Liabilities for short‐term employee benefits and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts, and reported in Note 2.3B Other payables.
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 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 'short‐hand method' as outlined in the Resource Management Guide No. 125 ‐ Commonwealth Entities Financial Statements Guide as at 30 June 2019. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation and is discounted using the 10 year bond rate at 30 June 2019.
Separation and Redundancy
Provision was made for separation and redundancy benefit payments. The entity recognised a provision for termination when it developed a detailed formal plan for the termination of employees during the year. A total of 35 employees accepted redundancies for payment on 1 July 2019.
The APVMA's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), 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 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' defined benefit 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 2019 represents outstanding contributions.