EXPLANATORY STATEMENT
Issued by the authority of the Special Minister of State
for the Public Service and Integrity
Remuneration and Other Legislation Amendment Act 2011
Proclamation
Subsection 2(1) of the Remuneration and Other Legislation Amendment Act 2011 (the Act) provides that Schedules 1 and 2 of the Act commence on a day to be fixed by proclamation. However, if any of the provisions of Schedules 1 and 2 do not commence within six months of the date the Act receives the royal assent, then those provisions commence on the first day after the end of that six month period. The Act recently received the Royal Assent.
The purpose of the proposed Proclamation is to fix 5 August 2011 as the day on which Schedules 1 and 2 commence.
The Act expands the jurisdiction of the Remuneration Tribunal (the Tribunal) to determine the base salary of parliamentarians and the remuneration of Departmental Secretaries and other offices established under the Public Service Act 1999. All the provisions of the Act, other than Schedules 1 and 2, commenced the day the Act received the Royal Assent.
Schedule 1 of the Act provides the framework for the Tribunal determining a classification structure for Departmental Secretaries and related matters. Additionally, it provides the Tribunal with responsibility for determining the remuneration and recreation leave entitlements of the Public Service Commissioner, the Merit Protection Commissioner and the heads of Executive Agencies created under the Public Service Act 1999.
Schedule 2 of the Act restores the ability of the Tribunal to determine parliamentary base salary and removes the Parliaments’ ability to disallow parliamentary remuneration determinations made by the Tribunal.
The proposed Proclamation would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Remuneration and Other Legislation Amendment Act 2011 was enacted to address the need for an independent body to determine the remuneration of parliamentarians, Departmental Secretaries, and other key public service roles, ensuring transparency and fairness in these processes. This legislation was introduced by the Parliament of Australia, aiming to enhance the integrity and accountability of the public service by granting the Remuneration Tribunal expanded authority over salary determinations. The Act’s policy objective is to remove the potential for political influence over these crucial financial decisions, thereby maintaining public trust in the government's administrative processes. The Proclamation issued under this Act sets 5 August 2011 as the commencement date for its schedules, which establish the Tribunal's new responsibilities and the framework for determining the remuneration and leave entitlements of various public officials.
Scope and Application
The Remuneration and Other Legislation Amendment Act 2011 applies to the Remuneration Tribunal and its responsibilities in determining the remuneration of certain public sector roles and parliamentary members. Specifically, the Act expands the Tribunal’s jurisdiction to include the base salary of parliamentarians and the remuneration of Departmental Secretaries, as well as other offices established under the Public Service Act 1999. It also extends the Tribunal's responsibility to determining the remuneration and recreation leave entitlements of the Public Service Commissioner, the Merit Protection Commissioner, and the heads of Executive Agencies created under the Public Service Act 1999. This legislation operates nationally, affecting entities and individuals involved in the public service and parliamentary sectors across Australia. The Act does not specify exclusions, but rather delineates the Tribunal’s expanded jurisdiction through its schedules. The commencement of the Act is governed by the proclamation, which sets 5 August 2011 as the effective date for Schedules 1 and 2, ensuring that the Tribunal’s enhanced responsibilities are operationalised within the stipulated timeframe.
Key Provisions
The Remuneration and Other Legislation Amendment Act 2011 (the Act) introduces significant changes to the determination of remuneration and other related matters for public officials. The main operative sections of the Act are contained in Schedules 1 and 2. Section 2(1) of the Act mandates that these schedules commence on a date to be specified by proclamation. If these provisions do not commence within six months of the Act receiving the Royal Assent, they will come into effect on the first day after the end of that six-month period. The Proclamation fixes 5 August 2011 as the commencement date for these schedules.
The Act expands the jurisdiction of the Remuneration Tribunal (the Tribunal), giving it the authority to determine the base salary of parliamentarians, the remuneration of Departmental Secretaries, and other offices established under the Public Service Act 1999. The Tribunal's expanded role includes setting a classification structure for Departmental Secretaries and determining the remuneration and recreation leave entitlements of the Public Service Commissioner, the Merit Protection Commissioner, and the heads of Executive Agencies created under the Public Service Act 1999. Additionally, the Act restores the Tribunal's ability to determine parliamentary base salary and removes the Parliament's ability to disallow remuneration determinations made by the Tribunal.
The obligations imposed by the Act on the Tribunal and other entities are significant. The Tribunal must now establish and maintain a classification structure for Departmental Secretaries and related officials, ensuring that their remuneration and leave entitlements are fairly and consistently determined. The Tribunal must also ensure that parliamentary base salaries are set in accordance with its determinations, without the possibility of disallowance by Parliament. The Public Service Commissioner, the Merit Protection Commissioner, and the heads of Executive Agencies must cooperate with the Tribunal in the determination of their remuneration and leave entitlements.
Failure to comply with the requirements of the Act can lead to serious consequences. While the Act does not explicitly outline specific offences or penalties, breaches of the Tribunal’s determinations or failure to comply with the Act’s provisions may result in legal challenges or other administrative actions. The seriousness of non-compliance is underscored by the fact that the Tribunal's determinations regarding remuneration and entitlements are now final and cannot be disallowed by Parliament. This reinforces the importance of adhering to the Act's provisions to avoid potential disputes or legal ramifications.