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Note 16: Property, Plant and Equipment

  Total Land Buildings State highways Electricity generation assets Electricity distribution network Aircraft (excluding military) Specialist military equipment Specified cultural and heritage assets Rail network Other plant and equipment
For the year ended 30 June 2017 $m $m $m $m $m $m $m $m $m $m $m

Gross carrying amount

                     
Opening balance 1 July 2016 149,806 44,959 33,423 22,347 15,799 5,488 3,860 3,740 3,570 1,735 14,885
Additions 7,781 953 2,203 1,553 132 215 757 326 24 295 1,323
Disposals (1,533) (250) (231) (30) (1) (31) (40) (24) (3) (923)
Net revaluations 5,260 4,462 1,109 (41) 51 (407) 86 (7) 7
Transfers from/(to) other asset classes (676) (441) (201) (39) 5
Other (7) (43) 188 (106) (6) (19) (2) (19)
Total gross carrying amount 160,631 49,640 36,491 23,829 15,875 5,666 4,112 4,042 3,677 2,021 15,278

Accumulated Depreciation and Impairment

                 
Opening balance 1 July 2016 15,307 1,933 80 1,415 670 535 776 9,898
Eliminated on disposal (859) (73) (14) (9) (9) (3) (751)
Eliminated on transfer to other asset classes (90) (96) (30) 36
Eliminated on revaluation (2,504) (1,374) (366) (502) (270) 22 (14)
Impairment losses charged to operating balance 325 - - - 12 - - - - 287 26
Depreciation expense 4,073 1,472 366 494 185 310 293 26 32 895
Other (171) (26) (75) (1) (31) (13) (25)
Total accumulated depreciation and impairment 16,081 1,836 9 1,586 923 580 1,082 10,065
Carrying value as at 30 June 2017 144,550 49,640 34,655 23,829 15,866 4,080 4,112 3,119 3,097 939 5,213

By holding

                 
Leasehold 3,078 18 264 2 2,761 33
Public Private Partnerships 1,636 253 874 509
Freehold (excluding PPP) 139,836 49,369 33,517 23,320 15,864 4,080 1,351 3,119 3,097 939 5,180
Carrying value as at 30 June 2017 144,550 49,640 34,655 23,829 15,866 4,080 4,112 3,119 3,097 939 5,213

The total amount of property, plant and equipment under construction is $2,247 million (2016: $2,083 million).

  Total Land Buildings State highways Electricity generation assets Electricity distribution network Aircraft (excluding military) Specialist military equipment Specified cultural and heritage assets Rail network Other plant and equipment
For the year ended 30 June 2016 $m $m $m $m $m $m $m $m $m $m $m

Gross carrying amount

                   
Opening balance 1 July 2015 138,681 39,912 30,703 21,034 14,995 5,361 3,291 3,484 3,521 1,558 14,822
Additions 7,608 240 2,671 1,869 80 157 980 259 19 176 1,157
Disposals (1,747) (275) (506) (299) (10) (30) (43) (2) (13) (569)
Net revaluations 6,371 5,209 768 (210) 816 (255) 43
Transfers from/(to) other asset classes (998) (192) (168) (46) 5 (87) (510)
Other (109) 65 (45) (1) (87) (26) (1) 1 (15)
Total gross carrying amount 149,806 44,959 33,423 22,347 15,799 5,488 3,860 3,740 3,570 1,735 14,885

Accumulated Depreciation and Impairment

                   
Opening balance 1 July 2015 14,123 1,789 256 1,254 19 404 517 575 9,309
Eliminated on disposal (399) (42) (3) (24) (14) (1) (7) (308)
Eliminated on transfer to other asset classes (108) (1) (67) (40)
Eliminated on revaluation (2,475) (1,235) (407) (581) (234) (1) (17)
Impairment losses charged to operating balance 288 - 33 - - - - - - 172 83
Depreciation expense 3,912 1,388 407 416 184 297 303 27 29 861
Other (34) 1 (8) 1 (1) (36) (1) 10
Total accumulated depreciation and impairment 15,307 1,933 80 1,415 670 535 776 9,898
Carrying value as at 30 June 2016 134,499 44,959 31,490 22,347 15,719 4,073 3,860 3,070 3,035 959 4,987

By holding

                   
Leasehold 2,952 331 2 2,575 44
Public Private Partnerships 963 88 630 245
Freehold (excluding PPP) 130,584 44,871 30,529 22,102 15,717 4,073 1,285 3,070 3,035 959 4,943
Carrying value as at 30 June 2016 134,499 44,959 31,490 22,347 15,719 4,073 3,860 3,070 3,035 959 4,987

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. Property, plant and equipment owned by State-owned Enterprises and mixed ownership companies has been pledged to secure borrowings and finance lease obligations of $3,348 million (2016: $3,153 million).

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.

The property, plant and equipment revaluation reserve arises on the revaluation of physical assets. Where revalued property, plant or equipment is sold, the portion of the property, plant and equipment revaluation reserve that relates to that asset, and is effectively realised, is transferred to taxpayer funds.

Property, plant and equipment revaluation reserve Actual
30 June
2017
$m
30 June
2016
$m
Opening revaluation reserve 75,626 67,107
Net revaluations 8,745 8,413
Transfers from/(to) taxpayer funds (207) 106
Closing revaluation reserve 84,164 75,626
Class of Asset  
Land 35,176 30,718
Buildings 22,051 18,787
State highways 14,120 13,071
Electricity generation assets 10,651 10,267
Specified cultural and heritage assets 1,507 1,440
Specialist military equipment 335 332
Rail network 13 13
Other plant and equipment 311 998
Closing revaluation reserve 84,164 75,626

Net revaluations in the note above exclude movements attributable to minority interests and includes the share of associates revaluation of physical assets. It will therefore differ from the movements on pages 67 and 68.

The remainder of this note provides detailed analysis and information about Property, Plant & Equipment.

  • Land and Buildings - Page 70
  • State Highways - Page 70
  • Specified Cultural and Heritage Assets - Page 71
  • Electricity Generation Assets - Page 71
  • Rail Network - Page 71
  • Public Private Partnerships - Page 72
  • Valuation Information - Page 73
  • Accounting Policies - Page 77
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