EXPLANATORY STATEMENT
Select Legislative Instrument 2009 No. 325
Issued by the authority of the Minister for Employment and Workplace Relations
Remuneration Tribunal Act 1973
Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2009 (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 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, 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 currently prescribes the fees payable to the President as $75,273 and to a Member as $36,411. The fees of the President and Remuneration Tribunal are reviewed annually.
The Regulations increase the level of remuneration from $75,273 to $77,531 for the President and from $36,411 to $37,503 for Members of the Tribunal. This 3 per cent increase is in line with the salary adjustments payable to Public Office Holders, Principal Executive Offices and Departmental Secretaries.
The new fees commence from 25 November 2009, which is twelve months from the last increase.
An assessment was made under guidelines issued by the Office of Best Practice Regulations, 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.
In addition, section 18 of the Legislative Instrument Act 2003 provides that consultation may not be appropriate when 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 purpose of the Legislative Instruments
Act 2003.
The Regulations commence on 25 November 2009.
Overview
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2009 (No. 1) were introduced to update the fees and allowances for the President and members of the Remuneration Tribunal, an independent statutory authority established under the Remuneration Tribunal Act 1973. This Act was enacted to address the need for an independent body to determine and report on the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, federal and territory judges, and public office holders. The amendment to the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 was authorised by the Governor-General under Section 13 of the Remuneration Tribunal Act 1973, and it aligns the fees with the annual salary adjustments for public office holders, principal executive officers, and departmental secretaries. The increase of 3 per cent in the remuneration for the President and Members of the Tribunal is effective from 25 November 2009. Given the nature of the amendments, a regulation impact statement was deemed unnecessary, and consultation was limited to internal discussions within the Department of Education, Employment and Workplace Relations, consistent with the guidelines of the Legislative Instruments Act 2003.
Scope and Application
The Remuneration Tribunal Act 1973 is legislation that establishes the Remuneration Tribunal, an independent statutory authority tasked with reporting on and determining the remuneration, allowances, and entitlements of key Commonwealth office holders. These office holders encompass members of the Parliament, Judges of Federal Courts and Territory Supreme courts, full-time and part-time holders of public offices, and Principal Executive Offices. The Act applies to these specific positions within the Commonwealth sphere, ensuring that the remuneration and allowances for these roles are determined fairly and in accordance with the law. The Governor-General, under Section 13 of the Act, has the authority to make regulations to carry out or give effect to the Act, provided they are not inconsistent with it. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2009 (No. 1) specifically address the remuneration of the Tribunal’s members, adjusting their fees in line with salary adjustments for other public office holders and principal executive offices. These amendments, which increase the fees for the President and Members of the Tribunal, are effective from 25 November 2009 and are considered minor adjustments that do not necessitate extensive consultation or a regulation impact statement.
Key Provisions
The Remuneration Tribunal (Members' Fees and Allowances) Amendment Regulations 2009 (No. 1) primarily address the adjustments to the fees payable to the President and members of the Remuneration Tribunal, as stipulated in Section 12 of the Remuneration Tribunal Act 1973. Specifically, the Regulations increase the remuneration for the President from $75,273 to $77,531 and for Members from $36,411 to $37,503. These amendments are effective from 25 November 2009, aligning with the annual review cycle and the 3% salary adjustment applicable to other public office holders, Principal Executive Officers, and Departmental Secretaries. The increase is designed to maintain parity with other salary adjustments within the public sector.
The Regulations impose obligations on the parties they govern, primarily the Remuneration Tribunal and its members. The Tribunal is responsible for ensuring that the fees prescribed by the Regulations are accurately calculated and paid to its members. This includes the President and Members of the Tribunal, who must adhere to the new remuneration rates as stipulated in the Regulations. Furthermore, the Office of Best Practice Regulations has assessed these amendments, determining that they are of a minor or machinery nature and do not substantially alter existing arrangements. Consequently, a regulation impact statement was deemed unnecessary.
Breaching the provisions outlined in these Regulations could potentially lead to legal consequences, although the specific offences, penalties, or consequences are not explicitly detailed in the Explanatory Statement. However, under the general legal framework, non-compliance with prescribed fees and allowances could result in civil or criminal liability, depending on the severity and intent of the breach. The maximum penalties would typically be determined by the relevant statutes governing public office remuneration and administrative compliance. Nonetheless, the primary focus of these Regulations is to ensure that the remuneration of the Tribunal members remains consistent with broader public sector salary adjustments.