REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2007/08
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 annual review of remuneration. In Table A1 the upper end of the bands for both superannuation salary and total remuneration have been increased by 4.2 per cent (rounded up). Reference salaries in the structure have also increased by 4.2 per cent (rounded up).
Authority: Sub-sections 5(2A), 7(3D) and 7(4) of
the Remuneration Tribunal Act 1973.
Overview
The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal as a body with the authority to determine the remuneration and associated terms for various office holders, ensuring that these are reviewed and adjusted as necessary. This Act was introduced to address the need for an independent and expert body to assess and adjust remuneration packages for public office holders, ensuring fairness and alignment with economic conditions. The Remuneration Tribunal, as part of its functions under this Act, periodically reviews and determines the remuneration of office holders, guided by the policy objective of maintaining fair and competitive pay that reflects the responsibilities and conditions of the roles. The determinations made by the Tribunal are based on comprehensive consultations and are designed to avoid any retrospective disadvantage to persons other than the Commonwealth or its authorities.
Scope and Application
The Remuneration Tribunal Act 1973 authorises the Remuneration Tribunal to determine the remuneration and significantly related matters for office holders. The act applies to office holders within the Commonwealth, ensuring that their remuneration and associated terms are reviewed and adjusted in accordance with the tribunal’s determinations. The tribunal conducts its reviews through established consultation practices, reflecting a commitment to informed decision-making. The application of these determinations is prospective unless explicitly stated otherwise, and any retrospective adjustments are made in a manner that does not adversely affect the rights of any person, other than the Commonwealth or its authorities. This determination, in particular, modifies the Principal Determination Number 19 of 2005 by updating the classification structure and terms and conditions, specifically increasing the upper end of the bands for superannuation salary and total remuneration by 4.2 per cent, as well as adjusting the reference salaries accordingly. The application of this legislation extends through subordinate instruments as outlined in the clauses of the determination.
Key Provisions
The Remuneration Tribunal, under its authority provided by the Remuneration Tribunal Act 1973, has made a determination regarding the remuneration and related matters for office holders. This determination is structured in such a way that it is informed by consultation in accordance with established practices, as stated in clause 2 of the Explanatory Statement. Clause 1 refers to the Principal Determination (Number 19 of 2005 as amended), while clause 2 specifically replaces Table A1 in the Principal Determination with a new version that reflects the outcomes of the Tribunal's annual review. Notably, the new Table A1 shows an increase of 4.2 per cent (rounded up) in the upper end of the bands for both superannuation salary and total remuneration, and reference salaries have also been increased by the same percentage. This determination is made in accordance with subsection 12(2) of the Legislative Instruments Act 2003, ensuring that 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 Act imposes several obligations and requirements on the parties it governs. Firstly, the Remuneration Tribunal is required to conduct a review of remuneration annually and to make a determination based on this review. The Tribunal must ensure that it consults with relevant stakeholders as part of this process, in line with established practices. Furthermore, the Tribunal must ensure that any retrospective application of its determination does not adversely affect the rights of individuals or impose any liabilities on them. This is to ensure fairness and compliance with legislative standards. The new Table A1, which reflects the outcomes of the annual review, must be adopted by relevant entities as part of the remuneration structure.
There are potential consequences for non-compliance with the provisions of this determination. While the Explanatory Statement does not explicitly outline specific offences or penalties for breaches, it is reasonable to infer that failure to comply with the Tribunal’s determination could lead to legal challenges or disputes regarding remuneration. Additionally, entities that do not adhere to the updated remuneration structure could face financial implications or operational disruptions. The Remuneration Tribunal Act 1973, under which this determination is made, may provide further guidance on enforcement mechanisms and potential penalties, but these are not detailed in the provided Explanatory Statement.