Explanatory Statement: Determination 2016/11:
Remuneration and Allowances for Holders of Public Office and Judicial and Related Offices
- The Remuneration Tribunal Act 1973 (the Act) establishes the Remuneration Tribunal (the Tribunal) as an independent statutory authority responsible for reporting on and determining the remuneration, allowances and entitlements of key Commonwealth office holders. These include members of Parliament, Judges of Federal Courts, most full-time and part-time holders of public offices and Principal Executive Offices.
Consultation
2. Section 11 of the Act advises that in the performance of its functions the Tribunal:
- may inform itself in such manner as it thinks fit;
- may receive written or oral statements;
- is not required to conduct any proceeding in a formal manner; and
- is not bound by the rules of evidence.
3. The Tribunal normally receives submissions on remuneration from a Portfolio Minister, or a Secretary, Program Manager or Employing Body (in respect of a principal executive office) with responsibility for the relevant office(s). The Tribunal will normally seek the views of the relevant Portfolio Minister prior to determining remuneration for an office.
4. The Tribunal may reach a decision based on the information provided in the submission and other publicly available information such as portfolio budget statements, annual reports, corporate plans, legislation and media releases. On occasion it may wish to meet with relevant parties or seek further information from the relevant Minister or person making the submission.
5. Amongst other relevant matters in deliberating on appropriate remuneration for an office the Tribunal informs itself on:
- the main functions, responsibilities and accountabilities of the office;
- the organisational structure, budget and workforce;
- the requisite characteristics, skills or qualifications required of the office holder(s); and
- the remuneration of similar, comparator, offices within its jurisdiction.
Chief Executive Officer of the Aboriginal Hostels Limited
6. The Tribunal received a submission from the Chairperson of Aboriginal Hostels Limited requesting accommodation and reunion travel allowances for the interim CEO, for a period of six months. The submission provided the information required to consider the request, consistent with the Tribunal’s Guidelines on Geographic Relocation of Full-time Office Holders (available on its website www.remtribunal.gov.au).
Australian Law Reform Commission – President (non-judicial), Commissioner (non-judicial)
7. In conducting its jurisdictional review of offices under the Judicial and Related Offices’ determination, the Tribunal invited submissions from all employing authorities with offices in the determination. A submission was received from the President of the Australian Law Reform Commission as a result of that invitation. The submission provided information on the legislative arrangements for the appointment of full-time and part-time members of the Commission and updated information on their roles and responsibilities. The Tribunal also received a submission from the Attorney-General’s Department which provided information relevant to the President’s submission.
Retrospectivity
8. 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.
Details of the determination are as follows:
PART 1 – FULL-TIME OFFICES
9. Clause 1.1 specifies the Principal Determination (Number 21 of 2015 as amended) for the purposes of Part 1 of the Determination.
10. Clauses 1.2 and 1.3 set accommodation allowance and reunion fares allowance for the Interim Chief Executive Officer, Mr Tony Usher, Aboriginal Hostels Limited.
11. Clause 1.4 sets the commencement date of clauses 1.2 and 1.3.
PART 2 – JUDICIAL AND RELATED OFFICES
12. Clause 2.1 specifies the Principal Determination (Number 18 of 2015 as amended) for the purposes of Part 2 of the Determination.
13. Clauses 2.2 to 2.4 amend the basis of remuneration for the President (non-judicial) and the Member (Full-time) of the Australian Law Reform Commission to a Total Remuneration arrangement. It also removes the annual retainer for the Member (Part-time) as it is no longer required.
14. Clause 2.5 sets the commencement date of clauses 2.2 to 2.4.
Authority: Subsections 7(3) and 7(4)
Remuneration Tribunal Act 1973
Overview
The Remuneration and Allowances for Holders of Public Office and Judicial and Related Offices Determination 2016/11, made under the Remuneration Tribunal Act 1973, was enacted to address the need for a structured and transparent process for determining the remuneration, allowances, and entitlements of key Commonwealth office holders. This Act was established to ensure that the remuneration for public officials, including members of Parliament, Federal Court Judges, and holders of principal executive offices, is determined in a fair and consistent manner. The Remuneration Tribunal, as an independent statutory authority, is tasked with reporting on and determining these matters, thereby addressing the legislative gap that existed in providing a formalised mechanism for remuneration determination. This Determination provides the necessary guidelines and amendments to the remuneration arrangements, ensuring they are reflective of the roles, responsibilities, and market standards.
Scope and Application
The Remuneration Tribunal Act 1973 applies to the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, Judges of Federal Courts, most full-time and part-time holders of public offices, and Principal Executive Offices. The Act establishes the Remuneration Tribunal as an independent statutory authority tasked with reporting on and determining these matters. The Tribunal operates with a broad mandate to inform itself as it sees fit, receive written or oral statements, and is not bound by the rules of evidence. It is primarily consulted by Portfolio Ministers or relevant authorities when determining remuneration. This legislation has a Commonwealth jurisdiction, applying nationally across Australia. The Tribunal can base its decisions on publicly available information and submissions from employing authorities, among other sources. The Act extends its application through subordinate instruments, allowing for specific allowances and remuneration arrangements for certain offices as detailed in the Determination 2016/11. This includes provisions for accommodation and reunion travel allowances for the Interim Chief Executive Officer of Aboriginal Hostels Limited, and amendments to the remuneration arrangements for the President (non-judicial) and Member (Full-time) of the Australian Law Reform Commission.
Key Provisions
The Remuneration Tribunal Act 1973, as amended by the Determination 2016/11, primarily addresses the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, Judges of Federal Courts, full-time and part-time holders of public offices, and Principal Executive Offices. Section 11 of the Act outlines the Tribunal's broad powers, allowing it to gather information through various means and to operate without strict procedural or evidentiary constraints (s. 11). Submissions regarding remuneration are typically received from Portfolio Ministers or other responsible authorities, and the Tribunal may consult with relevant Ministers and stakeholders to inform its decisions (s. 11). The Tribunal bases its determinations on the office's functions, responsibilities, requisite skills, and comparative remuneration data (s. 11).
The obligations imposed by the Act require responsible authorities to submit detailed information on the roles, responsibilities, and remuneration requests for relevant offices. The Tribunal is tasked with reviewing this information, consulting with stakeholders, and deliberating on the appropriate remuneration packages (s. 11). This includes considering the organisational structure, budget, and workforce of the office in question, as well as the skills and qualifications needed for the office holder (s. 11). The Tribunal must also ensure that any retrospective application of its determinations does not adversely affect the rights or impose any liability on individuals, except the Commonwealth or its authorities (s. 12(2)).
Under the Determination 2016/11, specific provisions have been made for certain offices. For example, the interim Chief Executive Officer of Aboriginal Hostels Limited has been granted accommodation and reunion travel allowances for a six-month period (Clauses 1.2 and 1.3). Similarly, the President (non-judicial) and a Member (Full-time) of the Australian Law Reform Commission have had their basis of remuneration amended to a Total Remuneration arrangement, and the annual retainer for the Member (Part-time) has been removed (Clauses 2.2 to 2.4). These changes reflect the Tribunal's consideration of the appropriate remuneration for these roles, taking into account their specific duties and the broader context of similar offices. Failure to comply with the provisions of the Act and the Determination could result in legal consequences, although specific penalties are not detailed in the provided text.