EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 300
Issued by the authority of the Special Minister of State for the Public Service and Integrity
Remuneration Tribunal Act 1973
Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2010 (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 $77,531 and to a Member as $37,503. The fees of the President and Remuneration Tribunal are reviewed annually.
The Regulations would increase the level of remuneration from $77,531 to $80,400 for the President and from $37,503 to $38,891 for Members of the Tribunal. This 3.7 per cent increase is consistent with recent trends in public and private sector remuneration rates.
The new fees commence from 25 November 2010, 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 Australian Public Service Commission. 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 2010.
Overview
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2010 (No. 1), enacted by the authority of the Special Minister of State for the Public Service and Integrity, were introduced to amend the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005. These amendments were made under the Remuneration Tribunal Act 1973 to adjust the fees for the President and members of the Remuneration Tribunal to better reflect recent trends in public and private sector remuneration rates. The primary objective of these regulations is to ensure that the remuneration of key Commonwealth office holders, including members of the Parliament and Federal Court judges, remains competitive and in line with broader economic indicators. Given the minor nature of the amendments, a regulation impact statement was not required, and consultation was limited to internal assessment within the Australian Public Service Commission, as wider consultation was deemed inappropriate for changes of this nature.
Scope and Application
The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal as an independent statutory authority tasked with determining the remuneration, allowances, and entitlements of 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 Officers. The Act outlines the framework under which the Tribunal operates and mandates the Governor-General to make regulations that are not inconsistent with the Act, as stipulated in Section 13. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2010 (No. 1) adjust the fees payable to the President and Members of the Tribunal, reflecting a 3.7 per cent increase consistent with recent trends in public and private sector remuneration rates. The amendments, which came into effect on 25 November 2010, are consistent with the minor or machinery nature of the changes and do not substantially alter existing arrangements, thereby negating the need for a regulation impact statement or wider consultation. The Regulations are a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The Remuneration Tribunal (Members' Fees and Allowances) Amendment Regulations 2010 (No. 1) serve to adjust the remuneration for members of the Remuneration Tribunal, as prescribed under Section 12 of the Remuneration Tribunal Act 1973. Specifically, Section 4 of these Regulations increases the annual fees for the President of the Tribunal from $77,531 to $80,400 and for Members of the Tribunal from $37,503 to $38,891, reflecting a 3.7 per cent increase. These changes align with recent trends in public and private sector remuneration rates and will take effect from 25 November 2010.
The Remuneration Tribunal, established under the Remuneration Tribunal Act 1973, is an independent statutory authority tasked with determining the remuneration, allowances, and entitlements of key Commonwealth office holders. The Governor-General, as per Section 4 of the Act, appoints the three part-time members, including the President. The Tribunal's primary responsibility is to ensure that the remuneration of office holders, such as members of Parliament, Federal Court Judges, and Principal Executive Officers, is appropriately reviewed and set. The amendments under these Regulations ensure that the remuneration of the Tribunal's members reflects current market conditions and maintains the integrity and independence of the Tribunal.
The Regulations impose several obligations on the relevant parties. The President and Members of the Tribunal must adhere to the newly prescribed fees and allowances as outlined in the Regulations. These amendments are intended to ensure that the remuneration of Tribunal members is reviewed and adjusted periodically to reflect changes in the economic environment. The Australian Public Service Commission, in consultation with relevant internal areas, assessed the need for these amendments and determined that they were of a minor nature, thereby negating the requirement for broader consultation or a regulation impact statement.
In terms of compliance, any breach of the new fees and allowances prescribed by the Regulations could potentially lead to legal consequences. While the specific penalties for non-compliance are not detailed in the provided text, under the Legislative Instruments Act 2003, failure to adhere to legislative instruments can result in both civil and criminal penalties. Typically, such breaches may attract fines or other legal repercussions, depending on the severity and intent of the non-compliance. These amendments, being of a minor nature, do not substantially alter existing arrangements, and as such, the focus remains on ensuring that the remuneration of the Tribunal's members remains fair and reflective of current remuneration trends.