighted 
average 
fair value $ 
LTI#2

Weighted 
average fair 
value $
ESP

Unvested options at 1 July 2020

300,000

3,525,000

Vested options at 1 July 2020

600,000

-

OPTIONS HELD AT 1 JULY 2020

900,000

3,525,000

-

-

-

3,825,000

600,000

4,425,000

0.09

0.08

0.08

Granted during the year

-

Exercised during the year

(300,000)

-

-

87,478

87,478

-

(87,478)

(387,478)

0.55

0.20

-

0.20

-

-

Unvested options at 30 June 2021

-

3,525,000

Vested options at 30 June 2021

600,000

-

-

-

3,525,000

-

0.20

600,000

0.09

-

OPTIONS HELD AT 30 JUNE 2021

600,000

3,525,000

-

4,125,000

0.09

0.20

-

-

-

2.14

2.14

-

-

-

31.4.  Share options exercised during the period

The Trustee for the Resimac Group Limited Employee Share Trust subscribed for 300,000 fully paid ordinary shares issued by 
the Group at a subscription price of $2.13 per share, being the volume weighted average price of shares at the close of trading 
over a 5 day trading period up to and including 27 April 2021. Shares held by the trustee were allocated to Scott McWilliam on his 
exercise of tranche 1 share options on 26 April 2021.  

32. Other accounting policies

32.1.  Application of new and revised accounting 
standards  

The Group has applied the required amendments to 
Standards and Interpretations that are relevant to its 
operations and effective for the current reporting period 
for the first time for the financial year commencing 1 July 
2020. 

Software-as-a-Service (SaaS) arrangements

The International Financial Reporting Standards 
Interpretations Committee (IFRIC) has issued two final 
agenda decisions which impact SaaS arrangements:

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RESIMAC GROUP LTD

   Customer’s right to receive access to the supplier’s 

software hosted on the cloud (March 2019). 

This decision considers whether a customer receives a 
software asset at the contract commencement date or 
a service over the contract term.

   Configuration or customisation costs in a cloud 

computing arrangement (April 2021).

This decision discusses whether configuration 
or customisation expenditure relating to SaaS 
arrangements can be recognised as an intangible asset 
and if not, over what time period the expenditure is 
expensed. 

The Group’s accounting policy has historically been 
to capitalise all costs related to SaaS arrangement as 
intangible assets in the statement of financial position. 
The adoption of the above agenda decision has result 
in a reclassification of these intangible assets to 
recognition as an expense in the statement of profit or 
loss. The new accounting policy is presented in Note 11.

IBOR Benchmark Reform: Transition from inter-bank 
offered rates (IBOR) to alternative reference rates 
(ARRs)

The UK Financial Conduct Authority announced on 5 
March 2021 that all LIBOR settings will either cease to 
be published by any administrator or will no longer be 
representative at a specified future date, with a clear 
message to market participants to complete transition 
by the end of 2021.  Specifically, 1-month USD LIBOR will 
cease to be published after 30 June 2023, and all USD 
LIBOR-linked contracts must transition to replacement 
risk-free rates.

In addition, on 2 June 2021, the Financial Stability Board 
announced that all new use of LIBOR benchmarks should 
cease as soon as practicable and no later than the 
timelines set out by home authorities and/or national 
working groups in the relevant currencies.

The Alternative Reference Rates Committee (“ARRC”) 
of the Federal Reserve Bank of New York has selected 
SOFR as the replacement for LIBOR.  Resimac has 
adopted the ARRC-recommended LIBOR fallback 
language in USD transactions completed since 2019.  

In line with pronouncements from regulators and its 
recent USD transactions, Resimac proposes to amend 
all outstanding USD transactions completed prior to 
2019 by incorporating the ARRC-recommended LIBOR 
fallback language in the USD note conditions.

ARRC-recommended LIBOR fallback language

Under the ARRC fallback language adopted by Resimac: 

   USD LIBOR will be replaced as the benchmark for 

USD Notes using Term SOFR, which is expected to 
be a similar forward-looking term rate to USD LIBOR

RMBS and Derivative Amendments

Based on discussions with US dealers, Resimac 
understands that incorporating the ARRC - 
recommended LIBOR fallback language is consistent 
with the requirements of US RMBS investors. Resimac 
is therefore of the view that the proposed amendments 
are desirable and not materially prejudicial to the Class 
A1 Noteholders and will make required modifications to 
the benchmark language in its RMBS transactions and 
any associated derivative contract.  

Impacts on financial reporting

AASB 2019-3 Amendments to Australian Accounting 
Standards – Interest Rate Benchmark Reform issued 
in October 2019, amended to AASB 7 Financial 
Instruments: Disclosures, AASB 9 Financial Instruments 
to provide certain reliefs in relation to interest rate 
benchmark reforms. The relief relate to hedge 
accounting and have the effect that the reforms should 
not generally cause hedge accounting to terminate. 
However, any hedge ineffectiveness should continue to 
be recorded in the income statement. 

In September 2020, AASB 2020-8 Amendments to 
Australian Accounting Standards – Interest Rate 
Benchmark Reform – Phase 2 amended standards 
including AASB 7, AASB 9 and AASB 16 Leases (AASB 
16) to address accounting issues following the transition 
to ARR. The amendment provides practical expedients 
to account for changes in the basis for determining 
contractual cash flows as a result of IBOR reform under 
AASB 9 and AASB 16. It provides additional temporary 
reliefs from applying specific hedge accounting 
requirements to hedging relationships that are 
directly affected by IBOR reform and require additional 
quantitative and qualitative disclosures.   

The amendments are mandatorily effective for annual 
reporting periods on or after 1 July 2021. Based on 
management’s assessment as above, the impact is not 
expected to be materially different to how the Group 
currently accounts for financial instruments which have 
qualified for hedge accounting. 

Other amendments made to existing standards

Other amendments made to existing standards that 
were mandatorily effective for the financial year 
commencing 1 July 2020 did not have any material 
impact on the disclosures or on the amounts recognised 
in the consolidated financial statements.

32.2.  New and revised accounting standards and 
interpretations on issue but not yet effective

Certain new accounting standards and interpretations 
have been published that are not mandatory for 30 
June 2021 reporting periods and have not been early 
adopted by the Group. The Group’s assessment of the 
impact of these new standards and interpretations is set 
out below. These standards are not expected to have 
a material impact on the financial statements of the 
Group in future periods. 

|   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  

OTHER

|   DIRECTORS' DECLARATION

Effective 
for annual 
reporting 
periods 
beginning on 
or after

1 July 2021

STANDARD / AMENDMENT

AASB 2020-8 Amendments to 
Australian Accounting Standards -
Interest Rate Benchmark Reform 
Phase 2 

AASB 2020-3 Amendments to 
Australian Accounting Standards -
Annual Improvements 2018-2020 
and Other Amendments AASB 

1 July 2022

AASB 2020-1 Amendments to 
Australian Accounting Standards -
Classification of Liabilities as 
Current or Non-current

1 July 2023

The standards and interpretations listed above are not 
expected to have a material impact on financial results 
or financial position on adoption. 

32.3.  Goods and services tax (GST)

Revenues, expenses and assets are recognised net of 
the amount of GST except:

   where the GST incurred on a purchase of goods 

and services is not recoverable from the taxation 
authority, in which case the GST is recognised as part 
of the costs of acquisition of the asset or as part of 
the expense item as applicable; and

   receivables and payables which are stated with the 

amount of GST included.

The net amount of GST recoverable from, or payable to, 
the taxation authority is included as part of receivables 
or payables in the statement of financial position.

Cash flows are included in the statement of cash flows 
on a gross basis and the GST component of cash flows 
arising from investing and financing activities, which is 
recoverable from, or payable to, the taxation authority is 
classified as operating cash flows.

Commitments and contingencies are disclosed net of 
the amount of GST recoverable from, or payable to, the 
taxation authority.

Directors'
declaration

Resimac Group Ltd
and its controlled entities

The Directors declare that:

a. 

  in the Directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when 
they become due and payable

b. 

  in the Directors’ opinion, the attached financial statements are in compliance with Australian Accounting Standards as 
stated in the financial statements;

c. 

  in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations 
Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and 
performance of the consolidated entity and the company; and

d. 

 the Directors have been given the declarations required by s295.A of the Corporations Act 2001.

Signed in accordance with a resolution of the Directors pursuant to s295(5) of the Corporations Act 2001.

On behalf of the Directors

Warren McLeland
Chairman 
Sydney
30 August 2021

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|   INDEPENDENT AUDITOR'S DECLARATION   

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

|   INDEPENDENT AUDITOR'S REPORT  

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

Deloitte Touche Tohmatsu
ABN 74 490 121 060

Grosvenor Place
225 George Street
Sydney  NSW  2000
PO Box N250 Grosvenor Place
Sydney NSW 1220 Australia

Tel:  +61 2 9322 7000
Fax:  +61 2 9322 7001
www.deloitte.com.au

The Board of Directors 
Delarey Nell 
Partner  
Chartered Accountants 
30 August 2021 

Dear Board Members, 

Auditor’s Independence Declaration to Resimac Group Limited 

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the 
following  declaration  of  independence  to  the  directors  of  Resimac  Group  Limited  and  its 
controlled entities.  

As lead audit partner for the audit of the financial report of Resimac for the year ended 30 
June  2021,  I  declare  that  to  the  best  of  my  knowledge  and  belief,  there  have  been  no 
contraventions of: 

(i)

the auditor independence requirements of the Corporations Act 2001 in relation 
to the audit; and 

(ii) any applicable code of professional conduct in relation to the audit.   

Yours faithfully 

DELOITTE TOUCHE TOHMATSU 

Delarey Nell 
Partner  
Chartered Accountants 

Deloitte Touche Tohmatsu 
ABN 74 490 121 060 

Grosvenor Place 
225 George Street 
Sydney  NSW  2000 
PO Box N250 Grosvenor Place 
Sydney NSW 1220 Australia 

Tel:  +61 2 9322 7000 
Fax:  +61 2 9322 7001 
www.deloitte.com.au 

Independent Auditor’s Report to the Members of Resimac Group Limited 

Report on the Audit of the Financial Report 

Opinion  

We have audited the financial report of Resimac Group Limited (the “Company”) and its subsidiaries 
(the “Group”) which comprises the consolidated statement of financial position as at 30 June 2021, 
the consolidated statement of profit or loss, the consolidated statement of comprehensive income, 
the consolidated statement of changes in equity and the consolidated statement of cash flows for the 
year then ended, and notes to the financial statements, including a summary of significant accounting 
declaration. 
information, 
policies 

explanatory 

directors’ 

other 

and 

and 

the 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations 
Act 2001, including:  

(i)  

giving a true and fair view of the Group’s financial position as at 30 June 2021 and of their 
financial performance for the year then ended; and   

(ii)  

complying with Australian Accounting Standards and the Corporations Regulations 2001. 

Basis for Opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial 
Report  section  of  our  report.  We  are  independent  of  the  Group  in  accordance  with  the  auditor 
independence  requirements  of  the  Corporations  Act  2001  and  the  ethical  requirements  of  the 
Accounting  Professional  &  Ethical  Standards  Board’s  APES  110  Code  of  Ethics  for  Professional 
Accountants  (including  Independence  Standards)  (the  Code)  that  are  relevant  to  our  audit  of  the 
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with 
the Code.  

We confirm that the independence declaration required by the Corporations Act 2001, which has been 
given to the directors of the Company, would be in the same terms if given to the directors as at the 
time of this auditor’s report. 

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

Liability limited by a scheme approved under Professional Standards Legislation. 

Member of Deloitte Asia Pacific Limited and the Deloitte organisation.  

Liability Limited by a scheme approved under Professional Standards Legislation.  
Member of Deloitte Asia Pacific Limited and the Deloitte organisation. 

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|   INDEPENDENT AUDITOR'S REPORT  

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

|   INDEPENDENT AUDITOR'S REPORT  

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

Key Audit Matters  

Other Information  

Key audit matters are those matters that, in our professional judgement, were of most significance in 
our audit of the financial report for the current period. These matters were addressed in the context 
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not 
provide a separate opinion on these matters.  

Key Audit Matter 

Impairment of loans and advances 

As  at  30  June  2021  the  Group  has  recognised 
provisions amounting to $37.6m for impairment 
losses  on  loans  and  advances  held  at  amortised 
cost in accordance with the Expected Credit Loss 
(ECL) approach required under AASB 9  Financial 
Instruments as disclosed in Note 6, 22 and 23. 

Loans and advances subject to provisioning using 
the  ECL  model  include  the  residential  lending 
loans 
portfolio,  personal 
approved but not yet advanced. 

loan  portfolio  and 

Significant  management 
judgement  was 
necessary in determining expected credit losses, 
including: 

- 

- 

The application of the requirements of AASB 
9  as  reflected  in  the  Group’s  ECL  model 
particularly in light of the current economic 
environment including the ongoing impact of 
COVID-19;   
The 
identification  of  exposures  with  a 
significant  movement  in  credit  quality  to 
determine whether 12-month or lifetime ECL 
should be recognised; and 

-  Assumptions used in the ECL model such as 
the  financial  condition  of  the  counterparty, 
repayment  capacity  and  forward-looking 
macroeconomic factors as disclosed in Note 
6,22 and 23. 

How the scope of our audit responded to the Key Audit 
Matter 
Our  procedures 
included, but were not limited to:  

in  conjunction  with  our  specialists 

Testing  the  design  and  implementation  of  relevant 
controls over the impairment provision including: 
-  Assessing  accuracy  of  data  input  into  the  system 
used  for  determining  past  due  status  and  the 
approval of credit facilities; and  
Evaluating the ongoing monitoring and identification 
of  loans  displaying  indicators  of  impairment  and 
whether  they  are  migrating  on  a  timely  basis  to 
appropriate  default  stages  including  generation  of 
days past due reports. 

- 

Assessing impairment model adequacy 

Our procedures included, but were not limited to: 

the 

the 

-  Assessing whether managements’ model adequately 
relevant 

requirements  of 

addresses 
accounting standard; 
Evaluating management’s assessment of the impact 
of  COVID-19  on  the  loan  portfolio  and  hence  the 
estimate of ECL; 
Testing  on  a  sample  basis,  individual  exposures  to 
determine  if  they  are  classified  into  appropriate 
default stages and aging buckets for the purpose of 
determining impairment loss provision; 

- 

- 

-  Assessing the reasonableness of assumptions driving 
probabilities  of  default  (PD),  Loss  Given  Default 
(LGD) and Exposure at Default (EAD); and 

-  Assessing  reasonableness  of  management  overlays 
to the modelled collective provision, by recalculating 
the  coverage  provided  taking  into  account  recent 
history,  performance  and  de-risking  of  the relevant 
portfolios. 

We also assessed the appropriateness of the disclosures 
in Notes 6, 22 and 23 to the financial statements.   

The  directors  are  responsible  for  the  other  information.  The  other  information  comprises  the 
information  included in  the  Group’s  annual  report  for  the  year  ended  30  June  2021  but  does  not 
include the financial report and our auditor’s report thereon.  

Our opinion on the financial report does not cover the other information and we do not express any 
form of assurance conclusion thereon.  

In connection with our audit of the financial report, our responsibility is to read the other information 
and, in doing so, consider whether the other information is materially inconsistent with the financial 
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, 
based on the work we have performed, we conclude that there is a material misstatement of this 
other information; we are required to report that fact. We have nothing to report in this regard. 

Responsibilities of the Directors for the Financial Report 

The directors of the Company are responsible for the preparation of the financial report that gives a 
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 
and for such internal control as the directors determine is necessary to enable the preparation of the 
financial report that gives a true and fair view and is free from material misstatement, whether due 
to fraud or error.  

In preparing the financial report, the directors are responsible for assessing the ability of the Group to 
continue as a going concern, disclosing, as applicable, matters related to going concern and using the 
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or has no realistic alternative but to do so. 

Auditor’s Responsibilities for the Audit of the Financial Report  

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an 
audit conducted in accordance with the Australian Auditing Standards will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material 
if,  individually  or  in  the  aggregate,  they  could  reasonably  be  expected  to  influence  the  economic 
decisions of users taken on the basis of this financial report. 

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional 
judgement and maintain professional scepticism throughout the audit. We also:   

(cid:31) 

Identify and assess the risks of material misstatement of the financial report, whether due to 
fraud or error, design and perform audit procedures  responsive to those risks, and obtain 
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of 
not detecting a material misstatement resulting from fraud is higher than for one resulting 
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, 
or the override of internal control.  

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|   INDEPENDENT AUDITOR'S REPORT  

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

|   INDEPENDENT AUDITOR'S REPORT  

RESIMAC GROUP LTD & ITS CONTROLLED ENTITIES

(cid:31)  Obtain  an  understanding  of  internal  control  relevant  to  the  audit  in  order  to  design  audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing 
an opinion on the effectiveness of the Group’s internal control.  

(cid:31)  Evaluate  the  appropriateness  of  accounting  policies  used  and  the  reasonableness  of 

accounting estimates and related disclosures made by the directors.  

(cid:31)  Conclude on the appropriateness of the directors’ use of the going concern basis of accounting 
and, based on the audit evidence obtained, whether a material uncertainty exists related to 
events or conditions that may cast significant doubt on the Group’s ability to continue as a 
going concern. If we conclude  that a material uncertainty exists, we are required  to draw 
attention in our auditor’s report to the related disclosures in the financial report or, if such 
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit 
evidence obtained up to the date of our auditor’s report. However, future events or conditions 
may cause the Group to cease to continue as a going concern.  

(cid:31)  Evaluate the overall presentation, structure and content of the financial report, including the 
disclosures,  and  whether  the  financial  report  represents  the  underlying  transactions  and 
events in a manner that achieves fair presentation.  

(cid:31)  Obtain sufficient appropriate audit evidence regarding the financial information of the entities 
or business activities within the Group to express an opinion on the financial report. We are 
responsible for the direction, supervision and performance of the Group’s audit. We remain 
solely responsible for our audit opinion. 

We communicate with the directors regarding, among other matters, the planned scope and timing 
of the audit and significant audit findings, including any significant deficiencies in internal control that 
we identify during our audit.  

We  also  provide  the  directors  with  a  statement  that  we  have  complied  with  relevant  ethical 
requirements regarding independence, and to  communicate with them all relationships and other 
matters that may reasonably be thought to bear on our independence, and where applicable, actions 
taken to eliminate threats or safeguards applied.  

From the matters communicated with the directors, we determine those matters that were of most 
significance in the audit of the financial report of the current period and are therefore the key audit 
matters. We describe these matters in our auditor’s report unless law or regulation precludes public 
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter 
should  not  be  communicated  in  our  report  because  the  adverse  consequences  of  doing  so  would 
reasonably be expected to outweigh the public interest benefits of such communication. 

Report on the Remuneration Report 

Opinion on the Remuneration Report 

We have audited the Remuneration Report included in pages 12 to 29 of the Directors’ Report for the 
year ended 30 June 2021. 

In our opinion, the Remuneration Report of the Resimac Group Limited, for the year ended 30 June 
2021, complies with section 300A of the Corporations Act 2001.  

Responsibilities  

The  directors  of  the  Company  are  responsible  for  the  preparation  and  presentation  of  the 
Remuneration  Report  in  accordance  with  section  300A  of  the  Corporations  Act  2001.  Our 
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in 
accordance with Australian Auditing Standards.  

DELOITTE TOUCHE TOHMATSU 

Delarey Nell 
Partner 
Chartered Accountants 
Sydney, 30 August 2021 

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|   ENVIRONMENTAL, SOCIAL & GOVERNANCE

|   ENVIRONMENTAL, SOCIAL & GOVERNANCE

Environment, 
social and 
governance

Resimac’s approach to its Environmental, 
Social and Governance ('ESG') 
responsibilities is a key factor in how many 
of our customers, investors, shareholders 
and our employees regard our business.

We acknowledge the importance of our 
contribution to the community and the 
environment as corporate citizens and 
the importance to our shareholders and 
investors for good corporate governance. 
As such, we continually incorporate 
ESG into our culture and our strategy 
by working together to enhance our 
effectiveness, providing appropriate 
disclosures and reporting our activities 
and progress.

Further details of our ESG practices can 
be found in our Corporate Governance 
Statement and the Environmental, Social 
and Governance Statement located on 
our website.

Since 2010 Resimac 
has planted over 
40,000 trees, which 
is calculated to 
offset nearly five 
million kilograms 
of harmful CO2 
emissions from the 
Earth’s atmosphere.

Environment

As a leading non-bank lender, we understand the 
importance of supporting the environment. We are 
committed to this by:

   Being carbon conscious. For every loan settled, Resimac 
facilitates the planting of a Mallee Eucalypt tree in the 
Australian Wheatbelt region of Western Australia. Since 
2010 Resimac has planted over 40,000 trees, which 
is calculated to offset nearly five million kilograms of 
harmful CO2 emissions from the Earth’s atmosphere, 
as well as play a role in increasing the available habitat 
for local fauna.

   Continually reducing the need for paper and printable 

matter, both through our end-to-end digital loan 
origination process for customers and by reducing 
the number of printers in our offices. Additionally, all 
printers have a built-in power saving function to turn off 
after a short interval.

   Recycling consumables and equipment in the office, 
complemented by recycling facilities for employees. 
This annual report has been printed on recycled paper.

   Installing sensor lights and LED lighting within the office 

to reduce power consumption.

Social

   Introducing flexible working arrangements / working 

from home and the closure of three our offices 
(with staff transferring to home offices), assisting in 
reducing overall greenhouse gas emissions, fossil fuel 
consumption and energy usage.

   Reducing domestic and international flights. The 

impact of COVID-19 has allowed the business to think 
differently about the need for as many face-to-face 
meetings, and we have leveraged our investments 
in video telephony technology to maintain face time 
between staff notwithstanding geographical and 
pandemic-related limitations.

In 2021, we launched a new Green Loan product in our 
direct channel. With an ultra-low interest rate, the loan 
makes credit more accessible to encourage customers to 
join the movement towards a cleaner and more sustainable 
future. The Green Loan can be used to purchase and install 
energy efficient items for household improvements such 
as battery packs and storage, electrical energy storage, hot 
water heat pump or solar hot water system, insulation and/
or double-glazed windows and solar panels.

Our social responsibilities extend across a range of groups, 
including our employees, customers, investors and the 
community. 

It is paramount to the future of our business that our 
employees conduct themselves in a way that enables us 
to deliver great service to our customers and business 
partners, while displaying the company’s values of quality, 
passion, agility, respect, accountability, professionalism 
and integrity.

At Resimac, we recognise that an engaged team supports 
a successful business. We encourage work/life balance 
and offer a number of benefits such as: study support, 
a flexible day, “wellness” hours, an employee assistance 
program, salary continuance insurance, purchased leave 

and a paid community day that enables employees to 
participate in community activities with a charity of their 
choice. Throughout the extended lockdowns, we also 
organised complimentary group fitness sessions for staff, 
a mindfulness program and resilience training provided by 
our EAP partner.

In 2020, flexible working arrangements were implemented, 
allowing our staff to work from home two days a week.

With our customers, we strive to provide superior service 
and support throughout their journey with Resimac. We 
have proactively engaged with our customers to remind 
them of our financial hardship provisions – not just for 
COVID-19 lockdowns, but also during natural disasters 
such as the flooding that affected the eastern seaboard. 

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As an entity that holds seven credit licences and an 
Australian financial services licence, we must ensure 
we comply with the responsible lending conduct 
obligations, which we do through our credit committee, 
board risk and compliance committee, our compliance 
program, and quality assurance. 

In 2021, the Board released a Modern Slavery Statement 
and awareness training to our staff.  At Resimac, we 
recognise that modern slavery is a crime and a violation 
of fundamental human rights.  We are committed 
to acting ethically and with integrity in our business 
dealings and relationships, and we are committed to 
preventing modern slavery in our own business and to 
helping prevent modern slavery in our supply chains. 

Who we partner with at Resimac is also key to our 
sustainability performance. Our responsible approach 
to procurement of suppliers allows us to manage and 
mitigate risk. 

Supporting charities that closely align with our values is 
important to Resimac. We are proud to support multiple 
charities and community initiatives including: 

   The Station
   Food Ladder
   local support within the Philippines

FOOD LADDER

Resimac is proud to support Food Ladder, a not-for-
profit and global pioneer in the use of environmentally 
sustainable technologies to create food and economic 
security for remote communities. Food ladder not 
only addresses food security, but it also creates 
employment and training opportunities for adults and 
education outcomes for children. Food ladder systems 
have benefited 31,500 individuals, with 6,000 getting a 
consistent, significant part of their diet from food ladder. 
Furthermore, it has created 600 jobs. 

Resimac offers both financial support and assistance 
with promoting awareness for the organisation. 
Additionally, the charity ambassador program we 
launched last year, whereby two employees have been 
working closely with food ladder to raise awareness 
and engagement internally and throughout the broader 
community, has been highly successful. In October this 
year, we are looking to launch our first co-branded Food 
Ladder greenhouse in a primary school in Brisbane. In 
2022, we expect to launch Food Ladder systems within 
schools in Perth and Sydney also. 

We are committed 
to reducing our 
carbon footprint, 
which is why we 
are encouraging 
shareholders 
to change their 
preferred method 
of correspondence 
to email. Not only 
is it the quickest 
and most secure 
way to receive 
communications, 
it is better for the 
environment.

|   ENVIRONMENTAL, SOCIAL & GOVERNANCE

STAFF CHARITY INITIATIVES

In addition to the charities that Resimac supports at 
a company level, we have actively supported charity 
initiatives that have been driven by staff with a company 
dollar-matched donation. These initiatives include: the 
World’s Greatest Shave, a fundraising initiative for blood 
cancer, where we raised more than $20K; Movember, 
a charity initiative to raise money for men’s health and 
prostate cancer; The Push-Up Challenge in support of 
mental health; and STEPtember to raise money for cerebral 
palsy.  These events collectively raised $100,000.

THE STATION LTD

The station is a not-for-profit drop-in centre established in 
1978, located in the heart of the Sydney CBD. Its mission 
is to provide a range of services to adults having difficulty 
obtaining and sustaining accommodation as well as 
providing food.

Resimac has a team of volunteers who help with food 
service regularly, and we have a highly successful annual 
collection of personal and hygiene products. We have 
also supplied both dryers and washing machines. Due to 
restrictions imposed by COVID-19, we have been unable to 
assist with food service since February 2020, however we 
have donated books and food, and will continue our support 
once restrictions allow.

PHILIPPINES

Each year, we partner with our staff in Manila to choose 
the organization / charity that they wish to support within 
the community. Over the past twelve months, we have 
supported the San Lazaro Hospital in Manila, which is a 
public hospital which specialises in infectious diseases.  
We donated masks, face shields, PPE, surgical gloves and 
sanitiser.  Further, we assisted the Gentle Hands Orphanage 
with medical and cleaning supplies as they managed the 
impact of COVID-19.

Governance

THE BOARD, RISK MANAGEMENT & COMPLIANCE 

FRAMEWORK

Resimac has a strong governance framework in place to 
ensure all regulatory obligations are adhered to in line with 
our licence requirements and our position as an ASX Listed 
entity.

There are several committees, policies, and procedures in 
place to complement this framework including:

   Risk and Compliance Committee
   Audit Committee
   Remuneration and Nominations Committee
   Technology, Digital and Innovation Committee
   Assets and Liability Committee
   Pricing Committee
   Credit Committee
   Workplace Health & Safety Committee
   Diversity & Inclusion Committee
   Anti-Money Laundering Program
   Compliance Framework
   Enterprise Risk Framework
   Quality Assurance Program
   Continuous Disclosure Policy
   Anti-Bribery and Corruption Policy

Each Committee has a charter that sets out its 
responsibility and accountability and this charter is 
reviewed annually. 

Resimac has both independent internal and external audit 
functions to ensure the governance framework we are 
working towards is being followed. The Board has adopted a 
Risk Appetite Statement and operational risk register with 
key risk metrics to ensure appropriate controls are in place.

In addition, Quality Assurance Reviews are undertaken on 
lending approvals by a team independent of the creditor 
assessors, with control testing and quarterly obligation 
attestations required by each department.

TAX OBLIGATIONS

We are committed to ensuring we meet our multi tax 
obligations which include income, fringe benefit, goods 
and services, payroll, stamp duty, etc, and have established 
a Board-approved Tax Risk Management Policy. Best tax 
practice, tax risk appetite metrics have been adopted.

ANNUAL REPORT 2021

125

|   SHAREHOLDER INFORMATION

|   SHAREHOLDER INFORMATION

Shareholder
information

d.  Substantial shareholders

The names of the substantial shareholders of the Company and the number of equity securities in which they have a relevant 
interest as disclosed in substantial shareholding notices given to the Company are set out below:

SHAREHOLDER

Somers Limited, ICM Limited, UIL Limited, Permanent Investments Limited, 
Somers Isles Private Trustee Company Limited, and each other entity controlled 
by Duncan Saville

246,757,304

61.91

No. of shares

%

Additional information required by the ASX and not disclosed elsewhere in this report is set out below. The information is 
current as at 17 September 2021.

Opting in for electronic communication: Only 40% of our shareholders have opted in to receive electronic communications. 
Consistent with our Carbon Conscious initiative and our commitment to reduce paper consumption, we encourage more 
shareholders to opt-in for electronic communications.

e.  Twenty largest shareholders

The 20 largest shareholders of ordinary shares on the Company's register at 17 September 2021 were:

a.  Number of holders of equity securities

Ordinary Share Capital: 408,404,461 paid ordinary shares are held by 2,952 individual shareholders.

b.  Voting rights

All issued ordinary shares carry one vote for each member present at the meeting on a show of hands and on a poll each 
member is entitled to one vote for every ordinary share held.

c.  Distribution of members and their holdings

The number of equity securities by size of holding is set out below:

SHAREHOLDER

JP Morgan Nominees Australia Pty Limited

HSBC Custody Nominees (Australia) Limited

Redbrook Nominees Pty Ltd

Motrose Pty Ltd

Warren John McLeland

National Nominees Limited

Citicorp Nominees Pty Limited

RANGE

1 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to 100,000

100,001 and over

TOTAL

Total holders

Units

% Units

Hartley Phillips Securities Pty Ltd (Hartley Phillips Inv Tst A/C)

866

1,100

350

524

112

457,039

2,957,141

2,757,869

15,922,472

386,309,940

2,952

408,404,461

0.11

0.72

0.68

3.90

94.59

100.00

Moat Investments Pty Ltd (Moat Investment A/C)

Westpac Banking Corporation

Acres Holdings Pty Ltd

Mr Scott Bruce Charles McWilliam

RSJSDS Pty Ltd (Salmon Super Fund A/C)

High Pass Holdings Pty Ltd (High Pass Hldgs P/L Sup A/C)

Mast Financial Pty Ltd (A to Z Investment A/C)

Esselmont Pty Ltd (The Esselmont A/C)

Minimum parcel size

Holders

Units

Gliocas Investments Pty Ltd (Gliocas Growth Fund A/C)

UNMARKETABLE PARCEL

Minimum $500.00 parcel at $2.1800 per unit

230

181

19,698

Tico Pty Ltd

Ralph Lauren 57 Pty Ltd (John James No 2 A/C)

Leuie Enterprises Pty Ltd (Matthew Leuenberger Fam A/C)

No. of shares

%

170,859,361

111,068,412

14,870,515

14,500,000

11,920,138

9,746,952

5,409,873

5,031,373

4,048,624

2,493,130

1,496,881

1,450,000

1,350,000

1,191,687

1,068,558

989,749

969,556

903,960

854,922

844,394

41.84

27.20

3.64

3.55

2.92

2.39

1.32

1.23

0.99

0.61

0.37

0.36

0.33

0.29

0.26

0.24

0.24

0.22

0.21

0.21

126

RESIMAC GROUP LTD

ANNUAL REPORT 2021

127

TOTAL

361,068,085

88.41

|   MANAGING YOUR SHAREHOLDING

|   CORPORATE INFORMATION

Corporate
information

Registered office and Corporate office
Level 9, 45 Clarence Street, Sydney NSW 2000

p +61 2 9248 0300

e  info@resimac.com.au

w resimac.com.au

Customer enquiries: 13 38 39

Non-Executive Directors
Warren McLeland, Chairman

Susan Hansen

Duncan Saville

Wayne Spanner

Caroline Waldron

Company Secretary
Peter Fitzpatrick

Share registry
Computershare Investor Services Pty Limited

Managing your
shareholding

The Company’s share registry is managed by 
Computershare Investor Services Pty Limited 
(Computershare).

The Investor Centre website is the fastest, easiest 
and most convenient way to view and manage your 
shareholding. Investor Centre enables a shareholder to:

  view the Company share price;

  change your banking details;

  change your address (for non-CHESS sponsored 

holdings);

  update your dividend instruction;

  update your Tax File Number (TFN), Australian Business 

Number (ABN) or exemption;

  select your email and communication preferences; and

  view your transaction history.

When communicating with Computershare or accessing 
your holding online you will need your Securityholder 
Reference Number (SRN) or Holder Identification Number 
(HIN) as shown on your Issuer Sponsored / CHESS 
statements. 

You can also contact Computershare by:

Address
Level 3, 60 Carrington Street, Sydney NSW 2000
p  1300 850 505
e  web.queries@computershare.com.au
w  investorcentre.com.au

Tax file number
While it is not compulsory to provide a Tax File Number 
(‘TFN’), if shareholders have not provided a TFN and 
Resimac pays an unfranked or partly franked dividend, the 
Company will be required to deduct tax from the unfranked 
portion of the dividend at the top marginal rate plus the 
Medicare Levy.

Information on Resimac Group
Resimac Group website
Up-to-date information on the Company can be obtained from the Company's website: resimac.com.au

Securities exchange listing
The Company’s shares are listed on the Australian Securities Exchange (ASX) and the Home Exchange is Sydney. Ordinary 
shares are traded under the code, ASX: RMC.

Share prices can be accessed from major Australian newspapers, the Resimac Group website or at: asx.com.au

128

RESIMAC GROUP LTD

ABN 55 095 034 003
Australian Credit Licence 247829
ASX: RMC

To view the 2021 Annual Report, Shareholder 
and Company information, new announcements, 
background information on Resimac Group 
businesses and historical information, visit the 
Resimac website at resimac.com.au

Resimac Group Ltd
Level 9, 45 Clarence Street

Sydney NSW 2000

p

e
w

+61 2 9248 0300

info@resimac.com.au

resimac.com.au

ABN 55 095 034 003

Australian Credit Licence 247829

ASX: RMC