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Section B: Notes to the Group financial statements for the year ended 30 June 2026
B20 Equity accounted investments
Associates and joint ventures accounting policy The Group accounts for entities in which it has significant influence, but not control or joint control, over the financial and operating policies as associates. The Group accounts for entities in which it has joint control, whereby the Group has rights to the net assets of the arrangement rather than rights to its assets and obligations for its liabilities, as joint ventures. Interests in associates and the joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit and loss and other comprehensive income of equity accounted investees, until the date on which significant influence or joint control ceases. When the Group’s cumulative share of losses in an associate or joint venture exceeds its investment in the asset, the Group does not recognise any further losses. Distributions received reduce the carrying amount of the equity accounted investment. Where distributions received are in excess of the pre-distribution carrying amount of the equity accounted investment, the excess is recognised as other revenue in the profit and loss, provided the distributions are not refundable and the Group has no legal or constructive obligation to make payments on behalf of the investee. Otherwise, the excess is recognised as a liability. The Group’s investments in joint ventures during the reporting period comprise STP JV, NWRG, TC and until its disposal in June 2026, A25. The Group does not have any interests in associates. Joint Ventures STP JV (50% ownership interest) The Group has a 50% ownership interest in the STP JV (including STP Project Trust and STP Asset Trust), which holds 100% of the WestConnex Group. WestConnex has long-dated concessions through to 2060 and includes 48 kilometres of new or improved motorway linking Sydney’s west and southwest with the CBD, and the corridor to Sydney Airport and Port Botany. The following entities are part of the WestConnex Group: • WCX Asset Trust (parent of entities responsible for financing and construction of the respective motorways within the WestConnex Group); and • WCX Project Trust (parent of entities responsible for operating the motorways within the WestConnex Group). KEY ACCOUNTING ESTIMATE AND JUDGEMENT Management’s assessment that the Group does not control the STP JV has been made by considering the terms of the Investor Agreement signed by the JV partners and the ongoing compliance with the Investor Agreement. This Agreement requires a supermajority vote of at least 91.5% of all investors for the decisions on the significant relevant activities made by the STP JV. Therefore, noting this and other factors, management have concluded that the Group, together with other STP JV partners, jointly controls the STP JV and its controlled entities. NWRG (50% ownership interest) The Group has a 50% ownership interest in NWRG (including NorthWestern Roads Group Pty Ltd and NorthWestern Roads Group Trust), which holds 100% of the Westlink M7 and NorthConnex assets. Westlink M7 holds the concession to design, construct, finance and operate the Westlink M7 Motorway in Sydney until June 2048, and NorthConnex holds the concession to design, construct, finance and operate the NorthConnex Tunnel in Sydney until June 2048. In February 2023, the NSW Government agreed to an extension of the Westlink M7 Motorway concession to fund the M7-M12 Integration project. The major M7 widening component of the project was deemed practically complete on 8 May 2026, however the concession extension is conditional on contractual completion (expected in the first half of FY27). The
M7-M12 Interchange was opened to traffic on 14 June 2026. The following entities are part of the Westlink M7 Group: • WSO Co Pty Limited (the operator of the motorway); • Westlink Motorway Partnership (responsible for construction of the motorway and holds the concession); and
• WSO Finance Pty Limited (the financier of the motorway). The following entities are part of the NorthConnex Group: • NorthConnex Company Pty Limited (the operator of the tunnel); and • NorthConnex Finance Pty Limited (the financier of the tunnel).
KEY ACCOUNTING ESTIMATE AND JUDGEMENT Management’s assessment that the Group does not control NWRG has been made by considering the terms of the Equity Participants Deed signed by the JV partners and the ongoing compliance with this Deed. This Deed requires a supermajority vote of at least 76% of all investors for the decisions on the significant relevant activities made by NWRG. Therefore, noting this and other factors, management have concluded that the Group, together with other NWRG partners, jointly controls NWRG and its controlled entities.
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