Explanatory Statement: Determination 2016/08
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 2016/13: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2016-17 income year? Where rates have changed these are consistent with the ATO Determination.
3. Any retrospective application of this Determination is in accordance with subsection 12(2) of the Legislation 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 and an additional travelling allowance payment for travelling Ministers and office holders accompanied by their spouses has been abolished, as recommended in the report of the Independent Parliamentary Entitlements System Review of February 2016.
PART 1 – LEGAL MATTERS AND EXPLANATION OF TERMS
5. Part 1 specifies the authority for and the date of effect of the Determination and notes that it supersedes and revokes the previous Principal Determination 2015/12 applying to the persons covered by this Determination. It also sets out the 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 28 August 2016. The Canberra rate in Schedule A has increased from $273 to $276 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 $565 (from $564).
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 3.10 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 $177 (from $173) per day.
10. Clauses 3.11 to 3.15 set out general travelling allowance provisions.
11. Clause 3.15 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 $86 to $87 for each day of attendance in Canberra for parliamentary business.
12. Clauses 3.16 to 3.19 set out the travelling allowance provisions for travel to the External Territories.
13. Clauses 3.20 to 3.27 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 Remuneration Tribunal, pursuant to its powers under the Remuneration Tribunal Act 1973, has issued the Members of Parliament – Travelling Allowance Determination 2016 to update the rates of travelling allowance for members of parliament. This Determination addresses the need to align the allowances with current economic conditions and the Australian Taxation Office’s reasonable travel and overtime meal allowance expense amounts for the 2016-17 income year. The changes include minor updates to some allowance rates and the removal of an additional allowance for travelling ministers and office holders accompanied by their spouses, as recommended by the Independent Parliamentary Entitlements System Review. This Determination, effective from 28 August 2016, supersedes the previous Principal Determination 2015/12 and ensures that the updated rates do not adversely affect the rights of any person, other than the Commonwealth or its authorities.
Scope and Application
The Determination 2016/08 issued under the Remuneration Tribunal Act 1973 pertains to the remuneration and related matters for members of Parliament in Australia. It applies to members of parliament, including the Prime Minister, Ministers, and office holders, as well as to Party Leaders, Chief/Primary Whips, Whips, Chairs of Parliamentary Committees, and Shadow Ministers. This Determination provides updated rates for the travelling allowance for members of parliament, with specific rates varying by location and position, and it supersedes and revokes the previous Principal Determination 2015/12. The Determination also includes provisions for the payment of allowances under certain conditions, such as the payment of allowances for meals and incidental costs in exceptional circumstances, and it outlines the conditions for payment of travelling allowances for travel to the External Territories. This Determination has a Commonwealth jurisdiction and does not affect the rights of a person to their disadvantage nor does it impose any liability on such a person.
Key Provisions
The main operative sections of this Determination, as outlined in Part 2, establish updated travelling allowance rates for members and office holders, effective from 28 August 2016. For instance, Clause 2.2 sets the Prime Minister's accommodation and sustenance rate at $565 per overnight stay outside an official establishment or home base, an increase from the previous $564. The domestic travelling allowance rates, detailed in Schedule A, also reflect an increase in the Canberra rate from $273 to $276 per overnight stay. Part 3 outlines conditions for payment of travelling allowance, including general conditions in Clauses 3.1 to 3.6 and specific provisions for the Prime Minister and Ministers in Clauses 3.7 to 3.10. Notably, Clause 3.8.2 permits Ministers (excluding the Prime Minister) and specified office holders to claim an allowance for meals and incidental costs up to $177 per day in exceptional circumstances. Additional provisions address allowances for members from the Australian Capital Territory or adjacent electorates, travel to external territories, and allowances for Party Leaders, Chief/Primary Whips, Whips, Chairs of Parliamentary Committees, and Shadow Ministers.
The Determination imposes several obligations and requirements on the parties it governs. Firstly, members and office holders must adhere to the updated travelling allowance rates specified in Part 2 and Schedule A. The rates must be applied consistently and correctly for all overnight stays outside an official establishment or home base. Additionally, Clauses 3.7 to 3.10 establish specific conditions for the Prime Minister, Ministers, and office holders, including the entitlement to increased meal and incidental cost allowances in exceptional circumstances. Furthermore, Clauses 3.16 to 3.19 detail the travelling allowance provisions for travel to external territories, ensuring that all travel-related expenses are accurately reported and reimbursed. Members and office holders must also comply with the general conditions of payment outlined in Clauses 3.1 to 3.6 to ensure proper and timely reimbursement of their travelling expenses.
The Determination includes provisions for offences, penalties, or civil/criminal consequences for breaches, although the specific penalties are not detailed within the text. Given the nature of the Determination and its focus on financial allowances, breaches may lead to civil consequences such as the requirement to repay any incorrectly claimed amounts, or potentially, criminal charges if fraudulent claims are made. The maximum penalties for such offences would depend on the specific laws governing fraud and financial misconduct in Australia. It is important for members and office holders to comply with all conditions and requirements to avoid any adverse consequences, including potential reputational damage or legal action.