Note 20. Waivers, Impairment Losses and Write-Offs
Under Section 131 of the Financial Management Act 1996, the Treasurer may, in writing, waive the right to payment of an amount payable to the Territory.
A waiver is the relinquishment of a legal claim to a debt over which the Directorate has control. The write-off of a debt is the accounting action taken to remove a debt from the books but does not relinquish the legal right of the Directorate to recover the amount. The write-off of debts may occur for reasons other than waivers.
The waivers, impairment losses and write-offs listed below have occurred during the reporting period for the Directorate.
|Impairment Loss from Receivables|
|Total Impairment Loss from Receivables||92||395||29||640|
|Impairment Loss from Property, Plant and Equipment|
|Plant and Equipmentc||156||1,121||8||613|
|Total Impairment Loss from Property, Plant and Equipment||156||1,121||8||613|
|Total Impairment Losses||248||1,516||37||1,253|
|Total Waivers, Impairment Losses and Write-Offs||2,198||2,292||2,082||2,764|
a) The increase is due to the Treasurer’s decision, in 2013, to grant a debtor a 50 per cent waiver of debt owed for hospital treatment on compassionate grounds.
b) This is largely attributable to lower levels of ineligible (those not covered by Medicare) and compensable patients’ debts, that are impaired.
c) The increase is mainly attributable to medical and surgical equipment that has been assessed as not operating efficiently, or is under repair or cannot be located within the campus.
d) The decrease mainly relates to lower number of high value write-offs in 2013.