Transurban Corporate Report FY25 Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2025
B19
Other liabilities
Current Non-current
Total
Note
$M
$M
$M
2025
State loans
37 20 — —
— 99 49 97 — 58
37
Lease liabilities
B27
119
M1 Eastern Distributor concession notes
49 97
M2 Motorway promissory notes
Litigation liability 1 Other liabilities
106 178 341
106 236 644
Total other liabilities
303
Current Non-current
Total
Note
$M 177
$M
$M 177 132
2024
State loans
—
Lease liabilities
B27
18 — —
114
M1 Eastern Distributor concession notes
58 92 52
58 92
M2 Motorway promissory notes
Other liabilities
180 375
232 691
Total other liabilities
316
1. Relates to the ConnectEast litigation. Refer to Note B2 for further details.
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. The face value of concession notes on issue as at 30 June 2025 is $405 million (2024: $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 (2024: $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 2025 is $297 million (2024: $282 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 rate of 8.30% has been used for M2 Motorway note issuances in May 2025 (2024: 7.80% and 8.30% for M1 Eastern Distributor and M2 Motorway respectively), 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 2025 is $37 million (2024: $177 million).
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