Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

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




                                                                                                                     Total per
                                                                                                                 Statement of
                                                                                                                    Financial
$ '000                                  < 1 year         1 – 5 years           > 5 years              Total          Position

2021
Land                                           23                 63                   –                 86                  82
IT & Office Equipment                           4                  5                   –                  9                   9
                                              27                  68                   –                 95                 91

Future Cash Outflows not reflected in the measurement of Lease Liabilities
§Subnote§




The slipway lease liability has been calculated based on the current 3 years average rental value at 6%, no adjustment has
been included for movement in the rental value over the remainder of the lease term. No allowance has been included for
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.

IT and Office equipment lease payments are generally fixed for the term of the arrangement and are not subject to any residual
values at the end of the lease.

Amounts included in the Statement of Comprehensive Income related to Leases
§Subnote§




The following amounts have been recognised in the statement of comprehensive income for leases where Council is the
lessee.

$ '000                                                                                                 2022               2021

Expenses
Depreciation of Right-of-Use assets                                                                      25                  49
Interest expense on Lease Liabilities                                                                     2                   2
Expenses relating to Low-Value Assets                                                                   292                 246

Net Expense relating to Leases                                                                         319                 297
§Subnote§




Total Cash Inflows/(Outflows) for Leases                                                              (320)               (298)

Leases at significantly below market value – concessionary / peppercorn leases
§Subnote§




Council has a number of leases at significantly below market for land which are used for access easements and parklands.

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§




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.




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