Remuneration Tribunal Determination 2017/08: Principal Executive Office - Classification Structure and Terms and Conditions

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Legislation au F2017L00809 Not in force Legislative Instrument

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REMUNERATION TRIBUNAL

Explanatory Statement:  Determination 2017/08

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 including Specified Statutory 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. 

 

Annual review

6.                 The Tribunal has an obligation, under sub-sections 7(1), (2), (3) and 8(1) of the Act to make determinations in respect of remuneration for various offices within its jurisdiction at periods of not more than one year.  In meeting this obligation the Tribunal decides whether any general adjustment to remuneration should occur.  The Tribunal issued determinations in December 2016 and at that time made no general adjustments to remuneration.


7.                 In considering whether any general adjustment should occur the Tribunal takes 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 draws 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 Commission’s 2017 decision was released on 6 June 2017.

8.                 The Tribunal did not receive any submissions on this matter.

9.                 On 22 June 2017 the Tribunal notified its decision to increase remuneration by 2 per cent for public offices in its jurisdiction with effect from 1 July 2017.  A statement setting out the Tribunal’s reason for decision is available at www.remtribunal.gov.au.

10.             Determination 2017/08 implements the Tribunal’s decision for the Principal Executive Office Classification Structure and Remuneration Ranges.

11.             Consultation on these amendments was considered unnecessary given the matters considered by the Tribunal in making its decision.

Specific Changes

12.           Base Salary – the Tribunal has removed the Base Salary ranges from the Classification Structure in Schedule A.  These values related to superannuation for defined benefits schemes only.  Additional wording has been added to clause 2.7 to clarify its application for members of defined benefit funds only.  Existing clause 2.8.2 is unchanged and applies to members of accumulation schemes.  These changes have no impact on any individual’s entitlements.

13.           The Tribunal has made a number of minor amendments to improve clarity of the determination as follows:

  1. amended the employer’s superannuation contribution description in the definition of benefits to reflect terminology used elsewhere in the determination 
  2. deleted footnote 7 as it applied to a column in Schedule A that has been removed
  3. deleted footnote 8 to remove reference to ‘normal’ 1 July adjustments to remuneration.  The footnote has no legal effect and does not reflect recent timing of Tribunal decisions on its Annual Reviews.
  1. The Tribunal consulted with the Funds and Superannuation Branch of the Department of Finance on these changes to ensure they complied with legislation covering the respective superannuation schemes. 

Retrospectivity

15.           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.

The power to repeal, rescind and revoke, amend and vary

16.           Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Details of the determination are as follows:

PART 1 - GENERAL

17.           Part 1 specifies the authority for and commencement date of the determination and revokes and supersedes the previous Principal Determination 2016/15 applying to the Offices covered by this determination.  This Part also contains definitions of certain words used in the determination.

18.           Clause 1.3 has been amended by deleting the term ‘employer Superannuation Support’ and replacing with ‘Employer’s Superannuation Contribution’.

19.           The other provisions of this Part remain unchanged from those contained in Part 1 of the previous Determination.

PART 2 – CLASSIFICATION, REMUNERATION AND RELATED MATTERS

20.           Clause 2.7 has been amended to include the words ‘For members of Commonwealth defined benefits superannuation schemes’.

21.           The other provisions of this Part remain unchanged from those contained in Part 2 of the previous Determination.

PARTS 3 – 6

22.           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.

23.            The provisions in Parts 3 to 6 remain unchanged.

Schedule A

24.           Table A1 of Schedule A specifies rates of remuneration in five broad salary/remuneration bands and the commencement date.  These incorporate a 2 per cent increase (rounded as appropriate) commencing on 1 July 2017.

25.           Table A1 has also been amended to delete the column ‘Superannuation Salary Band Range’ and the associated footnote.

26.           Footnotes 7 and 8 have been deleted.

 

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

Overview

The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal as an independent statutory authority responsible for determining the remuneration, allowances and entitlements of key Commonwealth office holders, such as members of Parliament, Federal Court Judges, and Principal Executive Offices. The Australian Parliament enacted this legislation to address the need for a consistent and transparent framework for setting the pay and conditions of senior public office holders. The Tribunal operates under the authority of the Act, which empowers it to make informed decisions based on a range of factors, including the functions, responsibilities, and accountabilities of the office, organisational structure, requisite skills, and the remuneration of comparable positions. The Tribunal is also mandated to conduct annual reviews of remuneration and make determinations within a year to ensure adjustments reflect economic conditions and other relevant factors. The policy objective of the Act is to ensure fair and equitable remuneration for public office holders, reflecting their roles and responsibilities, while maintaining transparency and accountability in the remuneration process.

Scope and Application

The Remuneration Tribunal Act 1973 establishes 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 most full-time and part-time holders of public offices, including Specified Statutory Offices and Principal Executive Offices. The Tribunal operates under the authority of the Act and is not bound by formal procedures or rules of evidence, allowing it to gather information as it sees fit, including through written or oral submissions, and potentially by meeting with relevant parties. The Tribunal consults with portfolio ministers, secretaries, or employing bodies to determine remuneration, considering factors such as the office's functions, responsibilities, requisite skills, and comparable remuneration in similar offices. The Act mandates the Tribunal to make determinations on remuneration annually, taking into account various economic conditions and Fair Work Commission's Annual Wage Reviews. The Tribunal issued Determination 2017/08, which implements the Tribunal’s decision to increase remuneration by 2% for public offices in its jurisdiction effective from 1 July 2017, and made minor amendments to improve clarity, such as removing Base Salary ranges related to superannuation for defined benefits schemes and updating terminology to reflect consistent usage across the determination. This determination does not apply retrospectively in a manner that would disadvantage individuals or impose liabilities on them, aligning with subsection 12(2) of the Legislation Act 2003. The Act also confers powers to repeal, rescind, revoke, amend, or vary any legislative or administrative instrument made under it.

Key Provisions

The main operative sections of the Remuneration Tribunal Determination 2017/08 are found in Part 1 and Part 2, which establish the framework for remuneration and allowances for Principal Executive Offices (PEOs). Section 11 of the Remuneration Tribunal Act 1973 (the Act) outlines the procedures the Tribunal follows in determining remuneration, which include the ability to inform itself in any manner it deems fit, receive written or oral statements, and not being bound by the rules of evidence. This flexibility allows the Tribunal to gather a wide range of information to make informed decisions. Determination 2017/08 also specifies the classification structure and remuneration ranges for PEOs, implementing a 2 per cent increase in remuneration effective from 1 July 2017. The Act imposes several obligations on the Tribunal and the entities it governs. Firstly, the Tribunal must conduct its reviews and determinations in accordance with the provisions outlined in the Act, ensuring that it considers a variety of factors such as the functions and responsibilities of the office, the organisational structure, and the remuneration of similar offices. The Tribunal is also required to consult with relevant ministers and stakeholders, such as the Funds and Superannuation Branch of the Department of Finance, to ensure its decisions are well-informed and compliant with existing legislation. Furthermore, the Tribunal must consider the Annual Wage Reviews of the Fair Work Commission and authoritative external sources like the Government, Reserve Bank of Australia, and the Australian Bureau of Statistics when making its decisions. Breaches of the Act or its determinations can lead to various consequences. Although the explanatory statement does not detail specific offences or penalties, the general legal framework suggests that non-compliance could result in civil or criminal penalties. The Tribunal’s decisions are legally binding, and failure to adhere to them could lead to disputes or legal actions. Additionally, any retrospective application of this determination is made in accordance with subsection 12(2) of the Legislation Act 2003, ensuring that it does not disadvantage any person other than the Commonwealth or its authorities, nor impose any new liabilities on them. The power to amend or vary the determination is also outlined, allowing for necessary adjustments while ensuring compliance with the overarching legislative framework.

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Area of Law
Administrative Law
Public Sector Remuneration
Instrument
Regulation
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Annual Review
Economic Conditions Consideration

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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.