EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 220
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 2011 (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 Court 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 Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 (the Principal Regulations).
Before commencement of the Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2011 (No. 1) (the Regulations) the Principal Regulations prescribed the fees payable to the President as $80,400 and to a Member as $38,891. The fees of the President and Remuneration Tribunal are reviewed annually. The Tribunal is not empowered to determine its own fees.
The Regulations increase the level of remuneration to $82,812 for the President and to $40,058 for Members of the Tribunal. This 3.0 per cent increase is consistent with recent trends in public and private sector remuneration rates.
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 2011 (which is twelve months from the last increase).
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 and Federal Court judges. The Act addresses the need for an independent body to ensure fair and consistent remuneration for these public officials. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2011 (No. 1), issued by the authority of the Special Minister of State for the Public Service and Integrity, aim to adjust the fees payable to the President and members of the Tribunal to align with recent trends in public and private sector remuneration rates. These amendments, which increase the fees by 3.0%, are a minor regulatory change that does not substantially alter existing arrangements, thus not requiring a regulation impact statement or broader consultation. The Regulations are a legislative instrument under the Legislative Instruments Act 2003 and commenced on 25 November 2011.
Scope and Application
The Remuneration Tribunal Act 1973 applies to the establishment and operations of the Remuneration Tribunal, which is responsible for determining the remuneration, allowances, and entitlements of key Commonwealth office holders, including members of Parliament, federal and territory judges, full-time and part-time public office holders, and Principal Executive Officers. This Act covers a range of individuals and positions within the Commonwealth of Australia, ensuring that their remuneration is appropriately reviewed and adjusted as necessary. The Act also provides for the appointment of the Tribunal's members by the Governor-General and specifies the fees and allowances to be paid to these members. The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2011 (No. 1) further detail the remuneration specifics for the President and Members of the Tribunal, reflecting a 3.0 per cent increase to account for recent trends in public and private sector remuneration rates. The geographic reach of the Act is limited to the Commonwealth, with no explicit exclusions or thresholds mentioned in the explanatory statement. The Act allows for the creation of subordinate instruments to further define the application of its provisions, as evidenced by the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 and the subsequent amending regulations.
Key Provisions
The Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2011 (No. 1) amend the Remuneration Tribunal (Members’ Fees and Allowances) Regulations 2005 by increasing the fees payable to the President of the Remuneration Tribunal and to the members of the Tribunal. These amendments are made under section 17 of the Remuneration Tribunal Act 1973, which allows the Governor-General to make regulations prescribing matters necessary or convenient to carry out or give effect to the Act. Specifically, section 12 of the Act provides that the fees and allowances of Tribunal members are to be prescribed by regulation. The Regulations increase the annual remuneration for the President from $80,400 to $82,812 and for members from $38,891 to $40,058. This increase, reflecting a 3.0 per cent adjustment, aligns with recent trends in remuneration rates within both the public and private sectors.
The Regulations impose obligations on the Australian Government to ensure that the President and members of the Tribunal are compensated in accordance with the amended fees. These remuneration adjustments are to be paid by the Commonwealth and are intended to reflect the market rates for similar roles. The Act itself does not empower the Tribunal to determine its own fees; therefore, these changes are essential for maintaining the integrity and fairness of the remuneration process for the Tribunal’s members. Furthermore, the amendments must be adhered to by relevant government departments, which are responsible for disbursing the updated fees to the Tribunal members in compliance with the Regulations.
There are no specific offences, penalties, or civil/criminal consequences outlined within the Explanatory Statement for breaches of these Regulations. However, failure to comply with the Remuneration Tribunal Act 1973 or the amended Regulations could potentially lead to legal challenges or administrative penalties, as they govern the remuneration of key public office holders. The precise consequences of non-compliance would depend on the specific circumstances and the interpretation of the relevant provisions by courts or tribunals. The explanatory statement does not detail specific penalties, but the statutory framework within which these Regulations operate may include administrative, civil, or criminal penalties for non-compliance with the Act or its regulations.