REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2008/10
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
sub-section 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 4.3 per cent (rounded up). Reference salaries in the structure have also increased by 4.3 per cent (rounded up). The superannuation salary band minima for bands B, C, D and E have been increased, and the Total Remuneration band minima for bands B, C and D have also been increased.
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 ensure that the remuneration and related matters of office holders are periodically reviewed and adjusted to reflect changes in economic conditions and cost of living. The Act empowers the Remuneration Tribunal to make determinations on these matters. The 2008 determination, as outlined in F2008L02074, was made by the Remuneration Tribunal following consultations in accordance with established practices. This determination primarily addresses the annual review of remuneration for office holders, ensuring that their salaries, superannuation, and other related benefits are appropriately adjusted. The policy objective is to maintain fair and equitable remuneration that reflects the economic environment and the responsibilities of the office holders, without imposing any liabilities or disadvantaging individuals other than the Commonwealth or its authorities. The adjustments specified in this determination include increases to the upper ends of the bands for superannuation salaries and total remuneration, as well as increases to reference salaries and band minima.
Scope and Application
The Remuneration Tribunal Explanatory Statement Determination 2008/10 pertains to the Principal Executive Office (PEO) Classification Structure and Terms and Conditions, applying to office holders as mandated by the Remuneration Tribunal Act 1973. The Tribunal’s determination process involves consultation in line with established practice, ensuring that any retrospective application of this determination does not adversely affect the rights of individuals, nor impose liabilities, in accordance with sub-section 12(2) of the Legislative Instruments Act 2003. The principal determination, as outlined in Clause 1, refers to the Principal Determination (Number 19 of 2005 as amended). Clause 2 updates the remuneration structure by replacing Table A1 in the Principal Determination with a revised Table A1, reflecting a 4.3 per cent increase (rounded up) in the upper ends of the bands for superannuation salary and total remuneration. Additionally, reference salaries in the structure and the superannuation salary band minima for bands B, C, D, and E, as well as the total remuneration band minima for bands B, C, and D, have been increased. This determination is made under the authority of sub-sections 5(2A), 7(3D), and 7(4) of the Remuneration Tribunal Act 1973.
Key Provisions
The Remuneration Tribunal has established new provisions for the classification structure and terms and conditions of remuneration for office holders, as outlined in the Determination 2008/10 (Clause 1). This determination modifies the Principal Determination (Number 19 of 2005) by updating Table A1 to reflect recent adjustments to remuneration rates. Clause 2 of the determination replaces the previous Table A1 with a new one, increasing the upper ends of the bands for superannuation salary and total remuneration by 4.3 per cent (rounded up). Additionally, the reference salaries in the structure have been increased by the same percentage, and the minima for certain superannuation salary and total remuneration bands have also been adjusted (Clause 2).
The obligations imposed by this determination primarily concern the adjustment of remuneration rates for office holders. The Remuneration Tribunal is responsible for consulting with relevant parties and ensuring that the updated classification structure and terms of remuneration are implemented effectively. Office holders and their representatives must adhere to the new remuneration rates as specified in the updated Table A1, ensuring compliance with the revised salary bands and reference salaries (Clause 1 and 2).
Failure to comply with the provisions of this determination could lead to various consequences. Although the explanatory statement does not specify the exact offences or penalties, it is implied that non-compliance might result in legal repercussions. The Remuneration Tribunal has the authority to enforce compliance, and breaches could potentially lead to legal actions or other administrative penalties. The exact nature and extent of these penalties would be determined based on the specific circumstances and the discretion of the Tribunal (Sub-sections 5(2A), 7(3D) and 7(4) of the Remuneration Tribunal Act 1973).
In summary, the determination made by the Remuneration Tribunal updates the classification structure and terms of remuneration for office holders. It imposes obligations on the Tribunal to consult and ensure compliance, as well as on office holders to adhere to the new rates. Non-compliance may result in legal consequences, although specific penalties are not detailed in the explanatory statement. The determination is made in accordance with the Remuneration Tribunal Act 1973 and the Legislative Instruments Act 2003.