| Actual 2023 ($000) | Commitments | Actual 2024 ($000) |
|---|---|---|
| Capital commitments | ||
| $2,485 | Intangible assets | $710 |
| $528 | Leasehold improvements | - |
| $140 | Information technology equipment |
- |
| $3,153 | Total capital commitments | $710 |
|
Operating lease commitments as lessee The future aggregate minimum lease payments to be paid under non-cancellable operating leases. |
||
| $24,341 | Not later than 1 year | $23,855 |
| $59,137 | Later than 1 year and not later than 5 years | $60,809 |
| $4,972 | Later than 5 years | $23,699 |
| $88,450 | Total non-cancellable operating commitments | $108,363 |
| $91,603 | Total commitments | $109,073 |
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
Inland Revenue Te Tari Taake (IR) leases property, plant and equipment in the normal course of business. The majority of these commitments are long-term non-cancellable accommodation leases for IR’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.
IR 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 $2.139 million (2023: $4.037 million).
IR’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.