Note 4.1A: Employee expenses
Wages and salaries
Defined contribution plans
Defined benefit plans
Leave and other entitlements
Separations and redundancies
Other employee benefits - Fringe Benefits Tax
Total employee expenses
Note 4.1B: Employee provisions
Total employee provisions
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and ‘termination benefits’ due within 12 months of the end of the reporting period are measured at their nominal amounts.
The liability for employee benefits includes provision for annual leave, professional leave, surveyors leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of AMSA 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 apply at the time the leave is taken, including AMSA’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.
AMSA used the shorthand method in accordance with the Financial Reporting Rule (as per the Commonwealth Entities Financial Statements Guide) to calculate the long service leave liability.
Separation and redundancy
Provision is made for separation and redundancy benefit payments. AMSA recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those affected employees that it will carry out the terminations.
AMSA staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS Accumulation Plan (PSSap), or other superannuation funds held outside the Australian Government.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other schemes are defined contribution schemes.
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.
AMSA makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of AMSA’s employees. AMSA 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.
Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, AMSA has made judgements that have the most significant impact on the amounts recorded in the financial statements in relation to the use of estimates for on cost factors that are applied in calculating long service leave entitlements.