2022 Corporate Report

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Section D: Notes to the THT and TIL financial statements for the year ended 30 June 2022

Section D: Notes to the THT and TIL financial statements for the year ended 30 June 2022

D4 Revenue

THT 2021

TIL

2022

2022

2021

$M

$M

$M

$M

Toll revenue Rental income

62 — — 36 — 98

54 — — 17 — 71

902

734 122

Construction revenue

48

Other revenue Concession fees

3

3

43

41

Total revenue from continuing operations

996

900

For toll revenue, construction revenue and other revenue accounting policies, refer to Note B5.

Revenue type Rental income

Recognition

The rental income revenue stream relates to lease payments received from operating leases on the property held by THT. This income is recognised in accordance with the terms of the lease contract. Other income from concession fees relates to the CityLink concession notes. Pursuant to the Agreement for the Melbourne CityLink Concession Deed (the Concession Deed), CityLink Melbourne Limited (CityLink) (a member of the Transurban Group), is required to pay annual concession fees for the duration of CityLink's concession period. Until a certain threshold rate of return on the project is achieved, the payment of concession fees due under the Concession Deed can be satisfied by means of non-interest bearing concession notes. Following agreements reached with the State of Victoria, the Group paid a total of $765 million to the State to have all current concession notes issued by the State assigned to Transurban Holding Trust, and the State directed CityLink to pay future concession notes to Transurban Holding Trust. Accordingly, CityLink continues to issue notes semi-annually to Transurban Holding Trust, and Transurban Holding Trust recognises concession note income from the issue of these notes, at the present value of expected future repayments.

Concession fees

D5 Income tax Deferred tax assets and liabilities—TIL

Asset 2021

Liability

2022

2022

2021

$M

$M

$M

$M

The balance comprises temporary difference attributable to: Accrued expenses

1

— 11 28

— — —

— — —

Provisions

12 82

Current and prior year losses

Fixed assets/intangibles

8

7

(350)

(344)

Derivatives and foreign exchange Equity accounted investments

21 —

31 — — 77

(846)

(764)

Other

6

Tax assets/(liabilities)

130

(1,196)

(1,108)

Set off of tax

(97)

(77)

97

77

Net tax assets/(liabilities)

33

(1,099)

(1,031)

Movements: Opening balance at 1 July

77 17

665

(1,108)

(700)

Credited/(charged) to profit or loss

(8)

(3) (2)

Credited/(charged) to equity

2

(8)

— — — —

Disposed through other comprehensive income 1

— — —

(13) (96)

Disposed through profit or loss 1

326

Acquired 1

(764)

Foreign exchange movements

7

(54) (11)

(87)

23 11

Transfer from deferred tax assets/liabilities

— 27

Current year losses recognised/(prior year losses utilised) and under/(over) provision in prior years

(406)

7

1

Closing balance at 30 June

130

77

(1,196)

(1,108)

Deferred tax assets/(liabilities) to be recovered/(paid) after more than 12 months

130

77

(1,196)

(1,108)

1. Relates to the net impact of the deconsolidation of the Group’s ownership interest in TC and recognition of an equity accounted investment in TC upon divestment of a 50% ownership interest (refer to Note B24).

201 201

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