EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 221
Issued by the authority of the Minister for Employment and Workplace Relations
Remuneration Tribunal Act 1973
Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2008 (No. 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 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 13 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 to be prescribed, 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.
The Regulations increase the annual fees payable to the President and other members of the Tribunal.
The Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 prescribe the level of remuneration for the President and the Members of the Tribunal. The current amounts are $72,170 and $34,910 respectively. The Regulations increase the level of remuneration by 4.3% to $75,273 for the President and $36,411 for the Members of the Tribunal. The new fees commence from 25 November 2007, which is twelve months from the last increase.
The increases are consistent with recent increases to the salaries of part-time Public Office Holders. The President and Members of the Tribunal are part-time appointments and so their positions are closely aligned to those of part-time Public Office Holders.
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 these Regulations because the amendments are of a minor or machinery nature and do not substantially alter existing arrangements.
Consultation, on this matter took place internally within the relevant areas of the Department of Education, Employment and Workplace Relations. Wider consultation was not undertaken as it would not be appropriate to consult with the Tribunal itself. The fee was calculated having regard to the increases that had taken place for other officers who were of the same status (i.e., other public office holders).
In addition, section 18 of the Legislative Instruments Act 2003 provides that consultation may not be appropriate where the instrument is of a minor or machinery nature and does not substantially alter existing arrangements, or it relates to employment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on 25 November 2008.
Overview
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2008 (No. 1) were enacted to amend the Remuneration Tribunal Act 1973, addressing the need to periodically adjust the remuneration of members of the Remuneration Tribunal. This Act was introduced by the Commonwealth Parliament to establish the Remuneration Tribunal as an independent statutory authority tasked with determining the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament and federal judges. The policy objective of these regulations is to ensure that the fees and allowances for the Tribunal's members are aligned with the remuneration of comparable part-time public office holders, thereby maintaining equitable and competitive compensation within the public sector.
These regulations, issued by the authority of the Minister for Employment and Workplace Relations, increase the annual fees for the President and other members of the Tribunal by 4.3%, reflecting recent salary adjustments for part-time public office holders. The new fees, which commenced on 25 November 2007, were calculated based on increases for officers of similar status and were deemed to be of a minor or machinery nature, not requiring a regulation impact statement. The amendments do not substantially alter existing arrangements and were developed in consultation with relevant internal departments. The Regulations are a legislative instrument under the Legislative Instruments Act 2003 and commenced on 25 November 2008.
Scope and Application
The Remuneration Tribunal Act 1973 pertains to the establishment and operation of the Remuneration Tribunal, an independent statutory authority that sets the remuneration, allowances, and entitlements for key Commonwealth office holders, including members of Parliament, federal and Territory Supreme Court judges, and most full-time and part-time public office holders. Under the authority granted by section 13 of the Act, the Governor-General has the power to make regulations to prescribe matters required or permitted by the Act, necessary or convenient to its implementation, as seen in the Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2008 (No. 1). These regulations increase the annual fees payable to the President and other members of the Tribunal by 4.3%, aligning their remuneration with recent increases in the salaries of part-time public office holders. The amendments, deemed of minor or machinery nature, did not require a regulation impact statement and were implemented following internal consultation within the Department of Education, Employment and Workplace Relations. The Regulations are in effect as of 25 November 2008, furthering the Act's objective of maintaining appropriate compensation for its members.
Key Provisions
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2008 (No. 1) (the Regulations) primarily amend the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 (the 2005 Regulations) by increasing the annual fees payable to the President and other members of the Remuneration Tribunal (the Tribunal). Section 12 of the Remuneration Tribunal Act 1973 (the Act) allows for the prescription of fees and allowances for the members of the Tribunal, and these Regulations implement that power by increasing the fees. Specifically, the President's annual fee is increased from $72,170 to $75,273, and the Members' annual fee is increased from $34,910 to $36,411. These new fees are consistent with recent increases in the salaries of other part-time public office holders, given that the President and Members of the Tribunal are also part-time appointments.
The Regulations impose obligations on the parties involved, particularly the President and other members of the Tribunal, by setting out their new remuneration levels. The increase in fees reflects the alignment of the Tribunal members’ remuneration with that of other part-time public office holders, ensuring that their compensation is commensurate with the responsibilities and time commitments of their roles. The Act and these Regulations establish a clear framework for the remuneration of the Tribunal members, which must be adhered to by both the Tribunal and the Commonwealth.
Under the Act, any breach of the prescribed fees and allowances would constitute a failure to comply with the statutory requirements, potentially leading to legal consequences. However, the Regulations themselves do not explicitly detail specific offences, penalties, or consequences for non-compliance. In general, breaches of statutory requirements under the Act could potentially lead to civil or criminal penalties as prescribed in other sections of the Act, although such specific details are not provided in these Regulations. It is important for the parties involved to ensure they adhere to the prescribed remuneration levels to avoid any legal repercussions that may arise from non-compliance with the statutory framework.