We want to keep Beneficiaries informed about the financial decisions being made to protect the future of the Foundation. As part of this work, the Gumala Trust has developed long-term financial modelling. This modelling shows that the Foundation’s administration costs – for both the Trustee and the Manager – must be no more than $14 million annually. The Gumala Trust is now working with GAC to plan how to achieve this sustainable budget.
This sustainable budget will reflect what Beneficiaries have been telling us you want to see: stronger oversight, lower administration costs and a Trust that remains sustainable for future generations.
Over the past few years, management and administration costs across the Foundation have grown far more than they should have. Under the Trust Deed, overheads must be paid before any funds can be distributed to Beneficiaries or the Future Fund. The higher the overheads, the less support is available for families today – and the less funds in the Trust for Beneficiaries tomorrow.
A large part of the Foundation’s income comes from Rio Tinto under the Yandi Land Use Agreement. With the Yandi mine expected to close in the next 10–15 years, those payments will eventually stop. This makes long‑term planning essential. If spending on administration continued at previous levels, the Foundation’s funds were projected to run out by 2040. By setting a sustainable budget now, we can extend the life of the Trust to at least 2077, the year specified in the Trust Deed.
To support this work, the Trustee has strengthened oversight, implemented recommendations from the independent KPMG financial review, and set clearer expectations around efficiency, transparency and accountability across the organisation.
These changes are part of a broader shift toward sustainability and better outcomes for Beneficiaries. We will continue to keep you updated as this work progresses.