Senator Wong: The Treasurer has provided the following answer to the honourable senator's question: The Australian Taxation Office (ATO) utilises Hoders Pty Ltd to provide a specified range of reward and recognition items. Hoders Pty Ltd was the successful tenderer to supply two categories of recognition items under the ATO's Reward & Recognition Scheme – Separation (Milestone) Gifts and Recognition (Line) Awards. The ATO established a formal Reward and Recognition policy to enable the provision of recognition and rewards to its employees for various endeavours in 2002. Until early 2010, items were purchased through various processes and providers. A review in 2009 of the scheme identified that this process was administratively onerous on the ATO and placed an initial financial burden on employees. A better way to manage this policy was investigated and it was identified that other public service agencies – both State and Federal – utilise a web based system for provision of award items. (a) (i) A defined range of products are available to be selected in both categories of recognition. The individual value is determined by taking into account advice provided on fringe benefit tax (FBT) implications, as well as public perception considerations. Therefore, the choices available do not include anything that constitutes entertainment – for example, restaurant / meal vouchers, movie tickets and alcohol. The value of separation gifts are also determined by the total years of service with the APS. The approved range of goods includes watches, jewellery, audio visual, tableware, sports equipment, optical goods, luggage, crystal, clocks and accessories. A detailed list is provided at Attachment A. (a) (ii) For the period February 2010 to end of May 2011, 754 items have been chosen by eligible employees under the ATO's Rewards and Recognition Scheme and purchased by the ATO through Hoders Pty Ltd. A detailed list is provided at Attachment A. (b) (i) The purchases were made for separation gifts and line awards. Separation gifts are awarded to staff with 20 years or more of service who are leaving the organisation. Tenure milestones are recognised through formal certificates unless that employee is separating from the organisation. From February 2010 until end of May 2011, 728 employees achieved tenure of over 20 years on leaving the ATO. The value of gifts awarded is dependent on the length of service in the APS as outlined below: SEPARATION GIFTS Years of service 20 -29 years 30—39 years 40 + years Gift to the value of (excl. GST and other fees) $130 $240 $300 Number of recipients 402 279 47 A detailed list of the separation gifts (noting that not all 728 eligible recipients have chosen their gift at 31 May 2011) purchased through Hoders Pty Ltd is provided at Attachment A. Line awards are given as either individual or team awards in recognition of high performance. There is a 6 month cycle for nominating and awarding line awards, resulting in an average of 130 awards per financial year. The line award results from the February 2011 round are shown below: LINE AWARD RESULTS FROM FEBRUARY 2011 ROUND Distribution Individuals Teams1 Award up to and including the value of (excl. GST and other fees) $299 $600 Nominations 83 67 Winners 38 25 Note 1: Distributed evenly amongst the winning team members to choose an individual item . A detailed list of the line awards (including those for rounds prior to February 2011) purchased through Hoders Pty Ltd is provided at Attachment A. (b) (ii) The total cost of these purchases, excluding GST and delivery costs, for the period February 2010 to end of May 2011 is $119,670. Further details are provided at Attachment A. ATTACHMENT A (a)(i) Product categories (a)(ii) Quantity (b)(ii) Total cost (Excl. GST & delivery) From 1 February 2010 to 31 May 2011 (b)(i) SEPARATION GIFTS 20 – 29 Years of Service (Gift to the value of (excl. GST and other fees) $130) AUDIO VISUAL 43 $6035 CLOCKS 20 $2880 CRYSTAL 33 $4440 HOMEWARES 1 $120 JEWELLERY 39 $5530 LUGGAGE 20 $2815 OPTICAL 30 $4420 PEN 4 $595 SPORTS 20 $2790 TOOLS 4 $580 WATCHES 111 $15910 WEATHER 13 $1750 30 – 39 YEARS OF SERVICE (Gift to the value of (excl. GST and other fees) $240) AUDIO VISUAL 35 $7315 CLOCKS 10 $2075 JEWELLERY 26 $5350 LUGGAGE 7 $1425 OPTICAL 22 $4685 PEN 2 $400 SPORTS 11 $2285 TABLEWARE 21 $4230 TOOLS 10 $1950 WATCHES 69 $14115 WEATHER 14 $2940 40+ YEARS OF SERVICE (Gift to the value of (excl. GST and other fees) of $300) AUDIO VISUAL 7 $1990 CLOCKS 2 $550 HOMEWARES 1 $300 JEWELLERY 5 $1465 LUGGAGE 2 $600 OPTICAL 2 $570 SPORTS 1 $270 TABLEWARE 2 $570 TOOLS 1 $300 WATCHES 14 $4070 (b)(i) LINE AWARDS Awards up to $20 ACCESSORIES 32 $640 Awards up to $50 ACCESSORIES 10 $500 JEWELLERY 10 $500 HOMEWARES 10 $475 LUGGAGE 15 $750 OPTICAL 6 $300 SPORTS 4 $200 TABLEWARE 8 $400 WATCHES 3 $150 WEATHER 1 $50 Awards up to $100 ACCESSORIES 1 $100 HOMEWARES 3 $295 JEWELLERY 3 $300 LUGGAGE 1 $100 SPORTS 1 $85 TABLEWARE 4 $380 TOOLS 1 $100 WATCHES 2 $200 Awards up to $200 AUDIO VISUAL 2 $390 HOMEWARES 4 $800 JEWELLERY 3 $585 OPTICAL 1 $200 SPORTS 1 $195 TABLEWARE 2 $400 TOOLS 2 $390 WEATHER 1 $195 Awards up to $299 AUDIO VISUAL 8 $2160 HOMEWARES 1 $270 JEWELLERY 7 $1890 SPORTS 1 $270 TOOLS 1 $270 WATCHES 3 $810