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Note 7: Provisions

Note 7A: Employee provisions








Total employee provisions



Accounting Policy

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

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period, minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.


The liability for employee benefits includes provision for annual leave and long service leave. 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 Tourism Australia is estimated to be less than the annual entitlement for sick 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 Tourism Australia's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

Long Service Leave has been determined using the short-hand method, to estimate the present value of the liability.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. Tourism Australia recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees that it will carry out the terminations. Tourism Australia's separation and redundancy costs are included in Note 2A.


Australia: Staff of Tourism Australia are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), 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.

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

Overseas: Superannuation for Tourism Australia offshore personnel is calculated and paid in accordance with local law.

Note 7B: Provision for restoration


As at 1 July 2019


Revaluation of provision


Amounts reversed


Additional provisions made

Unwinding of provision


Total as at 30 June 2020


Tourism Australia currently has eight (2019: eight) agreements for the leasing of premises which have provisions requiring Tourism Australia to restore the premises to their original condition at the conclusion of the lease. Tourism Australia has made a provision to reflect the present value of these obligations.

Accounting Policy

Provision for Restoration Obligation

Where Tourism Australia has a contractual obligation to undertake remedial work upon vacating leased properties, the estimated cost of that work is recognised as a liability. An equal value asset is created at the same time and amortised over the life of the lease of the underlying leasehold property.