1. WACOSS The Big Picture: What Demographic Data is Telling Us About the WA Community and its Future Bernard Salt 9 May 2012

2. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. These slides are not for commercial use or redistribution. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. KPMG have indicated within this presentation the sources of the information provided. KPMG has not sought to independently verify those sources unless otherwise noted within the presentation. No reliance should be placed on additional oral remarks provided during the presentation, unless these are confirmed in writing by KPMG. KPMG is under no obligation in any circumstance to update this presentation, in either oral or written form, for events occurring after the presentation has been issued in final form. The findings in this presentation have been formed on the above basis. Forecasts are based on a number of assumptions and estimates and are subject to contingencies and uncertainties. Forecasts should not be regarded as a representation or warranty by or on behalf of KPMG or any other person that such forecasts will be met. Forecasts constitute judgment and are subject to change without notice, as are statements about market trends, which are based on current market conditions. Neither KPMG nor any member or employee of KPMG undertakes responsibility arising in any way from reliance placed by a third party on this presentation. Any reliance placed is that party’s sole responsibility. The presentation (and the accompanying slide pack) is provided solely for the benefit of the conference attendees and is not to be copied, quoted or referred to in whole or in part without KPMG’s prior written consent. KPMG accepts no responsibility to anyone other than the conference attendees for the information contained in this presentation.

3. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Overseas migration is recovering in Western Australia … labour required to support the resources boom Components of population growth in Western Australia between 1982 & 2011 Source: Based on Australian Bureau of Statistics data; KPMG 1.61m 1.87m2.30m 4.05m @ 2050561,000 @ 1950 -10,000 0 20,000 30,000 40,000 50,000 60,000 70,000 80,000 198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011 Natural IncreaseNet Overseas MigrationNet Interstate Migration

4. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Australians are reluctant to move from the capital cities or the coast … FIFO proves this point Geraldton Areas of high population growth (>2% pa) and loss (<-1% pa) between 1986 and 2011 Source: Based on Australian Bureau of Statistics data; KPMG Losers Winners Gladstone Hervey Bay Sunshine Coast Gold Coast Coffs Harbour Port Macquarie Port Stephens Narooma Surf Coast Sorell Victor Harbor Augusta- Margaret River Broome Mackay Cairns-Port Douglas Bundaberg Byron Bay Denmark FIFO WEST FIFO CENTRAL FIFO EAST TOWNSVILLE PERTH DARWIN

5. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Old tribes … 1.Indians ~ 500,000 2.Chinese ~ 500,000 3.Kiwis ~ 600,000 4.South Africans ~ 200,000 5.Filipinos ~ 200,000 Source: Based on Australian Bureau of Statistics data; KPMG PUMCINS …. new tribes NETTELs … KIPPERS … LOMBARDs …

6. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Demographic indicators show opportunities and challenges for Western Australia in the coming decade Net growth June 2011 Wanneroo6,234 Stirling3,950 Rockingham3,893 Mandurah3,715 Armadale3,302 Joondalup3,192 Swan3,110 Cockburn2,691 Gosnells2,319 Canning1,447 Fastest-growing 2006 Census % Derby51 Kununurra31 Broome24 Carnarvon22 Port Hedland18 Katanning11 Geraldton9 Northam8 Kalgoorlie-Boulder8 Newman8 Proportion Indigenous 2006 Census % Exmouth34 Moora33 Narrogin33 Bridgetown33 Denmark33 The Vines13 Kwinana13 Rockingham14 Ellenbrook14 Baldivis15 Proportion volunteers Source: Based on Australian Bureau of Statistics data; KPMG

7. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Demand for social services is shaped by changes in Western Australia’s demographic profile Net change in Western Australian population by 5-year age group over 10 years to 2011 and 10 years to 2021 Source: Based on Australian Bureau of Statistics data; KPMG 2001-11 2011-21 Mature adults Re-skilling Divorce 2001-2011:445k or 1.9m – 2.3m 2011-2021:473k or 2.3m – 2.8m Young adults Affordable housing Job opportunities Retirees Downshifting Assisted living Kids & teenagers Suburbia New schools 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 0-45-910-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980-8485+

8. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. 0901020304050607080 Increasing life expectancy is creating new stages of the lifecycle ChildAdolescenceLifestyleOldRetired 2012 82 Adult ChildTeenOld Adult 1972 71 ChildAdultOld 1932 63 Change in life expectancy over 80 years in Australia Source: Based on United Nations Statistics Division data; KPMG

9. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. There has been a structural shift in the Western Australian economy … away from retail and towards mining Source: Based on Australian Bureau of Statistics data; KPMG Construction Mining Professionals Public Admin Admin & Support Accom & Food Healthcare Construction Education &Training Elect, Gas, Water, Waste Arts & Recreation Financial & Insurance Transport, Postal, W’House Retail Other Wholesale Real Estate Info Media/Telecoms Agriculture Manufacturing Public Admin, Utilities, Manufacturing Mining Agriculture, Retail Professionals Health -30,000 -20,000 -10,000 - 20,000 30,000 40,000 50,000 3 years Feb 2012 – up 84k (1.18m – 1.27m) 3 years Feb 2009 – up 118k (1.06m – 1.18m) 2006-20092009-2012 Net change in total jobs in Western Australia over two successive three-year periods, February 2006 – February 2012

10. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Baby boomers will re-engineer retirement in the coming decade … beware the rise of the grumpy retiree! Net growth in the population aged 65+ over 100 years in Australia 130,000 195020502000 Population growth - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 1950195419581962196197019741978198219861990199419982002200620102014201820222026203020342038204220462050 Source: Based on Australian Bureau of Statistics data; KPMG

11. Percentage difference in the number of men and women in Australia and New Zealand by individual year in 2006 -15% -10% -5% 0% 5% 10% 02468101214161820222426283032343638404244464850525456586062646668707274 AustraliaNew Zealand 35 Man Drought Boy Town Widow World 27 35 58 65 Man Mountain More men More women Source: Based on Australian Bureau of Statistics data; Statistics New Zealand; KPMG The Great Australasian Man Drought … Stage 3A restrictions now apply

12. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Perth’s bachelor hotspot is Karawara Source: Based on Australian Bureau of Statistics data; KPMG Karawara 2.20:1 Bull Creek 1.81:1

13. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). Liability limited by a scheme approved under Professional Standards Legislation. Contact Bernard Salt KPMG Australia +61 3 9288 5047 bsalt@kpmg.com.au www.bernardsalt.com.au twitter.com/bernardsalt linkedin.com/in/bernardsalt facebook.com/BernardSaltDemographer