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100
QANTAS ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
30. SUPERANNUATION CONTINUED
(D) ACTUARIAL ASSUMPTIONS AND SENSITIVITY
The significant actuarial assumptions (expressed as weighted averages per annum) were as follows: Qantas Group
2014
%
2013
%
Discount rate (Australia) 4.4 5.2
Future salary increases (Australia) 3.013.0
1 Nil salary increase in year 2 and year 3 and three per cent in all other years for the remaining duration of the Plan.
The expected long-term rate of return is based on the weighted average of expected returns on each individual asset class where the
weightings reflect the proportion of defined benefit assets invested in each asset class. Each asset class’ expected return is based
on expectations of average returns over the next 10 years.
The weighted average duration of the QSP’s defined benefit obligation as at 30 June 2014 was 12.6 years (2013: 12.6 years).
The sensitivity of the defined benefit obligation to changes in the significant assumption as at 30 June 2014 is as follows:
Change in Assumption
Impact on Defined Benefit Obligation
Increase in Assumption Decrease in Assumption
Discount rate 1% Decrease by 11.5% Increase by 11.6%
Future salary increase 1% Increase by 10.3% Decrease by 10.7%
Defined contribution fund
The Qantas Group’s results include $173million (2013: $165million) of expenses in relation to defined contribution funds.
31. RELATED PARTIES
(A) REMUNERATION OF KEY MANAGEMENT PERSONNEL
The aggregate remuneration of the KMP of the Qantas Group is set out below:
Qantas Group
2014
$’000
2013
$’000
Short-term employee benefits 9,129 11,344
Post-employment benefits 522 463
Other long-term benefits (285) 118
Share-based payments 4,421 4,974
13,787 16,899
Further details in relation to the remuneration of KMPs is included in the Directors’ Report from pages 44 to 64.
(B) OTHER RELATED PARTY TRANSACTIONS – INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
Transactions with investments accounted for under the equity method are conducted on normal terms and conditions.
Transactions between the Qantas Group and associates include:
–The Qantas Group provides airline seats on domestic and international routes to Helloworld Ltd for sale through its travel
agency network
–The Qantas Group sells Frequent Flyer points to Helloworld Ltd and redeems vouchers on the Qantas Frequent Flyer store
–The Qantas Group provides aircraft sourcing for Jetstar Japan Co. Ltd. and Jetstar Hong Kong Airways Limited
–The Qantas Group established a business service agreement with Jetstar branded airlines in Japan, Hong Kong and Vietnam for
the provision of business services to enable the low cost airline to operate a consistent customer experience for the Jetstar brand
Transactions and balances with investments accounted for under the equity method are included in the Consolidated Financial
Statements as follows:
Qantas Group
2014
$M
2013
$M
Revenue and other income 61 56
Finance income 6 5
Expenditure 49 71
Receivables 292 314
Payables 5 11