From Our Secretary General
I am pleased to present the Annual Report for 2023. It has been a big year of success for the AMA. Our tireless
campaigning and advocacy saw many hard-earned wins come through on the back of countless hours from the
AMA Federation which is united in striving for the best healthcare system for doctors and patients in Australia.
I am proud of this wonderful and dedicated team effort.
Our research, policy and advocacy, and communication staff, together with AMA Council and Committee
members put countless hours of work into policy statements: more than 60 submissions; 15 research reports
and report cards; several stakeholder workshops and many, many meetings where we advocated behind-the-
scenes on your behalf.
The year saw many highs for the AMA with billions of dollars pumped into healthcare because of our advocacy,
in particular the award-winning Clear the Hospital Logjam Campaign. A ban on vapes to protect vulnerable
teenagers came into effect on 1 January 2024, and I am also delighted the AMA has met our gender targets for
the first time. Our President will expand on the wins for 2023 and there is more detail on our policy and
advocacy (see page 7).
A new strategic plan was agreed to at the end of 2023 and we look forward to sharing it with you when it is
finalised.
We are updating our Vision for Australia’s Health to address issues in general practice, public hospitals, private
health sector and public health that will inform what we advocate for in the coming years.
We have so much to celebrate, however, it is important for any organisation to talk about the highs and the
lows.
The Federal AMA is involved in an ongoing dispute with AMA WA. In 2023, 50 per cent of our Federal
subscriptions from WA members were withheld without our consent. The WA situation is evolving as we work
with AMA WA Board for the best outcome for all of us. We are continuing the dialogue because we want what
is best for our members.
I would also like to acknowledge the tremendous expertise of our membership. AMA doctors are on the
cutting-edge of the issues of our health system. In 2023, we increased engagement with members accessing
on-the-ground knowledge, especially in the redevelopment of our Vision for Australia’s Health. We have a pool
of potent talent and information that needs to be tapped. Doctors will start noticing more opportunities to
have their say on AMA work in 2024 and beyond.
I thank the Board for their trust and support. I would also like to thank the AMA’s excellent, professional staff
who bring their passion and expertise to the AMA purpose of leading Australia’s doctors and promoting
Australia’s health.
AMA Annual Report 2023
Australian Medical Association 2024
2
Natalia Centellas
Secretary General
AMA Annual Report 2023
Australian Medical Association 2024
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President’s Message
As Federal President of the AMA I have felt a great responsibility to represent all doctors and drive our
organisation’s purpose. For this reason, it is gratifying to point to just how much we have achieved through 2023: I
am sure the year will be remembered as an outstanding one.
Every day, the AMA stands up for our profession, our patients, and the communities we live and work in. It has
been both a pleasure and an honour to have represented you to decision makers, across government and industry.
The AMA has a strong voice that demands attention across our society. During my term I have aimed to drive real
change with our members at the heart of Federal advocacy.
The result of this work is reflected in the many major wins across 2023: billions of dollars injected into Australia’s
health system; a ban on vapes to protect our kids' health; and 60 day dispensing that will save patients millions of
dollars – these are just some of the things we achieved (see page 7).
The 2023 budget saw billions of dollars dedicated to general practice and primary care and a host of reforms
stemming from our Modernise Medicare campaign.
In December 2023, we received an early Christmas present with Prime Minister Anthony Albanese announcing an
increase to the share of Commonwealth funding for hospitals and a more generous approach to the growth cap.
This followed our ongoing campaigning to Clear the hospital logjam that began before the 2022 election. Our
advocacy for an increase to the Commonwealth’s share of funding for hospitals and for the 6.5 per cent cap on
funding growth to be scrapped saw an injection of more than $13 billion between 2025 and 2030. Importantly,
there was also a commitment to renegotiate the National Health Reform Agreement (NHRA) to embed long-term,
system-wide structural health reforms, including considering the NHRA Mid-Term Review findings, something we
have also campaigned for.
Our media presence saw us reach millions across all media platforms. This visibility helps maintain pressure on
decision makers and reminds Australians we have their health interests at heart. The AMA was recognised as one
of Australia’s most trusted ethical organisations in 2023 in the Governance Institute of Australia’s Ethics Index.
It takes a village for us to be at our strongest. Our wins can only be achieved through the support of our members,
who join the AMA to help us change the health system for the better; together with the expertise and
contributions of all the members who volunteer their time for the AMA, and the dedicated work of the
professional staff at Federal AMA.
Professor
Steve Robson
AMA President
AMA Annual Report 2023
Australian Medical Association 2024
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Chair of the Board’s Report
I am extremely proud to have led the Board in 2023. The achievements of our core policy and advocacy work
have been outlined by Professor Steve Robson, who has been supported wonderfully well by the expertise of
the AMA Ltd team.
In 2023 the AMA Ltd Board reviewed its governance arrangements and grappled with ongoing support for the
core work of the organisation. We focused on governance improvement and the development of an ambitious
strategic plan. The advocacy environment for healthcare and medicine in Australia is changing, as is the face of
medical practice for many of our members, in this era of efficiency that has potential to impact quality. We
believe it is critical that doctors are front and centre in ensuring quality of medical care available to our
patients, and that doctors have safe, well-supported working conditions, helping to ensure that the practice of
high-quality medicine is sustainable.
We faced unprecedented challenges in ensuring the capability of our organisation to achieve this – including an
ongoing dispute with a state entity which has a substantial impact on our bottom line, and our capacity to
represent a substantial minority of our members. This dispute largely hinges on our core belief that AMA
members are members of AMA Ltd as well as their relevant state or territory entity, a belief enshrined in our
constitution. We hope to again be able to include doctors from all states as members of AMA Ltd as soon as
possible and continue to work on this.
I would like to thank my fellow Board members who have committed many hours above and beyond the usual
time allocated to this challenging and productive year. Our unanimity in our most challenging decisions and
agenda-setting is a substantial source of pride. We have to thank the incredible AMA Ltd staff and executive,
who again have delivered substantial advocacy outcomes against the backdrop of governance and Federation
challenges that had substantial potential to derail them. In particular, Natalia Centellas in her first year as AMA
Ltd Secretary General, has led the organisation with commitment and equanimity, and the senior leadership
team, who have been pulled into many of these extra hours: Warwick Hough, Luke Toy, Georgina Adams, Irene
Quah and Guy Feeney. Thanks are also due to Cindy Wang, manager of administrative services, who has gone
above and beyond as well.
As our ambitious strategic plan is finalised and socialised, we enter 2024 buoyed with optimism and a
determination to modernise our organisation and our Federation to ensure sustainability. We hope all doctors
from all states and territories will have the opportunity to join us in fighting the good fight for quality,
sustainable healthcare in Australia.
Dr Kate Kearney
Board Chair
AMA Annual Report 2023
Australian Medical Association 2024
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AMA Board of Directors
Prof Steve Robson
Federal President
Dr Danielle McMullen
Vice President
Dr Kate Kearney
Board Chair
Dr Stephen Gourley
Deputy Board Chair
Dr Christopher Perry
OAM
Board Member from
28 May 2023
Dr Roderick McRae
Board Member from
28 May 2023
A/Prof William Tam
Dr Shehzad Kunwar
Dr Jessica Dean
A/Prof Andrew C Miller
Board Member from
23 February 2023
Dr Gary Speck AM
Board Member
until 27 May 2023
Dr Bavahuna Manoharan
Board Member until
27 May 2023
Dr Omar Khorshid
AMA Annual Report 2023
Australian Medical Association 2024
6
AMA’S Federal Councillors
AMA President
Professor Steve Robson
AMA Vice President
Dr Danielle McMullen
Chair of Council and Physicians Speciality Group
Representative
Dr Matthew McConnell
AMA Ltd Board Chair
Dr Kate Kearney
Practice Group of General Practitioners Representative
(elected)
A/Prof Magdalena Simonis
Practice Group of General Practitioners Representative
(appointed)
Dr Simon Torvaldsen
Practice Group of Rural Doctors Representative (elected)
Dr Ian Kamerman
Practice Group of Rural Doctors Representative (appointed)
Dr Merran Auland
Practice Group of Doctors in Training Representative
(elected)
Dr Hannah Szewczyk
Practice Group of Doctors in Training Representative
(appointed)
Dr Dan Wilson
Practice Group of Public Hospital Doctors Representative
Dr Katherine Tan
Practice Group of Private Specialist Practice Representative
Dr Mark Duncan-Smith
Anaesthetists Speciality Group Representative
Dr Suzi Nou
Dermatologists Speciality Group Representative
Dr Chris Baker
Emergency Physicians Speciality Group Representative
Dr Sarah Whitelaw
Obstetricians and Gynaecologists Speciality Group
Representative
Dr Hasthika Ellepola
Ophthalmologists Speciality Group Representative
Dr Peter Sumich
Orthopaedic Surgeons Speciality Group Representative
Prof Edward (Ted) Mah
Paediatricians Speciality Group Representative
Dr Clair Pridmore
Pathologist Speciality Group Representative
A/Prof Daniel Owens
Psychiatrists Speciality Group Representative
A/Prof Jeffrey Looi
Radiologists Speciality Group Representative
Dr Xavier Yu
Surgeons Speciality Group Representative
Dr Mark Frydenberg
Ordinary Member
Dr Ekta Paw
Ordinary Member
Dr Michael Page
Ordinary Member
Dr Jeanette Elizabeth Ward
Independent Member
Ms Bronwyn Fagan
ACT State Nominee
Prof Walter Abhayaratna
NSW State Nominee
Dr Michael Bonning
NT State Nominee
A/Prof Robert Parker
QLD State Nominee
Dr Maria Boulton
SA State Nominee
Dr John Williams
TAS State Nominee
Dr John Saul
WA State Nominee
Dr Katharine Noonan
VIC State Nominee
Dr Jill Tomlinson
Australian Indigenous Doctors Association
Dr Simone Raye
Australian Medical Students Association
Miss Tish Sivagnanan
AMA Ltd Board Representative
Dr Omar Khorshid
AMA Annual Report 2023
Australian Medical Association 2024
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AMA Annual Report 2023
Australian Medical Association 2024
8
AMA’s Vision For Australia’s Health
The Australian Medical Association’s Vision for Australia’s Health advocates initiatives to address issues in general
practice, public hospitals, private health and public health, as well as the health system more broadly.
AMA Annual Report 2023
Australian Medical Association 2024
9
AMA Policy Impact
It has been an incredible year for your Federal AMA, with billions of dollars injected into Australia’s health system
following our ongoing public campaigning and behind-the-scenes advocacy.
These wins can only be achieved through the support of doctors, who join the AMA to help us change the health
system for the better; together with the expertise and contributions of all the doctors who volunteer their time for
the AMA, and the hard work of the professional staff at Federal AMA.
We released 15 research reports and report cards on everything from out-of-hospital care in the private system to
public hospital performance, and reports on why we need to invest in health.
We also demonstrated our commitment to improving the health system and advocating on your behalf with the AMA
team delivering 20 position statements and more than 60 submissions. Our submissions included our costed pre-
budget submissions, submissions to Federal parliamentary inquiries, and to Department of Health and Aged Care
consultations. We also hosted several stakeholder workshops on a range of topics including private health reform and
rural health workforce.
No less important was the behind-the-scenes advocacy we do every day, speaking to the Minister for Health and
Aged Care and his advisors; senior representatives in the Department of Health and Aged Care and other
departments; regulators and Medical Defence Organisations, and Federal members of parliament. Our work was kept
front and centre in the minds of decisions makers with media strategies that resulted in outstanding coverage.
Billions of dollars were earmarked for primary
care and a host of reforms stemming from our
Modernise Medicare campaign.
This included $3.5 billion to triple bulk billing
incentive payments on specified GP consultation
items from 1 November, with scaling applied to
further benefit patients in rural areas
My Medicare was announced, providing a
mechanism to strengthen the relationships GPs
have with their patients and a platform to deliver
additional funding for general practice in addition
to fee-for-service arrangements.
On 6 December, we received an early Christmas
present in the form of a huge announcement by
National Cabinet, with Prime Minister Anthony
Albanese announcing an increase to the share of
Commonwealth funding for hospitals and a more
generous approach to the growth cap.
The AMA spearheaded ongoing campaigning through the
Clear the Hospital Logjam campaign before the last
election for an increase to the Commonwealth’s share of
funding for hospitals and for the 6.5 per cent cap on
funding growth to be scrapped.
The increase in funding is reported to be an injection of
around $13.2 billion between 2025 and 2030. Importantly,
there was also a commitment to renegotiate the National
Health Reform Agreement (NHRA) Addendum to embed
long-term, system-wide structural health reforms,
including considering the NHRA Mid-Term Review
findings, something for which we also campaigned.
As part of an additional $1.2 billion package, funding was
also announced for initiatives to address avoidable
admissions and readmissions and delayed discharge for
older Australians. These are issues we highlighted in
various AMA research reports throughout the year.
The Clear the Hospital Logjam campaign also received the
Association External Campaign of the Year Award™,
presented to an association that has made an outstanding
achievement though an external campaign.
Australian Medical Association 2024
10
The budget also contained $50 million for a wounds
consumable scheme in general practice — a scheme the
AMA first proposed in submissions to the MBS Review
Taskforce and further highlighted in our research report,
Solutions to the chronic wound problem in Australia. It
also delivered on other AMA campaign and policy asks,
including longer GP consult items; a Workforce Incentive
Payment increase; and expanded telehealth access for
My Medicare-enrolled patients and practices.
Benefiting patients of GPs and non-GP specialists alike,
the budget included an additional round of Medicare
indexation and a new indexation methodology. This
followed our demonstration of the ongoing impact of low
Medicare indexation.
Following years of advocacy by the Federal AMA, 60-day
dispensing was introduced. The AMA launched a
renewed campaign on 60-day dispensing early in the
year through a coordinated, and months long, You
Deserve More campaign and our ‘Checklist for Cheaper
Medicines’.
We also met with the Department of Health and Aged
Care to fix the undervaluing of new dermatology items.
On 1 March, the rebates for seven items for excisions of
clinically suspected melanoma (31377 to 31383) were
increased to align with the fees for existing benign skin
excision items.
Following our advocacy, we saw significant
improvements made by Ahpra in its processing of
notifications against medical practitioners. All
notifications are now initially reviewed by a panel
including a medical adviser. As a result, fewer cases are
now accepted as notifications and more cases are closed
quickly as not meeting grounds for a notification. While
there are still improvements to be made, this is a positive
development, and we will keep pushing for more like it.
In response to a strong submission and direct
engagement, the Department of Health and Aged Care
has amended its dementia action plan to no longer
recommend additional training for GPs or for MBS items
to be accessible only to GPs with a sub-specialisation in
dementia.
Stronger regulations on vapes were announced following
AMA advocacy, including banning the retail sale of vapes
and disposable vapes. Vaping reforms underway (as
outlined in consultation in January and September)
include changes the AMA has lobbied for since October
2021. These include changes to Therapeutic Goods Order
110 and ending the personal importation scheme.
Our policies were also reflected in the National Tobacco
Strategy 2023-2030, which also reflects our concerns
with tobacco industry donations to political parties.
Vaping advertisement bans along with improved
regulation on tobacco to discourage people from
smoking and vaping were introduced to Parliament
under the Public Health (Tobacco and Other Products)
Bill 2023. We supported the Bill through both the
Department of Health and Aged Care’s consultation and
the Senate Standing Committee on Community Affairs
inquiry. As the Bill went through Parliament, we also met
with MPs and Senators and urged them to help ensure
the legislation was passed.
We have consistently raised concerns about gambling
and the extent to which young people are exposed to
gambling advertisements. In June we welcomed a
parliamentary inquiry’s recommendation to ban all
advertisements for online gambling within three years.
AMA Annual Report 2023
Media Report
AMA Annual Report 2023
Australian Medical Association 2024
11
Facebook
Our Facebook audience has grown to 31,035 followers.
We made 206,056 impressions with our posts; the number of
times our posts were on a screen.
Our top posts were on the 60 day dispensing campaign.
Twitter
Our Twitter audience has grown to 32,136 followers.
We made 769,411 impressions with our posts.
Our top posts were in relation to vaping.
LinkedIn
Our LinkedIn audience grew an astonishing 80% in 2023 to
9,630 followers.
Our posts received 181,186 impressions.
Our top posts were on our workforce events featuring Brendan
Murphy and our Rural Medical Training Summit.
Traditional Media
More than 118 media releases were produced
this year resulting in more than 8000 Federal
AMA mentions in the media across TV, radio
and newspapers.
AMA Annual Report 2023
Australian Medical Association 2024
12
AMA Subsidiaries
As a respected medical publisher and provider of doctor data, the Australasian Medical Publishing Company
(AMPCo) produces leading-edge health information and resources for Australian doctors. We are driven by the
belief that to thrive, Australian health care needs timely, relevant, and credible information.
AMPCo publishes The Medical Journal of Australia (MJA) which is Australia’s leading general medical journal. MJA
publishes high quality research and commentary to inform health policy and influence medical practice in Australia.
AMPCo also publishes a weekly medical e-newsletter called InSight+. InSight+ reaches over 47,000 Australian
doctors every week, making it the highest circulating medical publication in Australia.
AMPCo delivers revenue through its data rental, licensing and advertising streams. We have a depth of doctor
engagement insights through our more than 8 million doctor interactions each year. Our doctor data is verified, and
we pride ourselves in having a 99% match to the Australian register of doctors. AMPCo has the best medical data
and doctor insights in Australia.
AMPCo helps drive healthcare forward through the power of insight and inspiration.
Doctors Health Services Pty Ltd (Drs4Drs), a national not-for-profit organisation established as an independent
subsidiary of AMA Ltd. Funded by Ahpra/Medical Board of Australia and the Department of Health and Aged Care,
Drs4Drs is committed to empowering doctors and medical students to take charge of their health and wellness.
Through this support, the organisation aims to create a healthier medical community that can provide the best care
to their patients.
Confidential Support for Doctors and Medical Students: Drs4Drs provides a sanctuary of support, offering
confidential, complimentary, and supportive services that are readily accessible across the country. Doctors and
medical students seeking assistance can find a wealth of support and resources by visiting www.drs4drs.com.au.
Commitment to Quality Service Delivery: Drs4Drs, in collaboration with the Australian Council on Healthcare
Standards (ACHS), developed the National Standards for Doctors’ Health Services (National Standards) in 2022. The
National Standards aim to assess the services delivered to medical practitioners and medical students in Australian
States and Territories to ensure quality and safe service delivery. In 2023, Drs4Drs implemented the National
Standards across all Doctors' Health Services in Australia.
Empowering Doctors to Care for Peers: Acknowledging the unique challenges of caring for fellow medical
professionals, a self-paced online education course is available that not only helps medical professionals to better
understand their own health but also equips them to extend that care to their colleagues and medical students.
This transformative training is available for enrolment here: https://www.drs4drs.com.au/being-a-dr4drs
A Unified Effort for Wellbeing: The National Doctors Health and Wellbeing Leadership Alliance, has been initiated, a
significant step toward fostering unified action within the medical community. This alliance, aligned with the
National Framework: Every Doctor, Every Setting, is aimed at advancing the mental health and wellbeing of medical
professionals at all career stages and settings. More information about the framework and how you can support
this initiative can be found here: https://www.drs4drs.com.au/national-doctors-health-wellbeing
Access to Resources: The Drs4Drs website serves as a comprehensive hub, offering an extensive selection of
resources, news, and events aimed at promoting health and well-being. It is designed to be a one-stop-shop for
information that empowers and enlightens the medical community.
Visit www.drs4drs.com.au to explore how you can be supported both personally and professionally.
General
Purpose
Financial
Report
Australian Medical Association Limited
and Controlled Entities
ABN 37 008 426 793
For
the
financial
year
31
December
2023
C
ontents Page
Directors' Report 14
Statement of comprehensive income
23
Statement
of
financial
position
24
Statement
of
changes
in
equity
25
Statement
of
cash
flows
26
Notes
to
and
forming
part
of
the
financial
statements
27
Directors' declaration
57
Auditor's independence declaration
58
Independent audit report
59
Directors' Report
Directors
The names of directors in office during the financial year are as follows:
Dr KatĞ Kearney
FRACP, BPharm, MBBS, MMed (Clin Epi)
ŽĂƌĚ
Chair
'ŽǀĞƌŶĂŶĐĞŽŵŵŝƚƚĞĞŚĂŝƌ
ǁĂƌĚĂŶĚ&ĞůůŽǁƐŚŝƉŽŵŵŝƚƚĞĞŵĞŵďĞƌ
EŽŵŝŶĂƚŝŽŶƐŽŵŵŝƚƚĞĞŵĞŵďĞƌ
&ĞĚĞƌĂůŽƵŶĐŝůŵĞŵďĞƌ
Cardiologist
Dr Jessica Dean
BMedSci (Hons) MBBS(Hons) LLB GAICD GDipLegPrac
udit, Risk and Performance Committee
ŚĂŝƌ
'ŽǀĞƌŶĂŶĐĞŽŵŵŝƚƚĞĞŵĞŵďĞƌ
ICU Registrar
Dr Stephen Gourley
MB BS, MCE, MPH, MHM,GAICD, AFRACMA, FRCEM, FACEM
Deputy
ŽĂƌĚ
Chair
Audit, Risk and Performance Committee member (to 3 August 2023)
Investment Committee member (to 3 August 2023)
Director, Emergency Medicine
Dr Omar Khorshid
MBBS, FRACS, FAOrthA, FAMA, AdvDipMgt, GAICD
'ŽǀĞƌŶĂŶĐĞŽŵŵŝƚƚĞĞŵĞŵďĞƌ
ǁĂƌĚĂŶĚ&ĞůůŽǁƐŚŝƉŽŵŵŝƚƚĞĞŵĞŵďĞƌ
ƵĚŝƚ͕ZŝƐŬĂŶĚWĞƌĨŽƌŵĂŶĐĞŽŵŵŝƚƚĞĞŵĞŵďĞƌ
&ĞĚĞƌĂůŽƵŶĐŝůŵĞŵďĞƌ
Orthopaedic Surgeon
14
Dr Shehzad Kunwar
BSc (Hons) Econ, MBChB, MRCGP, FRACGP, FACRRM, &ZD
EŽŵŝŶĂƚŝŽŶƐŽŵŵŝƚƚĞĞŵĞŵďĞƌ
ŝƌĞĐƚŽƌŽĨDĞĚŝĐĂů^ĞƌǀŝĐĞƐ
Dr Bavahuna Manoharan
MBBS, MPH, BSc, CHIA, GAICD
State Clinical Director
(Board Member to 27 May 2023)
Dr Danielle McMullen
MBBS(Hons), FRACGP, DCH, GAICD, FAMA
Vice President
ǁĂƌĚĂŶĚ&ĞůůŽǁƐŚŝƉŽŵŵŝƚƚĞĞŵĞŵďĞƌ
&ĞĚĞƌĂůŽƵŶĐŝůŵĞŵďĞƌ
ƌ,^ŽĂƌĚŵĞŵďĞƌ
General Practitioner
Dr Roderick McRae
FAMA, FANZCA, MBBS(Hons), BMedSc(Hons), MBioeth, JD, PGDipPCCE
&ŝŶĂŶĐĞĂŶĚ/ŶǀĞƐƚŵĞŶƚŽŵŵŝƚƚĞĞŵĞŵďĞƌ;ĨƌŽŵϭϬƵŐƵƐƚϮϬϮϯͿ
Qualified Anaesthetist and Intensive Care Physician
(Board Member from 28 May 2023)
A/Prof Andrew Miller
MBBS, BSc(Med) FACD
Dermatologist
'ŽǀĞƌŶĂŶĐĞŽŵŵŝƚƚĞĞŵĞŵďĞƌ
Audit, Risk and
Performance Committee member (from 10 August 2023)
(Board Member from 23 February 2023)
Prof Christopher Perry OAM
MBBS, DTM&H (Liverpool), FRACS, MAICD
DWƚLJ>ƚĚŽĂƌĚŵĞŵďĞƌ
Otolaryngology Head and Neck Surgeon
(Board Member from 28 May 2023)
Prof StĞǀĞ Robson
MD PhD FRANZCOG FAMA CertGovPract
President
ǁĂƌĚĂŶĚ&ĞůůŽǁƐŚŝƉŽŵŵŝƚƚĞĞŚĂŝƌ
EŽŵŝŶĂƚŝŽŶƐŽŵŵŝƚƚĞĞŚĂŝƌ
&ĞĚĞƌĂůŽƵŶĐŝůŵĞŵďĞƌ
Professor of Obstetrics and Gynaecology
Dr Gary Speck AM
MBBS, BMedSc (Hons), FRACS, FAOrthA, FAMA, GAICD
Orthopaedic Spinal Surgeon
Investment Committee
ŚĂŝƌ
(to 27 May 2023)
&ŝŶĂŶĐĞĂŶĚ/ŶǀĞƐƚŵĞŶƚŽŵŵŝƚƚĞĞŚĂŝƌ
(Board Member to 27 May 2023)
A/Professor William Tam
FAMA, FRACP, MBBS, PhD, FGESA
Gastroenterologist
Finance and Investment Committee member (from 10 August 2023)
DWƚLJ>ƚĚŽĂƌĚŵĞŵďĞƌ
15
16
PRINCIPAL AC
TIVITIES
Australian Medical Association Limited (AMA) is a public company limited by guarantee. The AMA represents
the interests of the registered medical practitioners of Australia and the medical students of Australia, and
advocates on behalf of its members and their patients. The members of the AMA are simultaneously
members of the State and Territory AMAs, which are separate legal entities.
Th
e principal activities of the AMA Group (Group) during the reporting year, as set out in the Constitution,
were to:
· preserve, maintain, promote and advance the intellectual, philosophical, social, political, economic and
legal interests of Members; and
· promote the wellbeing of patients, take an active part in the promotion of health care programs for the
benefit of the community and to participate in the resolution of major social and community health issues.
Th
e AMA undertakes advocacy on behalf of its members and provides services and communications to its
members. Through its subsidiaries, it publishes and circulates the Medical Journal of Australia and
coordinates the provision of medical services to all medical practitioners and medical students. The
consolidated Group owns investment assets held for long term funding requirements.
FI
NANCIAL RESULTS
Review and result of operations
In 2023, the consolidated Group recorded a total comprehensive loss of $0.9 million consistent with prior
year (2022: loss $0.9 million).
Th
e consolidated comprehensive income for the year, is net of accounting for changes in fair value of long-
term investments that are reflective of valuation at reporting date.
Th
e Group’s operations are largely unchanged. At the time of reporting, there are no other strong indicators
to suggest material financial impacts to the Group’s results in future financial years from on- going operations.
17
Revenue
C
ompared to 2022, total revenue from operations decreased to $22.0 million (2022: $22.9 million).
Graph 1 – Distribution of revenue
Expenses
Total expenses (before income tax) increased from prior year to $23.0 million (2022: $21.7 million).
G
raph 2 – Distribution of expenses (excluding income tax)
Interest, 5%
Doctors Health
Services, 11%
Commercial and
member services, 4%
Editorial, 6%
Membership
Database and data
subscriptions, 56%
sales, 19%
Property and
Occupancy, 7%
Commercial and
member services, 8%
Subsidies, 6%
Database and data, 13%
Doctors Health
Services, 8%
Advocacy and policy,
39%
Publications, 19%
18
Review of financial position
N
et assets decreased by 2.8% to $30.7 million compared to prior year (2022: decreased 2.8% to $31.6
million).
Assets
Total assets decreased by 1.2% to $41.6 million compared to prior year (2022: $42.1 million).
G
raph 4 – Distribution of assets
Other, 3%
Receivables, 5%
Property, plant and
equipment,
investment
properties and
intangibles, 17%
Cash and long-term
investments, 75%
19
Liabilities
To
tal liabilities increased 4.8% to $11 million compared to prior year (2022: $10.5 million).
G
raph 5 Distribution of liabilities
R
OUNDING
Amounts in the financial report have been rounded to the nearest thousand dollars ($’000).
D
IVIDENDS
The Constitution of Australian Medical Association Limited does not permit the distribution of dividends to
members.
S
TATE OF AFFAIRS
Since late 2022, AMA Limited has been negotiating with Australian Medical Association (WA) Incorporated
(AMA WA) following its decision to cease forwarding the full amount of Federal member subscriptions
collected by AMA WA on AMA Limited's behalf from 2024 onwards. As a member of AMA WA, WA members
were also members of AMA Limited. During the negotiations, AMA WA notified AMA Limited that any
arrangements for remission of Federal subscriptions would cease on 31 December 2023. AMA Limited
entered into an interim agreement to continue to provide services to AMA WA members to resolve the
substantive disagreement. This concession expired on 29 February 2024. From 1 March 2024, AMA WA
members are no longer financial members of Federal AMA, and there is no longer any arrangement for
Federal AMA to continue to provide services to them. There is no impact on AMA members outside of WA.
O
ther than the above, there was no significant change in the state of affairs of the Group during the financial
year under review that is not disclosed in the financial statements.
Income received in
advance, 4%
Payables, 15%
Employee benefits,
16%
Lease liabilities, 64%
20
STRATEGIC D
IRECTION
During the reporting year the Board of Australian Medical Association Limited progressed implementation
of its operational plan and agreed on a new strategic direction for 2024-2027.
T
he strategic objectives support the AMA’s mission of Leading Australia’s Doctors – Promoting Australia’s
Health. The five pillars of the Board’s strategic plan are:
1 – AMA Vision for Australia's Health
2 – AMA is the voice for medicine
3 – A thriving and modern membership organisation
4 – Fit-for-purpose Federation structure
5 - Growth through innovation and diversification
T
he strategic objectives are delivered through an operational plan, which is reviewed and updated each
year. The activities agreed for inclusion in the operational plan are funded in the budget.
AU
DITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s independence declaration as required under s307C of the Corporations Act 2001 is
set out as part of the financial statements.
IN
DEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
Indemnification
Since the end of the previous financial year, the Group has not indemnified or made a relevant agreement
indemnifying against a liability of any person who is or has been an officer or auditor of the Group.
I
nsurance premiums
During the financial year the Group paid premiums in respect of Directors’ and Officers’ Liabilities and
Professional Indemnity for the year ended 31 December 2023, insuring the directors of the company and all
executive officers of the Group against a liability incurred by such a director or executive officer to the extent
permitted by the Corporations Act 2001 .
I
NFORMATION ON DIRECTORS
The Board is comprised of 11 medically qualified Directors and includes the President and Vice President, one
Director nominated by each State and Territory AMA and one Director nominated by the AMA Council of
Doctors in Training. The Chair is elected from among the Directors.
U
nder the Constitution, the Directors are required to be appointed based on their skills and experiences.
D
irectors’ interests
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit,
other than a benefit included in the aggregate amount of remuneration received or due and receivable by
Directors shown in the financial statements in Note 18.
DIRECTORS MEETING ATTENDANCE
Dr KaƚĞ Kearney
Dr Jessica Dean
Dr Stephen Gourley
Dr Omar Khorshid
Dr Shehazad Kunwar
Dr Danielle McMullen
Prof SteǀĞ Robson
A/Prof William Tam
A/Prof Andrew Miller
Dr Roderick McRae
Prof Christopher Perry
Dr Bavahuna Manoharan
Dr Gary Speck
Dr Jessica Dean
Dr Omar Khorshid
ͬWƌŽĨ Andrew Miller
Mr Ed Killesteyn
Dr Stephen Gourley
Dr Gary Speck
Dr Roderick McRae
A/Prof William Tam
Ms Trisha Barton
Ms Robyn Petrou
Ms Els Termaat
Dr Stephen Gourley
Dr Bavahuna Manoharan
32
21
33
Eligible to attend Attended
2
Finance and Investment Committee
11
1
11
15 15
22
13 12
15 15
22
15
13 10
12
15 12
5
Audit, Risk and Performance Committee
Eligible to attend Attended
5
15 14
15 14
15 15
15 13
15 13
20
55
52
During the period 1 January 2023 to 31 December 2023 the Board met on 9 occasions.
The Audit, Risk and Performance Committee met 5 times. Three members of the Committee are Directors
and one is an independent appointment.
The following tables summarises the meeting attendance of the Directors and Committee members during
2023, noting the number of meetings each Director/Committee member was eligible to attend and
attended.
Attended
Board Meetings
Eligible to attend
The Finance and Investment Committee met 3 times. Two members of the Committee are Directors and
four are independent appointments.
11
11
10
21
22
The AMA is a company limited by guarantee. If t
he AMA is wound up, each member of the AMA and each
person who ceased to be a member in the preceding year, undertakes to contribute to the payment of debts
and liabilities and the costs, charges and expenses of winding up the AMA, and the adjustments of rights of
contributions amongst themselves, of an amount not exceeding two dollars.
Signe
d in accordance with a resolution of the Directors.
Dr Kate Kearney
Chair
Australian Medical Association Limited
Professor Steve Robson
President
Australian Medical Association Limited
23
Statement of comprehensive income
For the year ended 31 December 2023
Consolidated
Revenue
Note
2023
$'000
20,435
2022
$'000
21,494
Other income
1,566
1,449
2
22,001
22,943
Expenses
Employment
(14,402)
(13,064)
Publications
(130)
(140)
Database and data
(85)
(55)
Advocacy and policy
(582)
(1,012)
Subsidies
2
(1,404)
(1,588)
Commercial and member services
(24)
(81)
Doctors Health Services
(1,809)
(1,702)
Property and occupancy
(1,067)
(1,583)
Depreciation and amortisation
(578)
(661)
Administration
2
(2,933)
(1,852)
(23,014)
(21,738)
(Loss)/profit before income tax
(1,013)
1,205
Income tax (expense)/credit
4
(1,046)
333
(Loss)/profit for the year
(2,059)
1,538
Other comprehensive income
Changes in fair value of investments at fair value
through other comprehensive income
1,506
(3,242)
Income tax relating to these items
(376)
811
Other comprehensive income for the year, net of tax
1,130
(2,431)
Total comprehensive income for the year
(929)
(893)
N
otes to and forming part of these financial statements are annexed
24
Statement of financial position
as at 31 December 2023
Consolidated
Assets
Note
2023
$'000
2022
$'000
Current assets
Cash and cash equivalents 5
7,606
8,399
Trade and other receivables
6
2,257
3,500
Inventories
7
46
20
Prepayments
8
786
299
Financial investments
9
1,688
500
Total current assets
12,383
12,718
Non-current assets
Financial investments
9
21,994
20,731
Intangible assets
10
584
925
Property, plant and equipment
11
1,687
1,852
Deferred tax assets
12
-
1,422
Right-of-use assets
13
5,001
4,439
Total non-current assets
29,266
29,369
Total assets
41,649
42,087
Liabilities
Current Liabilities
Trade and other payables
14
2,149
2,162
Lease liabilities
13
717
885
Employee benefits
15
1,662
1,646
Total current liabilities
4,528
4,693
Non-current liabilities
Employee benefits
15
142
156
Make good provision
13
168
163
Lease liabilities
13
6,134
5,469
Total non-current liabilities
6,444
5,788
Total liabilities
10,972
10,481
Net assets
30,677
31,606
Equity
Retained earnings
30,224
32,283
Reserve
453
(677)
Total
equity
30,677
31,606
N
otes to and forming part of these financial statements are annexed
25
Statement of changes in equity
for the year ended 31 December 2023
Consolidated
Retained
Total
earnings
Reserve
Equity
$'000
$'000
$'000
At 1 January 2021
30,745
1,754
32,499
Profit for the year
1,538
-
1,538
Other comprehensive loss
-
(2,431)
(2,431)
Total comprehensive income/(loss) for the year
1,538
(2,431)
(893)
At 31 December 2022
32,283
(677)
31,606
Loss for the year
(2,059)
-
(2,059)
Other comprehensive income
-
1,130
1,130
Total comprehensive (loss)/income for the year
(2,059)
1,130
(929)
At 31 December 2023
30,224
453
30,677
N
otes to and forming part of these financial statements are annexed
26
Statement of cash flows
for the year ended 31 December 2023
Consolidated
2023
2022
Note
$'000
$'000
Cash flow from operating activities
Receipts from membership subscriptions
12,247
12,885
Other receipts from customers
11,229
10,191
Payment to suppliers and employees
(23,172)
(22,865)
Interest received
243
36
Net cash flow from operating activities
547
247
Cash flow from investing activities
Payments for property, plant and equipment
11
(72)
(217)
Proceeds from investments
766
1,045
Payments for other investments
(945)
(311)
Net cash flow (used in)/from investing activities
(251)
517
Cash flow from financing activities
Repayment of lease liabilities
13
(1,089)
(768)
Net cash flow used in financing activities
(1,089)
(768)
Net decrease in cash held
(793)
(4)
Cash and cash equivalents at the beginning of the year
8,399
8,403
Cash and cash equivalents at the end of the year
7,606
8,399
N
otes to and forming part of these financial statements are annexed
27
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies
The consolidated financial statements and notes represent those of the Australian Medical Association Limited
(AMA) and its controlled entities (the AMA Group).
The separate financial statements of the parent entity, Australian Medical Association Limited, have not
been presented within this financial report as permitted by amendments made to the Corporations Act
2001.
Bas
is of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations
Act 2001. The AMA is a not-for-profit entity for the purpose of preparing the financial statements under
Australian Accounting Standards.
(i) Compliance with Australian Accounting Standards - Simplified Disclosure Requirements
The consolidated financial statements of the AMA Group comply with Australian Accounting Standards –
Simplified Disclosures as issued by the AASB, registered and domiciled in Australia.
(ii) Historical cost convention
The financial statements have been prepared on an accruals basis and are based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets, financial
assets and financial liabilities.
(
iii) New and amended standards adopted by the group
The AMA Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the AASB that are mandatory for the current reporting period.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the
financial performance or position of the AMA Group.
The financial statements were approved by the Board on 23 April 2024.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
28
(a)
Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by AMA
at the end of the reporting period. A controlled entity is any entity that AMA Limited has the power to govern
the financial and operating policies so as to obtain benefits from its activities.
Wh
ere controlled entities have entered or left the Group during the year, the financial performance of
those entities is included only for the period of the year that they were controlled. A list of controlled
entities is contained in Note 23 to the financial statements.
In p
reparing the consolidated financial statements, all inter-group balances and transactions between
entities in the consolidated group have been eliminated in full on consolidation.
(b) Functional and presentation currency
The
se consolidated financial statements are presented in Australian dollars, which is the functional currency
of the Group.
(c)
Use of estimates and judgements
Th
e preparation of financial statements requires management to make judgements, estimates and assumptions
based on historical knowledge and best available current information that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates assume a
reasonable expectation of future events and are based on current trends and economic data, obtained both
externally and within the Group. Actual results may differ from these estimates.
Es
timates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
29
(c)
Use of estimates and judgements (continued)
Key estimates and judgements
Revenue from contracts with customers involving sale of goods
When recognising revenue in relation to the sale of goods to customers, the key performance obligation of the
Group is considered to be the point of delivery of the goods to the customer, as this is deemed to be the time
that the customer obtains control of the promised goods and therefore the benefits of unimpeded access.
A
llowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based
on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an
overall expected credit loss rate for each group. These assumptions include recent sales experience and
historical collection rates.
E
stimation of useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as
a result of technical innovations or some other event. The depreciation and amortisation charge will
increase where the useful lives are less than previously estimated lives, or technically obsolete or non- strategic
assets that have been abandoned or sold will be written off or written down.
I
mpairment of non-financial assets other than goodwill and other indefinite life intangible assets
The Group assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the Group and to the particular asset
that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined.
This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key
estimates and assumptions.
In
come tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. Deferred tax assets and liabilities are calculated at the tax rates
that are expected to apply to the period when the asset is realised or the liability is settled, based on tax
rates enacted or substantively enacted at the end of the reporting period. Their measurement also reflects the
manner in which management expects to recover or settle the carrying amount of the related asset or liability.
Employee benefits provision
The liability for employee benefits expected to be settled more than 12 months from the reporting date are
recognised and measured at the present value of the estimated future cash flows to be made in respect of
all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates
and pay increases through promotion and inflation have been taken into account.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
30
(d)
Revenue recognition
Revenue is recognised for the major business activities upon satisfying the performance obligations, using
t
he methods outlined below.
Membership subscription
Revenue from membership subscriptions is recognised in profit or loss in proportion to the stage of completion
of the transaction at the reporting date. The stage of completion is determined by reference to the membership
year.
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the Group:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the
transaction price which takes into account estimates of variable consideration and the time value of money;
allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone
selling price of each distinct good or service to be delivered; and recognises revenue when or as each
performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services
promised.
V
ariable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue will
only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with
the variable consideration is subsequently resolved. Amounts received that are subject to the constraining
principle are recognised as a refund liability.
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery.
Rende
ring of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on
either a fixed price or contractual performance obligations.
Doctors Health Services
Doctors Health Services relates to the administration of government funding for distribution to doctors' health
program providers and the Telehealth grant. Where performance obligations under the contract are not
sufficiently specific, the Group recognises revenue when it gains control of (or has the right to receive) the
asset (cash).
Rental income
Rental income is recognised in the statement of comprehensive income in the reporting period in which it is
received, over the term of the lease in accordance with the lease agreement. Lease incentives granted are
recognised as an integral part of the total rental income over the term of the lease.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
31
(d) Revenue recognition (continued)
Interest income
I
nterest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Group and the amount of revenue can be measured reliably.
Dividend income
Dividend income from investments is recognised when the shareholder’s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Group and the amount
of income can be measured reliably).
Grant income
Grant income is recognised in profit or loss when the Group satisfies the performance obligations stated within
the funding agreements. If conditions are attached to the grant which must be satisfied before the Group is
eligible to retain the contribution, the grant will be recognised in the statement of financial position as a
liability until those conditions are satisfied.
(e)
Finance income and expense
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in
profit and loss, using the effective interest method.
F
inance expenses comprise interest expense on borrowings. All borrowing costs are recognised in profit or
loss using the effective interest method.
(f)
Tax consolidation and income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based
o
n the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
- W
hen the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither
the accounting nor taxable profits; or
- W
hen the taxable temporary difference is associated with interests in subsidiaries, and the timing of the
reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
32
(f)
Tax consolidation and income tax (continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
T
he carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting
date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable
profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets
are recognised to the extent that it is probable that there are future taxable profits available to recover the
asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current
tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they
relate to the same taxable authority on either the same taxable entity or different taxable entities which intend
to settle simultaneously.
A
ustralian Medical Association Limited and its wholly-owned Australian subsidiaries formed an income tax
consolidated group under the tax consolidation legislation with effect from 1 January 2011. Australian Medical
Association Limited is the head entity of the Group.
E
ach entity in the Group recognises its own current and deferred tax assets and liabilities. Such taxes are
measured using the ‘separate taxpayer within group’ approach to allocation. Current tax liabilities or assets and
deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred
to the head entity.
T
he tax consolidated group has entered a tax funding arrangement whereby each company in the Group
contributes to the income tax payable by the Group. Differences between the amounts of net tax assets and
liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are
recognised as either a contribution by, or distribution to the head entity.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
33
(g)
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of the Goods and Services Tax (GST),
except where the amount of GST incurred is not recoverable from the taxation authority. In these
circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
T
rade receivables and trade payables are stated with the amount of GST included. The net amount of GST
recoverable from, or payable to, the Australian Tax Office (ATO) is included as a current liability in the statement
of financial position. Other receivables and other payables are stated with the amount of GST excluded.
C
ash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities, which are recoverable from or payable to the ATO are
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
(h)
Investments and other financial assets
Inv
estments and other financial assets are initially measured at fair value. Transaction costs are included as part
of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless an accounting mismatch is being avoided.
F
inancial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written
off.
F
inancial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
h
eld for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair
value movements are recognised in profit or loss.
F
inancial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the G
roup
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial
recognition.
I
mpairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
34
(h)
Investments and other financial assets (continued)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increase
d
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash
shortfalls over the life of the instrument discounted at the original effective interest rate.
F
or financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance
is recognised in other comprehensive income with a corresponding expense through profit or loss. In all
other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit
or loss.
(i)
Financial
liabilities
F
inancial liabilities are recognised initially at fair value plus any attributable transaction costs. Subsequent
to initial recognition, the financial liabilities are measured at amortised cost using the effective interest rate
method. Financial liabilities comprise loans and borrowings, trade and other payables.
(j)
Cash and cash equivalents
C
ash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less.
(k) Trade and other receivables
T
rade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets.
(l) Trade and other payables
Trade and other payables represent the liabilities for goods and services received by the Group that remain
unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts
normally paid within 30 days of recognition of the liability.
(m) Inventories
Inv
entories are valued at the lower of cost and net realisable value. The cost of inventories is based on the first-
in first-out principle, and includes expenditure incurred in acquiring the inventories and bringing them to
their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
35
(n) Property, plant and equipment
Recognition and measurement
I
tems of property, plant and equipment are measured at cost less accumulated depreciation a
nd
accumulated impairment losses.
C
ost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use and the costs of dismantling and removing the
items and restoring the site on which they are located. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of that equipment.
W
hen parts of an item of property, plant and equipment have different lives, they are accounted for as separate
items (major components) of property, plant and equipment.
G
ains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net,
within profit or loss.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each
part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the
lease term and their useful lives. Land is not depreciated.
T
he estimated depreciation rates for the current and comparative periods are as follows:
2023
2022
Buildings
2.5% - 4%
2.5% - 4%
Office Furniture
5% - 25%
5% - 25%
Office Equipment
10% - 50%
10% - 50%
Fixture and Fittings
5% - 10%
5% - 10%
Computer Hardware
20% - 33.33%
20% - 33.33%
Items less than $300
100%
100%
D
epreciation methods, useful lives and residual values are reassessed at the reporting date.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
36
(o) Intangible assets
Intangible assets that are acquired by the Group, which have finite lives, are measured at cost less
ac
cumulated depreciation and accumulated impairment losses.
Subsequent
expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated
goodwill and brands, is recognised in profit or loss when incurred.
Res
earch and development
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when
it is probable that the project will be a success considering its commercial and technical feasibility; the
Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development;
and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over
the period of their expected benefit.
Amortisation
Amortisation is calculated over the cost of the asset, or another amount substituted for cost, less its
residual value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets, from the date that they are available for use. The estimated depreciation rates for the current
and comparative periods are as follows:
2023
2022
Development
20% - 33.33%
20% - 33.33%
Computer Software
10% - 25%
10% - 25%
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.
(p)
Right-of-use assets and lease liabilities
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measure
d
at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
R
ight-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
T
he Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
37
(p)
Right-of-use assets and lease liabilities (continued)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate.
Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that
depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of
a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed i
n
t
he period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
(q)
Impairment
Financial asset
s
Trade receivables
T
he Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade and other receivables.
T
o measure the expected credit losses, trade and other receivables have been grouped based on shared credit
risk characteristics and the days past due. The historical loss rates are adjusted to reflect current and forward-
looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
T
rade receivables are written off when there is no reasonable expectation of recovery. Indicators that there
is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a
repayment plan with the Group.
Im
pairment losses on trade receivables are presented as net impairment losses within operating profit.
Subsequent recoveries of amounts previously written off are credited against the same line item.
I
nvestments
All of the Group’s investments at amortised cost and FVOCI are considered to have low credit risk, and the loss
allowance recognised during the period was therefore limited to 12 months expected losses. Management
consider ‘low credit risk’ when they have a low risk of default and the issuer has a strong capacity to meet its
contractual cash flow obligations in the near term.
Notes to and forming part of the financial statements
Note 1 Statement of Significant Accounting Policies (continued)
38
(r) Employee Benefits
S
hort-term benefits
L
iabilities for employee benefits for wages and salaries (including superannuation), annual leave and long service
leave represent present obligations resulting from employees’ services provided to reporting date and are
c
alculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to
pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax.
Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that
employees have earned in return for their service in the current and prior periods plus related on costs.
That benefit is discounted to determine its present value and the fair value of any related assets is
deducted. The discount rate is the yield at the reporting date on Commonwealth Government bonds that have
maturity dates approximating the terms of the Group’s obligations.
(s)
Contract
liabilities
C
ontract liabilities represent the Group's obligation to transfer goods or services to a customer and are
recognised when a customer pays consideration, or when the Group recognises a receivable to reflect its
unconditional right to consideration (whichever is earlier) before the Group has transferred the goods or services
to the customer.
(t) Make good provision
P
rovisions for make good obligations are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
P
rovisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as interest expense.
(u) Parent entity financial information
The financial information for the Parent Entity, as disclosed in Note 22 has been prepared on the same basis
as the consolidated financial statements, except as set out below.
Investments in controlled entities
Investments in controlled entities, are accounted for at cost in the financial statements of the Parent Entity.
Dividends received from controlled entities are recognised in the Parent Entity’s statement of
comprehensive income.
(v) Comparative figures
W
hen required by Accounting Standards, comparative figures have been adjusted to conform with changes
in presentation for the current financial year. Comparatives are adjusted for reclassified items in the
financial statements.
Notes to and forming part of the financial statements
Note 2 Revenue and
Expenses
Consolidated
39
2023
2022
$'000
$'000
Revenue
Membership subscriptions
11,134
11,708
Database and data sales
3,732
3,886
Editorial
1,205
1,297
Commercial and member services
842
1,287
Doctors Health Services
2,513
2,235
Interest
Interest from investments at fair value
243
36
through other comprehensive income
766
1,045
Other revenue including recoveries
1,566
1,449
22,001
22,943
Expenses
Contributions to employee superannuation plans
1,241
1,019
Cost of goods sold
12
37
Repairs and maintenance
32
69
Subsidies
Subsidies to AMA States and Territories
1,366
1,551
Other subsidies
38
37
1,404
1,588
Administration
Insurance
84
77
Allowance for impairment of trade receivables*
1,036
15
Travel and accommodation
259
191
Other
1,554
1,569
2,933
1,852
* A
n allowance is included for the impairment for 2023 membership subscriptions collected in an agency
arrangement by Australian Medical Association (WA) Incorporated (AMA WA), on behalf of AMA Limited.
Refer to Note 6 Trade and other receivables and Note 20 Subsequent events, for more detail.
Note 3 Auditor's Remuneration
Audit services
Auditors of the Group
Audit of financial report
65
60
Other services
Auditors of the Group
Taxation services
21
20
86
80
Notes to and forming part of the financial statements
Note 4 Income tax (expense)/credit
Consolidated
40
Current tax (expense)/credit
2023
2022
$'000
$'000
Current tax on profits for the year - -
-
-
Deferred tax (expense)/credit
Origination and reversal of temporary differences
(277)
194
Effect of derecognition of prior year tax losses
(787)
-
Prior year adjustments
18
139
(1,046)
333
Total income tax credit in income statement
(1,046)
333
Loss/(profit) before income tax
1,013
(1,205)
Income tax using the domestic corporation tax rate 25%
253
(301)
Increase in income tax expense due to:
Mutual expenditure
(2,640)
(2,785)
Non-deductible expenses
(2)
(3)
Sundry
(17)
(22)
(2,659)
(2,810)
Decrease in income tax expense due to:
Mutual income
2,663
3,067
Fully franked dividends
67
87
Foreign tax credits
-
7
Sundry
(25)
144
2,705
3,305
Net change in income tax
299
194
Effect of unused tax losses not recognised as deferred tax assets
(1,363)
-
Over provision for prior year - deferred tax expense
18
139
(1,345)
139
Income tax (expense)/credit
(1,046)
333
Attributable
to:
Continuing operations
(1,046)
333
In
accordance with AASB 112 Income Taxes , the Group recognises deferred tax assets arising from unused
tax losses and deductible temporary differences to the extent that it is probable that future taxable income will
be available against which the deferred tax assets can be utilised. An assessment on the probability of future
utilisation of deferred tax assets is performed at the end of each financial year.
F
or the year ended 31 December 2023, the Group de-recognised a deferred tax asset of $1.4 million relating to
unused tax losses. Management believes future taxable income is uncertain based on the history of tax losses
and no significant changes are expected to the Group’s current operations. As such, the utilisation of related tax
losses cannot be predicted. Despite the de-recognition of the deferred tax assets, tax losses are still carried
forward in the Group’s income tax returns and may be utilised in future periods.
Notes to and forming part of the financial statements
Note 5 Cash and Cash Equivalents
Consolidated
2023
$'000
2022
$'000
Note
41
Cash at bank
16(b)
7,606
7,022
Short-term deposits (less than 3 months' maturity)
16(b)
-
1,377
Total Cash and cash equivalents
16
7,606
8,399
(
i) Classification of cash equivalents
Short-term deposits are presented as cash equivalents if they have a maturity of three months or less fro
m
the date of acquisition.
(
ii) Restricted cash and short-term deposits
The cash and cash equivalents disclosed above and in the statement of cash flows include $0.4 million
(2022: $1.3 million), which are held by Doctors Health Services Pty Ltd. These monies are subject to grant funding
arrangement restrictions and are therefore not available for general use by the other entities within the Group.
Note 6 Trade and other receivables
T
rade receivables 1,800 1,908
Provision for impairment (1,051) (15)
749
1,893
Other receivables 1,508 1,607
Total Trade and other receivables
16
2,257
3,500
Movements in the provision for impairment of trade receivables that are assessed for impairment
collectively are as follows:
Balance at 1 January
15
-
Addition 1,036 15
Balance at 31 December 1,051 15
For the year ended 31 December 2023, an allowance of $1.0 million (2022: nil) for the recoverability of the
unremitted 2023 Federal membership subscriptions collected by the AMA WA on behalf of AMA Limited in
an agency arrangement has been recognised. Please refer to Note 20 Subsequent events, for more detail.
(i) Classification as trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. Other receivables generally arise from transactions outside the usual operating activities of the
Group. Collateral is not normally obtained. If collection of the amounts is expected in one year or less,
they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are
generally due for settlement within 30 days and therefore are all classified as current. The Group holds the
trade receivables with the objective to collect the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method. The Group's impairment and other
accounting policies for trade and other receivables are outlined in notes 1(q) and 1(k) respectively.
Notes to and forming part of the financial statements
Note 7
Inventories
Consolidated
2023
$'000
2022
$'000
Note
42
Finished goods
46
20
Total Inventories
46
20
Note 8 Prepayments
Prepayments
786
299
Total Prepayments
786
299
Note 9 Financial investments
Current assets
Financial assets at amortised cost
Short-term deposits (more than 3 months' maturity)
16
1,688
500
Total Current
1,688
500
Non-current assets
Financial assets at fair value through other comprehensive
income
Managed securities fund
16
21,994
20,731
Total Non-current
21,994
20,731
Total Financial investments
23,682
21,231
(a)
Financial assets at amortised cost
(i) Classification of financial assets at amortised cost
The Group classifies its financial assets as at amortised cost only if both of the following criteria are met:
- The asset is held within a business model whose objective is to collect the contractual cash flows; and
- The contractual terms give rise to cash flows that are solely payments of principal and interest.
(b)
Financial assets at fair value through other comprehensive income
(i) Classification of financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income (FVOCI) comprise:
- Equity securities which are not held for trading and which the Group has irrevocably elected at init
ial
r
ecognition to recognise in this category.
- Debt securities where the contractual cash flows are solely principal and interest and the objective of th
e
G
roup's business model is achieved both by collecting contractual cash flows and selling financial assets.
(
ii) Equity investments at fair value through other comprehensive income
On disposal of these equity investments, any related balance within the FVOCI reserve is reclassified to
retained earnings.
(
ii) Debt investments at fair value through other comprehensive income
On d
isposal of these debt investments, any related balance within the FVOCI reserve is reclassified to profit
or loss.
Notes to and forming part of the financial statements
Note 9 Financial investments (continued)
43
(c)
Financial assets at fair value through profit or loss
(
i) Classification of financial assets at fair value through profit or loss
The Group classifies the following financial assets at fair value through profit or loss (FVPL):
- Debt investments that do not qualify for measurement at either amortised cost or FVOCI;
- Equity investments that are held for trading; and
- Equity investments for which the entity has not elected to recognise fair value gains and losses through
OCI.
Note 10 Intangible assets
Consolidated
2023
$'000
2022
$'000
Development - at cost
752
752
Less: Accumulated amortisation
(752)
(640)
-
112
Computer software - at cost
1,694
1,694
Less: Accumulated amortisation
(1,110)
(881)
584
813
Total Intangible assets
584
925
Notes to and forming part of the financial statements
44
Note 10 Intangible assets (continued)
Movement in carrying amounts:
Consolidated
Development
Computer
software
Total
31 December 2022
$'000
$'000
$'000
Opening
written
down
value
301
1,056
1,357
Amortisation
(189)
(243)
(432)
Closing
written
down
value
112
813
925
31 December 2023
Opening
written
down
value
112
813
925
Amortisation
(112)
(229)
(341)
Closing
written
down
value
-
584
584
Notes to and forming part of the financial statements
45
Note 11 Property, plant and equipment
Consolidated
2023
$'000
2022
$'000
Property, Parap Rd, Parap - at cost
381
381
Less: Accumulated depreciation
(116)
(107)
265
274
Office furniture - at cost
528
515
Less: Accumulated depreciation
(364)
(343)
164
172
Office equipment - at cost
1,044
1,035
Less: Accumulated depreciation
(874)
(820)
170
215
Fixtures and fittings - at cost
1,246
1,237
Less: Accumulated depreciation
(259)
(155)
987
1,082
Computer hardware - at cost
421
392
Less: Accumulated depreciation
(320)
(283)
101
109
Total Property, plant and equipment
1,687
1,852
A
n independent valuation of 2/25 Parap Road, Northern Territory was performed in December 2021 and valued
at $400,000. Territory Property Consultants Pty Ltd prepared the valuation. As the valuation was in excess of the
written down value disclosed in the financial statements, no adjustment is necessary nor has been made within
the financial statements. It is the Group's accounting policy to obtain a valuation every 5 years.
46
Notes to and forming part of the financial statements
Note 11 Property, plant and equipment (continued)
Movement in carrying amount:
Consolidated
Opening written
down value
Additions
Depreciation
Closing written
down value
31 December 2022
$'000
$'000
$'000
$'000
Property, Parap Rd Parap
283
-
(9)
274
Office
furniture
148
41
(17)
172
Office
equipment
234
45
(64)
215
Fixture and fittings
1,130
52
(100)
1,082
Computer
hardware
69
79
(39)
109
1,864
217
(229)
1,852
31 December 2023
Property, Parap Rd Parap
274
-
(9)
265
Office
furniture
172
12
(20)
164
Office
equipment
215
18
(63)
170
Fixture and fittings
1,082
9
(104)
987
Computer
hardware
109
33
(41)
101
1,852
72
(237)
1,687
47
Notes to and forming part of the financial statements
Note 12 Deferred tax assets and liabilities
Deferred Tax Assets
Deferred Tax Liabilities
Total
Consolidated
2023
2022
$'000
$'000
2023
2022
$'000
$'000
2023
$'000
2022
$'000
Leases
75
79 -
-
75
79
Property,
plant
and
equipment
-
-
(7)
(9)
(7)
(9)
Income in
advance
-
81
(59) -
(59)
81
Employee
benefits
245
250
-
-
245
250
Investments
-
227
(149)
-
(149)
227
Others
-
7
(105)
-
(105)
7
Carried forward losses
-
787
-
-
-
787
Total Deferred tax assets/(liabilities)
320
1,431
(320)
(9)
-
1,422
Movement in temporary differences:
Property,
Consolidated
Leases
plant and
equipment
Income in
advance
Employee
benefits
Investments
Others
Carried
forward losses
Total
31 December 2022
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Opening
written
down
value
52
(11)
(103)
246
(584)
1
677
278
Recognised in income statement
27
2
184
4
-
6
110
333
Recognised in equity
-
-
-
-
811
-
-
811
Closing written
down value
79
(9)
81
250
227
7
787
1,422
31 December 2023
Opening
written
down
value
79
(9) 81 250
227
7
787
1,422
Recognised in income statement
(4)
2
(140)
(5)
-
(112)
(787)
(1,046)
Recognised in equity
-
-
-
-
(376)
-
-
(376)
Closing written
down value
75
(7)
(59)
245
(149)
(105)
-
-
A deferred tax asset has been de-recognised as at 31 December 2023. Management believes future taxable income is uncertain based on the history of tax losses and no
significant changes are expected to the Group’s current operations. As such, the utilisation of related tax losses cannot be predicted.
Notes to and forming part of the financial statements
48
Note 13 Leases
(i) Amounts recognised in the balance sheet
Assets
Consolidated
Office premises
IT equipment
Total
Right-of-use assets
$'000
$'000
$'000
31 December 2022
Opening written down value
5,407
122
5,529
Additions
-
133
133
Disposals
(140)
-
(140)
Depreciation
(1,029)
(54)
(1,083)
Closing written down value
4,238
201
4,439
31 December 2023
Opening written down value
4,238
201
4,439
Additions
1,391
10
1,401
Depreciation
(775)
(64)
(839)
Closing written down value
4,854
147
5,001
Liabilities
Consolidated
2023
2022
$'000
$'000
Lease liabilities
Current
717
885
Non-current
6,134
5,469
6,851
6,354
Make good provision
Non-current
168
163
Future lease payments in relation to lease liabilities as at period end are as
follows: Within one year
964
1,063
Later than one year but not later than five years
4,563
3,224
Later than five years
2,415
3,072
7,942
7,359
A
s at 31 December 2023, the Group has two office leases and a number of IT equipment leases.
(ii) Amounts recognised in the statement of profit or loss
Interest expense
191
179
(iii) Amounts recognised in the statement of cash flows
Lease payments
1,089
768
49
Consolidated
2023
$'000
2022
$'000
201
168
1,475
1,272
473
722
Notes to and forming part of the financial statements
Note 14 Trade and other payables
Trade payables
Other payables and accruals
Income in advance
Total Trade and other payables
2,149
2,162
Trade payables are unsecured and are usually paid within 30 days of recognition.
685
667
977
979
1,662
1,646
142
156
Note 15 Employee benefits
Current
Long service leave provision
Annual leave provision
Non-current
Long service leave provision
Total Employee benefits
1,804
1,802
The e
mployee benefits liability includes all of the accrued annual leave, the unconditional entitlements to
long service leave where employees have completed the required period of service and also those where
employees are entitled to pro-rata payments.
Notes to and forming part of the financial statements
37
Note 16 Financial Instruments and Risk Management
Risk management
The Board of Directors, through its Audit, Risk and Performance Committee; and Finance and Investment
Committee, manages the financial risks relating to the operations of the Group. The Group adopts prudent risk
based management procedures. The Audit, Risk and Performance Committee oversees compliance with the
Group’s risk management procedures and the Finance and Investment Committee oversees financial asset
management. The Group does not enter into or trade financial instruments for speculative purposes.
T
he Group’s activities expose it to the following risks from the use of financial instruments:
(a) Credit risk
C
redit risk refers to the risk that a counter party will default on its contractual obligations resulting i
n
financial loss to the Group. The Group has adopted the policy of only dealing with credit worthy counter parties
and obtaining sufficient collateral or other security where appropriate as a means of mitigating the risk of
financial loss from defaults.
The carrying amount of the Group’s financial assets represents the maximum credit exposure.
Consolidated
2023
2022
Note
$'000
$'000
Financial assets
Cash and cash equivalents
5
7,606
8,399
Trade and other receivables
6
2,257
3,500
Financial assets at amortised costs
9
1,688
500
Financial assets at fair value through
other comprehensive income 9
21,994
20,731
33,545
33,130
T
he Group does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the
financial statements, net of any allowances for losses, represents the Group’s maximum exposure to credit risk.
T
rade and other receivables contains an allowance for impaired assets of $1.0 million (2022: nil) for the
recoverability of the unremitted 2023 Federal membership subscriptions collected by AMA WA on behalf of
AMA Limited in an agency arrangement. Please refer to Note 20 Subsequent events, for more detail. The Group
does not hold any collateral in relation to these receivables.
Notes to and forming part of the financial statements
Note 16 Financial Instruments and Risk Management (continued)
50
(b)
Market risk
Market risk is the risk that changes in market prices such as currency rates, interest rates and equity prices will
affect the Group’s income. The objective of market risk management is to manage and control market risk
exposure within acceptable parameters whilst optimising returns.
(
i) Interest risk
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Consolidated
Variable rate instruments
Note
2023
$'000
2022
$'000
Financial assets
Cash at bank
5
7,606
7,022
7,606
7,022
Fixed rate instruments
Financial assets at amortised costs
Short term deposits
- less than 3 months' maturity
5
-
1,377
- more than 3 months' maturity
9
1,688
500
1,688
1,877
(ii) Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes i
n
foreign currency. To manage its currency risk arising from investments, the Group diversifies its portfolio through
managed funds, assisted by external advisers and endorsed by the Board through its Finance and Investment
Committee.
Notes to and forming part of the financial statements
Note 16 Financial Instruments and Risk Management (continued)
51
(b) Market risk (continued)
(
iii) Price risk
Consolidated
2023
2022
Financial
assets
Note
$'000
$'000
Non-current assets
Financial assets at fair value through
other comprehensive income
Managed fund - Australian securities
16,935
15,778
Managed fund - International securities 5,059 4,953
9
21,994
20,731
E
xposure
Certain investments are designated as at fair value through profit and loss as these are short term investments
that are primarily for meeting operational expenditure. The Group's exposure to equity securities price risk
arises from investments held by the Group and classified in the balance sheet as at fair value through other
comprehensive income (FVOCI).
The main purpose of FVOCI investments are to provide long term funding
to the Group. While income and realised capital gains may be used to meet shortfalls in operational expenditure,
ordinarily though, the income and any realised capital gains generated are expected to be retained for
reinvestment.
T
o manage its price risk arising from investments, the Group diversifies its portfolio through managed
funds, assisted by external advisers and endorsed by the Board through its Finance & Investment
Committee.
(c)
Liquidity risk
L
iquidity risk is the risk that the Group will not be able to meet its normal financial obligations as they fall
due. The Group manages liquidity risk by maintaining adequate reserves and banking facilities and by
continuously monitoring forecast and actual cash flows.
(d)
Fair values versus carrying amount
T
he fair values of financial assets and liabilities, are not significantly different from the carrying amounts
shown in the Statement of Financial Position.
(e)
Capital
management
The Group maintains a strong funding structure so as to enable it to continue operations to promote its core
objectives. The strong funding structure is maintained through the optimisation of banking facilities and the
preservation of revenue.
Notes to and forming part of the financial statements
52
Note 17
Commitments
Consolidated
2023
2022
Expenditure
commitment
$'000
$'000
Not later than 1 year 39 37
Later than 1 year but not later than 5 years 20 58
59
95
Commitments receivable
Not later than 1 year
67
64
Later than 1 year but not later than 5 years 69 131
136
195
The Australian Medical Association Limited (AMA) has a Memorandum of Understanding with the Australian
Medical Students' Association Limited (AMSA) and continues to provide financial support in the form of cash
sponsorship, direct employment and in-kind support.
Note 18 Directors and Executive disclosure
Transactions with Directors and Key Management Personnel
During the year the Group paid a premium to insure the Directors and Officers of the Group as disclosed in
the Directors Report.
The Directors and Key Management Personnel are remunerated in the form of salaries or under contract as
follows.
Consolidated
2023
2022
$'000
$'000
Total remuneration 2,940 3,023
Apart from the details disclosed in this note, no Director has entered into a material contract with the
Group since the end of the previous financial year and there were no material contracts involving Directors’
interests subsisting at year end.
Note 19 Trust funds
The Group manages monies held in trust for a number of funds. The net values of the assets of those funds
are as follows:
Consolidated
The Indigenous Peoples' Medical Scholarship Trust Fund
2023
$
53,729
2022
$
51,580
The AMA Indigenous Medical Scholarship Foundation
270,033
256,841
323,762
308,421
A
MA Pty Limited acts as trustee for the Indigenous Peoples’ Medical Scholarship Trust Fund and the AMA
Indigenous Medical Scholarship Foundation. However, as the Fund does not have a Deductible Gift
Recipient (DGR) status, a new DGR and Australian Charities and Not-for-profits Commission (ACNC)
compliant fund, the AMA Indigenous Medical Scholarship Foundation, was established in 2016. It provides
scholarships to assist Aboriginal and Torres Strait Islander people in tertiary courses at Australian
universities, undertaking courses of study leading to registration as a medical practitioner.
Notes to and forming part of the financial statements
53
Note 20 Subsequent events
Since late 2022, AMA Limited has been negotiating with Australian Medical Association (WA) Incorporated (AMA
WA) following its decision to cease forwarding the full amount of Federal member subscriptions collected by
AMA WA on AMA Limited's behalf from 2024 onwards. As a member of AMA WA, WA members were
also members of AMA Limited. During the negotiations, AMA WA notified AMA Limited that any arrangements
for remission of Federal subscriptions would cease on 31 December 2023. AMA Limited entered into an interim
agreement to continue to provide services to AMA WA members to resolve the substantive disagreement. This
concession expired on 29 February 2024. From 1 March 2024, AMA WA members are no longer financial
members of Federal AMA, and there is no longer any arrangement for Federal AMA to continue to provide
services to them. There is no impact on AMA members outside of WA.
Ot
her than the above, no other matter or circumstance has arisen since the end of the financial year to the date
of this report, which has significantly affected or may significantly affect the operations of the economic
entity, the results of those operations or the state of affairs of the economic entity in subsequent financial years.
Note 21 Parent entity
As at, and throughout the financial year ended 31 December 2023, the parent company of the Group was
the Australian Medical Association Limited. The following information has been extracted from the books
and records of the parent and has been prepared in accordance with the accounting standards.
(a) Financial information
Earnings before interest and tax
2023
$'000
(1,974)
2022
$'000
(1,065)
Interest income
752
912
Loss before tax
(1,222)
(153)
Income tax (expense)/credit *
(1,046)
333
(Loss)/profit for the year
(2,268)
180
Changes in fair value of investments at fair value
through other comprehensive income (net of income tax)
994
(2,084)
Total comprehensive loss
(1,274)
(1,904)
* The parent entity, the Australian Medical Association Limited, is the head entity for the income tax
consolidated group and it provides income tax subsidies to its subsidiary companies within the Group.
Statement of financial position
Assets
Current assets
6,543
5,468
Non-current assets
25,118
26,720
Total assets
31,661
32,188
Liabilities
Current liabilities
6,008
2,263
Non-current liabilities
5,158
8,157
Total liabilities
11,166
10,420
Notes to and forming part of the financial statements
54
Note 21 Parent entity (continued)
(a) Financial information (continued)
Equity
Retained earnings
20,067
22,334
Reserve
428
(566)
Total equity
20,495
21,768
(b) Other
commitments
T
here have been no contractual commitments entered into by the Australian Medical Association Limited
for the acquisition of property, plant or equipment.
(c)
Contingent liabilities
There are no contingent liabilities at the reporting date.
Note 22 Related party transactions
Subsidiaries
Interests in subsidiaries are set out below.
Consolidated
2023
2022
Parent entity $ $
Australian Medical Association Limited
n/a
n/a
Controlled entities
Australasian Medical Publishing Company Proprietary Limited 1 1
AMA Pty Limited 2 2
AMA NT Pty Ltd 1 1
Doctors Health Services Pty Ltd 1 1
5
5
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in Note 1.
Equity
holding
Class of
2023
2022
Name of entity
shares
%
%
Australasian Medical Publishing Company Proprietary
Ordinary
100
100
AMA Pty Limited
Ordinary
100
100
AMA NT Pty Ltd
Ordinary
100
100
Doctors Health Services Pty Ltd
Ordinary
100
100
Notes to and forming part of the financial statements
55
Note 22 Related party transactions (continued)
T
he parent entity, the Australian Medical Association Limited, is a company limited by guarantee, incorporated
and domiciled in Australia. The registered office of the Company is Level 1, 39 Brisbane Avenue, Barton
ACT 2600. The Company promotes the interests of the medical profession in the medico political arena and also
in the more general sphere, advocates for patient health and the health of the community.
A
ustralasian Medical Publishing Company Proprietary Limited is a company limited by shares, incorporated and
domiciled in Australia. The registered office of this company is Level 19, Town Hall House, 456 Kent St, Sydney
NSW 2000. This company publishes the Medical Journal of Australia and maintains and operates a
comprehensive database containing both member and non-member information.
A
MA Pty Limited is a company limited by shares, incorporated and domiciled in Australia. The registered office
of this company is Level 1, 39 Brisbane Avenue, Barton ACT 2600. This company acts as trustee for the
Indigenous Peoples’ Medical Scholarship Trust Fund and the AMA Indigenous Medical Scholarship Foundation.
AMA NT Pty Ltd is a company limited by shares, incorporated and domiciled in Australia. The registered
office of this company is Level 1, 39 Brisbane Avenue, Barton ACT 2600. This company purchased a commercial
property in Darwin, Northern Territory on 1 February 2011 and provided services to members of the AMA
in the Northern Territory from 1 November 2011.
D
octors Health Services Pty Ltd is a company limited by shares, incorporated and domiciled in Australia.
The registered office of this company is Level 1, 39 Brisbane Avenue, Barton, ACT 2600. This company manages
the delivery of health services for medical practitioners and medical students.
Directors'
Declaration
57
In the di
rectors' opinion:
1) the
attached financial statements and notes comply with the Corporations Act 2001, the Australian
Accounting Standards - Simplified Disclosures, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
2) the attached financial statements and notes give a true and fair view of the Group's financial position as
at 31 December 2023 and of its performance for the financial year ended on that date;
3) ther
e are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable; and
Signed in
accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations
Act 2001.
On beha
lf of the directors
Dr Kate Kearney
Chair
Australian Medical Association Limited
Professor Steve Robson
President
Australian Medical Association Limited
Liability limited by a scheme approved under Professional Standards Legislation
p (+61 2) 6239 5011
e admin@bellchambersbarrett.com.au
Level 3, 14 Childers St,
Canberra ACT 2601
PO Box 4390, Kingston ACT 2604
ABN 32 600 351 648
bellchambersbarrett.com.au
AUDITOR’S INDEPENDENCE DECLARATION UNDER S307C OF
THE CORPORATIONS ACT 2001 TO MEMBERS OF AUSTRALIAN
MEDICAL ASSOCIATION LIMITED AND CONTROLLED ENTITIES
As lead auditor of Australian Medical Association Limited and Controlled Entities, I declare that, to the best of
my knowledge and belief, during the year ended 31 December 2023 there have been no contraventions of:
i. the auditor independence requirements as set out in the Corporations Act 2001 in relation to
the
a
udit; an
d
ii.
any applicable code of professional conduct in relation to the audit.
Sart Spinks, CA Canberra, ACT
Registered Company Auditor Dated this 23
rd
day of April 2024
BellchambersBarrett
58
Liability limited by a scheme approved under Professional Standards Legislation
p (+61 2) 6239 5011
e admin@bellchambersbarrett.com.au
Level 3, 14 Childers St,
Canberra ACT 2601
PO Box 4390, Kingston ACT 2604
ABN 32 600 351 648
bellchambersbarrett.com.au
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
AUSTRALIAN MEDICAL ASSOCIATION LIMITED AND
CONTROLLED ENTITIES
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of Australian Medical Association Limited and Controlled
Entities (the Group), which comprises the consolidated statement of financial position as at 31 December
2023, the consolidated statement of other comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors’ declaration.
In our opinion, the 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 31 December 2023 and of its
performance for the year then ended; and
(ii) complying with Australian Accounting Standards – AASB 1060: General Purpose Financial
Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities and th
e
C
orporations Regulations 2001
.
Basis f
or 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 and 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information comprising the information included in the annual report
for the year ended 31 December 2023 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 accordingly 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 Group are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards – Simplified Disclosures 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 is free from material misstatement, whether due to fraud or error.
59
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
AUSTRALIAN MEDICAL ASSOCIATION LIMITED AND
CONTROLLED ENTITIES
In preparing the financial report, the directors are responsible for assessing the Group’s ability 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 have no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the registered entity’s financial reporting
process.
Auditor’s Responsibility 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:
x 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.
x 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.
x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
x 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.
x 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.
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.
Sart Spinks, CA Canberra, ACT
Registered Company Auditor Dated this 23
rd
day of April 2024
BellchambersBarrett
60
