Annual Report 2017-18

                                                                                           Financial Statements 2018



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2018

Note 20. Contingent Liabilities (continued)

                                                                                                        Council
Local Government Workcare
Noosa Shire Council is a member of the Queensland local government worker's compensation self-insurance
scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards a bank
guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was
insufficient funds available to cover outstanding liabilities. Only the Queensland Government’s workers
compensation authority may call on any part of the guarantee should the above circumstances arise. The
Council's maximum exposure to the bank guarantee is $656,444, (2017: $512,634)



Note 21. Superannuation

Council contibutes to the LGIAsuper Regional Defined Benefits Fund (the scheme), at the rate of 12% for each
permanent employee who is a defined benefit member. This rate is set in accordance with the LGIAsuper trust
deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying
superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation
and is also governed by the Local Government Act 2009 .

The scheme is a defined benefit plan, however Council is not able to account for it as a defined benefit plan in
accordance with AASB119 because LGIAsuper is unable to account for its proportionate share of the defined
benefit obligation, plan assets and costs.

Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the
contribution rate, but has not been recognised as an asset or liability of the Council.

Technically Noosa Shire Council can be liable to the scheme for a portion of another local governments’ obligations
should that local government be unable to meet them. However the risk of this occurring is extremely low and in
accordance with the LGIAsuper trust.

The last completed actuarial assessment of the scheme was undertaken as at 1 July 2015. The actuary indicated
that “At the valuation date of 1 July 2015, the net assets of the scheme exceeded the vested benefits and the
scheme was in a satisfactory financial position as at the valuation date." The Council is not aware of anything
that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested
benefits, as at the reporting date.

Another actuarial investigation is being conducted as at 1 July 2018. At the time of signing these financial
statements this investigation is still in progress.

The most significant risks that may result in LGIAsuper increasing the contribution rate, on the advice of the
actuary, are:
Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional
contributions are needed to fund the shortfall.
Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits
to be funded.
There are currently 63 entities contributing to the scheme and any changes in contribution rates would apply
equally to all 63 entities. Noosa Shire Council made less than 4% of the total contributions to the plan in the 2017-18
financial year.




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