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4. 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.

4.1 Employee Provisions

2018

$’000

2017

$’000

Note 4.1A: Employee Provisions

Leave

8,129

6,313

Total employee provisions

8,129

6,313

Accounting Policy

Liabilities for ‘short-term employee benefits’ and termination benefits due within 12 months of the end of reporting period are measured at their nominal amounts.

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 DTA’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 provision is disclosed at the present value of the obligation using the short hand method that utilises the appropriate Government bond rate.

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 the DTA is estimated to be less than the annual entitlement for sick leave.

Superannuation

The DTA’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice.

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 DTA makes employer contributions to the employees’ superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. The DTA accounts for the contributions as if they were contributions to defined contribution plans.

4.2 Key Management Personnel Remuneration

Note 4.2A: Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the DTA, directly or indirectly, including any director (whether executive or otherwise). KMP remuneration is reported in the table below:

2018

$’000

2017

$’000

Short-term employee benefits

2,254

1,716

Post-employment benefits

268

245

Other long-term employee benefits

256

226

Termination benefits

186

414

Total key management personnel remuneration expenses1,2,3

2,964

2,601

  1. The DTA has determined the KMP to be the Chief Executive Officer (CEO) and 6 Executive Officers as at 30 June 2018. The KMP in 2016–17 included the CEO and 4 executive officers.
  2. The total number of KMP that are included in the above table is 10 (2017: 12) representing the people who individually occupied the KMP positions during the year.
  3. The above KMP remuneration excludes the remuneration and other benefits of the Portfolio Ministers. The Portfolio Ministers’ remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

4.3 Related Party Disclosures

Related party relationships:

(The DTA is an Australian Government controlled entity. Related parties to the DTA are Key Management Personnel including the Portfolio Ministers and other Australian Government entities.)

Transaction 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
  • guarantees.

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