Explanatory Statement: Remuneration Tribunal (2018/08 Members of Parliament) Amendment Determination 2018

1. The determination is made under the Parliamentary Business Resources Act 2017 (the PBR Act), which gives the Remuneration Tribunal (the Tribunal) power to make determinations in relation to various matters for members of the Parliament at least once each year in sections 31, 45 and 46.
2. The Tribunal must determine the remuneration to be paid to members, the rates of travel allowances for domestic travel, and the allowances and expenses to be paid to former members.  The Tribunal must publish its reasons for making a determination.
3. The Tribunal also has functions under section 35 of the PBR Act relating to travel expenses, travel and motor vehicle allowances and other public resources.  The Tribunal must inquire annually into travel expenses and travel allowances for domestic travel (except rates of travel allowances for domestic travel which it determines), and may be asked by the Special Minister of State to inquire into other matters.  Regulations must be made or amended in accordance with the Tribunal’s recommendations.
4. Before the commencement of the PBR Act on 1 January 2018, the Tribunal was given power to make determinations in relation to these matters by the Remuneration Tribunal Act 1973.

Consultation

Review of Travel and Motor Vehicle Allowances

5.        There was no consultation on this matter as it is the Tribunal’s practice to review, each year, the travel and motor vehicle allowances applicable to office holders for which it determines remuneration. 

6.        The Tribunal did not receive any submissions on this matter.

7.        In conducting this review, making this determination and adjusting travel allowance rates for parliamentarians the Tribunal has relied on the Australian Taxation Office’s (ATO) Determination TD 2018/11: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2018–19 income year? (TD 2018/11).

8.        Amongst other things the ATO determination sets out the amounts that the ATO Commissioner considers are reasonable for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 for the 2018–19 income year in relation to claims made by employees for domestic travel expenses and overseas travel expenses.

9.     Taxation Determination TD 2018/11 (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.  The Determination is available online for free at https://www.ato.gov.au/law/view/pdf/pbr/td2018-011.pdf.

10.   The travel allowance rates for parliamentarians include the Canberra rate that is set at a lower rate than that available to other office holders in the Tribunal’s jurisdiction, the Canberra Daily Allowance, the Prime Minister’s travel allowance rate and the meals and incidentals rate for Ministers provided with accommodation.

11.   In conducting this review, making this determination and adjusting the private vehicle allowance rate for parliamentarians the Tribunal has relied on the ATO’s Income Tax Assessment Act 1997 – Cents per Kilometre Deduction rate for Car Expenses 2018 (MVE 2018).  Subsection 28-25(4) of the Income Tax Assessment Act 1997 allows the Commissioner of Taxation to determine the rate for the cents per kilometre method for an income year.  The determination applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses.  This instrument is available online for free at http://law.ato.gov.au/atolaw/view.htm?docid=%22itd%2Fmve20181%2F00001%22.

12.   The Tribunal’s Reasons for Determination are available at www.remtribunal.gov.au.

13.   Remuneration Tribunal (2018/08 Members of Parliament) Amendment Determination 2018 implements the Tribunal’s travel and motor vehicle allowance review decisions.

Retrospectivity 

14.   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

15.   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 – NAME

16. Part 1 specifies the name of the instrument.

PART 2 – COMMENCEMENT

17.   Part 2 specifies the commencement date of the instrument of 26 August 2018.

PART 3 – AUTHORITY

18.   Part 3 specifies the authority for the instrument.

PART 4 – SCHEDULES

19. Section 1 increases the rate of travel allowance for the Prime Minister for each night in commercial accommodation by amending clause 5.3 of Remuneration Tribunal Determination 2017/23: Members of Parliament by omitting:

“$571”

and substituting it with;

“$577”.

20.   Section 2 increases the rate of travel for a Minister where the Commonwealth pays for the accommodation by amending paragraph 5.5(a) of Remuneration Tribunal Determination 2017/23: Members of Parliament by omitting:

“$181”

and substituting it with;

“$184”.

21.   Section 3 increases the private vehicle allowance by amending clause 6.1 of Remuneration Tribunal Determination 2017/23: Members of Parliament by omitting:

“66 cents”

and substituting it with;

“68 cents”. 

22.   Section 4 amending clause 7.1 of Remuneration Tribunal Determination 2017/23: Members of Parliament by omitting:

“$90”

and substituting it with;

“$91”.

23.   Section 5 repeals the table setting out Travel Allowance Rates in Schedule B of Remuneration Tribunal Determination 2017/23: Members of Parliament and substitutes a new table in schedule B of Remuneration Tribunal (2018/18 Members of Parliament) Amendment Determination.

Authority: Sections 45 and 46

 Parliamentary Business Resources Act 2017