Noosa Council Annual Report 24/25

Noosa Council                                                                                                                         Noosa Council
Notes to the Financial Statements                                                                                                     Notes to the Financial Statements
for the year ended 30 June 2025                                                                                                       for the year ended 30 June 2025

Note 21. Provisions                                                                                                                   Note 21. Provisions (continued)
§Note/Subtotal§
§Subnote§




                                                                                                                                      $ '000                                                                                                 2025               2024
Annual Leave Provision
A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on current wage and
                                                                                                                                      Details of movements in Provisions
                                                                                                                                      §Subnote§




salary levels and includes related employee on-costs. Amounts not expected to be settled within 12 months are calculated on
projected futures wage and salary levels and related employee on-costs, and are discounted to present values. This liability          Quarry Rehabilitation
represents an accrued expense. As Council does not have an unconditional right to defer this liability beyond 12 months annual        Balance at beginning of financial year                                                                   50                  50
leave is classified as a current liability.                                                                                           Balance at end of financial year                                                                         50                 50
Long Service Leave Provision                                                                                                          Landfill Sites
The provision for long service leave represents the present value of the estimated future cash outflows to be made in respect         Balance at beginning of financial year                                                              32,871              32,342
of services provided by employees up to the reporting date. The liability is calculated using current pay rates and projected
                                                                                                                                      Additional provision                                                                                      –              (265)
future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the
employee remaining in the council's employment or other associated employment which would result in the Council being                 Amounts used                                                                                          (217)              (163)
required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result   Change in provision due to change in extent/timing of forecast expense                              (6,305)                  –
is discounted to present value. The provision is discounted using the Commonwealth Bond yield rates.                                  Increase in provision due to unwinding of discount                                                    1,401              1,333
                                                                                                                                      Increase/(decrease) in provision due to change in discount rate                                         150              (992)
Restoration Provisions                                                                                                                Increase/(Decrease) in provision due to change in escalation rate                                     (958)                616
A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is probable the Council
will be liable, or required, to incur such a cost on the cessation of use of the facility. This liability is provided in respect of
                                                                                                                                      Balance at end of financial year                                                                    26,942             32,871
Quarries and Landfill sites.                                                                                                          The landfill rehabilitation provision will decrease by $5.93 million for the year ended 30 June 2025. This significant reduction
                                                                                                                                      is primarily due to the exclusion of capping costs for Piggyback Cell works which were forecasted as probable and
Council has the following restoration provisions:                                                                                     accounted for in the provision for 2022/23 and 2023/24 financial years. Based on the most recent assessment, Council has




                                                                                                                                                                                                                                                                           Noosa Council Annual Report 24/25
                                                                                                                                      now determined these costs can be avoided due to the creation of additional land capacity at the site, which therefore
Landfill Sites                                                                                                                        avoids the need for capping those disturbed areas. This change alone significantly reduced the forecasted rehabilitation
The provision represents the present value of the anticipated future costs associated with the closure of the Eumundi Rd landfill     costs. The change in discount rate also contributed to the movement, reflecting updated market conditions and the time
sites, decontamination and monitoring of historical residues and leaching on the site.                                                value of money applied to long-term rehabilitation obligations.

The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates,
available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing
                                                                                                                                      Note 22. Other Liabilities
                                                                                                                                      §Note§




from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating
the provision is the costs that will be incurred.                                                                                     §Subnote§




                                                                                                                                      $ '000                                                                                                 2025               2024
The provision recognised for the Eumundi Rd landfill sites is reviewed at least annually and updated based on the facts
and circumstances available at the time. Management estimates that the site will fully close in 2058 and that site restoration
                                                                                                                                      Current
will occur progressively over the subsequent thirty years. The provision recognises the costs associated with closure and
rehabilitation of historical and existing cells as well as the rehabilitation of the site following full closure in 2058.             Waste Levy Subsidy received in advance                                                                2,710              3,027
                                                                                                                                      Unearned Revenue                                                                                      3,854              4,172
Quarry Sites                                                                                                                          Prepaid Rates Liability                                                                               2,309              2,135
The provision represents the present value of the anticipated future costs associated with the closure of the Ringtail Creek          Total Current Other Liabilities                                                                      8,873              9,334
quarry site, reclamation and rehabilitation of the site.
                                                                                                                                      Non-Current
The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates,
                                                                                                                                      Waste Levy Subsidy received in advance                                                                2,509              5,203
available technologies and engineering cost estimates. These uncertainties may result in future actual expenditure differing
from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating     Total Non-Current Other Liabilities                                                                  2,509              5,203
the provision is the costs that will be incurred. The provision recognised for quarry sites rehabilitation is reviewed at least
                                                                                                                                      Council is liable to pay the State a waste levy on most forms of commercial and household waste delivered to its disposal sites.
annually and updated based on the facts and circumstances available at the time.
                                                                                                                                      The State government provides Council with an annual subsidy to mitigate the impact on households resulting from this levy.
                                                                                                                                      In June 2022, the State made an advance payment of the equivalent of four annual payments of the waste levy subsidy. An
$ '000                                                                                                  2025                2024      additional year of waste levy subsidy was paid in advance in June 2023. The advance payment provides certainty to Council for
                                                                                                                                      budget planning purposes and enables greater flexibility when making investment decisions to help reduce waste generation
Current                                                                                                                               and increase resource recovery. The balance of unutilised waste levy subsidy is recognised as a liability at 30 June 2025 and
Annual Leave                                                                                            4,541              3,933      split between current and non-current in accordance with the State's calculations of the estimated annual charges. Revenue
Long Service Leave                                                                                      5,200              5,297      will be recognised in each subsequent year in accordance with these calculations.
Landfill Sites                                                                                          4,189              2,497
Total Current Provisions                                                                             13,930              11,727
                                                                                                                                      Note 23. Asset Revaluation Surplus
                                                                                                                                      §Note§




Non-Current
Long Service Leave                                                                                       749               1,135
                                                                                                                                      §Subnote§




Quarry Rehabilitation                                                                                     50                  50      The asset revaluation surplus comprises revaluation movements on property, plant and equipment.
Landfill Sites                                                                                        22,753              30,374
Total Non-Current Provisions                                                                         23,552              31,559


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