REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2015/06
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). This determination follows the Tribunal’s decision of 30 March 2015 to defer a decision on any remuneration increase for all offices within its jurisdiction.
- This determination replaces in full Determination 2014/10. The remuneration figures specified in this determination are unchanged from the figures in the superseded determination.
- This determination fulfils 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. The date of effect of this determination is 11 May 2015.
- 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
- Part 1 sets out the authority for and date of effect of the Determination and supersedes and revokes the previous Determination 2014/10. It also defines ‘base salary’ and explains the scope of references to a ‘member’ or ‘member of parliament’.
- The other provisions in Part 1 are unchanged from those contained in Part 1 of the previous determination.
PART 2 – PARLIAMENTARY BASE SALARY
7. 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 (PCS Act).
8. 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
9. 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 PCS Act.
10. 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.
11. A redundant phrase has been removed from clause 3.4; otherwise the provisions in Part 3 are unchanged from those contained in Part 3 of the previous determination.
PART 4 – MINISTERS OF STATE
12. 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 PCS Act.
13. 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 to establish the Remuneration Tribunal and empower it to determine the remuneration of various public office holders, including members of parliament, to ensure fair and appropriate compensation. This Act was introduced to address the need for an independent body to review and set the remuneration of public officials, ensuring it is commensurate with their responsibilities and the cost of living. The determination made by the Remuneration Tribunal under this Act, as exemplified in the 2015 determination regarding Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters, is a continuation of its duty to periodically review and recommend remuneration adjustments. The Tribunal's decisions are made in accordance with the provisions of the Act, taking into account factors such as economic conditions, inflation, and the cost of living, thereby fulfilling its policy objective of maintaining equitable remuneration for public office holders.
Scope and Application
The Remuneration Tribunal Act 1973, as exemplified by Determination 2015/06, governs the remuneration of members of parliament, including parliamentary office holders and Ministers of State, and is applicable to these specific roles within the Commonwealth of Australia. This determination is issued in accordance with the obligations under the Act and follows the Tribunal’s decision to defer any increase in remuneration, with the figures specified remaining unchanged from the previous determination. The Act mandates that the Remuneration Tribunal must issue a determination at intervals of no more than a year, which this determination satisfies by setting the date of effect as 11 May 2015. This legislation not only sets out the base salary and additional salary for parliamentary office holders but also delineates how these salaries are to be administered and limits the number of shadow ministers who may be paid additional salary. The determination does not introduce new remuneration figures but rather maintains the status quo while fulfilling statutory requirements.
Key Provisions
The Remuneration Tribunal Determination 2015/06, as outlined in the Explanatory Statement, outlines specific provisions concerning the remuneration of members of parliament and parliamentary office holders in Australia. Section 7 (Part 2) of the Determination sets the base salary to be paid to members of parliament, and section 8 clarifies the portion of that salary that is not to be taken into account when defining parliamentary allowance (salary) under the Parliamentary Contributory Superannuation Act 1948. Section 9 (Part 3) details the additional salary to be paid to parliamentary office holders, while section 10 explains 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. Finally, section 12 (Part 4) specifies the portion of additional salary of Ministers of State that will not count as allowance by way of salary under the PCS Act.
The Remuneration Tribunal Act 1973 (the Act) imposes certain obligations and requirements on the parties and entities it governs. Firstly, the Tribunal is mandated under sub-section 8(1) of the Act to issue a determination at an interval of no more than a year, as demonstrated in the determination's date of effect on 11 May 2015. The Tribunal must also consult and inform itself through established practices, as outlined in sub-section 7A of the Act, and publish full reasons for its decision on its website. Furthermore, the Tribunal has the authority to defer decisions on any remuneration increase for all offices within its jurisdiction, as seen in the decision made on 30 March 2015.
Under the Remuneration Tribunal Determination 2015/06, breaches of the provisions outlined in the determination may result in various consequences. However, the explanatory statement does not explicitly mention any specific offences, penalties, or civil/criminal consequences for breach of the determination. The maximum penalties for breaches of the Remuneration Tribunal Act 1973 are not stated in the explanatory statement, and it is advisable for the practising lawyer to consult the Act itself for further information on potential penalties. Nonetheless, it is essential to adhere to the determination's provisions to avoid any potential repercussions or legal issues.