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Trust Liabilities and Right of Indemnity

a. TRUST LIABILITIES AND RIGHT OF INDEMNITY

The Company acts solely as trustee of the Trust and liabilities have been incurred on behalf of that Trust in he Company's capacity as corporate trustee.

Liabilities incurred on behalf of the Trust are not recognised in the financial statements if it is not probable that the Company will have to meet any of the Trust liabilities from its own resources. If the Company becomes obliged to meet Trust liabilities, the trustee has a right to be indemnified from Trust assets. If it is probable that there will be a deficiency in Trust assets, a liability is recognised by the Company to the extent of that deficiency. Details of the Trust liabilities, the offsetting right of indemnity and any deficiency in the right of indemnity are disclosed by way of notes to the financial statements.

The RAAF Welfare Recreational Company, as Trustee for the RAAF Central Welfare Trust Fund, has a right of indemnity from the Fund's assets. Liabilities of the Trust not recorded in the financial statements of the company were:

2020

2019

$

$

LIABILITIES

Current liabilities

Trade Payables

3,754

8,334

Other Payables

1,500

11,145

GST Payable

-

-

Total current liabilities

5,254

19,479

Non-current liabilities

Provisions

Other Provisions

1,874

1,874

Total Non-current liabilities

1,874

1,874

Total liabilities

7,128

21,353

The net assets of the Trust totalling $8 572 647 which lie behind the right of indemnity, are not directly available to meet any liabilities of the company acting in its own right. The assets of the trust were

sufficient to discharge all liabilities of the trust at 30 June 2020 and 30 June 2019.