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Note 24: Commitments

  Actual
30 June
2017
$m
30 June
2016
$m

Capital Commitments

   
State highways 6,130 5,398
Aircraft (excluding military) 1,637 2,210
Specialist military equipment 366 235
Land and buildings 2,735 2,200
Other property, plant and equipment 471 368
Other capital commitments 227 246
Tertiary Education Institutions 673 533
Total capital commitments 12,239 11,190

Operating Lease Commitments

   
Non-cancellable accommodation leases 3,398 3,197
Other non-cancellable leases 2,468 2,411
Tertiary Education Institutions 499 730
Total operating lease commitments 6,365 6,338
Total commitments 18,604 17,528

By source

   
Core Crown 5,945 5,102
Crown entities 9,032 8,392
State-owned Enterprises 4,492 4,826
Inter-segment eliminations (865) (792)
Total commitments  18,604 17,528

By Term

   

Capital Commitments

   
One year or less 5,162 4,973
From one year to two years 2,431 2,334
From two to five years 2,027 2,416
Over five years 2,619 1,467
Total capital commitments  12,239 11,190

Operating Lease Commitments

   
One year or less 1,053 1,096
From one year to two years 942 884
From two to five years 1,749 1,765
Over five years 2,621 2,593
Total operating lease commitments  6,365 6,338
Total commitments 18,604 17,528

Commitments are future expenses and liabilities to be incurred on contracts that have been entered into at balance date.

Commitments are classified as:

  • capital commitments: aggregate amount of capital expenditure contracted for but not recognised as paid or provided for at balance date, and
  • lease commitments: non-cancellable operating leases with a lease term exceeding one year.

Cancellable commitments that have penalty or exit costs explicit in the agreement on exercising the option to cancel are reported at the value of those penalty or exit costs (ie, the minimum future payments).

Interest commitments on debts, commitments for funding, and commitments relating to employment contracts are not separately reported as commitments.

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