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Section B: Notes to the Group financial statements for the year ended 30 June 2026
B5
Revenue (continued)
KEY ACCOUNTING ESTIMATE AND JUDGEMENT Revenue Recognition—Legal proceedings The Group is exposed to contingent risks with respect to revenue streams arising from the conduct of its business, including ongoing Court proceedings, claims and possible claims against the Group, including those listed below and in Note B20. Such matters are often highly complex and uncertain. The Group is a defendant to class action proceedings relating to administration charges paid by users of Queensland toll roads who did not pay the applicable toll at the time of travel. The claim alleges that the charges exceed the reasonable costs of collecting the unpaid toll, as required under applicable legislation. The claim period extends from 2009, and the other defendants are the State of Queensland and the Brisbane City Council, who have the responsibility for setting or giving notice of the charges. The Group is defending the claim and denies that the charges exceed the reasonable cost and as such, that any member of the class is entitled to compensation. The quantum sought on behalf of members of the class has not yet been specified. The potential outcome is complex and remains uncertain. The matter has not yet been set down for a hearing. The fees the subject of these proceedings continue to be recognised as revenue in accordance with AASB 15 and will be reassessed as the proceedings progress. If a change to the recognition of revenue is required under AASB 15 in future reporting periods, that change could impact a portion of cumulative toll revenue previously recognised in the Queensland business as well as any amounts recognised in the future. Refer to the “Litigation challenges” in the “Key Risks - Opportunities and Threats” section of the Corporate Report for the year ended 30 June 2026. Service concession arrangements—financial asset model As at 30 June 2026, the Group does not have any concession financial assets. Other revenue Other revenue includes management fee revenue, roaming fee revenue, advertising revenue and tolling services provided to third parties.
Other revenue accounting policies Revenue type
Accounting policy
Management fee, roaming fee and advertising revenue
Management fee revenue (including revenue related to service recharge arrangements), roaming fee revenue and advertising revenue are recognised at the point in time the service is provided and is highly probable that a significant reversal of revenue will not occur. Revenue from tolling services provided to third parties is recognised over the period the service is provided.
Tolling services provided to third parties
KEY ACCOUNTING ESTIMATE AND JUDGEMENT Revenue Recognition—ConnectEast Litigation
In December 2024, the Supreme Court of Victoria delivered its judgment in relation to a claim commenced by ConnectEast (owner of EastLink in Melbourne) against CityLink Melbourne Limited, a subsidiary of the Group, in relation to roaming fees paid by ConnectEast under a tolling services arrangement with the Group. The judgment required restitution to be paid by the Group to ConnectEast for four sample years (2015, 2017, 2019 and 2020). The claim (as recently amended) covers amounts paid between 2009 to 2025. The Group has appealed the decision. As a result of the Court judgment, the Group has constrained the amount of roaming fees recognised as revenue to the extent that it is highly probable that a significant reversal of cumulative revenue recognised will not occur. Uncertainty arises in estimating the amount and timing of revenue that should be constrained. This is because the judgment relates to amounts payable by the Group to ConnectEast for four sample years and the legal proceedings are ongoing with respect to other years. In the comparative reporting period, the portion of the constrained revenue that related to prior period roaming fees has been treated as a non-recurring item and excluded from the calculation of proportional operating EBITDA and Free Cash (refer to Notes B4 and B9).
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