Annual Report 2022-23

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


                                                                                                                                            §TTootal§




                                                                                                                                                        $ '000                                                                                  2023               2022
      Annual Leave Provision
      A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on current wage and
                                                                                                                                                        Current
      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                      Annual Leave                                                                           3,437              3,158
      represents an accrued expense. As Council does not have an unconditional right to defer this liability beyond 12 months annual                    Long Service Leave                                                                     4,911              4,657
      leave is classified as a current liability.                                                                                                       Landfill Sites                                                                           532              1,943
                                                                                                                                                        Total Current Provisions                                                              8,880              9,758
      Long Service Leave Provision
      Long service leave liability is measured as the present value of the estimated future cash outflows to be made in respect                         Non-Current
      of services provided by employees up to the reporting date. The value of the liability is calculated using current pay rates and                  Long Service Leave                                                                       614                815
      projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the
                                                                                                                                                        Quarry Rehabilitation                                                                     50                 50
      probability of the employee remaining in the Council's employment or other associated employment which would result in the
      Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to                      Landfill Sites                                                                        31,810             21,601
      date, and the result is discounted to present value. The interest rates attaching to Commonwealth Government guaranteed                           Total Non-Current Provisions                                                         32,474             22,466
      securities at the reporting date are used to discount the estimated future cash outflows to their present value. The provision is
      discounted using the Commonwealth Bond yield rates published on the Department of State Development, Infrastructure,
      Local Government and Planning website.
                                                                                                                                                        Details of movements in Provisions
      Where employees have met the prerequisite length of service and Council does not have an unconditional right to defer this
      liability beyond 12 months long service leave is classified as a current liability. Otherwise it is classified as non-current.                    Quarry Rehabilitation
                                                                                                                                                        Balance at beginning of financial year                                                    50                  50
      Restoration Provisions
      A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is probable the Council                  Balance at end of financial year                                                          50                 50
      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




                                                                                                                                                                                                                                                                            Noosa Council Annual Report 2022 - 2023
      Quarries and Landfill sites.                                                                                                                      Landfill Sites
                                                                                                                                                        Balance at beginning of financial year                                                23,544             15,528
      Council has the following restoration provisions:                                                                                                 Additional provision                                                                  11,968             10,860
                                                                                                                                                        Amounts used                                                                          (1,668)                (85)
      Landfill Sites                                                                                                                                    Increase in provision due to unwinding of discount                                        859                240
      The provision represents the present value of the anticipated future costs associated with the closure of the Eumundi Rd landfill
                                                                                                                                                        Increase/(Decrease) in provision due to change in discount rate                       (2,860)            (6,285)
      sites, decontamination and monitoring of historical residues and leaching on the site.
                                                                                                                                                        Increase/(Decrease) in provision due to change in Escalation rate                         499              3,286
      The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates,                      Balance at end of financial year                                                     32,342             23,544
      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
      the provision is the costs that will be incurred.
                                                                                                                                                        Note 22. Other Liabilities
      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 2054 and that site restoration                    $ '000                                                                                  2023               2022
                                                                                                                                            §Subnote§




      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 2054
                                                                                                                                                        Current
      Quarry Sites                                                                                                                                      Waste Levy Subsidy received in advance                                                 3,089              3,232
      The provision represents the present value of the anticipated future costs associated with the closure of the Ringtail Creek                      Unearned Revenue                                                                       3,783              2,689
      quarry site, reclamation and rehabilitation of the site.                                                                                          Prepaid Rates Liability                                                                2,059              1,883
                                                                                                                                                        Total Current Other Liabilities                                                       8,931              7,804
      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                      Non-Current
      from amounts currently provided. Because of the long-term nature of the liability, the most significant uncertainty in estimating
                                                                                                                                                        Waste Levy Subsidy received in advance                                                 8,230              8,826
      the provision is the costs that will be incurred. The provision recognised for quarry sites rehabilitation is reviewed at least
      annually and updated based on the facts and circumstances available at the time.                                                                  Total Non-Current Other Liabilities                                                   8,230              8,826
                                                                                                                                            Council is liable to pay the State a waste levy on most forms of commercial and household waste delivered to its disposal
                                                                                                                                            sites. 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 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 and increase resource recovery. The balance of unutilised waste levy subsidy is recognised as a
                                                                                                                                            liability at 30 June 2023 and split between current and non-current in accordance with the State's calculations of the
                                                                                                                                            estimated annual charges. Revenue will be recognised in each subsequent year in accordance with these calculations.




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