Remuneration Tribunal Determination 2016/15: Principal Executive Office - Classification Structure and Terms and Conditions

Administered by Department of the Prime Minister and Cabinet

Legislation au F2016L01882 Not in force Legislative Instrument

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REMUNERATION TRIBUNAL

Explanatory Statement:  Determination 2016/15

Principal Executive Office – Classification Structure and Terms and Conditions

  1. 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 (PEOs). 
  2. 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.

General Adjustments

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 the date of effect of the determination and revokes and supersedes the previous Principal Determination 2015/19 (as amended) applying to the Offices covered by this determination.  This Part also contains definitions of certain words used in the determination.

7.                 The general provisions of this Part remain unchanged from those contained in Part 1 of the superseded determination.

PART 2 – CLASSIFICATION, REMUNERATION AND RELATED MATTERS

8.                 Clause 2.1 refers to Table A1 of Schedule A which specifies rates of remuneration in five broad salary/remuneration bands. These rates have not changed.

9.                 The provisions of this Part remain unchanged from those contained in Part 2 of the superseded determination.

PARTS 3 – 6

10.             Parts 3 to 6 set out the:

  •                   various allowances that may be determined for a PEO;
  • provisions relating to official travel by reference to Determination 2016/07 (or any determination that supersedes Determination 2016/07);
  •                   leave provisions; and
  •                   provisions relating to compensation for early loss of office.

11.              The only change to the provisions of these Parts 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).

 Authority: Subsections 7(3) and 7(4) Remuneration Tribunal Act 1973

Overview

The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal, an independent statutory authority tasked with reporting on and determining the remuneration, allowances, and entitlements of key Commonwealth office holders. This includes members of Parliament, Federal Court judges, most full-time and part-time holders of public offices, and Principal Executive Offices (PEOs). The Act was introduced to address the need for a dedicated body to ensure that the remuneration of these public officers is reviewed and adjusted appropriately, taking into account economic conditions and other relevant factors. The Parliament of Australia enacted this legislation to ensure transparency, fairness, and accountability in the remuneration of public office holders, thereby upholding the integrity of the public service. This determination, issued under the authority of the Act, provides updated terms and conditions, maintaining the classification structure and remuneration rates for PEOs without introducing general adjustments, while referencing authoritative external sources for economic considerations.

Scope and Application

The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal as an independent statutory authority responsible for determining 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 (PEOs). The Act applies to these individuals and entities within the Commonwealth jurisdiction, and its reach extends to ensuring that remuneration is set in accordance with prevailing economic conditions and trends. The Tribunal is empowered to make determinations on remuneration at intervals of no more than a year and is not bound by formal procedures or the rules of evidence in its inquiries. This particular determination, effective from 8 December 2016, updates the Principal Executive Office Classification Structure and Terms and Conditions, revoking and superseding the previous determination from 2015, with no general adjustments to remuneration made at this time. The Act does not apply retrospectively in a manner that would disadvantage a person or impose liability on them, aligning with the Legislation Act 2003.

Key Provisions

The Remuneration Tribunal Determination 2016/15, under the Remuneration Tribunal Act 1973, sets out the classification structure and terms and conditions for Principal Executive Offices (PEOs) in the Commonwealth public sector. This determination, as specified in section 7(3) and 7(4) of the Act, establishes the rates of remuneration, allowances, and other entitlements for these offices, effective from 8 December 2016. It supersedes the previous Principal Determination 2015/19 (as amended) and includes definitions of key terms used throughout the document. The determination is divided into several parts, with Part 1 outlining the authority and general provisions, and Part 2 detailing the specific rates of remuneration in various salary bands. The Remuneration Tribunal, as established by the Act, has a mandate to determine the remuneration for key Commonwealth office holders, including PEOs. The Tribunal's obligations under the Act include conducting its inquiries in a manner it deems fit, receiving written or oral statements, and not being bound by formal procedures or rules of evidence. The Tribunal also considers various economic conditions and authoritative sources when making its determinations, although it did not conduct formal consultations for this particular determination. The Tribunal has opted not to make any general adjustments to remuneration at this time. The determination does not include any retrospective application that would adversely affect the rights of individuals, other than the Commonwealth or its authorities. Any retrospective effects are in accordance with subsection 12(2) of the Legislation Act 2003. The determination details the various allowances, official travel provisions, leave entitlements, and compensation for early loss of office for PEOs. The only change from the previous determination is the update to the reference for official travel provisions, now referencing Determination 2016/07. Under the Remuneration Tribunal Act 1973, breaches of the provisions in this determination can lead to various legal consequences. Although the determination itself does not specify detailed penalties, the Act provides for potential offences and penalties for non-compliance with Tribunal decisions. The Act empowers the Tribunal to make recommendations to the appropriate Minister, who may then take steps to enforce compliance. The specific penalties for non-compliance are outlined in the broader legislative framework of the Act, which could include fines or other civil or criminal consequences depending on the nature and severity of the breach.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.