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F3 Commitments

Capital commitments
Total capital expenditure contracted for at the reporting date but not provided for in the Statement of financial position is as follows:

NBN Co Group

30 June 2019

30 June 2018

$m

$m

Within one year

4,130

3,611

Later than one year but not later than five years

175

873

Later than five years

307

1,236

Total capital commitments

4,612

5,720

Capital commitments include committed right of use and infrastructure ownership payments under the RDAs with Telstra, fixed term commercial contracts and other ordered capital expenditure.

Given the long-term nature of NBN Co’s capital commitments under the RDAs, which include right of use payments that will occur until 2047 and scheduled infrastructure ownership payments throughout the rollout period, capital expenditure commitments relating to the RDAs in periods beyond 12 months have been discounted for the purpose of the disclosure above. Other capital commitments beyond 12 months have also been discounted.

Payments to Telstra in exchange for Telstra disconnecting premises from its copper and HFC networks are excluded from the disclosure above as the payments do not constitute capital expenditure.

Operating leases
The Group leases certain properties, commercial vehicles, poles infrastructure and wireless base stations with various terms that are due to expire within one to thirty years.

Lease payments generally comprise a base amount plus an incremental contingent rental amount based on movements in the Consumer Price Index and reviews to market-based levels. Contingent rentals paid during the year are included as an expense in the Statement of profit or loss and other comprehensive income.

NBN Co Group

30 June 2019

30 June 2018

$m

$m

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within one year

121

108

Later than one year but not later than five years

313

308

Later than five years

648

614

Total

1,082

1,030

Not included in the above commitments are contingent rental amount payments which may arise. Furthermore, operating lease commitments have not been discounted.

For finance lease commitment disclosures refer to Note C8.