Annual Report 2022-23

      Note 18. Leases (continued)                                                                                                             Note 20. Borrowings
                                                                                                                                              §Subnote§




      Operating Leases                                                                                                                        Loans payable are measured at amortised cost using the effective interest rate method. The effective interest rate is the rate
      Where Council retains the risks and rewards relating to a lease, they are classified as operating leases and relate to the              that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.
      investment property in the statement of financial position.                                                                             Borrowing costs, which includes interest calculated using the effective interest method and administration fees, are expensed
                                                                                                                                              in the period in which they arise. Costs that are not settled in the period in which they arise are added to the carrying amount
      Rent from investment and other property is recognised as income on a periodic straight line basis over the lease term.                  of the borrowing.

                                                                                                                                              All borrowing costs are expensed in the period in which they are incurred.
         The minimum lease receipts are as follows:
                                                                                                                                              Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the liability for
      Not later than one year                                                                                    459                  331     at least 12 months after the balance date.
      Between one and two years                                                                                  399                  392
      Between two and three years                                                                                214                  300     Council adopts an annual debt policy that sets out Council's management of existing and future debt. Council's current policy is
      Between three and four years                                                                               145                  159     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 four and five years                                                                                148                   90     the Queensland Treasury Corporation's borrowing guidelines and ensure that sustainability indicators remain within acceptable
      Later than five years                                                                                                                   levels at all times.
                                                                                                                 470                  527
      Total Lease Receipts                                                                                     1,835                1,799
                                                                                                                                                   $ '000                                                                                                 2023                2022

           Rental income from investment property recognised in the operating result is $382,992 (2022: $283,449).                                 Current
                                                                                                                                                   Loans - Queensland Treasury Corporation                                                               1,262               1,186
           Direct operating expenses primarily for repairs and maintenance on property that did not generate rental income for the period
           were $9,202 (2022: $7,249). Direct operating expenses primarily for repairs and maintenance on property that did generate               Total Current Borrowings                                                                             1,262               1,186
           rental income for the period were $93,714 (2022: $50,741).
                                                                                                                                                   Non-current




                                                                                                                                                                                                                                                                                        Noosa Council Annual Report 2022 - 2023
           There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal.                 Loans - Queensland Treasury Corporation                                                              23,083              24,114
           The Council does not have any contractual obligations to purchase, construct or develop investment property or for                      Total Non-Current Borrowings                                                                       23,083              24,114
           repairs, maintenance or enhancements.

                                                                                                                                                   Reconciliation of Loan Movements for the year
           Note 19. Payables                                                                                                                       Loans - Queensland Treasury Corporation
                                                                                                                                                   Opening balance at beginning of financial year                                                      25,300               21,213
      §Subnote§




      $ '000                                                                                                    2023                2022
                                                                                                                                                   Loans raised                                                                                              –                4,859
      Trade Creditors                                                                                                                              Principal repayments                                                                                (1,652)              (1,299)
      Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed                                  Loan Interest capitalised in period                                                                     697                  527
      purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are
                                                                                                                                                   Book value at end of financial year                                                                 24,345               25,300
      generally settled on 30 day terms.
                                                                                                                                              The QTC loan market value at the reporting date was $20,536,092 (2022: $22,145,160). This represents the value of the debt
      Employee Related Accruals                                                                                                               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
      Employee related accruals comprise accrued salaries and wages in respect of services provided by the employees up to the                in these accounts. No assets have been pledged as security by the council for any liabilities.
      reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will
      be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current.   Borrowings are all in $AUD and are underwritten by the Queensland State Government.

         Current
       Employee Entitlements GST                                                                                  49                  62
       Payable                                                                                                   645                 157
       Trade Creditors                                                                                         1,428               3,662
       Accruals                                                                                                7,277              11,519
       Employee Related Accruals                                                                                 849                 582
       Total Current Payables                                                                               10,248               15,982




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