Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B19
Other liabilities
Current Non-current
Note
$M 177
$M
2024
State loans
—
Lease liabilities
B28
18 — —
114
M1 Eastern Distributor concession notes
58 92 52
M2 Motorway promissory notes
Other liabilities
180 375
Total other liabilities
316
Current Non-current
Note
2023
$M 561
$M
State loans
—
Lease liabilities
B28
17 — —
126
M1 Eastern Distributor concession notes
64 86 51
M2 Motorway promissory notes
Other liabilities
200 778
Total other liabilities
327
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 of $15 million during the construction phase and for the first 24 years after completion of construction of the M1 Eastern Distributor. Until a certain threshold return is achieved, payments of concession fees due under the concession deed will be satisfied by means of the issue of non-interest bearing concession notes. The face value of concession notes on issue as at 30 June 2024 is $405 million (2023: $390 million). M2 Motorway promissory notes The Hills Motorway Trust has entered into leases with TfNSW. Annual lease liabilities under these leases total $14 million (2023: $14 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, 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 2024 is $282 million (2023: $268 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 Group's CGUs. Discount rates of 7.8% and 8.30% have been used for note issuances in August 2023 and May 2024 respectively (2023: 7.80%), which recognises the subordinated nature of these notes. State loans Transurban WGT Co entered into loan agreements with the State of Victoria for the purpose of funding amounts owed by each party under the West Gate Tunnel Project D&C Subcontract, and also for funding advance payments to the West Gate Tunnel Project D&C Subcontractor. Loans are made between the parties on a short-term basis and are non-interest bearing. The value of the State loans payable to the State as at 30 June 2024 is $177 million (2023: $561 million).
166
165
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