c. DISCOUNT RATE
Discount rates reflect a beta and equity risk premium appropriate to the Group, with risk adjustments for individual segments and
countries where applicable. The post-tax discount rates used for significant cash generating units as at 30 June 2015 are: Australia
Personal Insurance operations 10.2% (2014-10.2%), Australia Commercial Insurance operations 10.2% (2014-10.2%) and New
Zealand operations 10.8% (2014-10.8%).
E. IMPAIRMENT TESTING
I. For the year ended 30 June 2015
There was no impairment charge recognised during the year.
II. For the year ended 30 June 2014
There was no impairment charge recognised during the year.
NOTE 18. TRADE AND OTHER PAYABLES
CONSOLIDATED
2015
2014
$m
$m
A. COMPOSITION
I. Trade creditors
Commissions payable
226
229
Stamp duty payable
120
123
GST payable on premium receivable
136
137
Other
332
323
814
812
II. Other payables
Other creditors and accruals
444
503
Investment creditors
38
176
Interest payable on interest bearing liabilities
16
15
Loan from joint venture
*
9
8
1,321
1,514
* The loan relates to the Group's current payable balance with NTI Limited, a joint venture, and is expected to be settled within 12 months.
Other trade creditors includes $27 million (2014-$59 million) reinsurance collateral arrangements with various reinsurers to secure
the Group reinsurance recoveries. The balance is anticipated to reduce through the settlement of amounts from reinsurers as they fall
due. This payable is interest bearing.
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days to 12 months. Amounts have
not been discounted because the effect of the time value of money is not material. The carrying amount of payables is a reasonable
approximation of the fair value of the liabilities because of the short term nature of the liabilities.
NOTE 19. RESTRUCTURING PROVISION
CONSOLIDATED
2015
2014
$m
$m
A. COMPOSITION
Restructuring provision
59
50
B. RECONCILIATION OF MOVEMENTS
Balance at the beginning of the financial year
50
6
Additions
27
50
Amounts settled
(18)
(6)
Balance at the end of the financial year
59
50
The provision primarily comprises restructuring costs in respect of the new operating model in Australia (implemented from 1 July
2014). All of the provision outstanding at the reporting date is expected to be settled within 12 months (2014–all). The balance has
not been discounted.
79
