2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

NOOSA SHIRE COUNCIL

Notes to the Financial Statements
For the year ended 30 June 2015

  1. 18 (a)        Landfill sites
              The provision represents the present value of the anticipated future costs associated with the
              closure of the Eumundi Rd landfill sites, decontamination and monitoring of historical residues
              and leaching on the site.
              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 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.

              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 will occur progressively over the
              subsequent thirty years.

  1. 18 (b)       Quarry sites
              The provision represents the present value of the anticipated future costs associated with the
              closure of the Ringtail Creek quarry sites, reclamation and rehabilitation of the site.

              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 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. The provision recognised for quarry sites rehabilitation
              is reviewed at least annually and updated based on the facts and circumstances available at the
              time.

  1. 19       National competition policy
              The Council has reviewed its activities and has identified 2 activities that are business activities.
              Details of these activities can be found in note 29.

  1. 20       Taxation
              Income of local authorities and public authorities is exempt from Commonwealth taxation except
              for Fringe Benefits Tax and Goods and Services Tax (‘GST’). The net amount of GST
              recoverable from the Australian Taxation Office (ATO) or payable to the ATO is shown as an
              asset or liability respectively.

              Unitywater pays Council an income tax equivalent in accordance with the requirements of the
              Local Government Act 2009 . Where the activity of such an entity is subject to the tax equivalents
              regime, the income tax expense is calculated on the operating surplus adjusted for permanent
              differences between taxable and accounting income.




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