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Note 6: Lease Liabilities
Lease liabilities represent the present value of future lease payments less any lease incentives received. Payments for short-term leases (under 12 month’s duration) that were in existence at the commencement of the financial year were expensed as a practical expedient on transition to the new accounting standard, AASB 16 Leases. The amount expensed was $14,196.
The present value of future lease payments is determined using the rate implicit in the lease or where this is not evident, the Commonwealth’s borrowing rate as published by the Reserve Bank of Australia.
Lease payments are split between an interest expense and a principal repayment. The amounts disclosed as lease payments in the maturity schedule represent the reduction in the principal only.
Reconciliation of changes in lease liabilities
New leases property
New leases vehicles
Lease liabilities maturity schedule
30 June 2020
30 June 2019
Budget 30 June 2020
Within 12 months
12 Months to 5 years