The Treasury

Global Navigation

Personal tools

Note 20: Property, Plant and Equipment

Note 20: Property, Plant and Equipment
Forecast
30 June 2012 		Actual
Budget 11
$m 		Budget 12
$m 		30 June
2012
$m 		30 June
2011
$m

Net Carrying Value

 

By class of asset

 
36,055 35,341 Land 33,626 35,111
25,232 24,980 Buildings 25,046 24,539
18,913 18,391 State highways 17,546 17,713
14,915 14,900 Electricity generation assets 14,400 14,439
3,553 3,412 Electricity distribution network 3,476 2,690
3,377 3,273 Specialist military equipment 3,220 3,331
2,636 2,483 Specified cultural and heritage assets 2,514 2,456
2,587 2,066 Aircraft (excluding military) 2,250 1,805
7,106 7,244 Rail network 1 856 7,100
6,812 5,918 Other plant and equipment 5,650 5,670
121,186 118,008 Total property, plant and equipment 108,584 114,854

By source

   
30,594 29,686 Core Crown 29,377 29,549
50,949 49,797 Crown entities 49,939 48,480
39,643 38,525 State-owned enterprises 29,268 36,825
-  -  Inter-segment eliminations -  - 
121,186 118,008 Total property, plant and equipment 108,584 114,854

By holding

   
958 1,343 Leasehold 1,833 1,316
120,228 116,665 Freehold 106,751 113,538
121,186 118,008 Total property, plant and equipment 108,584 114,854
Property, plant and equipment pledged to secure borrowing 1,680 1,246

Property, plant and equipment pledged to secure borrowing is owned by State-owned enterprises.

Under Section 55 of the Public Finance Act 1989, borrowing by the Crown is a charge on the revenue of the Crown equally and rateably. Therefore, no property, plant and equipment owned by the core Crown has been pledged as security for liabilities. Government-owned property, plant and equipment is, however, subject to a significant number of legislative and policy restrictions with respect to its use and disposal.

These carrying values critically depend on judgements of useful lives to determine depreciation and the assumptions used in revaluations. Depreciation rates are affirmed to be appropriate each year by those responsible for managing the assets, whereas assurance on the assumptions used in valuations is provided by the use of independent valuers as noted below.

The value of the land underneath state highways and the rail network, as well as land set aside for cultural and heritage purposes (ie, national parks, forest parks, conservation areas and recreational facilities) is included in the Land category. This was not previously the case; such land was included as a component of the value of those separate classes of assets. Comparatives have been restated to reflect the changed classification of these types of land.

1. During the year the valuation methodology for the rail network (excluding metro-only assets) changed from optimised depreciated replacement cost to recoverable amount resulting in a significant impairment. Details of the rail network asset can be found on page 86.

Note 20: Property, Plant and Equipment (continued)
Total Land Buildings State
highways

Electricity
generation
assets

Electricity
distribution
network 		Specialist
military
equipment 		Specified
cultural and
heritage
assets 		Aircraft
(excluding
military) 		Rail
network 		Other plant
and
equipment
For the year ended 30 June 2012 $m $m $m $m $m $m $m $m $m $m $m

Gross carrying amount

                     
Opening balance 1 July 2011 126,601 36,022 26,652 16,802 14,455 3,547 4,038 2,836 1,821 7,508 12,920
Additions 6,514 152 1,337 1,123 344 927 110 38 611 269 1,603
Disposals (941) (209) (109) 1 (8) (13) (8) (8) (20) -  (567)
Net revaluations (9,793) (2,168) (303) (380) 54 -  (12) 47 (116) (6,915) - 
Other (664) (171) (26) -  (131) (8) 25 (1) (30) (2) (320)
Total gross carrying amount 121,717 33,626 27,551 17,546 14,714 4,453 4,153 2,912 2,266 860 13,636

Accumulated Depreciation and Impairment

                     
Opening balance 1 July 2011 11,747 -  2,113 -  16 857 707 380 16 408 7,250
Eliminated on disposal (634) -  (28) -  -  (17) (6) (6) (15) -  (562)
Eliminated on revaluation (3,415) -  (717) (432) (116) -  (1) 2 (120) (2,031) - 
Impairment losses charged to operating balance 1,884 -  1 -  29 -  -  -  -  1,409 445
Depreciation expense 3,803 -  1,174 432 388 137 237 21 153 223 1,038
Other (252) -  (38) -  (3) -  (4) 1 (18) (5) (185)
Total accumulated depreciation 13,133 -  2,505 -  314 977 933 398 16 4 7,986
Carrying value as at 30 June 2012 108,584 33,626 25,046 17,546 14,400 3,476 3,220 2,514 2,250 856 5,650

By holding

                     
Leasehold 1,833 -  263 -  -  -  -  -  1,518 -  52
Freehold 106,751 33,626 24,783 17,546 14,400 3,476 3,220 2,514 732 856 5,598
  108,584 33,626 25,046 17,546 14,400 3,476 3,220 2,514 2,250 856 5,650
Note 20: Property, Plant and Equipment (continued)
  Total Land Buildings State
highways 		Electricity
generation
assets 		Electricity
distribution
network 		Specialist
military
equipment 		Specified
cultural and
heritage
assets 		Aircraft
(excluding
military) 		Rail
network 		Other plant
and
equipment
For the year ended 30 June 2011 $m $m $m $m $m $m $m $m $m $m $m

Gross carrying amount

                     
Opening balance 1 July 2010 123,941 36,892 26,051 16,193 13,816 2,993 3,889 2,962 1,743 6,986 12,416
Additions 6,644 185 1,570 1,351 366 484 198 59 671 577 1,183
Disposals (1,283) (186) (157) (1) (6) (7) (42) (8) (16) (55) (805)
Net revaluations (2,471) (898) (702) (756) 633 -  6 (177) (578) -  1
Other (230) 29 (110) 15 (354) 77 (13) -  1 -  125
Total gross carrying amount 126,601 36,022 26,652 16,802 14,455 3,547 4,038 2,836 1,821 7,508 12,920

Accumulated Depreciation and Impairment

                     
Opening balance 1 July 2010 10,611 -  2,032 -  174 742 476 367 12 198 6,610
Eliminated on disposal (830) -  (118) -  (9) (32) (42) (6) (6) 11 (628)
Eliminated on revaluation (1,884) -  (902) (408) (414) -  1 -  (161) -  - 
Impairment losses charged to operating balance 29 -  3 -  -  -  -  -  -  -  26
Depreciation expense 3,698 -  1,077 408 374 147 272 19 171 210 1,020
Other 123 -  21 -  (109) -  -  -  -  (11) 222
Total accumulated depreciation 11,747 -  2,113 -  16 857 707 380 16 408 7,250
Carrying value as at 30 June 2011 114,854 36,022 24,539 16,802 14,439 2,690 3,331 2,456 1,805 7,100 5,670

By holding

                     
Leasehold 1,316 -  216 -  2 -  -  -  1,040 -  58
Freehold 113,538 36,022 24,323 16,802 14,437 2,690 3,331 2,456 765 7,100 5,612
  114,854 36,022 24,539 16,802 14,439 2,690 3,331 2,456 1,805 7,100 5,670
Page top