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2002-03 Financial Statements

Department of Defence
SCHEDULE OF COMMITMENTS
as at 30 June 2003
2002-03 2001-02
Notes $'000 $'000
BY TYPE
Capital commitments
Land and buildings1 312,735 419,426
Specialist military equipment2 7,622,803 6,891,532
Other capital commitments3 1,110,504 563,830
Total capital commitments 9,046,042 7,874,788
Other commitments
Operating leases4 734,420 794,523
Other non-capital commitments 4,282,935 3,666,865
Total other commitments 5,017,355 4,461,388
Commitments receivable5 (1,125,589) -
Net commitments 12,937,808 12,336,176
BY MATURITY
Capital Commitments
One year or less 3,300,350 2,836,403
From one to five years 4,327,988 4,420,854
Over five years 772,924 617,531
Other Non-Capital commitments
One year or less 1,524,524 1,520,814
From one to five years 1,689,589 1,309,557
Over five years 646,795 836,494
Operating lease commitments
One year or less 168,198 67,981
From one to five years 232,836 279,423
Over five years 274,604 447,119
Net commitments by maturity 12,937,808 12,336,176

* Commitments are GST inclusive where relevant.

  1. Outstanding contractual payments for buildings under construction. |
  2. Outstanding contractual payments for specialist military equipment under construction. |
  3. Other commitments include outstanding contractual payments for plant and equipment and garrison support contract. |
  4. Operating leases included are effectively non-cancelable and are described in the table below. |
  5. Commitments receivable represents the estimated GST receivable on the gross commitments payable.
Nature of Lease General Description of Leasing Arrangement
Property leases Defence leases both residential and commercial properties in Australia and overseas in support of ADO activities. Lease payments are subject to the terms and conditions of the lease, ie annual increase in accordance with upward movements in the Consumer Price Index.
Aircraft leases Defence has two types of aircraft leases - those in support of military operations and those in support of parliamentary services. Leases entered into during 2003 for navigational training (7 aircraft) are for a period of 10 years.
Agreements for the provision of motor vehicles to senior executive officers No contingent rentals exist. There are no renewal or purchase options available to Defence.
Equipment leases Defence has leases for items of equipment including computer hardware, photocopiers, communications equipment, internet services and gym equipment. The length of the leases varies from one to five years.
Revenue leases Defence receives revenue from the lease of property and office space. Office space is generally let to tenants in order to provide a service for Defence employees ( eg canteen, banking and travel), to other government agencies or to local civic authorities.

* Future commitments are disclosed at Note 31.

The above schedule should be read in conjunction with the accompanying notes.