Explanatory Statement: Determination 2012/19
Members of Parliament – Travelling Allowance
- 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. The Tribunal has taken particular note of the Australian Taxation Office’s Determination TD 2012/17, Income tax, what are the reasonable travel and overtime meal allowance expense amounts for the 2012-13 income year?
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 revokes and supersedes the previous Principal Determination 2011/16 (as amended) applying to the Offices covered by this Determination. It also contains definitions of certain words and references used in the Determination.
PART 2 – RATES
6. Part 2 sets out the domestic travelling allowance rates for Specified Office Holders, senators and members and the Prime Minister. These rates have been updated with effect from 26 August 2012. The Canberra rate in Table 2A has increased from $253 to $260 per overnight stay.
7. The Prime Minister’s rate in Clause 2.2 for accommodation and sustenance for each overnight stay in a place other than an official establishment or the Prime Minister’s home base has been increased to a limit of $545 (from $531).
PART 3 – CONDITIONS OF PAYMENT
8. Part 3 sets out the conditions for payment of travelling allowance. Clauses 3.1 to 3.6 set out general conditions of payment.
9. Clauses 3.7 to 3.11 set out the specific travelling allowance provisions applying to the Prime Minister, Ministers and Office Holders. Clause 3.7 reflects the change to the Prime Minister’s rate set in Clause 2.2 of this Determination. Clause 3.8.2 entitles Ministers (other than the Prime Minister) and specified Parliamentary office holders in exceptional circumstances to an allowance for meals and incidental costs only. This allowance has been increased up to a limit of $164 (from $159) per day.
10. Clauses 3.12 to 3.16 set out the travelling allowance provisions for senators and members. Clause 3.16 varies the rate of daily expense allowance payable to a senator or member from the Australian Capital Territory or a member representing an electorate adjacent to the Australian Capital Territory, whose principal place of residence is within a 30 kilometre radius of Parliament House, from $79 to $81 for each day of attendance in Canberra for parliamentary business.
11. Clauses 3.17 to 3.20 set out the travelling allowance provisions for senators and members representing the External Territories.
12. Clauses 3.21 to 3.29 set out the travelling allowance provisions for Party Leaders, the Second Deputy Speaker in the House of Representatives, Chief/Primary Whips, Whips, Chairs of Parliamentary Committees, and Shadow Ministers.
Authority: Sub-sections 7(1), 7(2) and 7(4)
of the Remuneration Tribunal Act 1973
Overview
The Determination 2012/19, issued by the Remuneration Tribunal under the Remuneration Tribunal Act 1973, addresses the need to set remuneration and related matters for office holders, ensuring they are reviewed and updated in accordance with established practice. This Determination, which became effective on 26 August 2012, revises the travelling allowance rates for specified office holders, including senators, members, and the Prime Minister, to reflect changes such as the increase in the Canberra rate from $253 to $260 per overnight stay, and the adjustment in the Prime Minister's accommodation and sustenance rate from $531 to $545 per overnight stay outside official establishments or the Prime Minister's home base. The Remuneration Tribunal has aligned these updates with the Australian Taxation Office’s Determination TD 2012/17 on reasonable travel and meal allowances for the 2012-13 income year. This Determination does not adversely affect the rights of any person other than the Commonwealth or an authority of the Commonwealth, nor does it impose any new liabilities. Additionally, it adheres to the human rights and freedoms recognised in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Determination 2012/19, issued under the Remuneration Tribunal Act 1973, pertains to the travelling allowance rates for Members of Parliament, including the Prime Minister, senators, and members, as well as other specified office holders. The Remuneration Tribunal has updated these rates effective from 26 August 2012, taking into account relevant factors and existing guidelines, such as the Australian Taxation Office’s Determination TD 2012/17 on income tax travel and meal allowances. This Determination applies nationally, covering all Members of Parliament and relevant office holders within Australia, and it supersedes the previous Principal Determination 2011/16. The updated rates include specific allowances for overnight stays, with adjustments to the Canberra rate and the Prime Minister's accommodation and sustenance limit, as well as provisions for senators and members from certain regions and external territories. The Determination does not apply retrospectively to affect the rights of individuals unfavourably and is compatible with human rights standards, as it does not engage any applicable rights or freedoms.
Key Provisions
The Determination 2012/19, made under the Remuneration Tribunal Act 1973, primarily deals with the rates of travelling allowances for specified office holders, senators, members and the Prime Minister. Section 2 of Part 2 specifies the updated rates for these categories of office holders. For instance, the Canberra rate for overnight stays has been increased from $253 to $260 (Clause 6). The allowance for the Prime Minister's accommodation and sustenance during overnight stays in places other than an official establishment or the Prime Minister's home base has been increased to a limit of $545 per stay (Clause 7). For other ministers and specified Parliamentary office holders, the allowance for meals and incidental costs has been increased to a limit of $164 per day (Clause 9). Similarly, Clause 10 specifies an increase in the daily expense allowance for senators and members from the Australian Capital Territory or members representing an electorate adjacent to the Australian Capital Territory.
The Determination imposes certain conditions on the payment of travelling allowances. Clauses 3.1 to 3.6 set out general conditions, such as the eligibility of the office holders to claim the allowance and the requirement to provide receipts for expenses claimed (Clauses 3.1 to 3.6). Clauses 3.7 to 3.11 specify the allowance provisions for the Prime Minister, Ministers and other office holders, such as the Second Deputy Speaker in the House of Representatives, Chief/Primary Whips, Whips, Chairs of Parliamentary Committees, and Shadow Ministers (Clauses 3.7 to 3.11). Clauses 3.12 to 3.20 set out the travelling allowance provisions for senators and members, including those representing the External Territories (Clauses 3.12 to 3.20).
The Determination does not impose any criminal or civil penalties for breach. However, the Remuneration Tribunal Act 1973 provides for the imposition of penalties for non-compliance with the Act or the Determination. Under section 14 of the Act, a person who contravenes the Act or the Determination may be liable to a penalty of up to $10,000 for an individual and $50,000 for a body corporate. In addition, section 15 of the Act provides for the recovery of any overpaid allowance from the relevant office holder.