REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2012/03
Parliamentary Additional Salary and Related Matters
1. The Remuneration Tribunal has inquired into and determined the additional salary for parliamentary office holders, as it is empowered to do by the Remuneration Tribunal Act 1973 (the Act).
2. In making this Determination the Tribunal has informed itself through consultation in accordance with established practice. Full reasons for the Tribunal’s decisions, as required by s 7A of the Act, are published on the Tribunal’s website.
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. This Determination is compatible with the human rights or freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. This Determination does not engage any of the applicable rights or freedoms.
PART 1 – GENERAL
5. Part 1 specifies the authority for and the date of effect of the Determination and supersedes and revokes the previous principal Determination 2011/22. It also defines ‘base salary’ and explains the scope of a reference to a ‘member’ of parliament.
PART 2 – ADDITIONAL SALARY FOR PARLIAMENTARY OFFICE HOLDERS
6. Clause 2.1 provides that the additional salary to be paid to parliamentary office holders is specified in Table 1 of the Determination. Entries for three new offices have been included in the Table: Manager of Opposition Business in the House of Representatives; member of the shadow Cabinet; and member of the outer shadow ministry.
7. Clause 2.2 specifies how authorities are to administer payment of the additional salary.
8. Clause 2.3 specifies the portion of additional salary, of office holders listed in Table 1, that will not count as allowance by way of salary for the purposes of the Parliamentary Contributory Superannuation Act 1948.
9. Clause 2.4, with subclauses 2.4.1 to 2.4.5, limits the number of shadow ministers who may be paid in accordance with the Determination. In general this will mean that there cannot be more shadow ministers paid than ministers in the Government at any time. However, clause 2.4.5 is a transitional provision, in place until the next election at the latest, that recognises the makeup of the shadow ministry current at the time that the Determination was made.
PART 3 - MINISTERS OF STATE
10. Clause 3.1 specifies the portion of additional salary of Ministers of State, that will not count as allowance by way of salary for the purposes of the Parliamentary Contributory Superannuation Act 1948.
Authority: Subsections 7(1), 7(1B), 7(1C), 7(2), 7(2A), 7(4) and 7(5G)
of the Remuneration Tribunal Act 1973
Overview
The Remuneration Tribunal Act 1973, enacted by the Parliament of Australia, establishes the Remuneration Tribunal, which is responsible for determining the remuneration for various public office holders, including parliamentary office holders. The Act was introduced to address the need for a formal and independent process to determine the remuneration of public officials, ensuring that it is fair and commensurate with the responsibilities of the office. This Determination, made under the authority of the Act, focuses on specifying the additional salary for parliamentary office holders, including members of the shadow Cabinet and the outer shadow ministry, as well as Ministers of State. The policy objective is to ensure that the remuneration of these officials reflects their roles and responsibilities, while also maintaining consistency and fairness within the parliamentary system. The Tribunal’s decisions are made through consultation and are published on its website, ensuring transparency and accountability in the process.
Scope and Application
The Remuneration Tribunal has authority under the Remuneration Tribunal Act 1973 to determine the additional salary for parliamentary office holders, with the determination applicable to specific roles within the Commonwealth Parliament. This encompasses the Manager of Opposition Business in the House of Representatives, members of the shadow Cabinet, and members of the outer shadow ministry. The determination outlines the additional salary in Table 1 and provides guidelines for the administration of these payments, ensuring they comply with the Parliamentary Contributory Superannuation Act 1948 by specifying which portions of the salary will not count as allowances. Furthermore, it regulates the number of shadow ministers who can receive these payments, ensuring a balance relative to the number of government ministers. The scope of this legislation is confined to parliamentary office holders within the Commonwealth jurisdiction, and any retrospective application of the determination is compliant with the Legislative Instruments Act 2003, ensuring it does not adversely affect the rights of individuals other than the Commonwealth or its authorities.
Key Provisions
The key provisions of this Determination establish the additional salary for parliamentary office holders as mandated by the Remuneration Tribunal Act 1973. Section 2.1 (Clause 2.1) specifies the amount of additional salary payable to various parliamentary office holders, including new roles such as the Manager of Opposition Business in the House of Representatives, members of the shadow Cabinet, and members of the outer shadow ministry. Section 2.2 (Clause 2.2) outlines the administrative procedures for the payment of these additional salaries. Section 2.3 (Clause 2.3) details the portion of the additional salary that will not count as an allowance for the purposes of the Parliamentary Contributory Superannuation Act 1948. Furthermore, Section 2.4 (Clause 2.4) limits the number of shadow ministers who can receive these payments, ensuring that the number of shadow ministers does not exceed the number of ministers in the Government, with a transitional provision in place until the next election (Clauses 2.4.1 to 2.4.5).
The Remuneration Tribunal imposes specific obligations on the authorities responsible for the payment of these additional salaries. These authorities must follow the administrative procedures outlined in Section 2.2 (Clause 2.2) to ensure the timely and accurate payment of the additional salaries specified in Section 2.1 (Clause 2.1). Additionally, they must ensure that the portion of the additional salary specified in Section 2.3 (Clause 2.3) is not considered an allowance for superannuation purposes. The Tribunal also requires adherence to the limitations on the number of shadow ministers who can be paid, as specified in Section 2.4 (Clause 2.4).
Failure to comply with the provisions of this Determination may result in legal consequences. While specific offences and penalties are not detailed within the Determination itself, breaches of the Remuneration Tribunal Act 1973 or related administrative processes could potentially lead to legal action or other administrative consequences. The penalties for such breaches would be determined by the relevant legislation and the severity of the non-compliance. However, the Determination assures that its retrospective application does not adversely affect the rights of individuals, nor does it impose any liability on them, as per subsection 12(2) of the Legislative Instruments Act 2003.