Annual Report 2023-24

      Noosa Council                                                                                                                         Noosa Council




                                                                                                                                                                                                                                                                                Financial Performance
      Notes to the Financial Statements                                                                                                     Notes to the Financial Statements
      for the year ended 30 June 2024                                                                                                       for the year ended 30 June 2024

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




                                                                                                                                            $ '000                                                                                                2024               2023
      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
                                                                                                                                            Annual leave                                                                                         3,933               3,437
      projected futures wage and salary levels and related employee on-costs, and are discounted to present values. This liability
      represents an accrued expense. As Council does not have an unconditional right to defer this liability beyond 12 months annual        Long Service Leave                                                                                   5,297               4,911
      leave is classified as a current liability.                                                                                           Landfill Sites                                                                                       2,497                 532
                                                                                                                                            Total Current Provisions                                                                           11,727               8,880
      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          Long service leave                                                                                   1,135                614
      and 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
                                                                                                                                            Landfill Sites                                                                                      30,374             31,810
      Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to
      date, and the result is discounted to present value. The interest rates attaching to Commonwealth Government guaranteed               Total Non-Current Provisions                                                                       31,559              32,474
      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
                                                                                                                                            §Subnote§




      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
                                                                                                                                            Balance at end of financial year                                                                        50                  50
      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
                                                                                                                                            Landfill Sites
      Quarries and Landfill sites.
                                                                                                                                            Balance at beginning of financial year                                                              32,342             23,544
      Council has the following restoration provisions:                                                                                     Additional provision                                                                                 (265)             11,968
248                                                                                                                                         Amounts used                                                                                                                        249
                                                                                                                                                                                                                                                 (163)             (1,668)
      Landfill Sites                                                                                                                        Increase in provision due to unwinding of discount                                                   1,333                 859
      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                                      (992)             (2,860)
      sites, decontamination and monitoring of historical residues and leaching on the site.
                                                                                                                                            Increase/(Decrease) in provision due to change in escalation rate                                      616                 499
      The calculation of this provision requires assumptions such as application of environmental legislation, site closure dates,          Balance at end of financial year                                                                   32,871              32,342
      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
                                                                                                                                            §Note§




      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
                                                                                                                                            §Subnote§




                                                                                                                                            $ '000                                                                                                2024               2023
      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.             Current
                                                                                                                                            Waste Levy Subsidy received in advance                                                               3,027               3,089
      Quarry Sites
      The provision represents the present value of the anticipated future costs associated with the closure of the Ringtail Creek          Unearned Revenue                                                                                     4,172               3,783
      quarry site, reclamation and rehabilitation of the site.                                                                              Prepaid Rates Liability                                                                              2,135               2,059
                                                                                                                                            Total Current Other Liabilities                                                                     9,334              8,931
      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                                                               5,203               8,230
      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                                                                 5,203              8,230




                                                                                                                                                                                                                                                                                Noosa Council Annual Report 23/24
                                                                                                                                            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 2024 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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