|Actual 2021 ($000)||Commitments||Actual 2022 ($000)|
|$4,258||Total capital commitments||$1,156|
Operating lease commitments as lessee
The future aggregate minimum lease payments to be paid under non-cancellable operating leases.
|$29,300||Not later than 1 year||$24,355|
|$39,221||Later than 1 year and not later than 5 years||$68,805|
|$4,527||Later than 5 years||$14,702|
|$73,048||Total non-cancellable operating commitments||$107,862|
The accompanying accounting policies and notes form part of these financial statements.
Capital commitments are the aggregate amount of capital expenditure contracted for the acquisition of property, plant and equipment and intangible assets that has not been paid for or recognised as a liability at balance date.
Cancellable capital commitments that have early exit or penalty costs explicit in the agreement are reported at the lower of the remaining contractual commitment or the value of those penalty or exit costs (such as the minimum future payments).
Non-cancellable operating lease commitments
Inland Revenue leases property, plant and equipment in the normal course of business. The majority of these commitments are long-term non-cancellable accommodation leases for Inland Revenue’s premises at locations throughout New Zealand. The annual lease payments are reviewed regularly, and the amounts disclosed as future commitments are based on current rental rates.
Inland Revenue sub-leases some of its premises. The total minimum future sub-lease payments expected to be received under non-cancellable subleases at balance date is $3.021 million (2021: $2.396 million).
Inland Revenue’s non-cancellable operating leases have varying terms, escalation clauses and renewal rights. There are no restrictions placed on Inland Revenue by any of its leasing arrangements.