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.