Remuneration Tribunal (Members’ Fees and Allowances) Amendment Regulations 2020

Overview

The Remuneration Tribunal Act 1973 was enacted to establish the Remuneration Tribunal, an independent statutory authority responsible for determining the remuneration, allowances and entitlements of key Commonwealth office holders, including members of Parliament, Judges of Federal Courts and Territory Supreme Courts, and holders of various public offices. This legislation was introduced to address the need for a consistent and transparent method of remunerating senior public officials. The Act was enacted by the Parliament of Australia, with the objective of ensuring that remuneration is fair and reflects market trends. The Remuneration Tribunal (Members' Fees and Allowances) Amendment Regulations 2020, made under the authority of the Act, propose to increase the fees for the President and Members of the Tribunal by two per cent, aligning them with recent trends in public and private sector remuneration rates. These amendments aim to maintain the fairness and competitiveness of the remuneration offered to the members of the Tribunal.

Scope and Application

The Remuneration Tribunal Act 1973 applies to the Remuneration Tribunal, which is an independent statutory authority established to report on and determine the remuneration, allowances and entitlements of key Commonwealth office holders, including members of the Parliament, Judges of Federal Courts and Territory Supreme Courts, and other full-time and part-time holders of public offices and Principal Executive Offices. The Act provides for the appointment of the Tribunal members by the Governor-General, and regulates their fees and allowances. The Remuneration Tribunal (Members' Fees and Allowances) Amendment Regulations 2020 (the 2020 Regulations) amends the Remuneration Tribunal (Members' Fees and Allowances) Regulation 2016, increasing the fees of the Tribunal president and other members by two per cent, in line with trends in public and private sector remuneration rates. The 2020 Regulations are a legislative instrument for the purposes of the Legislation Act 2003 and commenced on 1 March 2020. The Remuneration Tribunal Secretariat was consulted on the proposed increase in fees, but the Department did not consult any further as the Tribunal is the Australian Government statutory authority responsible for determining remuneration for part-time holders of various public offices. The 2020 Regulations are compatible with human rights, engaging the right to the enjoyment of just and favourable conditions of work, including a right to fair wages and equal remuneration.

Key Provisions

The Remuneration Tribunal (Members' Fees and Allowances) Amendment Regulations 2020 (the 2020 Regulations) (reg 1) are designed to amend the Remuneration Tribunal (Members’ Fees and Allowances) Regulation 2016 (the 2016 Regulation) by increasing the fees payable to the President of the Tribunal and to other members of the Tribunal. This amendment is effective from 1 March 2020 (reg 2), and it is authorised under section 12 of the Remuneration Tribunal Act 1973 (reg 3). The changes made by the 2020 Regulations are detailed in Schedule 1, which specifies that the President's fees will increase from $128,922 to $131,500 per year, and the fees for other members will increase from $43,957 to $44,836 per year (Schedule 1, items 1 and 2). The Remuneration Tribunal Act 1973 (the Act) establishes the Remuneration Tribunal (the Tribunal) as an independent statutory authority responsible for determining the remuneration, allowances, and entitlements of key Commonwealth office holders, such as members of Parliament and Federal Court Judges. Section 12 of the Act mandates that members of the Tribunal shall be paid fees and allowances as prescribed, with these fees and allowances currently detailed in the 2016 Regulation. The Tribunal is not empowered to set its own fees; instead, the fees are prescribed through regulations such as the 2020 Regulations. The Act also provides that the Governor-General may make regulations necessary or convenient for carrying out or giving effect to the Act (s 17). The obligations imposed by the 2020 Regulations on the parties governed by the Act include the requirement to pay the newly prescribed fees to the President and other members of the Tribunal. The Tribunal, as an independent statutory authority, must adhere to the fees set out in the 2020 Regulations. The Remuneration Tribunal Secretariat, which is staffed by Australian Public Service employees within the Australian Public Service Commission, was consulted on the proposal to increase these fees. However, no further consultation was undertaken because the Remuneration Tribunal holds the responsibility for determining remuneration for various public offices. The Department reviewed public sector trends and market forces, considering factors such as the wage price index produced by the Australian Bureau of Statistics, to ensure the fee increases align with broader public sector remuneration trends. The 2020 Regulations do not explicitly outline offences, penalties, or consequences for breaches. However, non-compliance with the prescribed fees could potentially lead to disputes regarding the remuneration of Tribunal members, which might be resolved through administrative or judicial processes. The Remuneration Tribunal Act 1973 and associated regulations set the framework within which these remuneration issues are governed, and any breaches would be subject to the legal consequences prescribed under the relevant laws. The compatibility of the 2020 Regulations with human rights is also addressed, noting that the amendments promote the right to the enjoyment of just and favourable conditions of work, as recognised under Article 7 of the International Covenant on Economic, Social and Cultural Rights.