People and Relationships
This section describes a range of employment and post employment benefits provided to our people.
3.1 Employee Provisions
|
2019 $'000 |
2018 $'000 |
|
|---|---|---|
|
Employee provisions |
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|
Leave |
194 |
208 |
|
Total employee provisions |
194 |
208 |
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Accounting policy Employee related expenses are recognised in the period that employee services are received. 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. Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period. Leave The liability for employee benefits includes provision for annual leave and long service leave. Changes in the measurement of the liability are recognised in the Statement of Comprehensive Income. 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 per the FRR. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. |
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3.2 Key Management Personnel Remuneration
Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of an entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. ARENA has determined the KMP to be the Directors, the Chief Executive Officer, Chief Financial Officer and the Chief Operating Officer. The Chief Operating Officer is seconded from the Portfolio Department free of charge and is not included in the KMP remuneration table below.
|
2019 $ |
2018 $ |
|
|---|---|---|
|
Short-term employee benefits |
981,431 |
969,499 |
|
Post-employment benefits |
80,826 |
59,030 |
|
Other long-term employee benefits |
33,354 |
39,285 |
|
Total KMP remuneration expenses |
1,095,611 |
1,067,814 |
The total number of KMP that are included in the above table are 9 individuals (2018:12) and includes 6 ARENA Directors (2018:9). ARENA's new Chief Executive Officer commenced on 27 August 2018.
The above KMP 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 ARENA.
3.3 Related Party Disclosures
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Related party relationships: ARENA is an Australian Government controlled entity. Related parties of ARENA include: i) Key Management Personnel (See Note 3.2: KMP) ii) Portfolio and Cabinet Ministers; iii) Close family members of the persons identified in (i) and (ii) above; and iv) An entity which is controlled or jointly controlled by a member of the KMP. |
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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 payment of taxes, use of public infrastructure and public services that are available to all citizens. These transactions have not been separately disclosed in this note. |
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Giving consideration to relationships with related entities, and transactions entered into, it has been determined that ARENA transacted with three (2018: four) related parties during the reporting period. It should be noted that in all transactions the KMP affected by a relationship excluded themselves from all decision processes and/or management of the contract or arrangement. All transactions were on normal business terms and conditions. |
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An ARENA Board Member is a non-executive Board Member of Right Angle Business Services Pty Ltd. During the reporting period ARENA conducted the following transactions:
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A partner of a KMP is a Director of Planet Innovation Pty Ltd. During the reporting period ARENA conducted the following transactions:
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An ARENA Board Member is a non-executive Board Member of Hydro-Electric Corporation. During the reporting period ARENA conducted the following transactions:
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Visit
https://www.transparency.gov.au/annual-reports/australian-renewable-energy-agency/reporting-year/2018-2019-61