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3. 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.

3.1. Employee Provisions



Note 3.1A: Employee provisions



Total employee provisions


Accounting Policy

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.


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 NFRA’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 specific probability factors as determined by the Australian Government Actuary for DITRDC. NFRA staff are employed under similar conditions to DITRDC. The factors in the Actuary Report have been assessed and found appropriate to use for NFRA.

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


NFRA's staff are members of the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice.

The PSS is a defined benefit scheme 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.

NFRA makes employer contributions to the employees' defined benefit superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. NFRA accounts for the contributions as if they were contributions to defined contribution plans.

3.2. Key Management Personnel Remuneration

Key management personnel (KMP) are those persons having authority for planning, directing and controlling the activities of NFRA, directly or indirectly. KMP for NFRA includes Portfolio Ministers and the Chief Executive Officer1.

KMP remuneration is reported in the table below:



Short-term employee benefits


Post-employment benefits


Other long-term employee benefits


Total key management personnel remuneration expenses 1,2


The total number of KMP included in the above table is 2 3.

  1. Remuneration reported in this note excludes the remuneration and other benefits of Portfolio Ministers. Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by NFRA.
  2. Remuneration is reported on an accrual basis and excludes short-term acting arrangements.
  3. Remuneration for the Chief Executive Officer also includes the Interim Chief Executive Officer.

3.3. Related Party Disclosures

Related party relationships:

NFRA is an Australian Government controlled entity. Related parties to NFRA are Key Management Personnel, including the Portfolio Ministers 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.

Significant transactions with related parties can include:

  • the payments of grants or loan
  • purchases of goods and services
  • asset purchases, sales transfers or leases
  • debts forgiven; and
  • guarantees.

No such transactions have been identified (2019:Nil).

Expenses incurred by NFRA up to 31 March 2020 were initially paid by DITRDC and reimbursed by NFRA. DITRDC provides corporate services to NFRA under a Memorandum of Understanding (refer Note 1.1B)