This section describes a range of employment and post employment benefits provided to our people and our relationship with key people.
4.1: Employee Provisions
4.1A: Employee provisions
Long service leave
Total employee provisions
Employee provisions are expected to be settled in:
No more than 12 months
More than 12 months
Total employee provisions
Liabilities for short‐term employee benefits and termination benefits expected within 12 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 2021. 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 2021.
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 2021 represents outstanding contributions.
4.2: Key Management Personnel Remuneration
Key management personnel (KMP) are those persons who comprise the Executive Committee (EC) at anytime throughout the year in either a permanent or acting capacity. The KMP group has the authority and responsibility for planning, directing and controlling the activities of the APVMA, recognising that ultimate responsibility resides with the CEO who is in turn responsible for the APVMA's performance to the relevant Portfolio Minister.
Key management personnel remuneration
Short‐term employee benefits
1 735 774
2 017 415
Other long‐term employee benefits:
Total key management personnel remuneration expenses1
2 028 061
2 735 550
The total number of key management personnel included in the above table is 14 (2019‐20: 12 staff members). Of these 14 staff, seven individuals held positions for only part of the year (2019‐20: five individuals were in this category).
The Chief Executive Officer's remuneration and other benefits are determined by the Remuneration Tribunal, and paid by the APVMA.
The balance of the KMP remuneration and other benefits are determined by the CEO, under s24 of the Public Service Act 1999 .
Termination benefits have been revised in the comparative amounts for 2019‐20 as a result of recognising accrued termination payments. This adjustment is for KMP disclosure only, and does not impact on the net result reported in the Statement of Comprehensive Income.
Note 1The 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 the entity.
4.3: Related Party Disclosures
The APVMA is an Australian Government controlled entity, and is part of the Department of Agriculture, Water and the Environment portfolio. Related parties to this entity are relevant Federal Government Ministers including the Portfolio Minister, the Executive Committee, comprising the Chief Executive Officer, the Deputy Chief Executive Officer, three Executive Directors, the Chief Regulatory Scientist, General Counsel, and other Commonwealth 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.
All transactions with other Commonwealth Government entities have been made under normal terms and conditions and, therefore have not been disclosed separately.
There have been no transactions with related parties this year. All APVMA staff, including the Executive Committee, are required to sign an annual conflict of interest declaration.