Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
Other B26 Leases Leases as a lessee
The Group leases various office buildings. Rental contracts are typically made for fixed periods of 10 to 11 years but may have extension options. The majority of extension options held are exercisable only by the Group and not by the respective lessor. In determining the lease term, management consider all facts and circumstances that create an economic incentive to exercise an extension option. Right-of-use asset The Group’s right-of use assets relate to leased office buildings and are included in property, plant and equipment on the Group’s consolidated balance sheet. Right-of-use assets accounting policy Right-of-use assets have finite lives, are depreciated on a straight-line basis and are carried at cost less accumulated depreciation and accumulated impairment.
The net carrying amount of right-of-use assets is presented below:
Office buildings 2026 2025 $M $M
Carrying amount at 1 July Depreciation charge for the year Carrying amount at 30 June
84
98
(14)
(14)
70
84
Lease liability Lease liabilities are included in other liabilities on the Group’s consolidated balance sheet.
2026
2025
$M (19) (85)
$M (20) (99)
Current
Non-current
(104)
Total lease liability
(119)
Refer to Note B14 for contractual maturities for lease liabilities. Refer to Note B12 for interest expense on lease liabilities (included in finance costs). Reconciliation of lease liabilities arising from financing activities
Lease liabilities
2026
2025
$M 119
$M 132
Balance at 1 July
(5)
Interest paid on leases
(5)
(14) (19)
Principal repayment of leases
(13) (18)
Total cash flows
Non-cash changes Unwinding of discount Total non-cash changes
4 4
5 5
104
Balance at 30 June
119
The total cash outflow for leases in the year ended 30 June 2026 was $19 million (2025: $18 million). The Group presents lease payments as ‘principal repayments of leases’ in ‘cash flows from financing activities’ and the finance cost as ‘interest paid’ in ‘cash flows from operating activities’ within the consolidated statement of cash flows. The Group's commitments related to leases not yet commenced as at 30 June 2026 are $nil (2025: $nil).
178
Made with FlippingBook Digital Publishing Software