Reserve Bank of Australia Annual Report – 2009 Financial Statements Note 12


AASB 124 – Related Party Disclosures requires disclosure of information relating to aggregate compensation of key management personnel. The key management personnel of the RBA are members of the RBA Board, members of the Payments System Board and senior staff who have responsibility for planning, directing and controlling the activities of the RBA; this group comprises 21 in total (22 in 2007/08), including the Governor and Deputy Governor, 7 non-executive RBA Board members, 6 non-executive Payments System Board members and 6 senior staff. Fees of the non-executive members of the Reserve Bank Board and the Payments Systems Board are determined by the Remuneration Tribunal. The Reserve Bank Board determines the terms and conditions on which the Governor and Deputy Governor hold office in accordance with Section 24A of the Reserve Bank Act 1959. The Remuneration Committee (comprising three non-executive directors) reviews annually these terms and conditions and, consistent with the Act, makes recommendations to the Board about the remuneration of the Governor and Deputy Governor. The Governor determines, in consultation with the Remuneration Committee, the remuneration of other key executives.

The remuneration of the RBA's key management personnel was as follows:

2009 $ 2008 $
Short-term employee benefits 4,513,477   3,618,564
Post-employment benefits 861,621   668,114
Other long-term benefits 332,707   144,990
Share based payments  
Termination benefits  
Total Compensation 5,707,805   4,431,668

Short-term benefits include cash salary and, in the case of staff, annual leave, motor vehicle benefits, car parking, health benefits and the fringe benefits tax paid or payable on these benefits. Post-employment benefits include superannuation benefits and, in the case of staff, health benefits. Other long-term benefits include long service leave. The components of remuneration are reported on an accruals basis.

As at 30 June 2009 and 30 June 2008 there were no loans by the RBA to key management personnel.

There were no other related party transactions with Board members; transactions with director-related entities which occurred in the normal course of the RBA's operations were conducted on terms no more favourable than similar transactions with other employees or customers. In addition, $36,976 ($97,354 in 2007/08) was paid for non-executive members of the Board of NPA Limited who are not employees of the RBA or members of the Bank Board.