REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2014/10
Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters
- The Remuneration Tribunal has inquired into the remuneration paid to members of parliament, including parliamentary office holders, as it is empowered to do by the Remuneration Tribunal Act 1973 (the Act). It has determined that there will be no general adjustment to the remuneration of public offices in its jurisdiction from 1 July 2014.
- Whilst this Determination does not provide for an annual adjustment it does fulfil the obligation under sub-section 8(1) of the Act for the Remuneration Tribunal to issue a determination at an interval of no more than a year.
- In undertaking its inquiry and making this Determination the Tribunal has informed itself through consultation in accordance with established practice. Full reasons for the Tribunal’s decision, as required by sub-section 7A of the Act, are published on the Tribunal’s website.
Contents
PART 1 – GENERAL
PART 2 – PARLIAMENTARY BASE SALARY
PART 3 – ADDITIONAL SALARY FOR PARLIAMENTARY OFFICE HOLDERS
PART 4 - MINISTERS OF STATE
PART 1 – GENERAL
4. Part 1 sets out the authority for and date of effect of the Determination and revokes and supersedes previous Determinations 2013/13 (as amended). It also defines ‘base salary’ and explains the scope of references to a ‘member’ or ‘member of parliament’.
PART 2 – PARLIAMENTARY BASE SALARY
5. Part 2 sets the base salary to be paid to a member of parliament and the portion of that salary that is not to be taken into account in defining parliamentary allowance (salary) for the purposes of the Parliamentary Contributory Superannuation Act 1948.
6. The provisions in Part 2 are unchanged from those contained in Part 2 of the previous Determination.
PART 3 – ADDITIONAL SALARY FOR PARLIAMENTARY OFFICE HOLDERS
7. Part 3 sets the additional salary to be paid to parliamentary office holders and the portion of that salary that is not to be taken as ‘allowance by way of salary’ for the purposes of the Parliamentary Contributory Superannuation Act 1948.
8. It also specifies how authorities are to administer payment of the additional salary and limits the number of shadow ministers who may be paid in accordance with the Determination.
9. The provisions in Part 3 are unchanged from those contained in Part 3 of the previous Determination.
PART 4 - MINISTERS OF STATE
10. Part 4 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.
11. The provisions in Part 4 are unchanged from those contained in Part 4 of the previous Determination.
Authority: Subsections 7(1), 7(1A), 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 was enacted by the Commonwealth Parliament to establish a Remuneration Tribunal that would review and determine the remuneration of various public office holders, including members of parliament. This Act was introduced to address the need for an independent body to review and adjust the remuneration of public officials in order to maintain fairness and transparency in the system. The Act empowers the Remuneration Tribunal to make determinations regarding the remuneration of public office holders, and it requires the Tribunal to issue determinations at intervals of no more than a year. The policy objective of the Act is to ensure that the remuneration of public office holders remains appropriate and reflective of their responsibilities, whilst also providing a mechanism for regular review and adjustment. The explanatory statement for Determination 2014/10 by the Remuneration Tribunal highlights that, whilst no general adjustment to the remuneration of public offices was made, the Determination still fulfils the obligation under the Act to issue a determination within the required timeframe.
Scope and Application
The Remuneration Tribunal has authority under the Remuneration Tribunal Act 1973 to determine the remuneration of members of parliament, including parliamentary office holders, and Ministers of State, with this determination applying to those individuals in their respective capacities. The Determination does not provide for an annual adjustment to their remuneration but fulfills the statutory obligation under sub-section 8(1) of the Act to issue a determination at least once a year. The scope of this legislation encompasses the setting of base salary for members of parliament, additional salary for parliamentary office holders, and portions of these salaries that do not count as allowances for superannuation purposes, as outlined in the Parliamentary Contributory Superannuation Act 1948. Additionally, it specifies the administration of these payments and limits the number of shadow ministers who may receive additional salary. The provisions remain consistent with those set out in the previous Determination 2013/13 (as amended), ensuring continuity in the remuneration framework for these public office holders.
Key Provisions
The Remuneration Tribunal, as empowered by the Remuneration Tribunal Act 1973 (the Act), has issued a determination (Section 4) that sets forth the base salary for members of parliament, and the additional salary for parliamentary office holders, without any general adjustments effective from 1 July 2014. This determination fulfills the obligation under subsection 8(1) of the Act to issue a determination at least once a year. The Tribunal's determination does not alter the base salary or additional salary amounts from the previous determinations, but it does clarify the scope of these terms, including the definition of 'base salary' and the meaning of 'member' or 'member of parliament' (Section 5). The determination also specifies the portion of these salaries that should not be considered for the purposes of the Parliamentary Contributory Superannuation Act 1948 (Section 6).
The obligations under this Act primarily rest on the Remuneration Tribunal to make these determinations within the specified timeframes and to provide full reasons for its decisions (subsection 7A). The Tribunal is also tasked with consulting with relevant parties to inform its decisions, as per its established practices (Section 4). The Act further requires that the Tribunal's determinations must be published, ensuring transparency and accountability (subsection 7A). The Remuneration Tribunal is also obligated to ensure that the payment of additional salary to parliamentary office holders is administered in accordance with the specified provisions (Section 7).
Breaches of the obligations imposed by the Act could result in various consequences, though the specific penalties are not detailed in the provided text. Generally, under Australian law, failure to comply with statutory obligations can lead to civil or criminal penalties, depending on the severity and intent behind the breach. Civil penalties may include fines or other monetary penalties, while criminal penalties might involve imprisonment or fines. The maximum penalties would be determined by the relevant courts based on the specific breach and the provisions of the Act. It is important for the parties governed by this Act to ensure full compliance to avoid any legal repercussions.