EXPLANATORY STATEMENT
Statutory Rules 1990 No 472
Judicial and Statutory Officers (Remuneration and Allowances)
Regulations (Amendment)
(Issued by the Authority of the Minister for Industrial Relations)
Sub-section 8 (1) of the Judicial and Statutory Officers (Remuneration and Allowances) Act 1984 (the Act) provides that where a person appointed to hold a statutory office in a full-time capacity was, immediately before the appointment, the holder in a full-time capacity of another statutory office or an officer (including an unattached officer) of the Australian Public Service or an officer in the service of a body corporate established for a public purpose by or under an Act, the person shall, if the regulations so provide, be paid, during the period of the appointment (including any period of re-appointment) to the first-mentioned statutory office, in lieu of the remuneration and expenses of office allowance (if any) payable in respect of that office, remuneration at such rate and an expenses of office allowance at such rate (if any) as are specified in, or ascertained in accordance with, the regulations.
Sub-section 8(3) of the Act provides that the Governor-General may make regulations for the purposes of the section.
The Judicial and Statutory Officers (Remuneration and Allowances) Regulations are amended by these Regulations. The Regulations insert a new regulation 4 to provide for the rate of remuneration payable where an officer is appointed Administrator of the Territory of Norfolk Island where immediately before that appointment the officer has been an unattached officer of the Australian Public Service, and immediately before that he or she has been a Secretary of a Department of State. The present Administrator fulfils these conditions.
Income tax is not payable by residents of Norfolk Island. The object of the Regulation is to ensure that the present Administrator receives overall a level of remuneration which equates with that which a Secretary of a Department of State in Australia would receive, after tax. It is likely that in April 1991 the present Administrator will return to Australia, but remain Administrator for some time. During this period his remuneration will be subject to income tax.
The Regulations provide for circumstances where the Administrator’s remuneration is subject to income tax and also where it is not. The remuneration and expenses of office allowance payable in respect of the office of Administrator of Norfolk Island, if such remuneration is subject to income tax, is to be equivalent to the basic rate payable to a Secretary of a Department of State. This rate is specified in Part 1 of the table in Clause 3 of Schedule 2 of the Remuneration and
In circumstances where the remuneration payable to the holder of the office of Administrator of Norfolk Island is not subject to income tax, the rate of remuneration payable is that equivalent to the basic rate for a Secretary of a Department of State, less the rate of tax which would have been payable had the remuneration been subject to income tax. This is to be calculated as if no deductions or dependant rebates were applicable under the Income Tax Assessment Act 1936.
The Regulations are to take effect from 1 July 1990, which is the date on which Part 3 of the Remuneration and Allowances Act 1990. which implements the current basic rate of remuneration for Secretaries of Departments of State, came into effect. Prior to this date the remuneration payable to the present Administrator, as an Administrative Service Officer Class 8 plus applicable allowances, not subject to income tax, slightly exceeded that then payable to a Secretary of a Department on the basic rate, after tax. From 1 July 1990 the basic rate of remuneration payable to a Secretary exceeded that payable to the Administrator, and it is therefore appropriate to pay the present Administrator, who was previously a Secretary, the higher rate.
The retrospective application of the Regulations will not affect the rights of a person (other than the Commonwealth) in a manner prejudicial to that person, nor does it impose any liability on such a person.
Overview
The Judicial and Statutory Officers (Remuneration and Allowances) Regulations (Amendment) 1990, issued under the authority of the Minister for Industrial Relations, amend the existing regulations to address a specific remuneration issue for the Administrator of Norfolk Island. Enacted by the Australian Parliament, these regulations aim to ensure that the Administrator's remuneration, after accounting for income tax where applicable, aligns with that of a Secretary of a Department of State in Australia. This adjustment is particularly pertinent as the current Administrator was previously a Secretary and will likely return to Australia while continuing in their role, subjecting their remuneration to income tax. The amendments, effective from 1 July 1990, also consider the change in the basic rate of remuneration for Secretaries, which surpassed the Administrator's prior remuneration after tax.
Scope and Application
The Judicial and Statutory Officers (Remuneration and Allowances) Regulations (Amendment) Statutory Rules 1990 No 472 apply to statutory officers appointed to hold a full-time statutory office, specifically in this case, the Administrator of the Territory of Norfolk Island. The amendments concern the remuneration and allowances payable to an individual who, immediately before their appointment as Administrator, was an unattached officer of the Australian Public Service and previously a Secretary of a Department of State. The purpose of these amendments is to ensure the Administrator’s remuneration aligns with that of a Secretary of a Department of State, considering the unique tax circumstances of Norfolk Island residents, who are exempt from income tax. The Regulations adjust the remuneration rates based on whether income tax applies, aiming to maintain parity with the remuneration of a Secretary of a Department of State, after accounting for tax implications if applicable. The Regulations are effective from 1 July 1990, aligning with the commencement of the Remuneration and Allowances Act 1990, and ensure that the Administrator’s remuneration is adjusted retroactively to reflect the correct comparative rates.
Key Provisions
The Judicial and Statutory Officers (Remuneration and Allowances) Regulations (Amendment) involve the amendment of the existing regulations to adjust the remuneration for the Administrator of the Territory of Norfolk Island. Specifically, Regulation 4 has been inserted to address the remuneration for an officer appointed as Administrator of Norfolk Island who was previously an unattached officer of the Australian Public Service and had served as a Secretary of a Department of State. The main objective of these amendments is to ensure that the Administrator's remuneration aligns with that of a Secretary of a Department of State, accounting for tax implications.
Under these regulations, the remuneration and expenses of office allowance for the Administrator of Norfolk Island will vary depending on whether the remuneration is subject to income tax. If the remuneration is subject to income tax, it will be set at the same rate as the basic remuneration for a Secretary of a Department of State, as detailed in Part 1 of the table in Clause 3 of Schedule 2 of the Remuneration and Allowances Act 1990. Conversely, if the remuneration is not subject to income tax, it will be equivalent to the basic rate for a Secretary of a Department of State minus the tax that would have been payable, calculated without any deductions or dependent rebates under the Income Tax Assessment Act 1936. These provisions are designed to ensure that the Administrator’s overall remuneration remains competitive and commensurate with their previous position.
These regulations impose specific obligations on the parties involved, primarily ensuring that the remuneration provided to the Administrator of Norfolk Island is consistent with that of a Secretary of a Department of State in Australia, adjusted for tax considerations. The responsible authorities must accurately calculate and disburse the remuneration as per the new regulations, ensuring that any changes in tax liability are appropriately reflected in the remuneration package.
For breaches of these regulations, there are no specific offences, penalties, or civil/criminal consequences outlined in the provided text. However, it is implied that adherence to the specified remuneration rates and tax adjustments is mandatory. Failure to comply with these regulations could potentially lead to disputes or legal challenges regarding the appropriate remuneration for the Administrator of Norfolk Island, though explicit penalties are not stated in the provided information.