REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2015/22
Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters
- The Remuneration Tribunal has inquired into and determined a general adjustment of 2 per cent in the remuneration of Public Offices in its jurisdiction with effect on and from 1 January 2016, as it is empowered to do by the Remuneration Tribunal Act 1973 (the Act). This Determination gives effect to the adjustment with respect to members of parliament including parliamentary office holders.
2. 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 decisions, as required by subsection 7A of the Act, are published on the Tribunal’s website.
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.
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 Determination 2015/06. It also defines ‘base salary’ and explains the scope of references to a ‘member’ or ‘member of parliament’.
5. The other provisions in Part 1 are unchanged from those contained in Part 1 of the previous Determination.
PART 2 – PARLIAMENTARY BASE SALARY
6. 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).
7. Clause 2.1 increases the base salary to be paid to a member of parliament by 2 per cent (rounded). Clause 2.2 adjusts the portion of base salary that is not parliamentary allowance by 2 per cent (rounded).
PART 3 – ADDITIONAL SALARY FOR PARLIAMENTARY OFFICE HOLDERS
8. 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.
9. 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.
10. The provisions in Part 3 are unchanged from those contained in Part 3 of the previous Determination.
PART 4 – MINISTERS OF STATE
11. 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.
12. 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 Parliament of Australia to provide a framework for the determination of remuneration for members of the parliament and other public office holders. The Act was introduced to address the need for a transparent, independent, and fair process in determining remuneration, ensuring it is commensurate with the responsibilities of public office. The Remuneration Tribunal, established under the Act, has the authority to inquire into and determine remuneration adjustments, as reflected in the Determination 2015/22. This determination, which implements a 2% general adjustment in remuneration effective from 1 January 2016, is made in accordance with the Tribunal’s powers under the Act. The policy objective is to maintain the competitiveness and attractiveness of public office, thereby ensuring the continued efficacy and integrity of the Australian parliamentary system.
Scope and Application
The Remuneration Tribunal Determination 2015/22, pursuant to the Remuneration Tribunal Act 1973, pertains to the remuneration of members of parliament and parliamentary office holders in Australia. It applies to individuals holding public office within the jurisdiction of the Remuneration Tribunal, specifically to members of the Commonwealth Parliament and their office holders. The scope includes adjustments to the base salary and additional salary for parliamentary office holders, as well as the salary for Ministers of State. The adjustments are effective from 1 January 2016 and are implemented as a general 2% increase. The application of this Determination is governed by the Commonwealth, extending to all members of parliament and relevant office holders, without exclusions or exemptions specified within the text. The Determination does not affect the rights of individuals to their disadvantage and does not impose any new liabilities, in accordance with the Legislative Instruments Act 2003. The provisions are detailed in four parts, with specific clauses addressing the base salary, additional salary for parliamentary office holders, and the salary of Ministers of State, while revoking and replacing previous Determination 2015/06.
Key Provisions
The Determination 2015/22 of the Remuneration Tribunal adjusts the remuneration of public offices, including members of parliament and parliamentary office holders, effective from 1 January 2016. Section 4 of Part 1 outlines the authority for this adjustment under the Remuneration Tribunal Act 1973 and details the definitions relevant to the determination, such as 'base salary' and the scope of 'member' or 'member of parliament'. This part also revokes and supersedes the previous Determination 2015/06. Part 2 sets the parliamentary base salary, increasing it by 2 per cent, as outlined in Clause 2.1, and adjusts the portion of the salary not considered parliamentary allowance for the purposes of the Parliamentary Contributory Superannuation Act 1948, as specified in Clause 2.2.
The obligations imposed by this Determination on the parties it governs include the implementation of the 2 per cent salary adjustment for members of parliament and parliamentary office holders, effective from the specified date. Authorities must ensure that the base salary is increased in accordance with Clause 2.1, and the portion of the salary not considered parliamentary allowance must be adjusted as per Clause 2.2. The Remuneration Tribunal must also consult with relevant stakeholders during its inquiry, as stipulated in subsection 7A of the Act, and publish full reasons for its decisions on its website.
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. However, any retrospective application of the Determination is governed by subsection 12(2) of the Legislative Instruments Act 2003, ensuring that it does not adversely affect the rights of a person other than the Commonwealth or an authority of the Commonwealth, nor impose any liability on such a person. The primary focus of the Determination is to adjust and clarify remuneration and allowances in line with the Tribunal’s findings and recommendations.