Investor Presentaiton

Department of Health Notes to the financial statements For the year ended on 30 June 2023 5.3 Right-of-use assets (continued) The following amounts relating to leases have been recognised in the Statement of Comprehensive Income: 2023 2022 $'000 $'000 Depreciation expense of right-of-use assets Lease interest expense 701 691 62 44 Expenses relating to variable lease payments not included in lease liabilities 94 47 Short-term leases 779 7,029 Low-value leases Operating leases 27 74 15,969 15,017 Total amount recognised in the statement of comprehensive income 17,632 22,902 The total cash outflow for right-of-use leases in 2023 was $764,000 (2022: $687,081). As at 30 June 2023, there were no indications of impairment to right-of-use assets. The department's leasing activities and how these are accounted for are detailed below: • The department has leases for vehicles, offices and warehouses The department has also entered into Memorandum of Understanding Agreements (MOU) with the Department of Finance for the leasing of office accommodation. These are not recognised under AASB 16 because of substitution rights held by the Department of Finance and are accounted for as an expense as incurred The department recognises leases as right-of-use assets and associated lease liabilities in the Statement of Financial Position The corresponding lease liabilities in relation to these right-of-use assets have been disclosed in note 7.2 'Lease liabilities' < 168 Contents About us Significant issues Report on operations Agency performance Operational disclosures ⚫Key performance indicators Financial disclosures and compliance • Appendix

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