Page 652 - Week 02 - Thursday, 24 March 2022

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Government—salary costs
(Question No 628)

Mrs Jones asked the Treasurer, upon notice, on 11 February 2022:

(1) In the costing of policy proposals, what categories of expenses are added to the salary of employees to work out the total cost of employing employees (sometimes known as “salary on-costs”).

(2) What is the amount (expressed as a percentage, or otherwise) of each of the categories of expenses referred to in part (1) in (a) 2021 22, (b) 2022-23, (c) 2023-24 and (d) 2024-25.

(3) How does the amount of each of those categories of expenses referred to in part (1) differ for each directorate or agency, and for each category of employee in each directorate or agency, in (a) 2021 22, (b) 2022-23, (c) 2023-24 and (d) 2024-25.

Mr Barr: The answer to the member’s question is as follows:

(1) Standard costing guidance is released by the ACT Treasury each year. The standard costing guidance requires agencies to calculate the total cost of employing employees by including:

• The salary of the employee (based on current Enterprise Bargaining Arrangements or Remuneration Tribunal determinations);

• Superannuation (new employees are assumed to be Fund of Choice members and the relevant rate is therefore 11.5 per cent of an employee’s salary);

• Leave benefits (2.5 per cent of salaries for long service leave and an annualised rate of 1.5 per cent for leave loading for non-Senior Executive Service employees);

• Workers’ compensation premiums (calculated as a percentage of an employee’s salary and based on the rate applicable to the business area);

• Standard administrative on-costs; and

• Other costs assessed on a case-by-case basis (for example, vehicles for rangers or specialised equipment).

Standard Administrative On-Costs

The standard administrative on-cost per employee for 2021-22 is $20,922 which includes:

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