Treatment of common remuneration items

The 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 itemMain categorySub-category
Salary paid and accrued (including any amounts salary sacrificed)Short-term benefitsBase salary
Salary paid while on annual leaveShort-term benefitsBase salary
Salary paid while on sick leaveShort-term benefitsBase salary
Higher duties allowanceShort-term benefitsBase salary
Salary paid while on long service leaveOther long-term benefitsLong service leave
Purchased annual leaveShort-term benefitsBase salary
Bonus – payable within 12 monthsShort-term benefitsBonuses
Annual leave provision movement (accrued annual leave less any leave paid during the year)Short-term benefitsBase salary
Education of children benefitsShort-term benefitsOther benefits and allowances
Motor vehicle and car parking benefitsShort-term benefitsOther benefits and allowances
Housing benefits and allowancesShort-term benefitsOther benefits and allowances
Employer superannuation contributions, including productivity componentPost-employment benefitsSuperannuation contributions
Long service leave provision movement (accrued long service leave less leave paid  during the year)Other long-term benefitsLong service leave
Bonus – deferred for more than 12 months

Other long-term benefits


Other long-term benefits
Annual leave paid on terminationAnnual 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 3 years of service. The accrued leave value for the current year is $10,000 and the prior 2 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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