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Local Government Bulletins

Discounting of employee benefits in accordance with AASB119

Department of Local Government, Racing and Multicultural Affairs


This bulletin is to advise local governments of the rates applicable to Commonwealth Government Bonds as at 30 June 2018 for the purpose of discounting employee benefits under Australian Accounting Standard AASB119 Employee Benefits.


The main features of AASB119 are:

  • Prescribes general recognition and measurement criteria for employee benefits including wages and salaries, compensated absences, profit sharing and bonus plans, termination benefits and certain post-employment benefits.
  • Requires liabilities that arise in respect of short-term employee benefits (wages and salaries, leave entitlements and other employee benefits expected to be settled wholly within 12 months of the reporting date) to be measured at their nominal amounts.
  • Requires other long-term employee benefit liabilities (e.g. long service leave not expected to be settled wholly within 12 months after the reporting date) to be measured at present value.
  • Requires the market yields on government bonds to be used in determining the present value of other long-term employee benefit liabilities.
  • Requires disclosures to be made.

Commonwealth Government Securities

The Commonwealth Bond yields as at 30 June 2018 were as follows:

MaturityCoupon Yield
21 October 20183.25%1.865
15 March 20195.25%1.910
21 October 20192.75%1.970
15 April 20204.50%1.985
21 November 20201.75%2.025
15 May 20215.75%2.055
21 December 20212.00%2.120
15 July 20225.75%2.160
21 November 20222.25%2.225
21 April 20235.50%2.265
21 April 20242.75%2.375
21 April 20253.25%2.465
21 April 20264.25%2.535
21 April 20274.75%2.585
21 November 20272.75%2.615
21 May 20282.25%2.630
21 November 20282.75%2.635
21 April 20293.25%2.635
21 November 20292.75%2.665
21 May 20302.50%2.695
21 April 20334.50%2.795
21 June 20352.75%2.885
21 April 20373.75%2.915
21 June 20393.25%2.985
21 March 20473.00%3.085

These rates are sourced from the ‘Indicative Mid Rates of Australian Government Securities – F16’ table on the Reserve Bank of Australia’s website.

Further information

Any further enquiries on this matter should be addressed to:

Sustainability Team, Local Government and Regional Services
Department of Local Government, Racing and Multicultural Affairs
PO Box 15009
City East
Brisbane  QLD  4002
(07) 3452 6720

Last updated: Monday, Nov 30, 2020