Payments that have the character of a fringe benefit, but are in Non-work relation to expenses not associated with activities. related Examples include payments in respect of school or education expenses expenses for children, spouse, or dependants of the employee. Employer provides non-cash benefits for an employee under an Salary sacrifice agreement whereby the employee forgoes the equivalent value of benefits the provided benefit in before-tax salary amounts. Payment made to an employee resulting from cessation of Severance pay employment due to the employee’s position being made redundant (note the FMOs require amounts in relation to severance element to be disclosed separately). Payment of normal salary or wages to an employee to cover any Sick leave period the employee was absent from work due to accident or sickness. In most HR systems this will be included within the salaries total. If this is the case no adjustment should be made for this item. Where sick leave is vested, it should be treated as per annual leave. This will be unusual for Commonwealth employees. Any payment including a premium or lump sum paid to a Superannuation superannuation fund or retirement annuity plan for the benefit of an contributions employee. Regular payments to employees for work performed over a set Wages and period. salaries
Non-work related expenses Payments that have the character of a fringe benefit, but are in relation to expenses not associated with activities. Examples include payments in respect of school or education expenses for children, spouse, or dependants of the employee. Salary sacrifice benefits Employer provides non-cash benefits for an employee under an agreement whereby the employee forgoes the equivalent value of the provided benefit in before-tax salary amounts. Severance pay Payment made to an employee resulting from cessation of employment due to the employee’s position being made redundant (note the FMOs require amounts in relation to severance element to be disclosed separately). Sick leave Payment of normal salary or wages to an employee to cover any period the employee was absent from work due to accident or sickness. In most HR systems this will be included within the salaries total. If this is the case no adjustment should be made for this item. Where sick leave is vested, it should be treated as per annual leave. This will be unusual for Commonwealth employees. Superannuation contributions Any payment including a premium or lump sum paid to a superannuation fund or retirement annuity plan for the benefit of an employee. Wages and salaries Regular payments to employees for work performed over a set period.
AGN-2007-2-Executive-Remuneration-2.docx