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Capital and operating commitments as at 30 June 2023.
Actual 2022 ($000) Commitments Actual 2023 ($000)
Capital commitments
$1,156 Intangible assets $2,485
- Leasehold improvements $528
- Information technology equipment
$140
$1,156 Total capital commitments $3,153
Operating lease commitments as lessee
The future aggregate minimum lease payments to be paid under non-cancellable operating leases.
$24,355 Not later than 1 year $24,341
$68,805 Later than 1 year and not later than 5 years $59,137
$14,702 Later than 5 years $4,972
$107,862 Total non-cancellable operating commitments $88,450
$109,018 Total commitments $91,603

The accompanying accounting policies and notes form part of these financial statements.

Capital commitments

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 (i.e. the minimum future payments). 

Non-cancellable operating lease commitments

Te Tari Taake 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 sub-leases at balance date is $4.037 million (2022: $3.021 million). 

Inland Revenue’s non-cancellable operating leases have varying terms and renewal rights. There are no restrictions placed on Inland Revenue by any of its leasing arrangements.

Last updated: 19 Dec 2023
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