Explanatory Statement: Determination 2015/12
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 (ATO) Determination TD 2015/14: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2015-16 income year? Where rates have increased these are consistent with the ATO Determination.
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. There have been minor changes to some allowance rates.
PART 1 – LEGAL MATTERS AND EXPLANATION OF TERMS
5. Part 1 specifies the authority for and the date of effect of the Determination and supersedes and revokes the previous Principal Determination 2014/16 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 30 August 2015. The Canberra rate in Schedule A has increased from $271 to $273 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 $564 (from $560).
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 $173 (from $170) per day.
10. Clauses 3.12 to 3.16 set out general travelling allowance provisions.
11. 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 of the House of Representatives representing an electorate adjacent to the Australian Capital Territory, from $85 to $86 for each day of attendance in Canberra for parliamentary business.
12. Clauses 3.17 to 3.20 set out the travelling allowance provisions for members representing the External Territories.
13. 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 Determination 2015/12 issued under the Remuneration Tribunal Act 1973 addresses the remuneration and associated matters for members of parliament, aiming to ensure their compensation is fair and in line with established standards. Enacted by the Remuneration Tribunal, this determination was prompted by the need to review and adjust the travelling allowance rates for parliamentarians in light of changing economic conditions and expenses. The Tribunal's policy objective was to maintain equitable and reasonable rates that reflect the cost of travel and living expenses, thereby supporting the efficient functioning of the parliamentary system. The determination updates various allowance rates effective from 30 August 2015, with adjustments made to align with the Australian Taxation Office’s guidelines for the 2015-16 income year, ensuring consistency and fairness in the allowances provided to members and office holders.
Scope and Application
The Determination 2015/12, made under the Remuneration Tribunal Act 1973, governs the travelling allowance rates for members of Parliament and certain office holders in Australia. This determination applies to members of Parliament and specific office holders, including the Prime Minister, Ministers, Party Leaders, Chief/Primary Whips, Whips, Chairs of Parliamentary Committees, and Shadow Ministers. The rates have been updated to reflect changes from the previous determination, aligning with the Australian Taxation Office’s Determination TD 2015/14. The updated rates, effective from 30 August 2015, include an increase in the domestic travelling allowance for members and office holders, with particular adjustments for the Prime Minister's accommodation and sustenance costs. The Determination also specifies conditions for the payment of these allowances, including exceptional allowances for meals and incidental costs. The scope of this legislation is confined to the Commonwealth, ensuring that the updated rates do not adversely affect the rights of individuals, other than the Commonwealth or its authorities, nor impose any liability on such persons.
Key Provisions
The Determination 2015/12, issued under the Remuneration Tribunal Act 1973, sets out the rates and conditions for the travelling allowance for Members of Parliament in Australia. Part 2 of the Determination, specifically Clause 2.3, outlines the domestic travelling allowance rates applicable to members and office holders, with an update effective from 30 August 2015. For instance, the Canberra rate for an overnight stay has increased from $271 to $273 (Clause 7). The allowance for the Prime Minister's accommodation and sustenance during an overnight stay outside of an official establishment or the Prime Minister’s home base is now capped at $564 (Clause 2.2).
The Determination imposes several obligations on the parties it governs. For example, Clause 3.1 requires that all claims for travelling allowance must be supported by appropriate evidence, such as receipts and itineraries. Clause 3.7 specifies that the Prime Minister’s updated rate must be adhered to when claims are processed. Additionally, Clause 3.8.2 allows Ministers and certain office holders to claim an allowance for meals and incidental costs under exceptional circumstances, with the limit increased to $173 per day (Clause 3.8.2). The Determination also details specific conditions for the payment of allowances for different categories of members, such as those from the Australian Capital Territory or representing the External Territories (Clauses 3.16 and 3.20).
The Determination outlines potential consequences for non-compliance. While the text does not explicitly mention specific offences or penalties, it is inferred that failure to adhere to the stipulated rates and conditions could result in improper claims being disallowed or repaid. Given the legal authority under the Remuneration Tribunal Act 1973, it is likely that breaches of these provisions could lead to investigations and corrective actions, although the exact penalties are not detailed in the text. The authority to enforce these provisions lies in the Tribunal’s power to determine remuneration and related matters for members of parliament.