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Annual Report 2023-24
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Noosa Council
Financial Performance
Noosa Council
Notes to the Financial Statements Notes to the Financial Statements
for the year ended 30 June 2024 for the year ended 30 June 2024
Note 18. Leases (continued) Note 18. Leases (continued)
§Note/Subtotal§
§Note/Subtotal§
IT and Office Total per
$ '000 Buildings Land Equipment Total Statement of
Financial
Right of Use Assets (ROU) $ '000 < 1 year 1 – 5 years > 5 years Total Position
2023
2024 Buildings – – – – –
Opening balance at 1 July – 38 1 39 Land 22 17 – 39 40
Additions to Right-of-Use Assets 1,236 – 15 1,251 IT & Office Equipment 1 – – 1 1
Depreciation charge (144) (22) (2) (168) 23 17 – 40 41
Balance at 30 June 1,092 16 14 1,122
Future cash outflows not reflected in the measurement of Lease Liabilities
§Subnote§
2023
Opening balance at 1 July – 59 5 64 The slipway lease liability has been calculated based on the current 3 years average rental value at 6%, no adjustment has
Depreciation charge – (22) (4) (26) been included for movement in the rental value over the remainder of the lease term. No allowance has been included for
Balance at 30 June – 38 1 39 restoration costs that may be incurred at the end of the lease. The lease also contains various restrictions and conditions
about what the site can be used for.
§Subnote§
IT and Office equipment lease payments are generally fixed for the term of the arrangement and are not subject to any residual
$ '000 2024 2023 values at the end of the lease.
Lease Liabilities Amounts included in the Statement of Comprehensive Income related to Leases
§Subnote§
Classified as: The following amounts have been recognised in the statement of comprehensive income for leases where Council is the
Current Lease Liability 235 23 lessee.
Non-Current Lease Liability 917 18
244 $ '000 2024 2023 245
Total Lease Liabilities 1,152 41
Expenses
Depreciation of Right-of-Use Assets 168 25
The following table shows the maturity analysis of the Lease Liability based on contracted cashflows and therefore the Interest Expense on Lease Liabilities
§Subnote§
39 1
amounts will not be the same as the recognised Lease Liability in the Statement of Financial Position. Expenses relating to Low-Value Assets 295 283
Total per Net Expense relating to Leases 502 309
Statement of
Financial
$ '000 < 1 year 1 – 5 years > 5 years Total Position
Total Cash Inflows/(Outflows) for Leases
§Subnote§
2024
(480) (310)
Buildings 271 999 – 1,270 1,120
Leases at significantly below market value – concessionary / peppercorn leases
§Subnote§
Land 17 – – 17 17
IT & Office Equipment 4 12 – 16 15 Council has a number of leases at significantly below market for land which are used for access easements and parklands.
292 1,011 – 1,303 1,152
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
detailed in the leases. Council does not believe that any of the leases in place are individually material.
Council as a Lessor
§Subnote§
Noosa Council Annual Report 23/24
When Council is a lessor, the lease is classified as either an operating or finance lease at inception date, based on whether
substantially all of the risks and rewards incidental to ownership of the asset have been transferred to the lessee. If the risks
and rewards have been transferred then the lease is classified as a finance lease, otherwise it is an operating lease.
If the lease contains lease and non-lease components then the non-lease components are accounted for in accordance with
AASB 15 Revenue from Contracts with Customers.
The lease income is recognised on a straight-line basis over the lease term.
continued on next page ... Page 34 of 60 continued on next page ... Page 35 of 60
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