24Employee benefits

24 Employee benefits

Guide to this section

The purpose of this section is to establish consistent requirements for reporting entities when calculating and reporting their employee benefits, and to allow a simplified approach where appropriate.

(1) In calculating long service leave (LSL) liability, reporting entities with: (a) greater than 1,000 full‑time equivalent (FTE) employees must estimate the entity’s LSL liability using either of the following methods: (i) an actuarial assessment; (ii) a detailed calculation basis (e.g., employee by employee); and (b) less than or equal to 1,000 FTE employees must estimate the entity’s LSL liability using the shorthand method, or a method referred to in paragraph (a). (2) For the purposes of calculating the provision of employee benefits, the following relevant on‑costs are to be allowed for: (a) superannuation contributions made by a Commonwealth entity to meet its superannuation liability; (b) accrual of annual leave while an employee is on annual leave or long service leave; (c) accrual of long service leave while an employee is on annual leave or long service leave. Other on‑costs, such as workers’ compensation insurance and payroll tax, are not on‑costs that are to be allowed for in calculating the provision of employee benefits for the purposes of this section.