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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

Note 4.1: Employee Benefits

Note 4.1: Employee Benefits

2020

2019

$’000

$’000

Note 4.1A: Employee expenses

Wages and salaries

53,451

48,970

Superannuation

Defined contribution plans

6,310

5,523

Defined benefit plans

3,109

3,521

Leave and other entitlements

8,108

8,495

Separations and redundancies

1,914

1,278

Other employee benefits - Fringe Benefits Tax

619

671

Total employee expenses

73,511

68,458

Note 4.1B: Employee provisions

Leave

22,005

20,358

Total employee provisions

22,005

20,358

Accounting Policy

Employee benefits

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.

Leave

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.

Superannuation

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.

Note 4.2: Key Management Personnel Remuneration

Note 4.2: Key Management Personnel Remuneration

2020

2019

$’000

$’000

Short-term employee benefits

2,652

2,502

Post-employment benefits

365

349

Other long-term employee benefits

106

98

Termination benefits

48

307

Total key management personnel remuneration expenses

3,171

3,256

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of AMSA, directly or indirectly. AMSA has determined the key management personnel to be its Portfolio Minister, members of the AMSA Board and AMSA Executive.

The total number of key management personnel included in the table above is 16 (2019: 14). The figure does not include our Minister and one AMSA Board member as they did not receive payments from AMSA.

Note 4.3: Related Party Disclosures

Note 4.3: Related Party Disclosures

Related party relationships

AMSA is an Australian Government controlled entity. Related parties are key management personnel, as defined above in Note 4.2, and other Australian Government entities.

Transactions with related parties

Given consideration to relationships with related parties, and transactions entered into during the reporting period by AMSA, it has been determined that there are no related party transactions to be separately disclosed.