Appendix 1 – Treatment of common remuneration items

Table below provides further guidance on how common remuneration items should be categorised in accordance with the 4 main categories and sub-categories identified in Schedule 3 of the PGPA Rule.

Remuneration item

Main category

Sub-category

Salary paid and accrued (including any amounts salary sacrificed)

Short-term benefits

Base salary

Salary paid while on annual leave

Short-term benefits

Base salary

Salary paid while on sick leave

Short-term benefits

Base salary

Higher duties allowance

Short-term benefits

Base salary

Salary paid while on long service leave

Other long-term benefits

Long service leave

Purchased annual leave

Short-term benefits

Base salary

Bonus – payable within 12 months

Short-term benefits

Bonuses

Annual leave provision movement (accrued annual leave less any leave paid during the year)

Short-term benefits

Base salary

Education of children benefits

Short-term benefits

Other benefits and allowances

Motor vehicle and car parking benefits

Short-term benefits

Other benefits and allowances

Housing benefits and allowances

Short-term benefits

Other benefits and allowances

Employer superannuation contributions, including productivity component

Post-employment benefits

Superannuation contributions

Long service leave provision movement (accrued long service leave less leave paid  during the year)

Other long-term benefits

Long service leave

Bonus – deferred for more than 12 months

Other long-term benefits

 

Other long-term benefits

Annual leave paid on termination

Annual leave paid out on termination is excluded from the total remuneration amount as the associated leave entitlement has previously been reported.

Long service leave on termination

Long service leave paid out on termination is excluded in line with annual leave disclosures.

Upon cessation of employment, including retirement, where the official has not fulfilled the vesting requirements of long service leave (have not completed the required service period) any leave accrued will be unwound in the current reporting period creating a negative leave expense that should be disclosed in the executive remuneration table.

For example, an official terminates on 30 June after three years of service. The accrued leave value for the current year is $10,000 and the prior two years is $20,000. The entity would only disclose a negative $20,000 in the relevant executive remuneration table as a result of reversing the prior years’ accumulated leave balance. The current year accrued leave balance of $10,000 has no impact as it is reversed in the same year.

Termination benefits

Termination benefits are employee benefits payable as a result of either:

  1. an entity’s decision to terminate an employee’s employment before the normal retirement date, or
  2. an employee’s decision to accept voluntary redundancy in exchange for those benefits.

Fringe Benefit Tax

 

Where a benefit (including salary sacrifice arrangements) results in a reportable fringe benefit amount for the employee, the Total Remuneration should include the taxable value and the Fringe Benefits Tax (FBT) paid.


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