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Note 5. People and relationships 2017–18

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

Note 5.1: Employee provisions

Note 5.1a: Employee provisions




Employee provisions





Total employee provisions




Accounting policy

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.


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 APSC 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 that the leave is taken, including the APSC’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 using the Australian Government shorthand method for all employees as at 30 June 2018. The estimate of the present value of the liability takes into account attrition rates and pay rises through promotion and inflation.


APSC employees 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.

The APSC makes employer contributions to employees’ superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The APSC accounts for the contributions as if they were contributions to defined contribution plans.

Note 5.2: Key management personnel remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the APSC, directly or indirectly. The APSC has determined the key management personnel to be the Minister Assisting the Prime Minister for the Public Service and personnel within the APSC holding the following positions:

• Australian Public 
Service Commissioner

• Deputy Australian Public 
Service Commissioner

• Merit Protection 

• First Assistant Public 
Service Commissioner

Remuneration of key management personnel within the APSC is reported in the table below:







Short-term employee benefits



Post-employment benefits



Other long-term benefits



Termination benefits



Total key management personnel remuneration expenses 1



The total number of key management personnel that are included in the above table are six (2017: four). The higher figure in 2018 is due to the change in staffing for two positions during the year.

  1. The above key management personnel remuneration excludes the remuneration and other benefits of the Minister Assisting the Prime Minister for the Public Service. The Minister's remuneration and other benefits are set by the Remuneration Tribunal and is paid through administered special appropriations of the APSC (until 31 December 2017) and the Department of Finance.

Note 5.3: Related party disclosures

Related party relationships

The APSC is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Minister Assisting the Prime Minister for the Public Service 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.

Other than the remuneration disclosed in note 5.2, there were no significant transactions with Key Management Personnel (2017: nil).

The APSC undertakes a number of functions on behalf of the Australian Government. In performing these functions, the APSC transacts with other Australian Government controlled entities for normal day-to-day business operations provided either under normal terms and conditions or on a cost recovery basis. 

The following significant transactions with related parties occurred during the financial year:

  • About 99% of the APSC’s goods and services revenue was earned from other Australian Government controlled entities (2017: 99%).
  • The APSC entered an office lease commitment with the Department of Finance of approximately $11.3 million over 9 years and 8 months, with lease payments commencing in July 2017 (2017: nil).
  • Information and communications technology services were provided by the Department of Jobs and Small Business (2017: the former Department of Employment provided information and communications technology services).
Last reviewed: 
18 October 2018