Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
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 applied at the time the leave is taken, including the Group’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.
Liabilities for employee benefits expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts.
The Group used the shorthand method to calculate the long service leave lability.
A liability for a termination benefit is recognised at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognises any related restructuring costs.
Defined contribution plans
Contributions to defined contribution superannuation plans are recognised as an expense when employees have rendered service entitling them to the contributions. The Northern Land Council Group staff can choose their own super fund with most members being with MLC Master Key Super. The Group makes employer-contributions to the employees’ defined benefit superannuation scheme, at rates determined by the enterprise agreement and Superannuation Industry (Supervision) Act 1993. The liability of superannuation, recognised as at 30 June represents outstanding contributions.