Leasing terms (periods) and costs

Lease terms

The University has resolved to ensure that the standard of I.T. equipment available to its students and staff remains at a high level and to ensure this standard remains in place, the following maximum lease periods will apply for the following items of equipment:-

 

Desktop and Notebook Computers 3 years
Servers 3 years
Printers, Plotters and Scanners 3 years, 4 years or 5 years
Photocopiers 3 years or 4 years

Lease terms can be varied for specialized equipment, including the above. You should contact the lease administrator or the lease partner (Alleasing Finance Pty Ltd) to consider other lease terms.

Determining your lease costs

Lease Rate Factors are used by Alleasing Finance and the University to determine the lease rental costs for items of equipment for different lease periods. The lease rate factor is determined by Alleasing Finance on the first day of each calendar quarter (January, April, July, October) based on the 90 day Bank Bill swap rate, the type of equipment to be leased and the period of the lease. New lease rate factors will be available by the second working day of each new calendar quarter.

The lease rate factor once applied by Alleasing Finance remains fixed throughout the quarter and once a lease is entered into and accepted by the University, remains fixed for the period of the lease including any lease extension periods.

Special lease rates for non standard equipment can be obtained from Alleasing Finance Pty Ltd at any time.

Departments are able to determine their indicative leasing rental costs prior to entering into a lease by using the Lease Payment Calculator.

Lease payments

Lease rentals comprise of two types of payments:-

An interim payment, which covers the period from equipment delivery to the commencement of standard quarterly rentals. For simplicity, this will always be an amount based on a two month pro-rata payment, ie 2/3 of a standard quarterly payment. The interim payment incorporates a rent free period which is described below:-

A standard quarterly rental. This payment is required in advance on the first day of each quarter.

Both the above payments can be calculated at Lease Payment Calculator.

The rental cycle can be shown diagrammatically.

Quarterly invoices and journals

Each quarter the Lease Partner (Alleasing Finance Pty Ltd) invoices the University for Quarterly Rentals due. These are reconciled centrally and paid centrally. The amount applicable to each responsibility centre is then applied by journal in the Peoplesoft general ledger. It is important that the responsibility centre for each leased asset is maintained accurately in the asset management system.

Rent free period maximisation

The rental cycle diagram identifies that a rent free period exists from delivery of the equipment to the date of the interim payment. Scenario 1 has a longer rent free period because to equipment was ordered early in the quarter. Where possible, Departments should maximise the rent free period by ordering equipment either in the last 2 weeks or the first 2 weeks of a calendar quarter.