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FURTHER REPORT - TOURISM NOOSA FUNDING AND PERFORMANCE DEED 2026–2029

Chief Executive Officer, Larry Sengstock · CEO's Office | Office of the CEO & Mayor

Executive summary

A report on the Tourism Noosa Funding and Performance Deed 2026-2029 was presented to the General Committee on 13 April 2026 and considered by Council on 16 April 2026. At that meeting, Council resolved not to adopt the Deed in its then current form and requested further refinement of the Schedule 1 KPIs, appointment of a Councillor to the working group, and that a revised Deed and KPI framework be presented to the June meeting round. This Further Report responds directly to that resolution and presents a revised Tourism Noosa Funding and Performance Deed (Deed) and updated Schedules for Council consideration. A focused working group process was undertaken, including Councillor input, to review and restructure the performance framework. The revised Deed restructures the original Schedule 1 by separating its combined deliverables and KPIs into two distinct schedules:

  • Schedule 1 – Agreed Obligations and Deliverables, and
  • Schedule 2 – Performance Scorecard (KPIs). In addition, the original Schedule 2 (Performance Adjustment methodology) has been revised and simplified into a new Schedule 3 – Performance Adjustment Calculation, which introduces a clear scoring model linked to the Scorecard. This revised structure: • clarifies the distinction between mandatory obligations and performance measurement; • introduces a balanced scorecard approach to measuring outcomes across financial management, industry capability, destination positioning and sustainable management; and • simplifies the performance-based funding adjustment through a points-based model. The revised Deed retains the core funding model of $2.0 million per annum (ex GST) for a three- year term, with CPI indexation and a performance-based adjustment of up to $350,000 applied to the second instalment based on Council’s annual assessment of performance. This report seeks Council consideration and approval of the revised Deed and Schedules.

Recommendation

That Council

  1. Note the report by the Chief Executive Officer to the General Committee dated 13 April 2026 and this Further Report regarding the Tourism Noosa Funding and Performance Deed 2026–2029;
  2. Note that, in response to Council’s resolution of 16 April 2026, the Deed Schedules have been revised to: i. Separate Agreed Obligations and Deliverables (Schedule 1) from performance measures; ii. Introduce a Balanced Scorecard framework of KPIs in Schedule 2; and
  3. Simplify the performance-based funding adjustment model in Schedule 3;
  4. Approve the revised Tourism Noosa Funding and Performance Deed 2026–2029 with Tourism Noosa Ltd for a term of three (3) years, commencing 1 July 2026 and ending 30 June 2029, for funding of $2,000,000 per annum (ex GST), with CPI indexation applied from the second year of the Term, capped at a maximum of 3.5% per annum, subject to the terms and conditions of the Deed as provided at Attachment 1;
  5. Note that funding will be paid in three instalments, with the second instalment subject to a performance-based adjustment of up to $350,000, based on Council’s assessment of performance against the Schedule 2 KPIs using the scoring methodology set out in Schedule 3;
  6. Note that failure to deliver Schedule 1 Agreed Obligations may constitute a breach of the Deed and is managed through the Deed’s compliance and governance provisions, separate from the performance adjustment framework;
  7. Authorise the Chief Executive Officer to: i. Finalise and execute the Tourism Noosa Funding and Performance Deed 2026–2029, including any minor or administrative amendments required; and ii. Administer the Deed in accordance with its terms.

Report

Schedule 1 – Agreed Obligations and Deliverables Schedule 1 now contains the core obligations required to be delivered by Tourism Noosa under the Deed. These include planning, governance, reporting and agreed program deliverables aligned to the DMP. These obligations: • are mandatory requirements of the Deed; • are not subject to performance scoring or funding adjustment; and • are enforceable through the Deed’s compliance, reporting and breach provisions. Failure to deliver these obligations may constitute a breach of the Deed and is addressed through the Deed’s governance and compliance mechanisms.

Schedule 2 – Performance Scorecard (KPIs) Schedule 2 establishes a Balanced Scorecard framework for performance measurement, structured across four key areas: • Financial Management • Industry Capability and Partnerships • Destination Positioning (Brand and Marketing) • Sustainable Management and Future Capability Each area includes defined KPIs, supported by baseline measures and annual targets, enabling Council to assess performance against strategic outcomes rather than activity alone.

Schedule 3 – Performance Adjustment Calculation Schedule 3 provides a revised and simplified performance adjustment model, replacing the previous priority ranking and weighting system. Under this model: • each KPI is assessed and scored based on the level of delivery; • scores are aggregated to a total performance outcome; and • a graduated funding adjustment is applied based on that total score. This approach strengthens the link between performance and funding in a way that is transparent, proportionate and consistent year to year.

Governance, Planning and Reporting Framework The Deed sits within a broader governance and planning framework that supports oversight, accountability and alignment with Council policy. Tourism Noosa operates under a structured framework that includes: • a multi-year strategic plan, developed by Tourism Noosa and endorsed by its Board, which is reviewed to ensure alignment with Council’s Destination Management Plan and Tourism Noosa Roadmap; • delivery of that strategy by the Tourism Noosa Chief Executive Officer, who is accountable to the Tourism Noosa Board; • development of annual business plans, translating the strategy into detailed actions, programs and performance targets; and • ongoing Board oversight of performance against those plans. Under the Funding Deed: • Council provides $2.0 million per annum to support delivery of agreed services, including destination marketing, visitor servicing, industry development, partnerships, and research and insights; • Tourism Noosa is required to meet defined obligations (Schedule 1) and deliver against performance measures (Schedule 2); • Tourism Noosa provides quarterly financial and operational reports to Council; and • an Annual Outcome Report is submitted each year, summarising performance against obligations and KPIs. This framework provides multiple levels of oversight, including Board governance, structured reporting to Council, and annual performance assessment linked to funding.

Key Changes from the April Deed The revised Deed incorporates the following key changes in response to Council feedback: • separation of deliverables and performance measures into distinct schedules; • introduction of a balanced scorecard framework to strengthen outcome-based performance measurement; • simplification of the performance adjustment methodology; • clear distinction between Deed compliance (Schedule 1) and performance assessment (Schedules 2 and 3); and • introduction of a transparent and consistent scoring approach.

Alignment with Council Direction The revised Deed remains consistent with Council’s adopted direction to align Tourism Noosa’s role with the Destination Management Plan (DMP) and the Tourism Noosa Roadmap, requiring a shift toward destination stewardship, sustainability and community outcomes. The performance framework further strengthens this alignment by: • focusing KPIs on measurable outcomes rather than activity; • embedding DMP principles across performance measures, including brand, industry capability and visitor experience; and • supporting transparent reporting through the Quarterly reporting and Annual Outcome Report

Conclusion The revised Tourism Noosa Funding and Performance Deed 2026–2029 provides a clear, structured and transparent framework for: • defining Tourism Noosa’s obligations; • measuring performance; and • linking funding to outcomes. It responds directly to Council’s April resolution and establishes a governance and performance framework that supports accountability, transparency and ongoing review, while enabling the delivery of outcomes aligned to the Destination Management Plan over the next three years.

Report details

Index: ECM / 71.01 - Tourism Noosa