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

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.

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 (as classified under AASB 117)

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.

From 1 July 2019 following the adoption of AASB 16, the Group has recognised right-of-use assets for these leases, except for low-value leases. Refer to Note H8 for further information on the impact of the adoption of AASB 16.