2002 - 2003 Annual Report - Tourism Australia

Notes to and forming part of the Financial Statements
For the year ended 30 June 2003 Australian Tourist Commission
1.5 Transactions by the Government as Owner
Equity Injections
Amounts appropriated by the Parliament as equity injections are recognised as ‘contributed equity’ in accordance with the
Finance Minister’s Orders.
Capital Use Charge
A Capital Use Charge is imposed by the Government on the net assets of the Commission.The Charge is accounted for as a
dividend to Government.
In accordance with the recommendations of a review of Budget Estimates and Framework, the Government has decided that
the Charge will not operate after 30 June 2003.Therefore, the amount of the charge payable in respect of 2003 is the amount
appropriated (2002: 11% of adjusted net assets).
1.6 Employee benefits
Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.
Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at their nominal amounts.
Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their
nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.This is a change in
accounting policy from last year required by initial application of a new Accounting Standard AASB 1028 from 1 July 2002.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in
respect of services provided by employees up to the reporting date.
Leave
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 the Commission is
estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration, including the Commission’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 present value of the estimated future cash flows to
be made in respect of all employees at 30 June 2003.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 in cases where positions have been formally identified
as excess to requirements, and a reliable estimate of the amount payable, which is consistent with local requirements, can
be determined.
Superannuation
Australia
Employees of the Commission are members of the Commonwealth Superannuation Scheme and the Public Sector
Superannuation Scheme.The liability for their superannuation benefits is recognised in the financial statements of the
Commonwealth and is settled by the Commonwealth in due course.
The Commission makes employer contributions to the Commonwealth at rates determined by the actuary to be sufficient to
meet the cost to the Commonwealth of the superannuation entitlements of the Commission’s employees.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.
The contribution rate for the Commission as a Group 2 Authority was 18.9% (2001/02: 7.1%) – Commonwealth
Superannuation Scheme, 10.8% (2001/02: 9.7%) – Public Sector Scheme, of salaries in 2002/03. In addition, the Commission
remitted Employer Productivity Superannuation Contributions to ComSuper for all employees.The contribution rate is variable
and banded according to earnings ranging from 2% to 3% (2001/02: 2% to 3%) of salaries in 2002/03.
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