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.
Note 4.1 Employee Provisions
NOTE 4.1: EMPLOYEE PROVISIONS
Total employee provisions
Liabilities for short-term 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.
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 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 where applicable. 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.
The entity’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or 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 represents outstanding contributions.
Accounting Judgements and Estimates
The long service leave provision has been calculated by applying the shorthand method detailed in the Resource Management Guidance No.125: Commonwealth Entities Financial Statements Guide.
Note 4.2 Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Infrastructure and Project Financing Agency member. The entity has determined the key management personnel to be the Chief Executive Officer.
Key management personnel remuneration is reported in the table below:
Short-term employee benefits
Other long-term benefits
Total key management personnel remuneration expenses
The total number of key management personnel that are included in the above table is one (2019: 1).
The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister whose remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.
Note 4.3 Related Party Disclosures
Related party relationships:
The entity is an Australian Government controlled entity. Related parties to this entity are Infrastructure and Project Financing Agency Key Management Personnel, including the Portfolio Minister and Executive, 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.
Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.