The cost of delivering services Introduction This section provides an account of the expenses incurred by the Department in delivering services and outputs. Structure Judgement required Judgement has been applied in the calculations of employee benefits provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates. Expenses incurred in delivery of services 2017 2016 $’000 $’000 3.1.1 129 998 113 766 Employee expenses 3.2 34 870 25 326 Grants expense 3.3 21 815 21 149 Capital charge 3.4 116 739 96 262 Supplies and services 3.5 66 338 194 Land remediation 369 760 256 697 Total expenses Employee expenses comprehensive operating statement – 2017 2016 $’000 $’000 Salaries, wages, annual and long service leave 98 821 87 535 Salaries and wages 14 368 11 306 Annual and long service leave expense Superannuation 8 809 7 729 Defined contribution plans 1 494 1 504 Defined benefits expense 6 506 5 692 Oncosts 129 998 113 766 Total employee expenses Employee expenses comprise all costs related to employment including wages and salaries, Termination benefits are payable when employment is superannuation, fringe benefits tax, leave entitlements, terminated before the normal retirement date, or when an redundancy payments and WorkCover premiums. employee decides to accept an offer of benefits in exchange for the termination of employment. The Superannuation expenses represent the employer Department recognises termination benefits when it is contributions for members of both defined benefit and demonstrably committed to either terminating the defined contribution superannuation plans that are paid or employment of current employees according to a detailed payable during the reporting period. formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to The Department discloses, on behalf of the as the encourage voluntary redundancy. Benefits falling due more sponsoring employer, the net defined benefit cost and the than 12 months after the end of the reporting period are defined benefit liability or surplus related to the members discounted to present value. of these plans as administered items (note 4.2).
The cost of delivering services Introduction This section provides an account of the expenses incurred by the Department in delivering services and outputs. Structure Judgement required Judgement has been applied in the calculations of employee benefits provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates. Expenses incurred in delivery of services 2017 $’000 2016 $’000 Employee expenses 3.1.1 129 998 113 766 Grants expense 3.2 34 870 25 326 Capital charge 3.3 21 815 21 149 Supplies and services 3.4 116 739 96 262 Land remediation 3.5 66 338 194 Total expenses 369 760 256 697 Employee expenses – comprehensive operating statement 2017 $’000 2016 $’000 Salaries, wages, annual and long service leave Salaries and wages 98 821 87 535 Annual and long service leave expense 14 368 11 306 Superannuation Defined contribution plans 8 809 7 729 Defined benefits expense 1 494 1 504 Oncosts 6 506 5 692 Total employee expenses 129 998 113 766 Employee expenses comprise all costs related to employment including wages and salaries, superannuation, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums. Superannuation expenses represent the employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period. The Department discloses, on behalf of the as the sponsoring employer, the net defined benefit cost and the defined benefit liability or surplus related to the members of these plans as administered items (note 4.2). Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee decides to accept an offer of benefits in exchange for the termination of employment. The Department recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.