REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2017/19
Official Travel by Office Holders
- The Remuneration Tribunal Act 1973 (the Act) establishes the Remuneration Tribunal (the Tribunal) as an independent statutory authority responsible for reporting on and determining the remuneration, allowances and entitlements of key Commonwealth office holders. These include members of parliament, Judges of Federal Courts, most full-time and part-time holders of public offices including Specified Statutory Offices and Principal Executive Offices.
Consultation
2. Section 11 of the Act advises that in the performance of its functions the Tribunal:
- may inform itself in such manner as it thinks fit;
- may receive written or oral statements;
- is not required to conduct any proceeding in a formal manner; and
- is not bound by the rules of evidence.
3. The Tribunal normally receives submissions on remuneration from a portfolio minister, or a secretary, program manager or employing body (in respect of a Principal Executive Office) with responsibility for the relevant office(s). The Tribunal will normally seek the views of the relevant Portfolio Minister prior to determining remuneration for an office.
4. The Tribunal may reach a decision based on the information provided in the submission and other publicly available information such as portfolio budget statements, annual reports, corporate plans, legislation and media releases. On occasion it may wish to meet with relevant parties or seek further information from the relevant minister or person making the submission.
5. Amongst other relevant matters in deliberating on appropriate remuneration for an office the Tribunal informs itself on:
- the main functions, responsibilities and accountabilities of the office;
- the organisational structure, budget and workforce;
- the requisite characteristics, skills or qualifications required of the office holder(s); and
- the remuneration of similar, comparator, offices within its jurisdiction.
Amendment of Clause 3.11
6. There was no consultation on this matter. The Tribunal received advice from the Senate Regulations and Ordinances Committee in relation to the manner in which the Australian Taxation Office’s Determination TD 2017/19: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year? was incorporated into Determination 2017/15 – Official Travel by Office Holders.
7. The Tribunal issued an amended Explanatory Statement for Determination 2017/15 on 31 October 2017 addressing the manner in which the Taxation Determination is incorporated and indicating how it may be obtained.
8. Remuneration Tribunal Determination 2019/17 amends Clause 3.11 of Determination 2017/15 by removing the words “(or its successor)” after the reference to the operative Taxation Determination. This satisfies the requirements of section 14 of the Legislation Act 2003 by only incorporating a legislative instrument that is in force at the time at the commencement of Determination 2017/15.
Retrospectivity
9. Any retrospective application of this Determination is in accordance with subsection 12(2) of the Legislation Act 2003 as it does not affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth) to that person’s disadvantage, nor does it impose any liability on such a person.
The power to repeal, rescind and revoke, amend and vary
10. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Details of the determination are as follows:
PART 1 – Official Travel by Office Holders
11. Clause 1.1 specifies the Principal Determination (Number 15 of 2017) for the purposes of Part 1 of the Determination.
12. Clause 1.2 is amends clause 3.11 of the Principal Determination.
13. Clause 1.3 sets a date of effect from 27 August 2017.
Authority: Subsections 5(2A), 7(3) and 7(4) of the Remuneration Tribunal Act 1973
Authority: Part II of Division 4 of the Remuneration Tribunal Act 1973
Overview
The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal as an independent statutory authority tasked with determining the remuneration, allowances and entitlements for key Commonwealth office holders, including members of parliament, Federal Court judges, and public office holders. This legislation aimed to fill the gap by ensuring fair and appropriate compensation for these officials, reflecting their responsibilities and the prevailing economic conditions. Enacted by the Australian Parliament, the policy objective behind the Act is to maintain an independent and transparent process for determining the remuneration of public officials, thereby fostering public confidence in the integrity of the federal government. The Tribunal operates with a broad mandate, allowing it to gather information and make determinations based on a range of publicly available resources and consultations with relevant ministers or employing bodies.
Scope and Application
The Remuneration Tribunal Act 1973 applies to the Remuneration Tribunal, which is an independent statutory authority that determines the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of parliament, Judges of Federal Courts, and holders of public offices such as Specified Statutory Offices and Principal Executive Offices. The Act empowers the Tribunal to inform itself in any manner it sees fit, receive written or oral statements, and make decisions based on submissions from relevant ministers or employing bodies as well as publicly available information. The Tribunal may also meet with relevant parties or seek further information. The Act applies to the Commonwealth jurisdiction, and the Tribunal has the flexibility to determine remuneration for offices based on their functions, responsibilities, accountabilities, organisational structure, budget, workforce, and requisite characteristics or qualifications of the office holder, as well as the remuneration of similar offices within its jurisdiction. The Remuneration Tribunal Determination 2019/17 amends Clause 3.11 of Determination 2017/15 by removing the words "(or its successor)" after the reference to the operative Taxation Determination, in accordance with subsection 14 of the Legislation Act 2003. This Determination does not have any retrospective application that affects the rights of a person, other than the Commonwealth or an authority of the Commonwealth, to their disadvantage, nor does it impose any liability on such a person. The power to repeal, rescind, revoke, amend, or vary any instrument of a legislative or administrative character is conferred under subsection 33(3) of the Acts Interpretation Act 1901.
Key Provisions
The Remuneration Tribunal Act 1973 (the Act) establishes the Remuneration Tribunal (the Tribunal) as an independent statutory authority responsible for determining the remuneration, allowances, and entitlements of key Commonwealth office holders. The Tribunal's primary function is to assess and determine appropriate remuneration for various public offices, including Members of Parliament, Judges of Federal Courts, and holders of public offices such as Specified Statutory Offices and Principal Executive Offices. Section 11 of the Act provides the Tribunal with broad powers to gather information and conduct its functions, including the authority to inform itself in any manner it deems appropriate, receive written or oral statements, and not be bound by formal procedures or the rules of evidence.
The Act imposes specific obligations on the Tribunal in determining remuneration. Section 11 allows the Tribunal to consider various sources of information, including submissions from portfolio ministers, secretaries, program managers, or employing bodies. The Tribunal is required to seek the views of the relevant Portfolio Minister before determining remuneration for an office. It may base its decisions on the information provided, publicly available documents such as portfolio budget statements, annual reports, corporate plans, and media releases, and may also meet with relevant parties or seek further information as necessary. When deliberating on remuneration, the Tribunal must consider several factors, including the main functions, responsibilities, and accountabilities of the office, the organisational structure, budget, workforce, requisite characteristics, skills, or qualifications required of the office holder, and the remuneration of similar, comparator offices within its jurisdiction.
Breaching the obligations set out in the Act can lead to various consequences. The Act does not explicitly outline specific offences or penalties for non-compliance with its provisions. However, the Tribunal's determinations carry legal weight and are binding on the Commonwealth and relevant office holders. Failure to adhere to the Tribunal's determinations may result in disputes, legal challenges, or administrative actions. While the Act itself does not impose criminal or civil penalties, the consequences of non-compliance could be addressed through other legislative frameworks or internal administrative processes within the Commonwealth. It is important to note that any retrospective application of the Determination is in accordance with subsection 12(2) of the Legislation Act 2003, ensuring it does not disadvantage any person or impose liability on them.