REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2016/16
Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters
- 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.
- 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.
- The determination makes no change to remuneration.
Consultation
4. 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.
5. The Tribunal has not undertaken any formal consultations in making this determination. Instead the Tribunal has taken 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 has drawn 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.
Retrospectivity
6. 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
7. Part 1 sets out the authority for and date of effect of the Determination and revokes and supersedes previous Determination 2015/22. It also defines ‘base salary’ and explains the scope of references to a ‘member’ or ‘member of parliament’.
8. The provisions in Part 1 are unchanged from those contained in Part 1 of the previous determination.
PART 2 – PARLIAMENTARY BASE SALARY
9. 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).
10. The provisions in Part 2 are unchanged from those contained in Part 2 of the previous determination.
PART 3 – ADDITIONAL SALARY FOR PARLIAMENTARY OFFICE HOLDERS
11. 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.
12. 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.
13. The provisions in Part 3 are unchanged from those contained in Part 3 of the previous determination.
PART 4 – MINISTERS OF STATE
14. 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.
15. 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 to establish an independent statutory authority, the Remuneration Tribunal, which reports on and determines the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, Judges of Federal Courts, and most full-time and part-time holders of public offices and Principal Executive Offices. The Act aims to ensure that the remuneration of these public officials is regularly reviewed and adjusted to reflect economic conditions and maintain the integrity of their roles. The Tribunal's function is to inform itself in a manner it deems appropriate, considering various economic conditions and authoritative sources, without being bound by formal rules of evidence or procedure. The determination made under this Act ensures compliance with the requirement to issue a remuneration determination at least annually, as stipulated in subsection 8(1) of the Act. This continuous review process aims to uphold the balance and fairness in the remuneration of public officials within the Australian Commonwealth framework.
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. This determination applies to these office holders and ensures they receive appropriate compensation as mandated by the Act. The Tribunal's authority to make such determinations is derived from specific subsections of the Act, which also dictate that it must issue a determination at least once a year. The Tribunal has not undertaken formal consultations but has instead relied on authoritative external sources and economic data to inform its decisions. The determination is effective from 8 December 2016 and does not introduce any changes to the remuneration but provides a framework for how allowances and entitlements are calculated and administered. The provisions of this determination are consistent with those of the previous determination, ensuring continuity in the application of the law.
Key Provisions
The Remuneration Tribunal Act 1973 (the Act) mandates the Remuneration Tribunal (the Tribunal) to report on and determine the remuneration, allowances, and entitlements for various Commonwealth office holders, including members of Parliament, Federal Court Judges, and others. According to section 8(1) of the Act, the Tribunal is required to issue a determination at intervals of no more than a year. The determination in question, effective from 8 December 2016, maintains the existing remuneration levels without any changes.
Under the Act, the Tribunal has broad powers to inform itself and conduct its functions as it sees fit, including the ability to receive written or oral statements without being bound by formal proceedings or rules of evidence (section 11). The Tribunal did not undertake formal consultations for this determination but instead considered various economic conditions, authoritative external sources, and the Annual Wage Reviews of the Fair Work Commission.
The Act imposes several obligations on the Tribunal, including the duty to consider relevant economic conditions, authoritative sources, and Fair Work Commission reviews when making determinations. The Tribunal must ensure its determinations do not disadvantage any person other than the Commonwealth or an authority of the Commonwealth, as stipulated in subsection 12(2) of the Legislation Act 2003. The determinations must also not impose any liability on such persons.
Any breach of the requirements outlined in the Act may lead to legal consequences. While the specific penalties for non-compliance are not detailed in this determination, the Act provides for both civil and criminal penalties for breaches. These may include fines and imprisonment, depending on the severity and nature of the breach. The determination itself does not introduce any new offences or penalties but reaffirms the existing legal framework for the Tribunal's functions and obligations.