EXPLANATORY STATEMENT
Select Legislative Instrument No. 240, 2013
Issued by the authority of the Minister Assisting the Prime Minister for the Public Service
Remuneration Tribunal Act 1973
Remuneration Tribunal (Members’ Fees and Allowances) Amendment (Fees) Regulation 2013
The Remuneration Tribunal Act 1973 (the Act) established 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 the Parliament, Judges of Federal Courts and Territory Supreme courts, most full‑time and part‑time holders of public offices and Principal Executive Offices.
Section 17 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act, or necessary or convenient, to be prescribed for carrying out or giving effect to the Act.
Under Section 4 of the Act, the Governor-General appoints the three part-time members of the Tribunal, one of whom is also appointed as President of the Tribunal. Section 12 of the Act provides that a member of the Tribunal shall be paid such fees and allowances as are prescribed by the Regulations.
The Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 prescribes the fees payable to the President and to a Member of the Tribunal. The fees of the President and Members of the Remuneration Tribunal are reviewed annually.
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment (Fees) Regulation 2013 (the Regulation) increases the level of remuneration from $85,296 to $87,343 for the President and from $41,260 to $42,250 for Members of the Tribunal. This 2.4 per cent increase is consistent with recent trends in public and private sector remuneration rates.
Consultation was considered unnecessary because the Regulation is of a minor or machinery nature, does not substantially alter existing arrangements and relates to an employment matter (section 18, Legislative Instrument Act 2003).
The Regulation is a legislative instrument for the purpose of the Legislative Instruments Act 2003.
The Regulation commences on 25 November 2013, being 12 months since the Tribunal President and Member’s fees were last revised.
Statement of Compatibility with Human Rights
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
This Legislative Instrument does not engage any of the applicable rights or freedoms and is compatible with human rights as it does not raise any human rights issues.
Overview
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment (Fees) Regulation 2013, issued under the authority of the Minister Assisting the Prime Minister for the Public Service, amends the fees prescribed for members of the Remuneration Tribunal, which was established by the Remuneration Tribunal Act 1973. The primary objective of this regulation is to adjust the remuneration for the President and Members of the Tribunal in line with recent trends in public and private sector remuneration rates. The increase from $85,296 to $87,343 for the President and from $41,260 to $42,250 for Members, reflecting a 2.4 per cent adjustment, aims to ensure that the compensation remains competitive and reflective of the current economic environment. The regulation, considered minor and of a machinery nature, was enacted without the need for extensive consultation as it does not substantially alter existing arrangements and pertains to an employment matter. The Regulation is designed to maintain the independence and effectiveness of the Tribunal, which is responsible for determining the remuneration, allowances, and entitlements of key Commonwealth office holders.
Scope and Application
The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal as an independent statutory authority charged with the responsibility of determining the remuneration, allowances, and entitlements for key Commonwealth office holders, including members of Parliament, Judges of Federal Courts and Territory Supreme courts, most full-time and part-time holders of public offices, and Principal Executive Offices. The Act applies to these public officials within the Commonwealth jurisdiction, ensuring their remuneration is regularly reviewed and adjusted to reflect market trends and changes in the cost of living. Section 12 of the Act stipulates that the fees and allowances for members of the Tribunal are to be prescribed by regulations. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment (Fees) Regulation 2013, which increases the level of remuneration for the President and Members of the Tribunal, is a legislative instrument made under Section 17 of the Act, allowing for the regulation to be consistent with recent trends in public and private sector remuneration rates. This regulation was deemed of a minor or machinery nature and did not require consultation as it does not substantially alter existing arrangements or relate to any significant policy change.
Key Provisions
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment (Fees) Regulation 2013 amends the fees paid to the President and Members of the Remuneration Tribunal, as set out in the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005. Under the Remuneration Tribunal Act 1973, the Governor-General is empowered to make regulations that are necessary or convenient to carry out or give effect to the Act (section 17). The fees for the President and Members are specified in these Regulations and are subject to annual review (section 12). The 2013 Amendment increases the remuneration of the President from $85,296 to $87,343, and the remuneration for Members from $41,260 to $42,250, reflecting recent trends in public and private sector remuneration rates.
The Remuneration Tribunal Act 1973 mandates that the Governor-General appoints the President and Members of the Tribunal (section 4). The Act also requires that these members be paid fees and allowances as prescribed by Regulations (section 12). The 2013 Amendment to the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 adjusts the fees in line with the aforementioned increases. The Regulation is designed to ensure that the remuneration remains competitive and reflective of current market rates, maintaining the independence and effectiveness of the Tribunal in its role.
The Regulation imposes specific financial obligations on the Commonwealth, necessitating the payment of the adjusted fees to the President and Members of the Tribunal. It also requires these officials to comply with the prescribed remuneration rates as set out in the Regulation. The changes are intended to maintain the integrity and operational efficiency of the Tribunal by ensuring its members are adequately compensated for their roles.
There are no specific offences, penalties, or consequences outlined in the Regulation itself for failing to comply with the amended fees. However, non-compliance with statutory requirements could potentially lead to legal challenges or administrative penalties under the broader framework of the Remuneration Tribunal Act 1973. The Regulation is a legislative instrument under the Legislative Instruments Act 2003, which governs the creation and operation of such instruments, ensuring they are consistent with legislative intent and procedural requirements.