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Note 8 People and Relationships

Note 8A: Employee Provisions

2019

2018

$

$

Annual leave

261,387

312,242

Long service leave

578,786

605,582

Total employee provisions

840,174

917,824

Employee provisions are expected to be settled

No more than 12 months

477,625

506,121

More than 12 months

362,549

411,703

Total employee provisions

840,174

917,824

Accounting Policy

Leave The liability for employee benefits includes provision for annual leave and long service leave.No provision 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 Army and the Air Force Canteen Service is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of the employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Army and Air Force Canteen Service’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

Liabilities are short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period.