Reporting Form RRF 393.0

Lease Finance

Instruction Guide

The purpose of this survey is to provide monthly statistics on the provision of lease finance to private and public enterprises and individuals. The statistics are used by APRA for regulatory purposes, and may be provided to the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) for policy and statistical purposes. Published aggregate statistics from this collection are used for research and policy formulation by economists, State and Federal Governments, and leasing associations.

A separate form for lease finance in all eight states should be completed.

• RRF 393.0.1 Lease Finance in NSW;

• RRF 393.0.2 Lease Finance in VIC;

• RRF 393.0.3 Lease Finance in QLD;

• RRF 393.0.4 Lease Finance in SA;

• RRF 393.0.5 Lease Finance in WA;

• RRF 393.0.6 Lease Finance in TAS;

• RRF 393.0.7 Lease Finance in NT; and

• RRF 393.0.8 Lease Finance in ACT.

General directions and notes

Reporting entity

This form is to be completed for the Domestic books reporting entity. For corporations registered under the Financial Sector (Collection of Data) Act 2001 (e.g. money market corporations, finance companies, general financiers), report consolidated figures for all related corporations within the same Registered Financial Corporation (RFC) category.

Reporting period

The information provided should be for the calendar month up to and including the last day of the month. This form is to be reported as at the last day of the reporting period. All RFCs should submit the completed form to APRA within 10 business days of the end of the month.

Unit of measurement

All RFCs are asked to complete the form in thousands of Australian dollars rounded to the nearest whole number (no decimal place).

Amounts denominated in foreign currency are to be converted to AUD using the spot exchange rate effective as at the reporting date.

Basis of preparation

Unless otherwise specifically stated, information reported on this form should comply with Australian accounting standards.

Definitions

A separate form for lease finance in all eight states should be completed. Where the entity has no activity in any state, check the “nil form” box. The form requests details of new commitments to provide lease finance to private and public enterprises and individuals. Only the Australian activities of the business should be included on the form. If exact figures are not available please provide careful estimates. Please note that the items listed under ‘Include’ and ‘Exclude’ are examples and should not be taken as a complete list of items to be included or excluded.

What is a “commitment”?

A commitment is a firm offer to provide finance which has been accepted by the client. A commitment generally exists once the loan application has been approved, and a loan contract or letter of offer has been issued to the borrower.

Include:

commitments to related corporations except to those related corporations within the same Financial Sector (Collection of Data) Act 2001 category or Australian and New Zealand Standard Industrial Classification (ANZSIC) class; and
new commitments which have also been cancelled during the month.

Exclude:

commitments to non-residents;
commitments for commercial hire purchase agreements (these should be reported on the RRF 391.0 Commercial Finance (RRF 391.0));
commitments for debt participation in leveraged lease agreements (these should be reported on RRF 391.0);
commitments for leasing of land and buildings; and
commitments for leveraged leases which are finance leases where the lessor provides a portion of the finance, with the major portion usually provided by long-term creditors and where the creditors’ recourse to the lessor is restricted to the proceeds from disposal of the leased asset and any unremitted lease payments.

How to consolidate

For corporations registered under the Financial Sector (Collection of Data) Act 2001, report consolidated figures for all related corporations within the same RFC category.
For other corporations, report consolidated figures for all related corporations within the same ANZSIC class.

Valuation

Use one of the following valuation methods:

the capital cost of new goods;
the written-down value of goods re-leased;
the purchase price of second-hand goods;
in the case of finance leases, where the full value of the goods under lease is not financed by one corporation (e.g. partnership and syndicated leases), the value is your share of the full value, not equity participation; or
in the case of revolving lease facilities, such as master leases, report the value of goods acquired at each drawdown against such facilities. Do not report the value of commitments to provide a leasing limit or to increase a leasing limit.

Specific instructions

Part A: Value of goods financed under new lease commitments

This section asks for details of the value and type of the goods financed, or for which commitments to finance have been made, under both operating and finance lease (excluding leveraged leases) arrangements during the month.

Definitions

A finance lease refers to the leasing or hiring of tangible assets under an agreement (other than a hire purchase agreement) which transfers from the lessor to the lessee substantially all the risks and benefits incident to ownership of the assets, without transferring the legal ownership.

An operating lease is a lease under which the lessor effectively retains substantially all the risks and benefits incident to ownership of the leased asset. For the purpose of this survey only include details of operating leases of terms of one year or more.

Cars, station wagons and small passenger vehicles

The depreciation limit is the maximum amount which can be depreciated for taxation purposes. This limit is revised periodically. As at 6 June 2001, the Australian Taxation Office advised the limit was $55,134.

Include:

cars, station wagons, 4WD and forward control passenger vehicles/vans.

Exclude:

utilities and panel vans (include in Question 2);
buses (include in Question 6); and
special vehicles and motor cycles/scooters (include in Question 6).

Light trucks

Include:

vehicles constructed primarily for the carriage of goods and not exceeding 3.5 tonnes gross vehicles mass, such as utilities, panels vans, light trucks, station wagons, 4WD vehicles and forward control vans used to carry goods.

Exclude:

tow trucks (include in Question 6); and
tractors, self-propelled mowers, plant and equipment (include in Questions 8-10, as applicable).

Heavy trucks

Include:

all vehicles with a gross combination mass rating in excess of 3.5 tonnes (this includes prime movers registered without trailers).

Exclude:

passenger carrying trailer combinations and non-freight carrying vehicles (include in Question 6).

Trailers, buses/coaches and other motor vehicles

Include:

trailers (tray and table top trailers, semi-trailers designed to connect to a prime mover, animal carriers, trailed machinery, etc);
buses and coaches;
special vehicles (ambulances, hearses, tow trucks, fire engines, etc);
motor cycles/scooters;
caravans (motorised and non motorised); and
other non-freight carrying vehicles (mobile libraries, kitchens, workshops, etc).

Exclude:

fork lifts (include in Question 7 (iv) ).

Construction and earth moving equipment

Include:

crawler tractors, dumpers, road rollers, earth packers, scarifiers, rippers, concrete mixers, dozers, graders, mobile cranes, concrete pumpers, etc.

Manufacturing equipment

Include:

all plant and equipment used in the manufacture of goods.

Exclude:

all motor vehicles (include in Questions 1 to 6); and
forklifts (include in Question 7 (iv)).

Agricultural machinery and equipment

Include:

tractors, tillage implements, seeding, planting and fertilising equipment, agricultural mowers, harvesters, and other agricultural machinery and equipment.

Exclude:

crawler tractors (include in Question 8).

Electronic data processing equipment

Include:

computers, computer peripherals, data entry systems and printers.

Office machines

Include:

telephone systems (including computerised PABX equipment);
accounting and adding machines, calculators and cash registers (programmable and multifunctional); and
duplicating and photocopying machines and dictaphones.

14 Other

Include:

gambling machines; and
medical equipment.

Part B: Value of goods by industry of lessee

Industry is the business the client is mainly engaged in. The industry groupings are according to ANZSIC.

Include:

businesses that provide related or supporting services.

Agriculture, forestry and fishing

Include:

lessees engaged in providing related services such as sheep shearing, aerial agricultural services, harvesting or forest protection.

Mining

Include:

lessees engaged in mineral exploration, in the provision of services to mining or mineral exploration, and mining enterprises under development.

Manufacturing

Include:

lessees engaged in manufacturing products, where ‘manufacturing is related to the physical or chemical transformation of materials or components into new products.’

Construction

Include:

lessees engaged in special trade construction such as plumbing, earthmoving and dredging, painting, etc.

Wholesale trade

Include:

lessees engaged in the resale of new or used goods to businesses or to institutional (including government) users.

Retail trade

Include:

lessees engaged in the resale of goods to final consumers for personal or household consumption; and
lessees engaged in reselling their own goods by auction.

Transport and storage

Include:

lessees engaged in providing terminal and storage facilities; and
lessees engaged in services related to transport, booking, travel, forwarding, materials handling, etc.

Finance and insurance

Include:

lessees engaged in the provision of finance, investments in financial assets and in providing services to lenders, borrowers and investors; and
lessees engaged in the provision of insurance and superannuation, and in providing services to insurances.

Property and business services

Include:

lessees engaged in valuing, purchasing, selling, renting, leasing or managing real estate;
lessees engaged in developing or subdividing land;
lessees engaged in scientific research and meteorological service;
lessees engaged in providing technical, legal, accounting and other business services; and
lessees engaged in renting and hiring equipment (except cars, trucks and other transport equipment).

Cultural, recreational, personal and other services

Include:

lessees engaged in providing entertainment, recreational, library, museum, accommodation and catering services;
lessees engaged in providing personal services such as laundries, hairdressing, photography and funerals;
private households employing staff; and
lessees engaged in public order and safety services (such as police, prison and fire-brigade).

Government administration and defence

Include:

lessees engaged in Federal, State and local government enterprises that undertake public administration and regulatory activities;
judicial authorities and commissions; and
Army, Navy and Air Force defence establishments.

Health and community services

Include:

lessees engaged in providing health, welfare and employment services; and
certain non-profit organisations such as religious organisations, and business, professional and labour organisations, political parties and associations formed to promote community or sectional aims.

Other industries

Include:

lessees not elsewhere classified, such as those involved in the production or distribution of gas or electricity, the storage or supply of water, and the provision of education and communication services.

Reporting Form RRF 393.0Reporting Form RRF 393.0

Get a plain-English read of Reporting Form RRF 393.0

Reporting Form RRF 393.0

Lease Finance

Instruction Guide

Reporting entity

Reporting period