NSW Treasury has issued a Circular outlining the accounting treatment for long service leave, annual leave and related on-costs for financial years ending on or after 30 June.
Chief Financial and Operations Officer at Treasury, Stewart Walters said the Circular, TC21-03 Accounting for Long Service Leave and Annual Leave, applied to all Agencies operating under the Government Sector Finance Act 2018 (GSF Act) and withdrew and superseded existing Treasury Circular TC18-13 of the same name.
“This Circular incorporates the changes arising from the latest triennial valuation of long service leave performed by Treasury’s actuary,” Mr Walters said.
“This Circular incorporates the assumptions for the measurement and presentation of employee benefit liabilities for long service leave and annual leave that should be used by Agencies,” he said.
Mr Walters said the key changes were long service leave on-cost factors applicable to Crown-funded long service leave (LSL) Agencies and Agency-funded Crown LSL Pool Agencies; annual leave on-cost factors applicable to General Government Sector Agencies; current and non-current allocation of LSL and related on-costs liabilities; and Category One and Category Two Agency lists to replace the lists in Treasury Circular NSW TC 14-06 Funding Arrangements for Long Service Leave and Transferred Officers Leave Entitlements.
“This Circular also requires the discount rate used for long-term long service leave and annual leave of Statutory State-Owned Corporations (SOCs) and other for-profit entities to be high quality corporate bond rates, effective from FY 2017-18,” Mr Walters said.
“This Circular should be read in conjunction with relevant Treasury Circulars and Treasury Policy Papers (available in the document library on Treasury’s website),” he said.
NSW Treasury’s new 19-page Circular TC21-03 can be accessed at this PS News link.
