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 18. Leases                                                                                                                       Note 18. Leases (continued)
                                                                                                                                      §Note/Subtotal§




§Note/Subtotal§
§Subnote§




                                                                                                                                      $ '000                                                                                              2025                 2024
Council as a Lessee
                                                                                                                                      Lease Liabilities
Council has leases in place over property and various IT and Office equipment. Council has applied the exception to lease
accounting for leases of low-value assets and short-term leases.                                                                      Classified as:
                                                                                                                                      Current Lease Liability                                                                               240                 235
Where Council assesses that an agreement contains a lease, a right of use asset and lease liability is recognised on inception
                                                                                                                                      Non-Current Lease Liability                                                                           670                 917
of the lease. Council does not separate lease and non-lease components for any class of assets and has accounted for lease
payments as a single component.                                                                                                       Total Lease Liabilities                                                                              910              1,152

The right-of-use asset is measured using the cost model where cost on initial recognition comprises: the lease liability, initial
direct costs, prepaid lease payments, estimated cost of removal and restoration, less any lease incentives received. The
                                                                                                                                      The following table shows the maturity analysis of the Lease Liability based on contracted cashflows and therefore the
                                                                                                                                      §Subnote§




right-of-use is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the
                                                                                                                                      amounts will not be the same as the recognised Lease Liability in the Statement of Financial Position.
impairment of asset accounting policy.

The lease liability is initially recognised at the present value of the remaining lease payments at the commencement of the                                                                                                                              Total per
lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Council’s                                                                                                                       Statement of
incremental borrowing rate for a similar term with similar security is used.                                                                                                                                                                            Financial
                                                                                                                                      $ '000                                  < 1 year       1 – 5 years          > 5 years               Total          Position
Exceptions to Lease Accounting
                                                                                                                                      2025
Council has applied the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal      Buildings                                   281                718                   –                999                 899




                                                                                                                                                                                                                                                                        Noosa Council Annual Report 24/25
to 12 months) and leases of low-value assets. Council recognises the payments associated with these leases as an expense              IT & Office Equipment                         4                  8                   –                 12                  11
on a straight-line basis over the lease term.                                                                                                                                    285                 726                   –            1,011                  910
Terms and Conditions of Leases                                                                                                        2024
Buildings                                                                                                                             Buildings                                   271                999                   –              1,270              1,120
Council has entered into a lease for additional office space for an initial term of 5 years with 2 x 3 year options. The lease is     Land                                         17                  –                   –                 17                 17
for a five year term with the option of a further two, three year extensions. This lease includes fixed annual increases with         IT & Office Equipment                         4                 12                   –                 16                 15
market reviews due at the end of each term.
                                                                                                                                                                                 292              1,011                    –            1,303              1,152
Land
Council leased a parcel of land which was utilised as a commercial slipway. The term of the lease was for 20 years and                Future Cash Outflows not reflected in the measurement of Lease Liabilities
                                                                                                                                      §Subnote§




expired in 2025. There were no extension provisions contained in the lease and Council did not seek to renew the lease.
Rent was calculated based on a 3 years average rental value at 6% and was payable for the term of the lease.                          The slipway lease liability was calculated based on the current 3 years average rental value at 6%, no adjustment had been
                                                                                                                                      included for movement in the rental value over the remainder of the lease term. No allowance had been included for restoration
IT and Office Equipment                                                                                                               costs that may be incurred at the end of the lease. The lease also contains various restrictions and conditions about what the
Council leases a number of items of equipment, many of these assets are considered low value and are therefore not                    site can be used for. The lease expired in 2025 and was not renewed.
subject to lease accounting. The more significant items have lease terms of 3 or more years with fixed payments for the
term of the lease.
                                                                                                                                      IT and Office equipment lease payments are generally fixed for the term of the arrangement and are not subject to any residual
§Subnote§
                                                                                                                                      values at the end of the lease.
                                                                                               IT and Office
$ '000                                                     Buildings                Land         Equipment                 Total      Amounts included in the Statement of Comprehensive Income related to Leases
                                                                                                                                      §Subnote§




Right of Use Assets (ROU)                                                                                                             The following amounts have been recognised in the Statement of Comprehensive Income for leases where Council is the
                                                                                                                                      Lessee.

2025                                                                                                                                  $ '000                                                                                              2025                 2024
Opening balance at 1 July                                       1,092                  16                 14               1,122
Depreciation charge                                             (247)                (16)                 (4)              (267)      Expenses
Balance at 30 June                                                845                   –                 10                 855      Depreciation of Right-of-Use Assets                                                                   267                 168
                                                                                                                                      Interest Expense on Lease Liabilities                                                                  58                  39
2024                                                                                                                                  Expenses relating to Low-value Assets                                                                 231                 295
Opening balance at 1 July                                           –                  38                   1                 39
Additions to Right-of-Use Assets                                1,236                   –                 15               1,251      Net Expense relating to Leases                                                                       556                 502
Depreciation charge                                             (144)                (22)                 (2)              (168)
Balance at 30 June                                              1,092                  16                 14               1,122

                                                                                                                                      Total Cash Inflows/(Outflows) for Leases
                                                                                                                                      §Subnote§




                                                                                                                                                                                                                                         (523)              (480)


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