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

Administered by Department of Finance

Legislation au F2018L01142 Not in force Legislative Instrument

Legislation content

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

 

 

Overview

The Remuneration Tribunal (2018/08 Members of Parliament) Amendment Determination 2018 was enacted to adjust the travel and motor vehicle allowances for members of Parliament and Ministers, ensuring they remain in line with the prevailing economic conditions and taxation rulings. This determination was made under the Parliamentary Business Resources Act 2017 by the Remuneration Tribunal, which has the statutory authority to make such determinations annually. The policy objective of this amendment is to maintain fair and appropriate remuneration and allowances for members of Parliament, reflecting changes in travel expenses and motor vehicle allowances as determined by the Australian Taxation Office. This determination ensures that the allowances remain consistent with the expenses deemed reasonable by the ATO, thus preventing any undue financial advantage or disadvantage to the office holders. The Remuneration Tribunal did not conduct external consultation for this amendment as it follows its established practice of annually reviewing travel and motor vehicle allowances. Instead, the Tribunal relied on the Australian Taxation Office’s Determination TD 2018/11 and the Income Tax Assessment Act 1997 – Cents per Kilometre Deduction rate for Car Expenses 2018 to inform its adjustments. These amendments include increasing the rate of travel allowance for the Prime Minister, travel allowance for Ministers, and the private vehicle allowance rate. This amendment also replaced the outdated travel allowance rates with new figures, ensuring alignment with current economic standards.

Scope and Application

The Remuneration Tribunal (2018/08 Members of Parliament) Amendment Determination 2018 applies to members of the Australian Parliament and former members, focusing on their remuneration, travel allowances, and expenses. The determination, made under the Parliamentary Business Resources Act 2017, mandates the Remuneration Tribunal to establish annual rates for the remuneration of members, travel allowances for domestic travel, and allowances and expenses for former members. The Tribunal is also responsible for annually reviewing travel expenses and allowances, with the ability to inquire into other matters if requested by the Special Minister of State. The amendment determination adjusts various allowances based on the Australian Taxation Office's rulings, ensuring alignment with tax substantiation exceptions and cent-per-kilometre deductions for work-related car expenses. This determination does not affect individuals' rights adversely and does not impose any new liabilities. It is effective from 26 August 2018, with retrospective application allowed if it does not disadvantage any person except the Commonwealth or its authorities. The Remuneration Tribunal has the authority to repeal, rescind, revoke, amend, or vary the instrument as needed, in accordance with the Acts Interpretation Act 1901.

Key Provisions

The Remuneration Tribunal (2018/08 Members of Parliament) Amendment Determination 2018 outlines the adjustments to travel and motor vehicle allowances for parliamentarians as directed by the Remuneration Tribunal under the Parliamentary Business Resources Act 2017 (PBR Act). Section 1 of the determination increases the travel allowance rate for the Prime Minister when staying in commercial accommodation from $571 to $577 per night (section 19). Section 2 raises the travel allowance for Ministers, when the Commonwealth funds the accommodation, from $181 to $184 per day (section 20). Section 3 adjusts the private vehicle allowance from 66 cents to 68 cents per kilometre (section 21). Section 4 increases the meals and incidentals rate for Ministers provided with accommodation from $90 to $91 per day (section 22). Section 5 replaces the previous table of travel allowance rates with a new table, reflecting updated rates (section 23). The Act imposes several obligations on the Remuneration Tribunal. It mandates the Tribunal to determine the remuneration for members of Parliament, the rates of travel allowances for domestic travel, and the allowances and expenses for former members at least annually (PBR Act sections 31, 45, and 46). The Tribunal must also inquire annually into travel expenses and allowances for domestic travel, excluding the rates of travel allowances, which it determines (PBR Act section 35). Additionally, the Tribunal must publish its reasons for any determinations made (PBR Act section 31). These obligations ensure that the allowances and remuneration for parliamentarians are reviewed and adjusted regularly to reflect changes in economic conditions and other relevant factors. The determination does not explicitly mention any offences, penalties, or consequences for non-compliance with the provisions. However, given the legislative context and the importance of the Tribunal's role in ensuring fair and appropriate remuneration and allowances for parliamentarians, non-compliance could potentially lead to legal challenges or other consequences under the PBR Act or other relevant legislation. The Tribunal's decisions are subject to review by the courts, and any significant discrepancies or errors in its determinations could result in judicial intervention.

Legal classification tags

Area of Law
Remuneration Law
Instrument
Statutory Instrument
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.