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6. People and Relationships

This section describes a range of employment and post-employment benefits provided to our people and our relationships with other key people.

6.1. Employee Provisions

Note 6.1: Employee Provisions








Separations and redundancies



Total employee provisions



Accounting Policy

Liabilities for ‘short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of balance date are measured at their nominal amounts.


The liability for employee benefits includes provision for annual leave and long service 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 AFSA’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 work of an actuary as at 30 June 2018. Actuarial reviews of employee provisions are undertaken every 3 years. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision has been made for separations and redundancy benefit payments. AFSA recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.


Staff of AFSA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds of the employee’s choice. The CSS and PSS are 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.

AFSA makes employer contributions to the employee’s superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to Government. AFSA accounts for the contributions as if they were contributions to defined contribution plans.

6.2. Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling of the activities of AFSA, directly or indirectly, including any director (whether executive or otherwise) of AFSA. AFSA have determined the key management personnel to be the Portfolio Minister, the Chief Executive, Chief People Officer, Senior Executive Officers (‘SES’) and the Independent Member of its National Management Board.

Key management personnel remuneration is reported in the table below:

Note 6.2: Key Management Personnel Remuneration





Short-term employee benefits



Post-employment benefits



Other long-term employee benefits



Termination benefits



Total key management personnel remuneration expenses1, 2



The total number of key management personnel that are included in the table above are 17 individuals (2019:12 individuals), 8 of those are included under acting arrangements (2019: 3 acting arrangements). During the year 1 person identified as key management personnel joined AFSA and 2 others ceased employment (1 received termination benefits).

1. 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 AFSA.

2. The above key management personnel remuneration excludes payments to the Independent Member of AFSA’s National Management Board. Details of amounts paid in this regard are presented in Note 6.3.

6.3. Related Party Disclosures

Related party relationships:

AFSA is an Australian Government controlled entity. Related parties to AFSA are Key Management Personnel, Independent Member and other Australian Government entities.

Transactions with related parties:

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

The following transaction with a related party occurred during the financial year:

  • AFSA paid $96,588 (2019: $96,319) to Bethomas Consulting Pty Ltd for the provision of an Independent Member of the National Management Board under a fee for service arrangement.