Schedule of Commitments

as at 30 June 2012

	2012	2011
	$'000	$'000
BY TYPE
Commitments receivable
Net GST recoverable on commitments	(5,481)	(5,790)
Other commitments receivable	(1,988)	-
Total commitments receivable	(7,469)	(5,790)

Commitments payable
Capital commitments
Property, plant and equipment	213	924
Total capital commitments	213	924

Other commitments
Operating leases	50,627	59,298
Other	8,571	3,469
Total other commitments	59,198	62,767
Total commitments payable	59,411	63,691
Net commitments by type	51,942	57,901

BY MATURITY
Other commitments receivable
One year or less	(2,726)	(1,276)
From one to five years	(4,743)	(3,586)
Over five years	-	(928)
Total other commitments receivable	(7,469)	(5,790)

Commitments payable
Capital commitments
One year or less	213	924
From one to five years	-	-
Over five years	-	-
Total capital commitments	213	924

Operating lease commitments
One year or less	10,189	9,849
From one to five years	40,438	39,237
Over five years	-	10,212
Total operating lease commitments	50,627	59,298

Other commitments
One year or less	7,943	3,266
From one to five years	628	203
Over five years	-	-
Total other commitments	8,571	3,469
Total commitments payable	59,411	63,691
Net commitments by maturity	51,942	57,901

Notes:

Commitments are GST inclusive where relevant.

Capital commitments for property, plant and equipment relate to information technology equipment.

Operating leases included are effectively non-cancellable and comprise leases for office accommodation. Lease payments for the Symonston lease are subject to annual adjustments for the Consumer Price Index or 3% (whichever is higher) with a Market Rent Review every third year. The initial terms of the Symonston office accommodation lease is still current and may be extended at the end of the lease at the TGA's option. Other office leases (smaller offices located in Canberra, Melbourne, Sydney, Brisbane and Adelaide) are subject to annual rent adjustments of between 3% and 5% and can be renewed for terms of between 6 months and 2 years, at the TGA's option.

Other commitments relate to contracts entered into by TGA where no liability currently exists.

At 30 June 2012 the TGA had a commitment receivable of $1.988 million in respect of regulatory costs incurred by Australian publically funded facilities and not-for-profit supply units following implementation of the Biologicals framework. The amount represents the balance that could be received to offset the direct regulatory costs of these bodies in the financial years 2012-13 to 2013-14 (2010-11:Nil).

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

prev page | TOC | next page