Note 20. Waivers, Impairment Losses and Write-Offs

Under Section 131 of the Financial Management Act 1996, the Treasurer may, in writing, waive the right to payment of an amount payable to the Territory.

A waiver is the relinquishment of a legal claim to a debt over which the Directorate has control. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right of the Directorate to recover the amount. The write-off of debts may occur for reasons other than waivers.

The waivers, impairment losses and write-offs listed below have occurred during the reporting period for the Directorate.

 

  No. 2013
$’000
No. 2012
$’000
Waivers        
Waiversa 1 14 - -
Total Waivers 1 14    
         
Impairment Losses        
Impairment Loss from Receivables        
Trade Receivablesb 92 395 29 640
Total Impairment Loss from Receivables 92 395 29 640
         
Impairment Loss from Property, Plant and Equipment        
Plant and Equipmentc 156 1,121 8 613
Total Impairment Loss from Property, Plant and Equipment 156 1,121 8 613
Total Impairment Losses 248 1,516 37 1,253
         
Write-Offs        
Irrecoverable Debtsd 1,949 762 2,045 1,511
Total Write-Offs 1,949 762 2,045 1,511
Total Waivers, Impairment Losses and Write-Offs 2,198 2,292 2,082 2,764

 

a) The increase is due to the Treasurer’s decision, in 2013, to grant a debtor a 50 per cent waiver of debt owed for hospital treatment on compassionate grounds.

b) This is largely attributable to lower levels of ineligible (those not covered by Medicare) and compensable patients’ debts, that are impaired.

c) The increase is mainly attributable to medical and surgical equipment that has been assessed as not operating efficiently, or is under repair or cannot be located within the campus.

d) The decrease mainly relates to lower number of high value write-offs in 2013.