Department of Health and Ageing Schedule of Committments as at 30 June 2011

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BY TYPE	2011 $’000	2010 $’000
Commitments receivable
GST recoverable on commitments	66,229	64,702
Total commitments receivable	66,229	64,702
Commitments payable
Capital commitments
Land and buildings	(30)	(884)
Property, plant and equipment	(924)	(277)
Intangibles	0	0
Total capital commitments	(954)	(1,161)
Other commitments
Operating leases	(654,113)	(596,169)
Research and development	(20)	0
Other	(79,352)	(132,832)
Total other commitments	(733,485)	(729,001)
Net commitments by type	(668,210)	(665,460)

BY MATURITY	2011 $’000	2010 $’000
Commitments receivable
Operating lease income
One year or less	13,102	11,151
From one to five years	25,303	21,711
Over five years	27,824	31,840
Total operating lease income	66,229	64,702
Commitments payable
Capital commitments
One year or less	(954)	(1,161)
From one to five years	0	0
Over five years	0	0
Total capital commitments	(954)	(1,161)
Operating lease commitments
One year or less	(86,789)	(51,063)
From one to five years	(266,155)	(200,674)
Over five years	(301,169)	(344,432)
Total operating lease commitments	(654,113)	(596,169)
Other commitments
One year or less	(70,665)	(82,003)
From one to five years	(8,707)	(44,100)
Over five years	0	(6,729)
Total other commitments	(79,372)	(132,832)
Net commitments by maturity	(668,210)	(665,460)

Capital commitments for property, plant and equipment relate to office refurbishment.

Operating leases included are effectively non-cancellable and comprise:

Nature of leases	General description of leasing arrangement
Leases for office accommodation	Lease payments are subject to reviews in accordance with the lease agreement. The reviews range from annually to bi-annually over the lease term and are either a predetermined increase or reviewed against market rentals at the time. Where offered, lease renewal options range from one to five years. A number of the Department’s office accommodation leases contain lease payments that are subject to increases in accordance with movements in market rents. These contingent rent payments are not included in the commitment schedule as their value cannot be reliably estimated.
Computer equipment	The Department has entered into a contractual arrangement to outsource the provision of IT infrastructure from 1 January 2009 to 30 June 2015.
Office services	The Department has entered into a contractual arrangement to outsource the provision of office services including file management and storage to 1 October 2011.
Security	The Department has entered into a contractual arrangement to outsource the provision of building security to 30 June 2013.

The above schedule should be read in conjunction with the accompanying notes.

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