Noosa Council Annual Report 24/25

Noosa Council                                                                                                                         Noosa Council
Notes to the Financial Statements                                                                                                     Notes to the Financial Statements
for the year ended 30 June 2025                                                                                                       for the year ended 30 June 2025

Note 11. Receivables (continued)                                                                                                      Note 11. Receivables (continued)
§Note/Subtotal§
§Total§




$ '000                                                                                                  2025                2024
                                                                                                                                      Credit Risk Exposure and Impairment of Receivables
Current                                                                                                                               The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral
                                                                                                                                      is held as security.
Rates and Charges                                                                                      7,246               5,497
Other Debtors                                                                                            189                  66      Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. These
GST Recoverable                                                                                          835               1,736      calculations reflect current conditions and Council's view of economic conditions over the expected lives of the receivable. As
Accrued Revenues                                                                                       4,224               4,674      well as historically observed default rates, calculated using credit losses experienced on past transactions for each group.
Fees and Charges                                                                                       4,814               7,212
Total                                                                                                 17,308              19,185      Council considers forecasts of macroeconomic conditions such as inflation, unemployment rates and interest rates and their
                                                                                                                                      expected impacts on the default rates. Using this forward-looking information, Council would adjust its historical loss rates
less: Provision for Impairment                                                                                                        upwards or downwards to incorporate these forecasts.
Fees and Charges                                                                                         (34)                (34)
                                                                                                                                      After reviewing macro economic conditions, Council has determined that while forward looking conditions are expected to
Total Provision for Impairment - Receivables                                                             (34)                (34)
                                                                                                                                      deviate from those observed historically, any potential impact is expected to be immaterial given the type and nature of Council
Total Current Receivables                                                                                                             receivables, accordingly no forward looking adjustments were made.
                                                                                                     17,274              19,151


Non-Current
§Total§




                                                                                                                                      Note 12. Other Assets
                                                                                                                                      §Note§




Loans and Advances to Associates                                                                      49,218              49,218
Total Non-Current Receivables                                                                        49,218              49,218
                                                                                                                                      §Subnote§




                                                                                                                                      $ '000                                                                                                2025               2024




                                                                                                                                                                                                                                                                          Noosa Council Annual Report 24/25
Interest is charged on outstanding rates (12.35% per annum from 1 July 2024, previously 11.64% per annum). No interest                Current
§Total§




is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtors           Prepayments                                                                                          1,447               1,102
receivables. Refer also to Note 29 for further information about credit risk.                                                         Total Current Other Assets                                                                           1,447              1,102
A loan agreement for the subordinated debt was executed on the 21 June 2013. The interest only loan structure terminates
on 30 June 2033 with the interest rate set by QTC annually. Applicable interest rate for 2025 was 4.84% (2024: 4.51%).
                                                                                                                                      Note 13. Equity Investments
                                                                                                                                      §Note§




Accounting Policies - Receivables
§Total§




Receivables are measured at amortised cost which approximates fair value at reporting date. Trade debtors are recognised at
                                                                                                                                      §Subnote§




the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts          Accounting recognition:
is required within 30 days from invoice date.
                                                                                                                                      As at 1 July 2010 a water distribution and retail business called Unitywater was established in accordance with the South-East
Accounting Policies - Grouping                                                                                                        Queensland Water (Distribution and Retail Restructuring) Act 2009 to deliver water and waste water services to customers
When Council has no reasonable expectation of recovering an amount owned by a debtor, and has ceased enforcement                      within the local government areas of Moreton Bay Regional Council, Sunshine Coast Regional Council and Noosa Shire
activity, the debt is written-off by directly reducing the receivable against the loss allowance. If the amount of debt written off   Council.
exceeds the loss allowance, the excess is recognised as an impairment loss.
                                                                                                                                      Under the Act, governance arrangements for Unitywater were established in a Participation Agreement which commenced
Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment. The loss                from 1 July 2010. The agreement provides for participation rights to be held by the participating Councils. The participating
allowance for grouped receivables reflects lifetime expected credit losses (ECL) and incorporates reasonable and supportable          Councils are Noosa Shire Council, Moreton Bay Regional Council and the Sunshine Coast Regional Council. The Participation
forward-looking information. Economic changes impacting debtors, and relevant industry data form part of the impairment               Rights effectively represent an investment in an associate by Noosa Shire Council.
assessment. Council has identified 3 distinctive groupings of its receivables: Rates and Charges, Statutory Charges and Other
Debtors.                                                                                                                              Investment in Associates are accounted for using the Equity method whereby the investment is initially recognised at cost and
                                                                                                                                      adjusted thereafter for the post-acquisition change in the Council’s share of the Unitywater's net assets.
Rates and charges: Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property
to recover outstanding rate debts and therefore the expected credit loss is immaterial. Impairment of rates and charges will          Council's Statement of Comprehensive Income includes its share in Unitywater's profit or loss and other comprehensive income
occur only if arrears are deemed to be greater than the proceeds Council would receive from the sale of the respective property.      for the year ended 30 June 2025.

Statutory charges: In some limited circumstances Council may write off impaired statutory charges, on this basis Council                                                                   Council’s Share of Net Income          Council’s Share of Net Assets
calculates an ECL for statutory charges (non-rates and utility charges). Although not material, disclosure is being made for          $ '000                                                        2025             2024                 2025             2024
the purposes of public interest and transparency.
                                                                                                                                      Unitywater                                                    7,690               6,490            113,104            107,368
Other debtors: Council identifies other debtors as receivables which are not rates and charges or statutory charges. This
                                                                                                                                      Total                                                         7,690               6,490            113,104            107,368
includes, but is not limited to property leases, respite services, venue hire, commercial waste charges and grants.




continued on next page ...                                                                                            Page 18 of 62   continued on next page ...                                                                                          Page 19 of 62

                                                               156                                                                                                                                      157