Longer than five years	–	–
Minimum future lease payments	617,705	335,560
Less future finance charges	(282,145)
Present value of minimum lease payments	335,560	335,560
Included in the financial statements as:
Current borrowings lease liabilities (Note 7.1)	37,595
Non-current borrowings lease liabilities (Note 7.1)	298,452
Total	336,047

At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is accounted for as a non-financial physical asset. If there is certainty that DJPR will obtain ownership of the lease asset by the end of the lease term, the asset shall be depreciated over the useful life of the asset. If there is no reasonable certainty that DJPR, as lessee, will obtain ownership by the end of the lease term, the asset shall be fully depreciated over the shorter of the lease term and its useful life.

###### Commissioned Public Private Partnerships (PPPs) Royal Melbourne Showgrounds

The State, has entered into a joint operation agreement with the Royal Agricultural Society of Victoria Limited (RASV) to redevelop the Royal Melbourne Showgrounds. The agreement came into effect on 30 June 2005. Two joint operation structures were established, an unincorporated joint operation to carry out and deliver the joint operation project, and an incorporated joint operation entity, Showgrounds Nominees Pty Ltd to hold the assets of the joint operation and to enter into agreements on behalf of the State and RASV.

##### 7.2.2 Operating lease liabilities

In June 2006, Showgrounds Nominees Pty Ltd entered into a Development and Operations Agreement (on behalf of the State and RASV) with the Concessionaire, PPP Solutions (Showgrounds) Nominee Pty Ltd to design, construct, finance and maintain the new facilities at the showgrounds. The project operation term is 25 years from the date of commercial acceptance of completed works, which occurred in August 2006. The showgrounds buildings will revert to the joint operation on the conclusion of the lease arrangement. The payments that relate to the redevelopment of the showgrounds are accounted for as a finance lease as disclosed in the table above. In addition, DJPR also pays operating and maintenance costs.

###### Biosciences Research Centre

In April 2008, the state, represented by the former Department of Primary Industries entered into a joint operation agreement with La Trobe University (La Trobe) to establish a world-class research facility known as AgriBio, Centre for AgriBioscience. On 30 April 2009, Biosciences Research Centre Pty Ltd entered into a Project Agreement (on behalf of the state and La Trobe) with Plenary Research Pty Ltd (the Concessionaire) to design, construct, finance and maintain a facility over the project’s operating term. The project’s operating term is 25 years from the date of commercial acceptance, which occurred on 18 July 2012. The service fee payments that relate to the project facility are accounted for as a finance lease as disclosed in the table above. In addition, DJPR also pays operating and maintenance costs.

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DJPR Annual Report 2018–19