NBN Co. Ltd

Mr Fletcherasked the Minister representing the Minister for Broadband, Communications and the Digital Economy, in writing, on 21 November 2011:

What proportion of NBN Co. Limited's assets are leased as opposed to owned.

Mr Albanese: The Minister for Broadband, Communications and the Digital Economy has provided the following answer to the honourable member's question:

The table below provides details of NBN Co Limited's leased assets and the proportion of leased assets versus owned assets as of 29 February 2012:

Measures

Operating Leases

Finance Leases

Total

Operating Lease and Finance Lease liabilities

$3,457,033

$17,087,984

$20,545,017

Operating Lease and Finance Lease liabilities as a proportion of Total Assets Owned as at 29 February 2012

0%

2%

2%

Notes:

Leased assets relate to both operating and finance lease arrangements as defined under Australia Accounting Standards Board's Accounting Standard 117.

Estimated market value is predominantly based on a return of rental formula, rather than a formal valuation.

The lease value disclosed relates to the initial contractual term of the agreement, not the financial result as at 29 February 2012.

Leases of property are the most common arrangements as at 29 February 2012.

Licences have been excluded from these results.