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Note 27:  Provisions

Note 27:  Provisions
Forecast Actual
Original
Budget
$m 		Estimated
Actuals
$m 		30 June 2009
$m 		30 June 2008
$m

By type

 
1,747 2,358 Provision for employee entitlements 2,580 2,220
-  -  Provision for future retail deposit guarantee scheme payments 831 - 
482 -  Provision for Kyoto (refer note 22) -  562
780 978 Provision for National Provident Fund guarantee 954 907
1,702 1,035 Other provisions 1,188 1,064
4,711 4,371 Total provisions 5,553 4,753

By source

 
2,862 2,114 Core Crown 3,081 2,763
1,220 1,475 Crown entities 1,598 1,500
652 808 State-owned enterprises 919 684
(23) (26) Inter-segment eliminations (45) (194)
4,711 4,371 Total provisions 5,553 4,753

By maturity

 
1,710 2,109 Expected to be settled within one year 2,650 2,281
3,001 2,262 Expected to be outstanding for more than one year 2,903 2,472
4,711 4,371 Total provisions 5,553 4,753

Provision for employee entitlements

 
Opening provision 2,220 1,828
Additional provisions recognised 1,568 1,467
Provision used during the period (1,163) (976)
Reversal of previous provision (74) (99)
Unwind of discount rate 29 - 
Effect of changes in discount rate -  - 
Closing provision 2,580 2,220

The provision for employee entitlements represents annual leave, accrued long service leave and retiring leave, and sick leave entitlements accrued by employees. Probability assumptions about continued future service affecting entitlements accrued as at reporting date have been made using previous employment data. For entitlements that vest over a period exceeding one year discount rates between 3% and 6% have been used.

Note 27: Provisions (continued)
Actual
30 June 2009
$m 		30 June 2008
$m

Provision for future retail deposit guarantee scheme payments

 
Opening provision -  - 
New provision recognised during the period 831 - 
Provision used during the period -  - 
Reversal of previous provision -  - 
Unwind of discount rate and effect of changes in discount rate -  - 
Closing provision 831 - 

Refer to note 30 for discussion on the Deposit Guarantee schemes.

Note 27: Provisions (continued)
Actual
30 June 2009
$m 		30 June 2008
$m

Provision for National Provident Fund guarantee

 
Opening provision 907 771
Additional provisions recognised 6 46
Provision used during the period (9) - 
Reversal of previous provision -  - 
Unwind of discount rate and effect of changes in discount rate 50 90
Closing provision 954 907

The Government has guaranteed superannuation schemes managed by the National Provident Fund (NPF) (refer to note 32 Contingent Liabilities and Contingent Assets for details of the guarantee). Included in the provision is the NPF's DBP Annuitants' Scheme deficit position of $947 million (2008: $907 million), represented by a gross estimated pension obligation of $994 million (2008: $1,020 million) with net investment assets valued at $47 million (2008: $113 million). No additional provision was required in the year for other pension schemes managed by NPF under the Government's guarantee.

Note 27: Provisions (continued)
Actual
30 June 2009
$m 		30 June 2008
$m

Other provisions

 
Opening provision 1,064 1,253
Additional provisions recognised 403 309
Provision used during the period (273) (479)
Reversal of previous provision (13) (22)
Unwind of discount rate and effect of changes in discount rate 7 3
Closing provision 1,188 1,064
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