Note 35. Other Provisions

Provision for Make Good

The Directorate entered into lease agreements for some office space in Civic and Belconnen.  There are clauses within the lease agreements which require the Directorate, upon cessation of the tenancy, to return the office space to the condition it was in before it was leased (this is referred to as ‘make good’). The tenancies run for 5 years.

 

2015
$’000

2014
$’000

Non-Current Other Provisions

 

 

Provision for Make Good at the beginning of the Reporting Perioda

1,375

1,503

Increase in Provision due to unwinding of discountb

43

200

Make good charges incurred

-

(76)

Decrease due to revaluation

-

(252)

Total Other Provisions

1,418

1,375

  1. The reduction relates to a terminated lease at Swanson Plaza Belconnen and Level 5, 1 Moore Street Civic.
  2. In 2013-14 there was a catch up of the discounting for make good provision to cover multiple years which increased the expenditure in that year.