Annual Report 2022-23

      Note 23. Asset Revaluation Surplus                                                                                                   Note 25. Contingent Liabilities (continued)
      §SSuubnote§




      The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do            Local Government Workcare
      not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since        The Council is a member of the Queensland local government worker's compensation self          self-insurance scheme, Local
      initial recognition are accumulated in the asset revaluation surplus. Increases and decreases on revaluation are offset within       Government Workcare. Under this scheme the Council has provided an indemnity towards a bank guarantee to cover bad debts
      a class of assets.                                                                                                                   which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding
                                                                                                                                           liabilities. Only the Queensland Government’s workers compensation authority may call on any part of the guarantee should
      Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset         the above circumstances arise. The Council's maximum exposure to the bank guarantee is $1,635,963 (2022: $1,334,123).
      revaluation surplus in respect of that class. Any excess is treated as an expense. When an asset is disposed of, the amount
      in respect of that asset is retained in the asset revaluation surplus and not transferred to retained surplus.

                                                                                                                                           Note 26. Superannuation
      Note 24. Capital Commitments
                                                                                                                                           §Subnote§




      §Subnote§
                                                                                                                                           Council contributes to the LGIAsuper Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent
      $ '000                                                                                                 2023                2022      employee who is a defined benefit member. This rate is set in accordance with the LGIAsuper trust deed and may be varied on
                                                                                                                                           the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the
      Capital commitments (exclusive of GST)                                                                                               Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009.

      Commitment for the construction of the following assets contracted for at the reporting date but not recognised as                   The scheme is a pooled defined benefit plan and it is not in accordance with the deed to obligations, plan assets and costs at
      liabilities (exclusive of GST):                                                                                                      the Council level.

            Property, Plant and Equipment                                                                                                  Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the contribution
                                                                                                                                           rate, but has not been recognised as an asset or liability of the Council.
            Roads, Bridges and Stormwater                                                                    3,549               7,867
            Buildings                                                                                          514               1,936     Technically Council can be liable to the scheme for a portion of another local governments’ obligations should that local




                                                                                                                                                                                                                                                                                Noosa Council Annual Report 2022 - 2023
            Other                                                                                            4,064               7,911     government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIAsuper
                                                                                                                                           trust deed changes to Council's obligations will only be made on the advice of an actuary.
            Total Commitments                                                                               8,127              17,714
                                                                                                                                           The last completed actuarial assessment of the scheme was undertaken as at 1 July 2021. The actuary indicated that “At the
            These expenditures are payable as follows:                                                                                     valuation date of 1 July 2021, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory
            Within the next year                                                                             8,127             17,294      financial position as at the valuation date." The measure of vested benefits represents the value of benefit entitlements should
            Later than one year and not later than 5 years                                                       –                420      all participating employees voluntarily exit the scheme. The Council is not aware of anything that has happened since that time
                                                                                                                                           that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date.
            Later than 5 years                                                                                   –                  –
            Total Payable                                                                                   8,127             17,714       No changes have been made to prescribed employer contributions which remain at 12% of employee salary or wages and
                                                                                                                                           there are no known requirements to change the rate of contributions.
      Note: Post reporting date Council has awarded or is in the process of warding approximately $41 million in contracts for
                                                                                                                                           The next triennial actuarial review is not due until 1 July 2024.
      reconstruction works relating to the February 2022 flood impacted sites, including the Black Mountain landslide. All disaster
      related projects are fully funded by the Queensland Reconstruction Authority.
                                                                                                                                           The most significant risks that may result in LGIAsuper increasing the contribution rate, on the advice of the actuary, are:

                                                                                                                                           Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional contributions are
                                                                                                                                           needed to fund the shortfall.
      Note 25. Contingent Liabilities
      §Subnote§


                                                                                                                                           Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded.
      Details and estimates of maximum amounts of contingent liabilities are as follows:
                                                                                                                                                $ '000                                                                         Notes               2023                2022
      Local Government Mutual
      The Council is a member of the local government mutual liability self-
                                                                          self insurance pool, LGM Queensland. In the event of the              Superannuation contributions made to the Regional Defined Benefits Fund                              116                168
      pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated             Other Superannuation Contributions for Employees                                                   3,975              3,599
      deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions        Total Superannuation Contributions paid by Council for
      in respect to any year that a deficit arises.                                                                                             employees                                                                        6                4,091               3,767
      As at 30 June 2023 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise.




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