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Section B: Notes to the Group financial statements for the year ended 30 June 2026
B18 Other liabilities
Current Non-current
Total
Note
$M
$M
$M 104
2026
Lease liabilities
B26
19 — —
85 54
M1 Eastern Distributor concession notes
54
M2 Motorway promissory notes
111
111 106 281 656
Litigation liability 1 Other liabilities
106 222 347
— 59
Total other liabilities
309
Current Non-current
Total
Note
$M
$M
$M
2025
State loans
37 20 — —
— 99 49 97 — 58
37
Lease liabilities
B26
119
M1 Eastern Distributor concession notes
49 97
M2 Motorway promissory notes
Litigation liability 1 Other liabilities
106 179 342
106 237 645
Total other liabilities
303
1. Relates to the ConnectEast litigation.
M1 Eastern Distributor concession notes The Eastern Distributor concession deed between Airport Motorway Pty Limited, Airport Motorway Trust and Transport for New South Wales (TfNSW) provides for annual concession fees during the construction phase and for the first 24 years after completion of construction of the M1 Eastern Distributor, which ended in FY24. Payments of concession fees due under the concession deed were satisfied by means of the issue of non-interest bearing concession notes to TfNSW. The face value of concession notes on issue as at 30 June 2026 is $405 million (2025: $405 million). M2 Motorway promissory notes The Hills Motorway Trust has entered into leases with TfNSW. Annual lease liabilities under these leases total $15 million (2025: $15 million), indexed annually to CPI over the estimated period that the M2 Motorway will be used. Until such time as a threshold return is achieved, payments under these leases can be made at any time at the discretion of the trustee of the Hills Motorway Trust, by means of the issue of non-interest bearing promissory notes to TfNSW. The face value of promissory notes on issue as at 30 June 2026 is $312 million (2025: $297 million). Concession notes and promissory notes accounting policy Concession and promissory notes payable are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. The amortised cost of the notes payable is adjusted to reflect revised estimated contractual cash flows, which are discounted at the original effective interest rate. The adjustment is recognised in the profit and loss, in net finance costs as a remeasurement gain or loss. KEY ACCOUNTING ESTIMATE AND JUDGEMENT Concession and promissory notes In measuring the fair value and amortised cost of concession and promissory notes payable, assumptions are made in determining the repayment profile based on expected available cash flows of the Airport Motorway Group and the Hills Motorway Group. Discount rate of 8.20% has been used for M2 Motorway note issuances in May 2026 (2025: 8.30%), which recognises the subordinated nature of these notes.
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