Investor Presentaiton
Department of Health
Notes to the financial statements
For the year ended on 30 June 2023
3.1(b)
Employee related provisions (continued)
Long service leave liabilities are unconditional long service leave provisions that are classified as current liabilities as the department does not have an unconditional right
to defer settlement of the liability for at least 12 months after the end of the reporting period.
Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the department has an unconditional right to defer the settlement
of the liability until the employee has completed the requisite years of service. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:
Within 12 months of the end of the reporting period
More than 12 months after the end of the reporting period
2023
$'000
3,663
22,475
26,138
2022
$'000
3,415
19,597
23,012
The provision for long service leave is calculated at present value as the department does not expect to wholly settle the amounts within 12 months. The present value is
measured taking into account the present value of expected future payments to be made in relation to services provided by employees up to the reporting date. These
payments are estimated using the remuneration rate expected to apply at the time of settlement and discounted using market yields at the end of the reporting period on
national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.
Under the Long Service Leave Act 1958 (LSL Act) casual employees who have been employed for more than 10 years and meet continuous service requirements are entitled
to long service leave. A provision for casual employees who are currently still employed by the department as well as those casual employees who are no longer employed
by the department, and who meet the criteria has been recognised as at 30 June 2023.
Deferred salary scheme liabilities are classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of the reporting
period. Actual settlement of the liabilities is expected to occur as follows:
Within 12 months of the end of the reporting period
More than 12 months after the end of the reporting period
<
148
>
2023
2022
$'000
$'000
156
255
156
255
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