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.

 

No.

2015
$’000

No.

2014
$’000

Waivers

 

 

 

 

Waivers

-

-

-

-

Total Waivers

-

-

-

-

 

 

 

 

 

Impairment Losses

 

 

 

 

Impairment Loss from Receivables

 

 

 

 

Trade Receivablesa

194

431

178

653

Total Impairment Loss from Receivables

194

431

178

653

Impairment Loss from Property, Plant and Equipment

 

 

 

 

Plant and Equipmentb

19

217

61

530

Total Impairment Losses from Property, Plant and Equipment

19

217

61

530

Total Impairment Losses

213

648

239

1,183

 

 

 

 

 

Write-Offs

 

 

 

 

Irrecoverable Debtsc

2,742

1,596

2,469

1,155

Total Write-Offs

2,742

1,596

2,469

1,155

 

 

 

 

 

Total Waivers, Impairment Losses and Write-Offs

2,955

2,244

2,708

2,338

  1. This decrease is largely attributable to a reduction of Medicare ineligible patient debts that have been impaired following assessment of receivables in 2014-15.
  2. The decrease is mainly attributable to less medical and surgical equipment that has been assessed as not operating efficiently, is under repair or cannot be located within the Directorate than the previous year.
  3. The increase mainly relates to an increase in write offs of debts for Medicare ineligible patients.