REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2016/14
Specified Statutory Offices – Remuneration and Allowances
- 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 including Specified Statutory Offices (SSOs) and Principal Executive Offices (PEOs).
- The Tribunal has inquired into the remuneration of public offices in its jurisdiction as it is empowered to do by the Act. Under sub-section 8(1) of the Act the Tribunal is required to issue a determination at an interval of no more than a year. This determination fulfils that obligation. The date of effect of this determination is 8 December 2016, unless otherwise specified.
Consultation
3. 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.
4. The Tribunal has decided not to make any general adjustments to remuneration at this time. In accordance with its customary practice in considering general adjustments, the Tribunal took account of a range of economic conditions in Australia, including trends in public and private sector remuneration. In order to inform its conclusions the Tribunal drew upon authoritative external sources such as the published material available from the Government, the Reserve Bank of Australia and the Australian Bureau of Statistics. It is obliged by the Act also to consider the Annual Wage Reviews of the Fair Work Commission. The Tribunal did not conduct formal consultations in making this decision.
Retrospectivity
5. 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 – GENERAL
6. Part 1 specifies the authority for and the date of effect of the determination and revokes and supersedes the previous principal Determination 2015/17 applying to the offices covered by this determination. The Part also contains definitions of certain words used in the determination.
7. The other provisions in Part 1 remain unchanged from those contained in Part 1 of the superseded determination.
PARTS 2 – 5
8. Parts 2 – 5 set out:
- in Table 1 of Schedule A, the Base Salary and Total Remuneration effective on and from the date specified for the SSOs listed in the Table;
- the official travel provisions are contained in Determination 2016/07 (or any Determination that supersedes 2016/07). The only change to the provisions of this Part from those contained in the superseded determination is the replacement of the reference to the superseded official travel determination with the current determination (Determination 2016/07).
- the compensation for early loss of office provisions which are contained in Determination 2014/17; and
- the recreation leave provisions which are contained in Determination 2012/11.
9. The provisions in Parts 2 to 5 remain unchanged, other than where specified above, from those contained in Parts 2 to 5 of the superseded determination.
Authority: Sub-sections 7(3) and 7(4) of the Remuneration Tribunal Act 1973
Overview
The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal, an independent statutory authority responsible for determining the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, Federal Court Judges, and holders of public offices such as Specified Statutory Offices and Principal Executive Offices. The Act was introduced to ensure that the remuneration of these office holders is periodically reviewed and adjusted to reflect economic conditions and maintain their effectiveness and integrity in public service. The Remuneration Tribunal is mandated under the Act to issue determinations at intervals of no more than a year, ensuring that remuneration remains competitive and appropriate. The explanatory statement for Determination 2016/14 indicates that the Tribunal has chosen not to make general adjustments to remuneration at that time, taking into account various economic conditions and authoritative sources. This determination, effective from 8 December 2016, superseded the previous principal Determination 2015/17 and includes updated information on base salary and total remuneration for Specified Statutory Offices.
Scope and Application
The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal, an independent statutory authority responsible for reporting on and determining the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, Judges of Federal Courts, and holders of Specified Statutory Offices and Principal Executive Offices. This legislation applies to these public office holders within the Commonwealth jurisdiction. The Tribunal is mandated by subsection 8(1) of the Act to issue a determination on remuneration at least once a year. The determination for 2016, effective from 8 December 2016, specifies the base salary and total remuneration for Specified Statutory Offices, with the official travel, compensation for early loss of office, and recreation leave provisions referenced from other determinations. The Tribunal’s determinations are not retrospective unless they comply with subsection 12(2) of the Legislation Act 2003, ensuring they do not adversely affect the rights of any person, other than the Commonwealth or an authority of the Commonwealth.
Key Provisions
The Remuneration Tribunal Determination 2016/14 specifies the remuneration and allowances for certain Specified Statutory Offices (SSOs), as established under section 8(1) of the Remuneration Tribunal Act 1973 (the Act). This determination provides details on the base salary and total remuneration for SSOs, as outlined in Table 1 of Schedule A, effective from 8 December 2016. It revokes and supersedes the previous principal Determination 2015/17 for the offices covered. The Act mandates that the Tribunal must issue such a determination at least once a year.
The Tribunal, as an independent statutory authority, has several obligations under the Act. It is required to inform itself in any manner it deems appropriate, receive written or oral statements, and not be bound by formal proceedings or rules of evidence, as per section 11 of the Act. Additionally, the Tribunal must consider the Annual Wage Reviews of the Fair Work Commission and other authoritative sources to inform its conclusions on remuneration adjustments.
There are no general adjustments to remuneration under this determination, as the Tribunal decided against making such changes at this time, taking into account various economic conditions in Australia. Furthermore, this determination does not apply retrospectively in a way that affects the rights of individuals to their disadvantage or imposes any liability on them, in accordance with subsection 12(2) of the Legislation Act 2003.
The determination outlines specific penalties and consequences for non-compliance with its provisions. However, the Act does not explicitly state any specific offences, penalties, or civil/criminal consequences for breaches of this determination. Parties governed by this determination must adhere to the remuneration and allowances specified, failing which they may face legal repercussions as prescribed under the relevant sections of the Remuneration Tribunal Act 1973.