McConnell Dowell 2020 Annual Review

72 McConnell Dowell Group Consolidated All figures are in A$ 000’s Note 2020 2019 3. Operating expenses Operating expenses include the following items: Salaries & wages (229,096) (222,987) Subcontractors (519,298) (435,644) Materials (98,495) (96,255) Plant costs (36,340) (72,016) Indirect project costs (54,187) (52,000) Administrative expenses (20,565) (33,589) Operating lease payments - (7,211) Short term and low value lease charges (16,958) - Foreign exchange (losses) / gains (690) 70 Total operating expenses (975,629) (919,632) The Group recognised rent expense from short-term leases of $14.3 million, leases of low-value assets of $2.7 million and no variable lease payments for the year ended 30 June 2020. 4. Finance income and costs Finance income Interest income 482 671 Total finance income 482 671 Interest income is recognised and accrued on interest bearing cash accounts. Any amounts not recognised in closing cash balances, are accrued using the effective interest rate on an account by account basis. Finance costs Interest expense (1,047) (864) Other finance costs (1,530) (1,051) Finance costs on lease liabilities (1,719) - Total finance costs (4,296) (1,915) Notes to the annual financial statements (continued) for the year ended 30 June 2020