b"NOTE 12: LEASE LIABILITIES20222021$000$000CURRENT Lease liabilities - motor vehicles10,89911,54010,89911,540 Total lease liabilities10,899 11,540 Future lease payments in relation to lease liabilities as at period end are as follows: -Within one year11,21411,563 -Later than one year but not later than five years 11,21411,563Leasing arrangements and how these are accounted for: The company leases a significant number of motor vehicles under short-term leases with purchase options, from Toyota Finance Australia Limited. The agreement does not include any extension options. The company recognise these leases as a right-of-use asset and lease liability under AASB16. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Company estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.Non-current assets pledged as security The leases are secured over the individual motor vehicles that the lease relates to.The carrying amount of the right of use assets - motor vehicles at reporting date was $11.529 million (2021: $11.516 million). Accounting Policy A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.Lease payments comprise of fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.Page | 38"