Department of Sustainability, Environment, Water, Population and Communities

Contingent Assets and Liabilities

	Claims for damages or costs		Total
	2013	2012	2013	2012
	$'000	$'000	$'000	$'000
Contingent assets
Balance from previous period	3,428	4,214	3,428	4,214
New contingent assets recognised	2,962	1,187	2,962	1,187
Re-measurement	(41)	(462)	(41)	(462)
Assets recognised	(1,004)	(1,511)	(1,004)	(1,511)
Total contingent assets	5,345	3,428	5,345	3,428
Net contingent assets (liabilities)			5,345	3,428

Quantifiable Contingencies

The Schedule of Contingencies contains $5,345,000 of contingent assets in respect to claims for damages or costs (2012: $3,428,000). The amount represents losses arising from events insured by the Australian Antarctic Division and insurance claims which are still pending as at 30 June 2013.

Unquantifiable Contingencies

At 30 June 2013, the Department carried one instance of an unquantifiable contingent liability (2012: One). It was not possible to estimate the amounts of any eventual payments that may be required in relation to this contingency.

Significant Remote Contingencies

The Department has entered into an arrangement with CIT Aerospace to guarantee Skytraders Pty Ltd financial performance of the A319 Airlink lease. The liability under the guarantee is capped at US$500 million; however this amount is then matched by the insurance obligations under the lease. The net effect is nil (2012: Nil).

Related Party Disclosures
Loans to Key Management Personnel or Key Management Personnel-Related Entities

In 2013, no loans were made to key management personnel or key management personnel-related entities (2012: Nil).

Other Transactions with Key Management Personnel or Key Management Personnel-Related Entities

In 2013, no grants were made to key management personnel or key management personnel-related entities (2012: Nil).

Senior Executive Remuneration

Note 14A. Senior Executive Remuneration Expenses for the Reporting Period
	2013		2012
	$		$
Short-term employee benefits:
Salary	11,776,301		11,141,532
Annual leave accrued	1,252,867		1,108,717
Motor vehicle and other allowances	514,260		354,377
Total short-term employee benefits	13,543,428		12,604,626
Post-employment benefits:
Superannuation	2,593,729		3,125,936
Total post-employment benefits	2,593,729		3,125,936
Other long-term employee benefits:
Long-service leave^5, 6	50,523		1,471,774
Total other long-term employee benefits	50,523		1,471,774
Total senior executive remuneration expenses	16,187,680		17,202,336

1. 
   Note 14A is prepared on an accrual basis.
   
2. 
   Note 14A excludes acting arrangements and part-year service where total remuneration expensed as a senior executive was less than $180,000 ($180,000 is the threshold for 2013). The comparative (2012) figures have been restated to reflect the change in this threshold as per the Finance Minister’s Orders, in 2012 the threshold was $150,000.
   
3. 
   No senior executive on secondment to another agency is included in the above table (2012: One).
   
4. 
   Five senior executives on secondment to other agencies are excluded from the above table as the total remuneration expensed was less than $180,000 (2012: Two).
   
5. 
   The comparative (2012 Long-service leave) has been restated from what was reported in the 2011-12 Financial Statements ($647,618). This was due to a disclosure error that was made at the time that the statements were prepared. The disclosure error of $825,951 related to a change in the long service leave discount rate from 90% in 2010-11 to 109.5% in 2011-12.
   
6. 
   The significant decrease in long-service leave expense is the result of:
   
   1. 
      A reduction in the discount rate used to calculate the present value of long-term leave benefits. The reduced discount factor of 97.8% (2012: 109.5%) is the result of increases in the 10 Year Australian Government Bond rate between 30 June 2012 and 30 June 2013, and
      
   2. 
      A reduced on-cost rate of 10% (2012: 12%). The on-cost rate used to reflect the value of superannuation, long service leave and recreation leave that continues to accrue when an employee takes leave.
      

The impact of these in 2013 and similar adjustments that occurred in 2012 is as follows:

	2013		2012
	$		$
Accrued leave entitlements for the period	614,183		645,823
Discount factor adjustments	(437,903)		825,951
On-cost rate adjustments	(125,757)		-
Total long-service leave	50,523		1,471,774

Note 14B. Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period
Average annual reportable remuneration paid to substantive senior executives in 2013
Average annual reportable remuneration^1	Substantive senior executives	Reportable salary^2	Contributed superannuation^3	Reportable allowances^4	Total reportable remuneration
	No.	$	$	$	$
Total reportable remuneration (including part-time arrangements):
Less than $180,000	13	94,037	17,921	-	111,958
$180,000 to $209,999	6	167,127	33,330	-	200,457
$210,000 to $239,999	24	187,595	35,388	-	222,983
$240,000 to $269,999	9	212,318	36,689	-	249,007
$270,000 to $299,999	9	231,480	54,894	-	286,374
$300,000 to $329,999	5	257,944	54,054	-	311,998
$360,000 to $389,999	2	310,170	57,349	-	367,519
$390,000 to $419,999	1	341,365	73,972	-	415,337
$600,000 to $629,999	1	521,051	79,779	-	600,830
Total number of substantive senior executives	70

1. 
   This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.
   
2. 
   'Reportable salary' includes the following:
   
   1. 
      gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
      
   2. 
      reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes);
      
   3. 
      exempt foreign employment income; and
      
   4. 
      salary sacrificed benefits.
      
3. 
   The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.
   
4. 
   'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
   

Note 14B (Cont'd). Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period
Average annual reportable remuneration paid to substantive senior executives in 2012
Average annual reportable remuneration^1	Substantive senior executives	Reportable salary^2	Contributed superannuation^3	Reportable allowances^4	Total reportable remuneration
	No.	$	$	$	$
Total reportable remuneration (including part-time arrangements):
Less than $180,000	33	90,565	14,035	-	104,600
$180,000 to $209,999	8	175,649	27,747	-	203,396
$210,000 to $239,999	18	188,164	38,850	-	227,014
$240,000 to $269,999	7	213,436	41,150	90	254,676
$270,000 to $299,999	8	227,387	58,215	-	285,602
$300,000 to $329,999	2	216,272	91,614	-	307,886
$330,000 to $359,999	1	274,591	65,395	-	339,986
$360,000 to $389,999	1	226,237	140,288	-	366,525
$390,000 to $419,999	3	268,426	126,911	-	395,337
$450,000 to $479,999	1	170,251	286,228	-	456,479
$510,000 to $539,999	1	452,411	62,956	-	515,367
Total number of substantive senior executives	83