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Note 4 - People and relationships

4.1 Employee Provisions

2020

2019

$’000

$’000

4.1A: Employee provisions

Leave

(4,559)

(4,135)

Total employee provisions

(4,559)

(4,135)

Accounting policy

Liabilities for ‘short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of 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 minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

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 Australian Government Shorthand Method outlined in the FRR as at 30 June 2020. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The entity recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The ATSB'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 ATSB 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 ATSB accounts for the contributions as if they were contributions to defined contribution plans.

4.2 Key Management Personnel Remuneration

Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of the ATSB, directly or indirectly, including any director (whether executive or otherwise) of that entity. The ATSB has determined the KMP to be the Chief Commissioner and other senior executive who the Chief Commissioner considers to be KMP because of their responsibilities and the nature of their work. Key management personnel remuneration is reported in the table below:

2020

2019

$’000

$’000

Short-term employee benefits

(949)

(924)

Post-employment benefits

(107)

(106)

Other long-term employee benefits

(92)

(92)

Total key management personnel remuneration expenses1

(1,147)

(1,122)

The total number of KMP that are included in the above table is 3 individuals (2019: 3 individuals).

1. The 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 ATSB.

4.3 Related Party Disclosures

Related party relationships:

The ATSB is an Australian Government controlled entity. Related parties to this entity are KMP including the Portfolio Minister and Executive, their close family members, and other Australian 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

Significant transactions with related parties can include:

● the payments of grants or loans;

● purchases of goods and services;

● asset purchases, sales transfers or leases;

● debts forgiven; and

● guarantees.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the ATSB, it has been determined that there are no related party transactions to be separately disclosed (2019: Nil).