Remuneration Tribunal Determination 2017/02: Members of Parliament – Entitlements

Overview

The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal as an independent statutory authority tasked with determining the remuneration, allowances, and expenses of key Commonwealth office holders, including members of parliament, judges of Federal Courts, and holders of public and principal executive offices. This Act was introduced to ensure a systematic and transparent approach to the remuneration of these important public servants. The Act was enacted by the Parliament of Australia, with the overarching policy objective being to maintain fair and equitable remuneration practices that reflect the responsibilities and conditions of service of these office holders. In 2017, the Remuneration Tribunal announced its intention to abolish the provisions that allowed members of parliament to accrue financial assistance for overseas travel for study purposes. This decision followed extensive consultations with members of parliament and was first announced in the Tribunal's December 2011 report. As this change removes a part of the Act that was applicable only during a specific, now-expired period, no additional consultation was required. The determination effectively removes Part 10 of the Principal Determination (Overseas Travel – Transitional Arrangements), which had limited access to these transitional provisions to the period ending at the conclusion of the 44th Parliament.

Scope and Application

The Remuneration Tribunal Act 1973 applies to the establishment and functions of the Remuneration Tribunal, an independent statutory authority tasked with determining the remuneration, allowances, and expenses for key Commonwealth office holders, including members of parliament, Judges of Federal Courts, and principal executive officers. This Act is a Commonwealth instrument, meaning it has jurisdiction across the entire nation, ensuring uniform standards for the remuneration and benefits of specified public office holders. Notably, the Tribunal is granted broad discretion in conducting its inquiries, such as receiving written or oral statements and not being bound by the rules of evidence, as outlined in section 11 of the Act. The scope of the Act includes the authority to remove or amend parts of its determinations, as demonstrated by the removal of Part 10 (Overseas Travel – Transitional Arrangements) of the Principal Determination, which had a finite application period and has now expired. This authority is exercised under sub-sections 7(1), 7(2) and 7(4) of the Act, allowing the Tribunal to make determinations that may be further detailed or modified through subordinate instruments.

Key Provisions

The main operative sections of this determination, as outlined in the Explanatory Statement, concern the adjustments made to the entitlements of members of parliament. Specifically, Clause 1.2 of the determination removes Part 10 of the Principal Determination (Overseas Travel – Transitional Arrangements), which had previously been in place but is now obsolete as it expired at the end of the 44th Parliament (Clause 1.2). This change reflects the Tribunal's decision to abolish the provisions enabling members of parliament to accrue financial assistance for overseas study travel, as announced in its December 2011 report (Clause 3). The Tribunal had undertaken extensive consultations with members of parliament during 2011 to inform this decision (Clause 2). The obligations and requirements imposed by this Act on the parties it governs are primarily focused on the adjustments to entitlements. Since the Tribunal has removed Part 10 of the Principal Determination, which previously governed overseas travel transitional arrangements, these arrangements are no longer applicable (Clause 1.2). This means that the financial assistance for overseas study travel that was previously available to members of parliament is no longer provided under the Act (Clause 3). The Tribunal's decision to remove these provisions is based on extensive consultations and the completion of the transitional period, which ended at the conclusion of the 44th Parliament. In terms of offences, penalties, or civil and criminal consequences for breach, the Act does not specify any particular penalties or consequences related to the removal of Part 10 of the Principal Determination. The determination focuses on the operational adjustments to entitlements and the cessation of the overseas travel transitional provisions. Any breaches related to the entitlements or allowances not covered by this determination would likely be addressed under the broader provisions of the Remuneration Tribunal Act 1973. However, it is important to note that the authority for these changes lies in Sub-sections 7(1), 7(2), and 7(4) of the Remuneration Tribunal Act 1973 (Clause 6), which provide the Tribunal with the necessary powers to make such determinations and adjustments.