4.1 Employee Provisions
4.1A Employee Provisions
| 2017 $'000 |
2016 $'000 |
|
|---|---|---|
| Leave | 355 | 342 |
| Total employee provisions | 355 | 342 |
Accounting policy
Liabilities for ‘short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provisison has been made for sick leave as all sick leave in non-vesting and the average sick leave taken in future years by employees of the entity is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the shorthand method as prescribed by the Department of Finance. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Superannuation
Under the Superannuation Legislation Amendment (Choice of Funds) Act 2004, staff of the agency are able to become a member of any complying superannuation fund. A complying superannuation fund is one that meets the requirements under the Income Tax Assessment Act (1997) and the Superannuation Industry (Supervision) Act 1993.
Staff are members of a scheme of their choice, the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government. The PSS is a defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.
The entity makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final day of the year.
4.2 Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The entity has determined the key management personnel to be the Chief Executive. Key management personnel remuneration is reported in the table below:
| 2017 $'000 |
2016 $'000 |
|
|---|---|---|
| Short-term employee benefits | 255 | 218 |
| Post-employment benefits | 32 | 34 |
| Other long-term employee benefits | 21 | 21 |
| Termination benefits | - | - |
| Total key management personnel remuneration expenses1 | 308 | 273 |
The total number of key management personnel that are included in the above table is 1 individual (2016: 1).
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The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.
4.3 Related Party Disclosures
Related party relationships:
The entity is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Portfolio Minister.
Transactions with related parties:
Significant transactions with related parties can include:
- the payments of grants or loans;
- purchases of goods and services;
- asset purchases, sales transfers or leases;
- debts forgiven; and
- guarantees. Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.
