Investor Presentaiton

Department of Health Notes to the financial statements For the year ended on 30 June 2023 6.2 Receivables Contents Current Trade receivables (a) Allowance for impairment of trade receivables (b) Accrued revenue GST receivable (c) Total current receivables a) Trade receivables included $0.2 million receivables from hotel-quarantined persons in 2022-23 ($16.1 million in 2021-22). b) No allowance was provided for impairment of trade receivables that relates to hotel-quarantined persons ($9.2 million in 2021-22). c) Accounting procedure for Goods and Services Tax 2023 2022 $'000 $'000 1,465 17,599 (761) (9,722) 28,635 34,901 43,063 56,940 72,402 99,718 Rights to collect amounts receivable from the Australian Taxation Office and responsibilities to make payments for GST have been assigned to the department. This accounting procedure was a result of application of the grouping provisions of "A New Tax System (Goods and Services Tax) Act 1999" whereby the department became the Nominated Group Representative (NGR) for the GST Group as from 1 July 2012. The entities in the GST group include the department of Health, Child and Adolescent Health Service, East Metropolitan Health Service, North Metropolitan Health Service, South Metropolitan Health Service, WA Country Health Service, Health Support Services, PathWest Laboratory Medicine WA, Queen Elizabeth II Medical Centre Trust, Quadriplegic Centre, Mental Health Commission, and Health and Disability Services Complaints Office. GST receivables on accrued expenses are recognised by the Health Entity. Upon the receipt of tax invoices, GST receivables for the GST group are recorded in the accounts of the department of Health. Additionally, the department recognises GST receivables on its own accrued expenses. Trade receivables are initially recognised at their transaction price or, for those receivables that contain a significant financing component, at fair value. The department holds the receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less an allowance for impairment. The department recognises a loss allowance for expected credit losses (ECLs) on a receivable not held at fair value through profit or loss. The ECLs are based on the difference between the contractual cash flows and the cash flows that the entity expects to receive, discounted at the original effective interest rate. Individual receivables are written off when the department has no reasonable expectations of recovering the contractual cash flows. For trade receivables, the department recognises an allowance for ECLs measured at the lifetime expected credit losses at each reporting date. The department has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Please refer to note 3.5 for the amount of ECLS expensed in this financial year. < 170 About us Significant issues Report on operations Agency performance Operational disclosures ⚫Key performance indicators Financial disclosures and compliance Appendix

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