Explanatory Statement: Determination 2014/16
Members of Parliament – Travelling Allowance
- The Remuneration Tribunal has inquired into and determined the remuneration and significantly related matters for members of parliament, 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 2014/19: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2014-15 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 includes substantively similar provisions to the previous Principal Determination unless otherwise specified.
PART 1 – LEGAL MATTERS AND EXPLANATION OF TERMS
5. Part 1 specifies the authority for and the date of effect of the Determination and revokes and supersedes the previous Principal Determination 2013/17 applying to the persons covered by this Determination. It also contains definitions of certain words and references used in the Determination.
PART 2 – RATES
6. Part 2 provides that the domestic travelling allowance rates set out in Schedule A of the Determination will apply to members and office holders (as specified in Clause 2.3). These rates have been updated with effect from 31 August 2014. The Canberra rate in Schedule A has increased from $268 to $271 per overnight stay.
7. Clause 2.2 sets out the provisions applying to the Prime Minister. The rate for his or her accommodation and sustenance in respect of each overnight stay in a place other than an official establishment or the Prime Minister’s home base has increased to a limit of $560 (from $558).
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 office holders, in exceptional circumstances, to an allowance for meals and incidental costs only. This allowance has been increased up to a limit of $170 (from $167) per day.
10. Clauses 3.12 to 3.16 set out general travelling allowance provisions.
11. Clause 3.15 has been amended to delete obsolete provisions concerning in electorate travel taken in accordance with the supplementary provisions in Regulation 3EA of the Parliamentary Entitlements Regulations 1997.
12. Clause 3.16 varies the rate of daily expense allowance payable to a member from the Australian Capital Territory or, in certain cases, a Member from the House of Representatives representing an electorate adjacent to the Australian Capital Territory, from $84 to $85 for each day of attendance in Canberra for parliamentary business.
13. Clauses 3.17 to 3.20 set out the travelling allowance provisions for members representing the External Territories.
14. Clauses 3.21 to 3.28 set out the travelling allowance provisions for Party Leaders, 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 Members of Parliament – Travelling Allowance Determination 2014 was enacted to address the need for updated rates for the travelling allowance for members of parliament, in line with changes to the Australian Taxation Office's determination on reasonable travel expenses. This Determination was issued by the Remuneration Tribunal under the authority of the Remuneration Tribunal Act 1973. The policy objective of this Determination is to ensure that the travelling allowances for members of parliament remain fair and commensurate with current expenses, particularly in light of the ATO’s recent adjustments to allowable travel and meal expenses. The Determination reflects changes such as an increase in the Canberra rate for overnight stays and updated rates for Prime Ministerial allowances, ensuring that the allowances are reflective of current economic conditions and taxation guidelines.
Scope and Application
The Determination 2014/16 issued by the Remuneration Tribunal under the Remuneration Tribunal Act 1973 applies to members of parliament and certain office holders, establishing updated rates for their travelling allowance effective from 31 August 2014. The updated rates are specified in Schedule A of the Determination, with particular increases noted for the Prime Minister’s accommodation and sustenance allowance, rising to a limit of $560 per overnight stay outside of an official establishment or home base. The allowance for meals and incidental costs for other Ministers and specified office holders has also been increased, now capped at $170 per day. The Determination outlines specific conditions for the payment of these allowances, including general provisions and exceptions for certain members, such as those representing external territories or the Australian Capital Territory. Additionally, it revokes and supersedes the previous Principal Determination 2013/17, ensuring that the latest rates and conditions are in effect. The scope of this legislation is limited to the remuneration and allowances of members of parliament and does not extend to other personnel or entities outside the specified scope.
Key Provisions
The key provisions of this Determination, which is made by the Remuneration Tribunal, outline the travelling allowance rates and conditions for payment for members of parliament and related office holders. The rates, specified in Part 2, have been updated and are detailed in Schedule A (Section 6). The domestic travelling allowance for members and office holders has increased from $268 to $271 per overnight stay, and the allowance for the Prime Minister's accommodation and sustenance in places other than an official establishment or home base has increased to $560 per overnight stay (Sections 6 and 7). Part 3 details the conditions of payment, including general conditions outlined in Clauses 3.1 to 3.6 and specific provisions for the Prime Minister, Ministers, and office holders in Clauses 3.7 to 3.11. There are also allowances for meals and incidental costs in exceptional circumstances, now up to $170 per day (Clause 3.8.2).
The obligations imposed by this Determination include adherence to the updated travelling allowance rates and conditions set out in the Determination. Members and office holders must comply with the specific provisions for payment, including those relating to the Prime Minister, Ministers, and other designated roles. They must also ensure that any travel claims align with the updated rates and conditions, as detailed in the Determination. The Determination mandates that any retrospective application does not adversely affect the rights of a person, nor impose any liability on them (Section 3).
For breaches of the obligations set forth in this Determination, the Remuneration Tribunal Act 1973 provides the legal framework. Although the Determination itself does not explicitly outline offences, penalties, or civil/criminal consequences, any non-compliance with the updated rates and conditions could potentially lead to inquiries or actions under the relevant sections of the Act. The specific penalties would depend on the nature and extent of the breach, as well as any related legal interpretations and applications.