Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. An increase of $4.2 million in appropriation receivable has contributed to the variance from original budget for trade and other receivables. The higher than forecast balance for land and buildings, suppliers, other payables and leases is attributable to changes in the treatment of property lease arrangements under AASB 16 Leases. The variances against original budget for property, plant and equipment, and intangibles is largely attributable to investment in infrastructure and systems during the year. The intangibles balance was also impacted by disposals and changes to estimated useful life following an impairment review of the asset register. The variance for prepayments carries on from the prior year in that there were changes to support and maintenance arrangements for non-financial assets. The budget variances for contributed equity relates to greater than forecast PPSR surplus funds transferred to government during the previous financial year.