This section provides an account of the expenses incurred by the Commission in delivering its services. The funds that enable the provision of the services were disclosed in Note 2.

3.1 Expenses incurred in the delivery of services

Notes 2022
Employee benefits 3.2.1 20,391,790 14,376,757
Grant expenses 3.3 1,567,200
Capital asset charge (i) 3.4 13,508
Other operating expenses 3.5 18,483,916 5,688,520
Total expenses incurred in the delivery of services 40,442,906 20,078,785


(i) Capital Asset Charge was discontinued in 2021-22, with a corresponding reduction in appropriation revenue provided to the Commission to cover the expense. Refer to note 3.3 for further detail.

3.2 Employee benefits

3.2.1 Employee benefits in the comprehensive operating statement

Salaries and wages, annual leave and long service leave 18,772,379 13,233,613
Defined contribution superannuation expense 1,545,021 1,069,092
Defined benefit superannuation expense 74,390 74,052
Total employee benefits 20,391,790 14,376,757

Employee benefits include all costs related to employment including salaries and wages, superannuation, fringe benefits tax, leave entitlements, termination payments and WorkCover premiums.

3.2.2 Employee benefits in the balance sheet

Provision is made for benefits accruing to employees in respect of annual leave and long service leave for services rendered up to the reporting date and recorded as an expense during the period the services are delivered.

Current provisions:
Annual leave 1,916,170 1,409,644
Long service leave 2,024,649 1,650,978
Total current provisions 3,940,819 3,060,622
Non-current provision:
Long service leave 433,040 356,699
Total employee benefits 4,373,859 3,417,321

Current provisions

The annual leave liability is classified as a current liability as the Commission does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

Unconditional long service leave is disclosed as a current liability; even where the Commission does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

No provision has been made for sick leave as all sick leave is non-vesting and it is not considered probable that the average sick leave taken in the future will be greater than the benefits accrued in the future. As sick leave is non-vesting, an expense is recognised in the Statement of Comprehensive Income as it is taken.

Employment on-costs such as payroll tax, workers compensation and superannuation are included as a component of the provision for employee benefits.

Non-current provisions

Conditional long service leave is disclosed as a non-current liability where there is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current long service leave is measured at present value.

Any gain or loss following revaluation of the present value of non-current long service leave liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an ‘other economic flow’ in the net result.

The Commission does not recognise any defined benefit liabilities because it has no legal or constructive obligation to pay future benefits relating to its employees. Instead, the Department of Treasury and Finance (DTF) discloses in its annual financial statements the net defined benefit cost related to the members of these plans as an administered liability (on behalf of the State as the sponsoring employer).

3.3 Grant expenses

Specific purpose grants for on-passing 1,567,200
Total grant expenses 1,567,200

Grant expenses are contributions of the Commission’s resources to other parties for specific or general purposes where there is no expectation that the amount will be repaid in equal value (either by goods or services). These grants are reported in specific purpose grants for on passing.

Grants can either be operating or capital in nature. Grants can be paid as general-purpose grants, which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants, which are paid for a particular purpose and have conditions attached regarding their use.

Grant expenses are recognised in the reporting period in which they are paid or payable. Grants can take the form of money, assets, goods, or services.

3.4 Capital asset charge

Capital asset charge 13,508
Total capital asset charge 13,508

A capital asset charge (CAC) was a charge levied on the budgeted written-down value of controlled non-current physical assets in the Commission’s balance sheet. In previous years, CAC had been used to demonstrate the opportunity cost of utilising government assets.

It should be noted that the capital asset charge policy was discontinued in 2021-22 and also reflected in the 2021-22 Budget. While the inclusion of CAC was previously reflected in output cost, it did not reflect a net distribution of funds from the Commission because the Commission was funded from the budget for its CAC expense, and then immediately paid the same amount back into the Consolidated Fund.

3.5 Other operating expenses

Supplies and services 10,898,617 1,534,461
Purchases of services 3,657,182 2,435,979
Information technology 3,928,117 1,718,080
Total other operating expenses 18,483,916 5,688,520

Other operating expenses generally represent the day-to-day running costs incurred in delivering services of the Commission.

Other operating expenses are recognised as an expense in the reporting period in which they are incurred.