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Noosa Council Annual Report 24/25
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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 (continued) Note 19. Payables
§Note/Subtotal§
§Subnote§
$ '000 2025 2024
Leases at significantly below Market Value – Concessionary / Peppercorn Leases
§Subnote§
Trade Creditors
Council has a number of leases at significantly below market for land which are used for access easements and parklands. Creditors are recognised when goods or services are received, at the amount owed. Amounts owing are unsecured and are
generally settled on 30 day terms.
The leases are generally between 10 and 20 years and require payments between $1 and $143 per annum. The use of the
right-to-use asset is restricted by the lessors to specified community services which Council must provide, these services are Employee Related Accruals
detailed in the leases. Council does not believe that any of the leases in place are individually material. Employee related accruals comprise accrued salaries and wages in respect of services provided by the employees up to the
reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will
Council as a Lessor be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current.
§Subnote§
When Council is a lessor, the lease is classified as either an operating or finance lease at inception date, based on whether Current
substantially all of the risks and rewards incidental to ownership of the asset have been transferred to the lessee. If the risks Employee Entitlements 85 76
and rewards have been transferred then the lease is classified as a finance lease, otherwise it is an operating lease. GST Payable 912 876
If the lease contains lease and non-lease components then the non-lease components are accounted for in accordance with Trade Creditors 3,837 5,067
AASB 15 Revenue from Contracts with Customers. Accruals 9,703 17,740
Employee Related Accruals 2,116 1,065
The lease income is recognised on a straight-line basis over the lease term. Total Current Payables 16,653 24,824
Operating Leases
§Subnote§
Noosa Council Annual Report 24/25
Note 20. Borrowings
§Note§
Where Council retains the risks and rewards relating to a lease, the lease is classified as an operating leases.
§Subnote§
Interest is expensed as accrued, and $710,000 was capitalised in 2025 (2024: $670,000). Expected final repayment dates
The minimum lease receipts are as follows:
vary from 28 February 2034 to 28 February 2042.
Not later than one year 175 394 Council adopts an annual debt policy that sets out Council's management of existing and future debt. Council's current policy is
Between one and two years 146 175 to only borrow for capital projects and for a term no longer than the expected life of the asset. Council also aims to comply with
Between two and three years 150 146 the Queensland Treasury Corporation's borrowing guidelines and ensure that sustainability indicators remain within acceptable
Between three and four years 107 150 levels at all times.
Between four and five years 107 107
Later than five years 266 372 $ '000 2025 2024
Total Lease Receipts 951 1,344
Current
Rental income from investment property recognised in the operating result is $410,857 (2024: $390,766). Loans - Queensland Treasury Corporation 1,514 1,406
Total Current Borrowings 1,514 1,406
Direct operating expenses primarily for repairs and maintenance on property that did not generate rental income for the period
were $8,140 (2024: $5,241). Direct operating expenses primarily for repairs and maintenance on property that did generate Non-Current
rental income for the period were $82,899 (2024: $53,371).
Loans - Queensland Treasury Corporation 22,170 23,449
There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal. The Total Non-Current Borrowings 22,170 23,449
Council does not have any contractual obligations to purchase, construct or develop investment property or for repairs,
maintenance or enhancements.
Reconciliation of Loan Movements for the year
Loans - Queensland Treasury Corporation
Opening balance at beginning of financial year 24,855 24,345
Loans Drawdown – 1,549
Principal Repayments (1,881) (1,709)
Loan Interest capitalised in period 710 670
Book Value at end of financial year 23,684 24,855
The QTC loan market value at the reporting date was $20,462,292 (2024: $20,918,343). This represents the value of the debt
if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no provision is required to be made
in these accounts. No assets have been pledged as security by the council for any liabilities.
Borrowings are all in $AUD and are underwritten by the Queensland State Government.
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