LOIS is purpose-built lease accounting and management software for Australian healthcare organisations, handling AASB 16 compliance, equipment leases, fleet, and audit-ready reporting in one platform.
Healthcare organisations in Australia manage some of the most diverse lease portfolios of any sector: long-term hospital and specialist centre leases, high-value medical equipment such as MRI and CT machines, patient transport fleets, and a steady volume of short-term and low-value assets that each require a policy decision under AASB 16. LOIS is a purpose-built lease accounting and management platform designed to handle exactly this complexity, bringing finance, property, and fleet together in a single, unified system with full AASB 16 compliance, automated calculations, complete audit trails, and a managed service option for teams without a dedicated lease accounting resource.
Healthcare organisations from private hospital networks to not-for-profit community health providers use LOIS to move off spreadsheets, centralise lease data, and produce audit-ready outputs every month. Updated April 2026.
Most sectors deal with one or two dominant lease types. Healthcare organisations routinely manage five at once, each with different lease terms, modification triggers, and accounting treatment decisions under AASB 16. The result is a portfolio that is harder to centralise, harder to keep compliant, and harder to audit than almost any other sector.
Hospitals, specialist medical centres, day surgery facilities, and aged care sites typically run on 10 to 20-year leases, often with CPI rent review clauses and complex option structures. These are the largest items on the balance sheet and the ones where a missed review date or incorrect modification treatment has the most material impact.
MRI scanners, CT machines, surgical robots, ultrasound systems, and pathology lab equipment are typically leased rather than purchased outright. These assets carry significant balance sheet value and frequently include mid-term upgrade options, creating modification events that must be correctly remeasured and tracked under AASB 16.
Hospital networks, ambulance services, and community health providers manage fleets of transport vehicles from multiple providers, each sending data in a different format. Processing these leases accurately at scale under AASB 16 requires automated bulk upload and validation tools, not manual entry.
Clinical environments contain a high proportion of assets that sit near the AASB 16 low-value threshold: patient monitoring equipment, infusion pumps, portable devices, and IT hardware. Each requires a consistent policy decision, and that consistency needs to be documented and defensible for external auditors.
Healthcare routinely bundles equipment use inside service contracts: managed pathology services, equipment maintenance agreements, outsourced sterilisation, and diagnostic service arrangements. Each must be assessed under the AASB 16 identification criteria to determine whether a lease exists within the contract, adding a layer of complexity that most generic tools do not support.
AASB 16 is Australia's adoption of IFRS 16, which required for-profit entities to bring operating leases onto the balance sheet from 1 January 2019. For healthcare organisations, the impact reaches further than for most sectors, for three reasons.
Bringing MRI machines, CT scanners, and other high-value equipment on-balance-sheet increases both total assets and total liabilities. For healthcare organisations that rely on bank lending, government funding allocations, or bond covenants, these ratio changes matter. Debt-to-equity, asset coverage, and EBITDA metrics all shift. Finance teams need software that produces accurate, auditable AASB 16 outputs so those ratios can be confidently presented to lenders, boards, and funders.
Public hospital networks, community health services, and not-for-profit providers operate under AASB 16 alongside AASB 1060 (General Purpose Financial Statements for Tier 2 entities) and state Treasury reporting requirements. These entities face additional disclosure obligations and are often subject to annual government audit, meaning the standard for audit-readiness is higher than in the private sector. A full, timestamped audit trail for every lease modification is not optional for these organisations.
Healthcare technology evolves rapidly. A hospital that leased a 1.5T MRI scanner in 2021 may upgrade to a 3T machine before the original lease ends. That upgrade is a lease modification under AASB 16, requiring a remeasurement of the right-of-use asset and lease liability, a new incremental borrowing rate assessment, and updated journal entries. Healthcare finance teams managing multiple pieces of high-value diagnostic equipment will encounter these modification events regularly, and they need a system that handles them correctly and automatically.
These challenges come up consistently when talking to finance teams at healthcare organisations in Australia. They are structural problems, not process problems, which means they cannot be solved by working harder or adding another spreadsheet tab.
In most healthcare organisations, clinical departments source their own equipment, facilities management handles property leases, and the fleet team manages transport vehicles. Finance sits downstream, trying to pull a compliant AASB 16 position together from data controlled by three different teams who each track things differently. Without a central register that all teams feed into, the finance team is always chasing, always reconciling, and always at risk of missing something material. For more on this structural problem, our post on how finance and property teams collaborate on IFRS 16 covers the specific friction points.
When a lease modification occurs (an equipment upgrade, a scope change on a diagnostic service contract, or an extension to a clinical space lease), the correct accounting treatment depends on the nature of the modification. AASB 16 has different requirements for a lease that becomes larger (treated as a new lease), a lease that becomes smaller (remeasure with a gain or loss), and other modifications (remeasure at a revised discount rate). Applying these treatments correctly and consistently in a spreadsheet across multiple simultaneous modification events is genuinely difficult, and errors are common. Our AASB 16 audit preparation checklist covers what auditors specifically look for when reviewing modification accounting.
The AASB 16 assessment of whether a contract contains a lease depends on whether the customer controls the use of an identified asset for a period of time. In healthcare, this gets complicated: a managed pathology service may or may not contain a lease depending on how the contract is structured, who controls the equipment scheduling, and whether substitution rights exist. Getting this wrong means either over-reporting lease liabilities (if you include contracts that are genuinely services) or under-reporting them (if you exclude contracts that are actually leases). This is an area where CA-qualified expertise is not a luxury.
Many healthcare finance teams are not large. A regional hospital network with 50 property leases, 30 equipment leases, and a fleet of 80 vehicles has well over 160 lease records to maintain, modify, and report on each month. For a finance team that also handles payroll, accounts payable, statutory reporting, and a dozen other obligations, managing this under AASB 16 without dedicated software or expert support is an ongoing risk. A managed service option (where CA-qualified accountants handle data validation, calculations, and monthly reporting on behalf of the organisation) is particularly relevant here.
Healthcare organisations evaluating lease accounting software should prioritise these capabilities. The brief matters: a platform that works well for a single asset class, or for a smaller private company, may not be adequate for a healthcare organisation managing diverse lease types with public accountability.
LOIS is built and supported by CA-qualified lease accounting specialists. Healthcare organisations working with LOIS get a platform built on real-world IFRS 16 and AASB 16 expertise, not software that was designed for a simpler use case and extended to cover complex portfolios.
LOIS manages over AUD 50 billion in lease assets across more than 300 organisations.
Portfolios range from 30 leases to over 10,000, across property, equipment, and fleet asset classes.
LOIS brings lease accounting, property management, and fleet management into a single platform. For a healthcare organisation, this means hospital property leases, diagnostic equipment leases, and patient transport vehicles all live in the same system, with a consistent data structure, a shared audit trail, and unified AASB 16 reporting. Finance teams no longer need to reconcile data from three different sources at month end.
Every lease modification in LOIS generates an automated recalculation of the right-of-use asset and lease liability, with a full timestamped record of what changed, when, and why. For public hospital networks and not-for-profit health organisations subject to government audit, this audit trail is not a nice-to-have: it is the difference between a clean audit and a qualified opinion. Learn more about the full lease accounting software capability set.
For healthcare finance teams that cannot justify a dedicated lease accounting resource, the LOIS managed service provides CA-qualified accountants who validate all lease data, run the AASB 16 calculations, prepare reconciled journals ready for posting, and deliver monthly audit-ready reporting packs. The finance team reviews and signs off; the heavy lifting is handled by LOIS experts who understand the standard and the platform.
LOIS is designed to scale with the organisation. A community health provider with 30 leases and a major hospital network with thousands use the same platform. There is no separate enterprise version, no migration required as the portfolio grows, and no limitation on asset class diversity. Healthcare organisations can start with property, add equipment leases, and onboard fleet without switching platforms or re-implementing.
For hospital networks and ambulance services managing patient transport fleets, one of the most time-consuming parts of month-end processing is loading lease data from multiple fleet providers, each supplying files in a different format. LOIS Fleet Management automates this: upload data from any provider format, and LOIS automatically cross-checks it against existing lease records to identify new leases, price changes, CPI adjustments, extensions, scope reductions, and terminations. Changes are verified before they are posted, keeping the AASB 16 position accurate and month-end processing error-free.
For a detailed look at how this works, see our guide to fleet lease management under IFRS 16 and our post on managing fleet leases for finance teams.
Yes. AASB 16 applies to for-profit private sector entities and, via AASB 1060 and specific Treasury guidance, to many not-for-profit and public sector health organisations. Public hospital networks and government-funded health services are typically required to comply and are subject to annual government audit. The specific application depends on the entity's reporting tier and jurisdiction, but most healthcare organisations of material size are within scope.
Medical equipment leases are generally on-balance-sheet under AASB 16 unless they qualify for the low-value asset exemption (typically assets with a new value below USD 5,000) or the short-term lease exemption (lease term of 12 months or less). High-value equipment such as MRI scanners, CT machines, and surgical robots will almost always be on-balance-sheet, requiring recognition of a right-of-use asset and lease liability on day one.
An equipment upgrade mid-lease is a lease modification under AASB 16. The accounting treatment depends on whether the modification increases the scope of the lease (which may be treated as a new lease), decreases the scope (which requires derecognition of part of the right-of-use asset and a gain or loss), or neither (which requires remeasurement at a revised discount rate). Each scenario requires specific journal entries and updated amortisation schedules. LOIS handles all modification scenarios automatically, with a complete audit trail of the remeasurement.
Under AASB 16, a contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In healthcare, this means assessing whether the organisation has the right to direct how and for what purpose the asset is used, and whether it obtains substantially all of the economic benefits from use. Managed service agreements, equipment maintenance bundles, and outsourced diagnostic services each require individual assessment. This is a judgment area where CA-qualified expertise adds significant value.
Yes. LOIS is designed as a total tenant lease platform, covering property leases, equipment leases, and fleet leases within a single system. Healthcare organisations use LOIS to manage hospital and specialist centre property leases alongside high-value diagnostic equipment and patient transport fleets, with unified AASB 16 reporting and a single audit trail across all asset classes. For organisations that also want expert support, the managed service combines the platform with CA-qualified accountants who handle monthly processing end to end.
LOIS brings property, equipment, and fleet leases together in a single AASB 16-compliant platform, backed by CA-qualified lease accounting experts. Whether you manage 30 leases or 3,000, we can help you move off spreadsheets, centralise your lease data, and produce audit-ready outputs every month.
Talk to the LOIS teamA total tenant lease platform unifies lease accounting, property management, and fleet in one system. LOIS is the only ANZ platform purpose-built to...
Discover the top 5 lease accounting trends CFOs need to watch in 2026, from automation and audit scrutiny to real‑time lease data and IFRS 16 control.
Preparing for an IFRS 16 audit? This complete checklist covers what auditors look for, the most common deficiencies, and how to build an audit-ready...
Subscribe to our blog for fresh ideas and practical resources from the LOIS team.