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Department of Transport and Main Roads

Certification

Management certificate of the Department Of Transport and Main Roads

These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), section 38 of the Financial and Performance Management Standard 2019 and other prescribed requirements. In accordance with section 62(1)(b) of the Act we certify that in our opinion:

  1. the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and
  2. the financial statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of the Department of Transport and Main Roads for the financial year ended 30 June 2025 and of the financial position of the department at the end of that year.

The Director-General, as the Accountable Officer of the Department, acknowledges responsibility under sections 7 and 11 of the Financial and Performance Management Standard 2019 for the establishment and maintenance, in all material respects, of an appropriate and effective system of internal controls and risk management processes with respect to financial reporting throughout the reporting period.

Nick Shaw FCPA
Chief Finance Officer
22 August 2025

Sally Stannard BE/BA Hons, Dip Eng Prac
Director-General
22 August 2025

Independent auditor's report

To the Accountable Officer of the Department of Transport and Main Roads

Report on the audit of the financial report

Opinion

I have audited the accompanying financial report of the Department of Transport and Main Roads.

The financial report comprises the statement of financial position and statement of assets and liabilities by major departmental services as at 30 June 2025, the statement of comprehensive income, statement of changes in equity, statement of cash flows and statement of comprehensive income by major departmental services for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the management certificate.

In my opinion, the financial report:

  1. gives a true and fair view of the department's financial position as at 30 June 2025, and its financial performance and cash flows for the year then ended; and
  2. complies with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2019 and Australian Accounting Standards.

Basis for opinion

I conducted my audit in accordance with the Auditor-General Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the section of my report.

I am independent of the department in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General Auditing Standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key audit matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report for the current period. I addressed these matters in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.

Valuation of infrastructure assets ($96.151 billion) and estimating depreciation expense ($1.265 billion)

Refer to note 15 in the financial report

The fair value measurement of infrastructure assets is based on current replacement cost (cost approach). The valuations are dependent on certain key assumptions that require significant management judgement including for the following:

  • Componentising the assets into the significant parts that have different useful lives.
  • Classifying assets into categories that have similar replacement costs.
  • Estimating the gross replacement cost for each combination of asset component and category to develop unit rates for the modern equivalent asset.
  • Estimating the remaining useful life of each asset.

My procedures included, but were not limited to:

  • assessing the reasonableness of the methods and accounting principles used in the cost approach and depreciation expense estimates
  • evaluating the qualifications, competence, capability, and objectivity of the internal subject matter experts involved in developing and approving internally generated unit rates
  • examining a sample of the input data used in the unit pricing model for relevance, completeness, and accuracy
  • examining a sample of unit rates and evaluating the reasonableness of key assumptions and relevance, completeness, and accuracy of supporting documentation
  • examining a sample of asset valuation movements since the last revaluation date and corroborating the changes with other available information
  • examining the reasonableness of the funding available used as input for the remaining useful lives and relevance of supporting documentation for the estimates
  • testing the mathematical accuracy of the infrastructure valuation and depreciation models.

Recognition and measurement of service concession assets ($15.625 billion), borrowings financial liabilities on service concession arrangements ($678.332 million) and other liabilities on service concession arrangement ($6.690 billion)

Refer to note 16 and note 19 in the financial report

AASB 1059 Service Concession Arrangements: Grantors involves a high degree of complexity and certain key assumptions that require significant management judgement including the following:

  • Estimating the recognition and measurement of the service concession asset at current replacement cost in accordance with the cost approach described in AASB 13 Fair Value Measurement:
    • Componentising the assets into the significant parts that have different useful lives.
    • Classifying assets into categories that have similar replacement costs.
    • Estimating the gross replacement cost for each combination of component and asset category to develop unit rates for the modern equivalent asset.
    • Estimating the remaining useful life of each asset.
  • Classifying and measuring the service concession liabilities as a financial liability or unearned revenue depending on how the operator is compensated.

My procedures included, but were not limited to:

  • assessing the appropriateness of the recognition and accounting measurement principles used to determine the value and classification of service concession assets, unearned revenue and financial liabilities on service concession arrangements
  • evaluating the qualifications, competence, capability and objectivity of the internal and external subject matter experts involved in developing the current replacement cost valuations for service concession assets
  • examining the measurement estimates of service concession assets, unearned revenue and financial liabilities on service concession arrangements and evaluating a sample of supporting documentation for reasonableness, relevance, completeness and accuracy
  • testing the mathematical accuracy of the models used to calculate the service concession assets, unearned revenue estimates and financial liabilities including depreciation, interest and service payments.

Other information

Those charged with governance are responsible for the other information.

The other information comprises the information included in the entity's annual report for the year ended 30 June 2025, but does not include the financial report and our auditor's report thereon. My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Responsibilities of the accountable officer for the financial report

The Accountable Officer is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2019 and Australian Accounting Standards, and for such internal control as the Accountable Officer determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The Accountable Officer is also responsible for assessing the department's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the department or to otherwise cease operations.

Auditor's responsibilities for the audit of the financial report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of my responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar6.pdf

This description forms part of my auditor's report.

Report on other legal and regulatory requirements

Statement

In accordance with s.40 of the Auditor-General Act 2009, for the year ended 30 June 2025:

  1. I received all the information and explanations I required.
  2. I consider that, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.

Prescribed requirements scope

The prescribed requirements for the establishment and keeping of accounts are contained in the Financial Accountability Act 2009, any other Act and the Financial and Performance Management Standard 2019. The applicable requirements include those for keeping financial records that correctly record and explain the department's transactions and account balances to enable the preparation of a true and fair financial report.

Rachel Vagg
Auditor-General

27 August 2025
Queensland Audit Office
Brisbane

Last updated
29 September 2025