Go to top of page

7 Trade and other receivables

$million

2019

2018

Trade receivables

467.9

454.5

Allowance for doubtful debts

(28.6)

(25.7)

Goods and services tax receivable

21.9

-

Total trade and other receivables

461.2

428.8

Expected credit loss on trade receivables

$million

Balance as at 30 June 2018

25.7

Change on initial application of AASB 9

2.0

Balance as at 1 July 2018

27.7

Additional allowance for doubtful debts

22.3

Amounts written off, previously provided for

(21.4)

Balance as at 30 June 2019

28.6

The ageing analysis of trade receivables and expected credit losses is as follows:

2019

2018

Total

Lifetime ECL Rate

Allowance

Total

Allowance

Unbilled revenue

246.8

1.8%

4.5

246.4

3.9

Not past due

158.7

1.4%

2.2

152.6

1.2

Past due 0-30 days

29.7

6.4%

1.9

24.7

1.4

Past due 31-90 days

8.8

14.8%

1.3

7.6

0.9

Past due 61-90 days

4.0

25.0%

1.0

4.0

0.7

Greater than 90 days

19.9

88.9%

17.7

19.2

17.6

467.9

28.6

454.5

25.7

Recognition and measurement

Trade and other receivables are recognised initially at contractual amounts due and are subsequently stated at amortised cost using the effective interest method, less allowances for lifetime expected credit losses.

Critical accounting estimate - Expected credit loss

In accordance with AASB 9, the Company applies the ‘simplified approach’ when measuring expected credit losses. This approach requires the calculation of a lifetime expected loss allowance for trade receivables. Expected credit losses on trade receivables are estimated by using a provision matrix with reference to historical credit loss experience and then applying an adjustment for forward-looking estimates. The Group categorises its trade receivables based on ageing. Loss rates are estimated in each customer segment, including by age category, fuel type and customer status and are based on the probability of a receivable progressing through to a write-off. The impact of economic factors is considered in assessing the likelihood of recovery from customers. Economic factors include the direction of conditions both general and specific to the industry (e.g. customer churn).