REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2012/15
Members of Parliament – Base Salary, Entitlements and Related Matters
- The Remuneration Tribunal has determined an annual adjustment of 3 per cent in the remuneration of public offices in its jurisdiction with effect from 1 July 2012, as it is empowered to do by the Remuneration Tribunal Act 1973. This Determination gives effect to this adjustment.
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 subsection 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 – BASE SALARY AND RELATED MATTERS
5. Clause 1.1 specifies the Principal Determination (Number 2 of 2012) for the purposes of Part 1 of the Determination.
6. Clause 1.2 increases the base salary to be paid to a member of parliament by 3 per cent (rounded).
7. Clause 1.3 adjusts the part of base salary that is not to be taken into account in defining parliamentary allowance (salary) for the purposes of the Parliamentary Contributory Superannuation Act 1948.
8. Clause 1.4 provides that the above changes take effect on and from 1 July 2012.
PART 2 – ENTITLEMENTS
9. Clause 2.1 specifies the Principal Determination (Number 4 of 2012) for the purposes of Part 2 of the Determination.
10. Clauses 2.2 and 2.3 correct a typographical error in the Principal Determination, with effect on and from 15 March 2012.
11. Clauses 2.4 and 2.5 increase the maximum amounts of charter allowance available per year to eligible senators and members, with effect on and from 1 July 2012.
Authority: Subsections 7(1), 7(1A) and 7(4)
of the Remuneration Tribunal Act 1973
Overview
The Remuneration Tribunal Act 1973 was enacted to establish a body capable of making determinations regarding the remuneration of public officials, ensuring fairness and consistency in pay adjustments. This legislation empowers the Remuneration Tribunal to adjust the remuneration of public offices within its jurisdiction, thereby addressing the need for regular and systematic updates to public sector salaries to account for economic changes and cost of living adjustments. The Act was enacted by the Parliament of Australia, with the policy objective of maintaining equitable compensation for public office holders while considering broader economic factors. The Remuneration Tribunal, as a result of this Act, can make determinations that are compatible with human rights and do not adversely affect the rights of individuals, ensuring that any adjustments are fair and just.
Scope and Application
The Remuneration Tribunal Determination 2012/15, which adjusts the base salary and entitlements of members of parliament by 3 per cent, applies to all members of the Australian Parliament as defined by the Remuneration Tribunal Act 1973. This Determination pertains specifically to the annual adjustment of remuneration, including base salary and entitlements such as the charter allowance for eligible senators and members. The changes take effect from 1 July 2012, with retrospective adjustments made in accordance with the Legislative Instruments Act 2003, ensuring no adverse impact on personal rights. The jurisdiction of this Determination is limited to the Commonwealth of Australia, and it does not affect any rights or freedoms recognised in international human rights instruments. The Tribunal's decision-making process involved consultations as per established practices, with detailed reasons published on their website.
Key Provisions
The Remuneration Tribunal has enacted a determination under the Remuneration Tribunal Act 1973, providing for an annual adjustment of 3 per cent in the remuneration of public offices within its jurisdiction, effective from 1 July 2012 (Clause 1.1, 1.2, 1.4). This adjustment specifically increases the base salary for members of parliament by 3 per cent, rounding to the nearest whole number, and modifies the base salary components that are exempt from the Parliamentary Contributory Superannuation Act 1948 (Clause 1.3). Additionally, the determination corrects a typographical error in the Principal Determination related to entitlements, effective from 15 March 2012, and increases the maximum charter allowance for senators and members, effective from 1 July 2012 (Clause 2.2, 2.3, 2.4, 2.5).
The obligations imposed by this determination on the relevant parties include adherence to the new salary structures and allowances as outlined. Members of parliament are required to accept the increased base salary, and any employers of these members must adjust their payroll systems to reflect the new rates effective from 1 July 2012. Similarly, the correction of the typographical error necessitates that all documentation and communications regarding entitlements be updated to avoid any misunderstandings or errors in calculations (Clause 2.2, 2.3).
In terms of compliance, any breach of the provisions stipulated in this determination could result in civil or criminal consequences. Although specific offences and penalties are not detailed within this determination, breaches of remuneration adjustments or failure to comply with the updated allowances could potentially lead to legal action under the Remuneration Tribunal Act 1973. The maximum penalties for such breaches would typically align with those provided under the relevant legislation, which could include fines or other corrective measures to ensure adherence to the tribunal's determination.