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Explaining the LARS Remuneration Table

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Presentation of Salary Data

The analysis of salaries for each job and each grade is presented as a Remuneration Table. These Tables examine all components of the the salary package.

Salary levels are also given for differing Council size as measured by total annual operating expenditure budget, and on a State basis.

Remuneration Tables

The Remuneration Table allows you to gauge the overall level of remuneration and the extent and value of individual salary package components paid to incumbents in the job. The information in the Table consists of two sections as follows:
 
Section 1. Job Identification and Sample Size. For job grade Tables the Table heading states the job grade. For specifically identified jobs as covered by the survey the Table heading states the an identifying survey job number and survey job title. In this second case a job description brief is also shown in the heading Section.

The size of the sample making up the data provided in the Table is given as the number of individuals whose salary packages are included in the sample, and the number of Councils from which those incumbents are drawn. These figures, identified as "N=" and "C=" respectively, are displayed immediately below the main body of the Table. A Table is only where a sample of at least five incumbents from a minimum of three Councils was received.
 
Section 2. Salary Data. The information shown in this section gives the Salary Package components for the job. The body of information in this section is shown in six columns of figures. Each row of information is labelled at the left hand side.
 
Salary Package Components

Individual salary package components and intermediate salary package sub-totals are shown. The sub-totals are: Total Cash, Total Non-Cash Benefits, Total Superannuation (including salary sacrifice), Total Remuneration (the total value of all salary package components excluding any FBT charge), and Total Remuneration Cost (the total value of all salary package components including the FBT charge). Fixed annual Remuneration, which is equivalent to Total Remuneration Cost less incentive payments is also shown.

An analysis of the job evaluation points for positions included in the sample are shown in the heading to the main body of the Table.

The salary package components, excluding the intermediate sub-totals, in order, reading down the Remuneration Items column are:

(i) Base Salary The annual salary, exclusive of any loadings, allowances, commissions or incentive payments.

(ii) Annual Leave Loading The annual amount of leave loading.

(iii) Other Cash Other cash payments not including any of the above.

(iv) Car The amounts shown is the deemed annual value of a car included in the package.

The value is calculated from the capital purchase price of the car, the level of use the employee has of each car, and reduced by any after tax contribution the employee makes to the running cost of the car.

A standardised formula is used to value the car in the salary package.

(v) Lease Car The annual amount accounted in the package, inclusive of any FBT payment, for the provision of a novated or other type of lease arrangement car.

(vi) Telephone The annual cost of rental and calls paid including mobile phones, and the cost of any telephone installed in a motor vehicle.

(vii) Other FBT Benefits The annual value of any other FBT liable benefits provided to the employee as part of their salary package and are not recorded elsewhere.

(viii) Professional Subscriptions The annual cost of membership and other fees paid in respect of professional associations.

(ix) Other Non-FBT Benefits The annual value of any other items provided to the employee as part of their salary package that do not attract FBT and are not recorded elsewhere.

(x) Council Superannuation The annual cost of contributions made by the employer to a superannuation plan, including the Super Guarantee Charge.

(xi) Salary Sacrifice Superannuation That part of an employee's total salary package nominated for inclusion in superannuation. This amount reflects flexibility of choice by the employee; commonly referred to as salary sacrifice superannuation.

(xii) Incentives Total of:
An annual amount of performance related bonus paid in addition to Base Salary and calculated on a collective performance basis, such as Council or work unit performance.
An annual amount of performance payments based on individual performance, such as the achievement of specified personal objectives.

(xiii) Fringe Benefits Taxation Each remuneration component listed above excludes FBT. The overall FBT for the total package is shown as a single figure. Where FBT on cars is to be calculated, the statutory formula method is used.

Columns: The six columns of survey information in order are:

Columns 1,2,3 - First Quartile, Median, Third Quartile

Each row of data in the table is analysed separately. The three columns, First Quartile, Median, and Third Quartile, indicate the spread of values in the sample for the particular row item. One quarter, i.e. 25%, of incumbents in the sample receive an amount for the benefit item that is less than or equal to the amount shown in the First Quartile column. Similarly, one half of incumbents in the sample receive less than the value shown in the Median column for the particular item. Conversely, one half receive more than the amount shown in the Median column. Three quarters, i.e. 75%, of incumbents in the sample receive an amount for the benefit item that is less than or equal to the amount shown in the Third Quartile column. One quarter receive more than this amount.

Median figures can be considered a better measure overall than an average because the latter can be biased by extreme values in a sample, especially if the sample is small.

Note that because each row of information is analysed independently for the First Quartile, Median, and Third Quartile columns, the individual values in these columns do not necessarily add vertically.

Column 4 - Average

The Average column shows the arithmetic average of each item. This is simply the sum of the amounts of the benefit paid to each incumbent in the sample, divided by the sample size. The figures in the Average column add vertically. There may be a one or two dollar variation in the totals due to rounding. Where an organisation employs several people in a particular job classification, the figures in the Average column are useful for budget setting purposes. This is because the average represents aggregated amounts taking into account salary levels paid at differing levels of competence of performance.

Column 5 - Receiving Incumbent Average

The Receiving Incumbent's Average shows the arithmetic average of the amount of the remuneration item provided to those incumbents who actually receive the benefit. The information in this column is linked to the Percent Receiving column, which shows the proportion of the sample that actually receives the benefit. Amounts in this column do not add vertically as each item in the column is assessed independently of others in the column. Figures in this column differ from those in the Average column because the latter is based on all incumbents in the sample rather than only those who actually receive the benefit.

Column 6 - Percent Receiving

The figures in this column show the percentage of incumbents in the sample that receive the particular remuneration item. These figures are useful in assessing the extent to which a particular type of benefit is provided to the job. It is also used to track trends in salary package structures resulting from changes in legislation, economic factors, and broader trends in the labour market and the community.

Total Remuneration by Council Total Annual Operating Expenditure Budget, and by State.

The lower section of the page gives total remuneration based on Council size as measured by operating expenditure budget, and by State. For each category the first quartile, median, third quartile and average are shown. In this section, the column headed N indicates the sample size in the category. The column headed C gives the number of Councils from which the sample of size N is drawn. Here, a full set of figures is provided for a category where data on at least five individuals from at least three Councils was received for the category. For lower sample sizes, down to three individuals from separate Councils, only the median is shown.

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