REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2007/04
Principal Executive Office (PEO) Classification Structure and Terms and Conditions
1. The Remuneration Tribunal has inquired into and determined the remuneration and significantly related matters for office holders, as it is empowered to do by the Remuneration Tribunal Act 1973.
2. In making this determination the Tribunal has informed itself through consultation in accordance with established practice.
3. Any retrospective application of this determination is in accordance with subsection 12(2) of the Legislative Instruments 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.
4. Clause 1 specifies the Principal Determination (Number 19 of 2005 as amended) for the purposes of the Determination.
5. Clause 2 replaces Table A1 in the Principal Determination with a new Table A1 to reflect the outcomes of the Remuneration Tribunal’s review of the Principal Determination completed in December 2005. In Table A1 the upper end of the bands for both superannuation salary and total remuneration have been increased by 2.5 per cent (rounded up). This adjustment encompasses the additional flexibility that the Tribunal has given employing bodies to vary remuneration consistent with the outcomes of the Tribunal’s review of the Principal Executive Office structure. Reference salaries in the structure have also increased by 2.5 per cent (rounded up).
Authority: Sub-sections 5(2A), 7(3D) and 7(4) of
the Remuneration Tribunal Act 1973.
Overview
The Remuneration Tribunal Explanatory Statement 2007/04, published under the authority of the Remuneration Tribunal Act 1973, outlines the Tribunal's determination regarding the classification structure and terms and conditions for Principal Executive Offices. Enacted by the Parliament of Australia, this legislation seeks to address the need for a structured and transparent approach to the remuneration of office holders. The Remuneration Tribunal, empowered by this Act, conducts thorough consultations to ensure that its decisions are well-informed and fair. This particular determination, which amends the Principal Determination 19 of 2005, includes adjustments to salary bands and reference salaries, reflecting the outcomes of a review completed in December 2005. The policy objective is to provide an updated framework that accommodates the flexibility required by employing bodies while ensuring that any retrospective application of these changes does not adversely affect the rights of individuals, in line with the Legislative Instruments Act 2003.
Scope and Application
The Remuneration Tribunal has established a determination regarding the remuneration and related matters for office holders, as outlined in Determination 2007/04. This determination applies to the Principal Executive Office (PEO) Classification Structure and Terms and Conditions, and it is empowered by the Remuneration Tribunal Act 1973. The Tribunal made this determination through consultation in accordance with established practice, and any retrospective application of this determination is governed by subsection 12(2) of the Legislative Instruments Act 2003, ensuring that it does not disadvantage any person (other than the Commonwealth or an authority of the Commonwealth) and does not impose any liability on them. Clause 1 of this determination specifies the Principal Determination (Number 19 of 2005 as amended), and Clause 2 replaces Table A1 in the Principal Determination with a new Table A1, reflecting the outcomes of the Tribunal’s review completed in December 2005. This adjustment increases the upper end of the bands for both superannuation salary and total remuneration by 2.5 per cent (rounded up), providing additional flexibility to employing bodies to vary remuneration in line with the Tribunal’s review of the Principal Executive Office structure. Reference salaries in the structure have also increased by 2.5 per cent (rounded up).
Key Provisions
The key operative sections of this determination are Clause 2, which replaces Table A1 in the Principal Determination (Number 19 of 2005 as amended) to reflect the outcomes of the Remuneration Tribunal’s review of the Principal Executive Office structure. This clause effectively updates the remuneration bands for both superannuation salary and total remuneration by increasing the upper ends of these bands by 2.5 per cent (rounded up), as specified in the new Table A1. This adjustment provides employing bodies with additional flexibility to vary remuneration consistent with the Tribunal’s review findings. Additionally, the reference salaries in the structure have been increased by 2.5 per cent (rounded up) to reflect this adjustment.
The determination imposes obligations on employing bodies to ensure that remuneration and related matters are in line with the updated provisions of Table A1. This means that employing bodies must adjust the remuneration of office holders to fit within the new bands specified in the determination. The Tribunal has provided this flexibility to employing bodies to facilitate adjustments that align with the outcomes of the review. Employing bodies must also ensure that the reference salaries within the structure are updated accordingly, reflecting the 2.5 per cent increase.
Breach of the provisions set out in this determination could result in employing bodies not complying with the updated remuneration structures, potentially leading to disputes over remuneration. Although the determination does not explicitly state offences or penalties, non-compliance could lead to legal challenges or disputes regarding the appropriate remuneration levels for office holders. It is important for employing bodies to adhere to these updated terms to avoid such issues.
The Explanatory Statement clarifies that any retrospective application of this determination is in accordance with subsection 12(2) of the Legislative Instruments Act 2003, ensuring that it does not adversely affect the rights of individuals (other than the Commonwealth or an authority of the Commonwealth) and does not impose any liability on such persons. This means that the changes do not negatively impact individuals’ existing rights or financial positions, providing a safeguard against adverse consequences for those affected by the determination.