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03 Financial Statements

Note 5: People and Relationships

This section describes a range of employment and post-employment benefits provided to our people and our relationships with other key people.

5.1: Employee Provisions

Annual and long service leave 2,172 1,660
Total employee provisions 2,172 1,660

5.2: Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly. The Group has determined the key management personnel to be the Chief Executive Officer, Chief Financial Officer, Chief Governance and Strategy Officer, General Counsel, Chief Origination and Transaction Officers, the Chief Investment Risk Officer and the Executive Director People and Culture. While the Chair of the Board and other Board members have authority and responsibility for planning, directing and controlling the activities of the Group, they are not considered “management” and have been excluded from the table of key management personnel remuneration below. Remuneration of Board members is disclosed separately in Note 5.3.

Short-term employee benefits    
Salary 3,038,488 2,731,623
Performance bonuses 1,300,000 1,026,105
Retention bonuses 68,295
Travel allowances 16,800
Annual leave (paid)/accrued 77,264 (51,396)
Total short-term employee benefits 4,415,752 3,791,427
Post-employment benefits    
Superannuation 148,753 143,129
Total post-employment benefits 148,753 143,129
Other long-term employee benefits    
Long service leave (paid)/accrued 46,303 (8,126)
Total other long-term employee benefits 46,303 (8,126)
Total key management personnel remuneration expenses 4,610,808 3,926,430

The total number of senior management personnel that are included in the above table is 8 (2017: 9).

5.3: Directors’ Remuneration

  2018 No. 2017 No.
The numbers of Non-Executive Directors of the Corporation included in these figures are shown below in the relevant remuneration bands:    
$0 to $29,999 7
$30,000 to $59,999 5 5
$90,000 to $119,999 1 1
Total 13 6
Total remuneration received or due and receivable by Non-Executive Directors of the Corporation 433,488 401,871

The Corporation has no Executive Directors.

5.4: Related Party Disclosures

A related party is a person or entity that is related to the entity that is preparing its financial statements.
The Group has determined its related parties include:

  • The Responsible Ministers
    • The Hon Josh Frydenberg MP
    • Senator the Hon Mathias Cormann
  • Board Members
    • Mr Steven Skala AO (appointed 7/8/2017)
    • Ms Leeanne Bond (appointed 7/8/2017)
    • Mr Philip Coffey (appointed 1/2/2018)
    • Ms Laura Reed (appointed 1/2/2018)
    • Ms Andrea Slattery (appointed 1/2/2018)
    • Ms Samantha Tough (appointed 7/8/2017)
    • Ms Nicola Wakefield Evans (appointed 7/8/2017)
    • Ms Jillian Broadbent AO (term expired 7/8/2017)
    • Mr Paul Binsted (term expired 1/2/2018)
    • Mr Ian Moore (term expired 7/8/2017)
    • Ms Anna Skarbek (term expired 7/8/2017)
    • Mr Andrew Stock (term expired 7/8/2017)
    • Mr Martijn Wilder AM (term expired 1/2/2018)
  • Key management personnel
    • Mr Ian Learmonth, CEO
    • Ms Rebecca Cottrell
    • Mr Kevin Holmes
    • Mr Paul McCartney
    • Ms Leanne McDonald (commenced 26/2/2018)
    • Mr Stephen Panizza
    • Mr Andrew Powell
    • Mr Ludovic Theau
  • Other Federal Government agencies
  • Investments that are classified as Associates and Joint Ventures as disclosed in Note 3.1G: Equity Accounted Investments

Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 30 June 2018, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (2017: $Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The Group has not entered into any direct transactions with key management personnel other than in relation to remuneration for services provided, as disclosed in Notes 5.2 and 5.3.

Transactions with Director-Related Entities

After Mr Ian Moore’s Board term ended on 7 August 2017 and Mr Paul Binsted’s Board term ended on 1 February 2018, the CEFC employed each of them for a limited period as part-time consultants to ensure an orderly transition of responsibilities. For their consultancy services, Mr Ian Moore received $6,955 (2017: $Nil) including employer superannuation and Mr Paul Binsted received $11,218 (2017: $Nil) including employer superannuation during the year ended 30 June 2018.

Mr Philip Coffey and Ms Nicola Wakefield Evans are independent non-executive directors of Lendlease Corporation Limited, where the CEFC has a $50 million equity investment as at 30 June 2018 (2017: $Nil) in Lendlease Real Estate Investments Limited managed Australian Prime Property Fund Commercial.

Ms Nicola Wakefield Evans is also an independent voting director of Macquarie Group Limited. The CEFC has $50 million invested in fixed rate bonds with Macquarie Bank Limited as at 30 June 2018 (2017: $Nil), and through its wholly owned subsidiary, CEFC Investments Pty Ltd, has invested $60.0 million at 30 June 2018 (2017: $Nil) in Macquarie Agricultural Fund – Crop Australia managed by Macquarie Agricultural Funds Management Limited.

Mr Paul Binsted, whose Board term ended on 1 February 2018, is a non-executive director of Moorebank Intermodal Company which is participating in the development of the Moorebank Intermodal Terminal with Qube Holdings Limited, a company that received a $150 million loan from the CEFC during the year ended 30 June 2017.

The Directors named above took no part in the relevant decisions of the Board in regards to these related party transactions.

The CEFC is not aware of any trading transactions entered into with Director-related parties during the financial year ended 30 June 2018. Transactions with Director-related parties during the year ended 30 June 2017 are set out in the table below.

Director Related Party Transaction  Year  Purchase from
Related Party
 Receipt from
Related Party
Anna Skarbek ClimateWorks Australia Technical advice 2017 4
Martijn Wilder AM Baker and McKenzie Legal advice 2017 32

There were no balances outstanding at 30 June 2018 (2017: $Nil) in relation to these transactions.

Ms Anna Skarbek, whose Board term ended on 7 August 2017, is the Chief Executive Officer of ClimateWorks Australia.

Mr Martijn Wilder AM, whose Board term ended on 31 January 2018, is a partner at Baker & McKenzie and is also the chairman of the Australian Renewable Energy Agency (‘ARENA’).

Transactions with Other Related Entities 

During the year the Corporation has loaned funds to a subsidiary, CEFC Investments Pty Ltd, on commercial terms. Balances arising from these transactions are disclosed in the Corporation’s stand-alone financial statements in Note 7 and have been eliminated in these Consolidated Financial Statements.

Under the CEFC Act, the Corporation has a number of transactions with the Commonwealth. The principal transactions are those related to the amounts drawn from or repaid into the CEFC Special Account that is administered by the Department for the Environment and Energy.

The following transactions were entered into with other related parties under common control during the financial year ended 30 June 2018:

Related party Purpose 2018
Comcover General insurance premiums 91,345 70,045
Comcare Workers compensation insurance premiums 34,992 63,562
Department of Defence Vetting of Executives 869 1,936
Department of the Environment and Energy Executive search for new Board members 25,000

During the financial year ended 30 June 2018 a review of the operation of the CEFC Act under Section 81 was commissioned by the Department of the Environment and Energy. The CEFC agreed to reimburse the Department the first $100,000 towards the cost of the review, with amounts above $100,000 to be shared 50:50 between the CEFC and the Department. The total cost of the review is expected to be $250,000, with the CEFC contributing $175,000 of this cost. At 30 June 2018 this $175,000 (2017: $Nil) was owing to the Department of the Environment and Energy.

During the financial year ended 30 June 2018 the CEFC incurred costs for several market research studies and subscriptions that were entered into jointly with the Australian Renewable Energy Agency (‘ARENA’). The CEFC incurred the full cost relating to these purchases from the suppliers and recovered the appropriate share of these costs directly from ARENA.