Online version of the 2012-13 Department of Health and Ageing Annual Report

Schedule of Commitments

as at 30 June 2013

Page last updated: 29 October 2013

2013
$'000
2012
$'000
 BY TYPE 
 Commitments receivable 
 Net GST recoverable on commitments   58,387 63,912
 Other commitments receivable  1,048 4,423
 Total commitments receivable  59,435 68,335
 Commitments payable 
 Capital commitments 
 Property, plant and equipment  (340) (241)
 Total capital commitments  (340) (241)
 Other commitments 
 Operating leases  (567,501) (669,775)
 Research and development  - (45)
 Other   (80,728) (74,916)
 Total other commitments  (648,229) (744,736)
 Total commitments payable  (648,569) (744,977)
 Net commitments by type  (589,134) (676,642)
 BY MATURITY 
 Commitments receivable 
 One year or less  14,356 20,233
 From one to five years  23,173 26,992
 Over five years  21,906 21,110
 Total commitments receivable  59,435 68,335
 Commitments payable 
 Capital commitments 
 One year or less  (340) (241)
 Total capital commitments  (340) (241)
 Operating lease commitments 
 One year or less  (96,721) (114,218)
 From one to five years  (229,920) (323,450)
 Over five years  (240,860) (232,107)
 Total operating lease commitments  (567,501) (669,775)
 Other commitments 
 One year or less  (53,123) (70,666)
 From one to five years  (27,595) (4,285)
 Over five years  (10) (10)
 Total other commitments  (80,728) (74,961)
 Net commitments by maturity  (589,134) (676,642)
NOTE:
  1. Commitments are GST inclusive where relevant.
  2. The Department's capital commitments for property, plant and equipment relate to the Therapeutic Goods Administration's information technology equipment.
  3. Operating leases included are effectively non-cancellable and comprise:
Nature of leases  General description of leasing arrangement 
Lease for office accommodation  Lease payments are subject to reviews in accordance with the lease agreement.  The reviews range from bi-annually to 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 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 31 March 2014.
Security  The Department has entered into a contractual arrangement to outsource the provision of building security to 28 February 2014.

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