EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 252
Issued by the authority of the Minister for the Public Service and Integrity
Remuneration Tribunal Act 1973
Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulation 2012 (No. 1)
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 Regulation 2012 (No. 1) (the Regulation) increases the level of remuneration from $82,812 to $85,296 for the President and from $40,058 to $41,260 for Members of the Tribunal. This three per cent increase is consistent with the annual adjustment provided to part-time office holders with effect from 1 July 2012. It is also consistent with the Government’s wages policy in respect of the Australian Public Service (APS) which recommends that salary increases not exceed an average annualised wage increase of three per cent.
An assessment was made under guidelines issued by the Office of Best Practice Regulation, which indicated that a Regulation Impact Statement (RIS) was not required for this Regulation because the amendments are of a minor or machinery nature and do not substantially alter existing arrangements.
Consultation was considered unnecessary because the instrument 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 commenced on 25 November 2012, being 12 months from the last increase.
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 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, including members of Parliament, federal and territory supreme court judges, and public office holders. The Act was passed by the Parliament of Australia with the aim of ensuring that the remuneration of these officials is set in an independent, transparent, and accountable manner. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulation 2012 (No. 1) was subsequently introduced to adjust the fees of the Tribunal's members in line with the Government's wages policy for the Australian Public Service, which limits salary increases to an average annualised rate of three per cent. This regulation was deemed to be of a minor or machinery nature and did not require a Regulation Impact Statement or consultation, as it did not substantially alter existing arrangements and related to an employment matter.
Scope and Application
The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal as an independent statutory authority tasked with reporting on and determining the remuneration, allowances, and entitlements for key Commonwealth office holders. This includes 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. The Act authorises the Governor-General to make regulations necessary for carrying out or giving effect to the Act, with Section 12 stipulating that members of the Tribunal are to be paid fees and allowances prescribed by regulations. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulation 2012 (No. 1) adjusts the remuneration levels for the President and Members of the Tribunal, consistent with the Government’s wages policy in respect of the Australian Public Service. The regulation, which is a legislative instrument under the Legislative Instruments Act 2003, increases the President's remuneration from $82,812 to $85,296 and a Member's remuneration from $40,058 to $41,260, effective from 1 July 2012. The amendments are of a minor or machinery nature and do not require a Regulation Impact Statement or consultation, as they do not substantially alter existing arrangements and relate to an employment matter.
Key Provisions
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulation 2012 (No. 1) (referred to as the Regulation) primarily amends the fees and allowances prescribed for the President and Members of the Remuneration Tribunal under the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005. Section 3 of the Regulation specifies the new rates of remuneration: it raises the annual fees for the President from $82,812 to $85,296 and for Members from $40,058 to $41,260. These changes, which took effect from 1 July 2012, are in line with the three percent annual adjustment that applies to part-time office holders and are consistent with the Government's wages policy for the Australian Public Service (APS).
The obligations imposed by the Regulation are primarily administrative, requiring the appropriate authorities to adjust the remuneration of the President and Members of the Remuneration Tribunal in accordance with the new rates specified in the Regulation. The Remuneration Tribunal Act 1973 (section 12) already mandates that members of the Tribunal shall be paid fees and allowances as prescribed by the Regulations, and the Amendment Regulation 2012 (No. 1) simply updates these prescribed fees. This means that the Tribunal members must now be compensated at the higher rates as per the Regulation.
The Regulation does not introduce any new offences, penalties, or consequences for breach. It is a minor amendment intended to adjust remuneration to reflect the government’s wage policy. The Regulation is considered of a minor or machinery nature, and as such, it does not substantially alter existing arrangements or create new obligations or penalties. The Regulatory Impact Statement (RIS) was not required as the changes do not have a significant effect on stakeholders. Moreover, the Regulation is fully compatible with human rights as it does not engage any of the rights or freedoms recognised in international human rights instruments.