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Note 7: Employee Provisions

Accounting policy

Leave

The liability for employee benefits includes provisions for annual leave and long service leave. No provision has been made for personal leave as personal leave is non vesting and the average personal leave taken in future years is estimated to be less than the annual entitlement for personal leave.

Long service leave and annual leave are measured at the present value of the estimated future payments to be made. The Department of Finance has issued a methodology developed by an actuary for valuing Long Service Leave, known as the Finance short-hand method. These accounts utilise this method.

For employees on temporary transfer from another agency under s26 of the Public Service Act 1999 leave provisions are recognised only where the liability for leave has been formally transferred. For administrative convenience leave transfers are generally not undertaken for employees on temporary transfer.

Superannuation

The Agency’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 Agency accounts for the contributions as if they were contributions to defined contribution plans.

Employee Provision

Actual 2020

$'000

Actual 2019

$'000

Annual leave

259

16

Long service leave

236

3

Total

495

19

Payment of Employee Provisions expected to be settled in

Actual 2020

$'000

Actual 2019

$'000

No more than 12 months

218

11

More than 12 months

277

8

Total

495

19