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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.

4.1 EMPLOYEE PROVISIONS

2019

2018

$’000

$’000

4.1A: EMPLOYEE PROVISIONS

Leave

2,303

1,745

Total employee provisions

2,303

1,745

Employee provisions expected to be settled

No more than 12 months

1,765

1,339

More than 12 months

538

406

Total employee provisions

2,303

1,745

Accounting policy

Liabilities for short-term employee benefits and termination benefits expected within 12 months of the end of reporting period are measured at their nominal amounts.

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 will be applied at the time the leave is taken, including the OAIC'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 work of an actuary perfomed for the Department of Finance (DoF) and summarised in the Standard Parameters for use in 2018–19 Financial Statements published on the DoF website. 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. The OAIC 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.

Superannuation

The OAIC'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 DoF's schedules and notes.

The OAIC 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 OAIC 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 for the final fortnight of the financial year.

Accounting judgements and estimates

The long service leave has been estimated in accordance with the FRR taking into account expected salary growth, attrition and future discounting using the government bond rate.

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 OAIC, directly or indirectly, including any director (whether executive or otherwise) of the OAIC. The OAIC has determined the key management personnel to be the Australian Information Commissioner and Deputy Commissioner. Key management personnel remuneration is reported in the table below:

2019

2018

$’000

$’000

Short-term employee benefits

879

1,184

Post-employment benefits

101

169

Other long-term employee benefits

25

23

Termination benefits

393

Total key management personnel remuneration expenses1

1,005

1,769

The total number of key management personnel that are included in the above table is 4 (2018: 4).

1 The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

4.3 RELATED PARTY DISCLOSURES

Related party relationships

The OAIC is an Australian Government controlled entity. Related parties to this entity are key management personnel including the Portfolio Minister and Cabinet 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.

The following transactions with related parties occurred during the financial year.

Significant transactions with related parties can include:

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

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.