REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2009/16
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 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 provide a framework for the determination of remuneration and related matters for office holders. This legislation was introduced to address the need for a consistent and transparent process for setting the pay and conditions of office holders in the Australian public service. The Remuneration Tribunal, established under this Act, is tasked with making determinations on remuneration and related issues, thereby ensuring fairness and consistency across various offices. The explanatory statement for the Determination 2009/16 outlines the Tribunal's role in conducting an annual review and updating the remuneration bands to reflect changes in economic conditions, thereby maintaining the relevance and competitiveness of public sector salaries. This determination, made in accordance with the established practices and the authority granted under the Act, aims to ensure that remuneration remains appropriate and reflective of the responsibilities and conditions of the offices covered.
Scope and Application
The Remuneration Tribunal Determination 2009/16 pertains to the remuneration and related matters of office holders, as authorised by the Remuneration Tribunal Act 1973. This determination applies to individuals who hold office positions as defined under the act, ensuring that their remuneration and related conditions are reviewed and adjusted in accordance with the Tribunal's annual assessment. The determination is made through a process of consultation that adheres to established practices, thereby ensuring that the adjustments are informed and comprehensive. While the determination has retrospective effect, it is governed by subsection 12(2) of the Legislative Instruments Act 2003, ensuring that it does not adversely affect any person other than the Commonwealth or its authorities. This act of adjusting remuneration bands, as specified in Clause 2 of the determination, reflects an increase in the upper ends of the bands for superannuation salary and total remuneration by 3 per cent, and an adjustment of the minima for certain bands to ensure fair and updated remuneration structures.
Key Provisions
The Remuneration Tribunal, in accordance with its statutory authority under the Remuneration Tribunal Act 1973, has issued a determination (section 1) that sets out the remuneration and related matters for office holders. This determination is a result of the Tribunal's review and consultation process, which aligns with established practice (section 2). Importantly, any retrospective application of this determination does not adversely affect the rights of individuals (excluding the Commonwealth or its authorities) and does not impose any liability on them, as stipulated under subsection 12(2) of the Legislative Instruments Act 2003 (section 3). The determination references the Principal Determination (Number 19 of 2005, as amended) for its scope and effect (section 4).
Under this determination, the Tribunal has updated the remuneration bands for office holders by amending Table A1 within the Principal Determination. Specifically, the upper ends of the bands for both superannuation salary and total remuneration have been increased by three percent (rounded up) (section 5). Additionally, 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 adjusted upward to reflect the outcomes of the Tribunal's annual review (section 5).
The obligations imposed by this determination primarily pertain to the application and enforcement of the updated remuneration bands for office holders. Office holders must ensure their remuneration aligns with the new bands as outlined in Table A1, and employers are required to implement these changes accordingly. The determination also mandates that the updated remuneration structures be reflected in any relevant documentation and records.
There are no specific offences or penalties outlined in this determination for non-compliance. However, failure to adhere to the updated remuneration structures could potentially lead to disputes or claims regarding remuneration. Such issues might be subject to resolution through the Tribunal or other relevant legal processes. The maximum penalties for non-compliance, if applicable, would be determined in the context of any subsequent legal proceedings.