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1. Financial Performance

This section analyses the financial performance of the Corporation for the year ended 30 June 2019.

1.1 Expenses

1.1A Employee benefits

Notes

2019

2018

$'000

$'000

Wages and salaries

110,531

109,089

Superannuation

Defined contribution plans

11,275

11,012

Defined benefit plans

3,952

4,142

Leave and other entitlements

16,183

12,354

Total employee benefits

141,941

136,597

Accounting Policy

Accounting policies for employee related expenses are contained under Note 3, People and relationships.

1.1B Suppliers

Notes

2019

2018

$'000

$'000

Goods and services supplied or rendered

Materials and minor items

8,831

8,640

Office supplies

1,609

1,778

Other program purchases

34,145

30,343

Broadcasting

72,320

74,253

Administrative expenses

39,894

44,879

Contract staff

25,949

27,057

Production services

5,298

8,065

Audit fees

150

131

Total goods and services supplied or rendered

188,196

195,146

Goods supplied

44,585

40,761

Services rendered

143,611

154,385

Total goods and services supplied or rendered

188,196

195,146

Other supplier expenses

Operating lease rentals

(i)

3,530

3,970

Workers' compensation premiums

381

837

Total other supplier expenses

3,911

4,807

Total suppliers

192,107

199,953

(i)

Nature of lease

General description of leasing arrangement

- Leases for office accommodation

Lease payments are subject to annual increases in line with the Consumer Price Index or Market Value. The leases are renewable.

- Leases of computer equipment

The leases for computer equipment are for a period of three or four years. Options to extend leased terms are available at discounted prices.

- Leases of motor vehicles

No contingent rentals exist, and no renewal or purchase options are available.

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

2019

2018

$'000

$'000

Within 1 year

2,092

2,261

Between 1 to 5 years

4,325

4,099

More than 5 years

-

510

Total operating lease commitments

6,417

6,870

Accounting Policy

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.1C Finance costs

2019

2018

$'000

$'000

Unwinding of discount – provision for restoration

26

9

Accounting Policy

All borrowing costs are expensed as incurred.

1.1D Impairment loss allowance on financial instruments

2019

2018

$'000

$'000

Trade and other receivables

94

794

During the year the Corporation recognised a $0.744m write off against the prior year outstanding receivable provision.

1.1E Write-down and impairment of other assets

2019

2018

$'000

$'000

Plant and equipment

131

350

Intangible assets

2

9

Total write-down and impairment of other assets

133

359

1.2 Own-source and Government revenue

Own-source revenue

1.2A Sale of goods and rendering of services

2019

2018

$'000

$'000

Sale of goods

726

1,100

Rendering of services

118,197

116,303

Total sale of goods and rendering of services

118,923

117,403

Accounting Policy

Sale of goods and rendering of services

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer; and

b) the Corporation retains no managerial involvement or effective control over the goods.

Receivables for goods and services, which have 30 or 45 day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Term deposit interest income

Interest revenue is recognised using the effective interest method.

1.2B Rental income

2019

2018

$'000

$'000

Operating lease rental income

1,354

1,250

Lease rental income commitments

Commitments for lease rental income receivables are as follows:

2019

2018

$'000

$'000

Within 1 year

1,162

1,321

Between 1 to 5 years

987

2,030

More than 5 years

520

729

Total rental income commitments

2,669

4,080

The Corporation in its capacity as lessor has lease terms that are typically between 1 and 5 years in duration with further renewal options for similar periods and are subject to increases in accordance with CPI or other agreed increments.

Accounting Policy

Refer to accounting policy under Note 1.2A, Sale of goods and rendering of services.

1.2C Revenue from Government

2019

2018

$'000

$'000

Department of Communications, Cyber Safety and the Arts – Corporate payment item

281,726

280,058

Total revenue from Government

281,726

280,058

Accounting Policy

Funding received or receivable from the Department of Communications, Cyber Safety and the Arts (appropriated to the Department of Communications and the Arts as a corporate Commonwealth entity payment item for payment to the Corporation) is recognised as Revenue from Government by the Corporation unless the funding is in the nature of an equity injection or a loan.