Explanatory Statement: Remuneration Tribunal (Members of Parliament) Amendment Determination (No.2) 2024
- The determination is made under the Parliamentary Business Resources Act 2017 (the PBR Act). Sections 45, 46 and 46A of the PBR Act require the Tribunal to make determinations in relation to various matters for members, and former members, of the Parliament at least once each year.
- The Tribunal must determine the remuneration to be paid to members, the rates of travel allowances for domestic travel, and the allowances and expenses to be paid to former members, and the allowances to be paid to the estate of a member who dies in office. The Tribunal must publish its reasons for making a determination.
- The Tribunal also has functions under section 35 of the PBR Act relating to travel expenses, travel and private vehicle allowances and other public resources. The Tribunal must inquire annually into travel expenses and travel allowances for domestic travel (except travel on a special purpose aircraft) and may be asked by the Special Minister of State to inquire into other matters. Regulations must be made or amended in accordance with the Tribunal’s recommendations.
Consultation
Deceased member allowance
- On 1 November 2024, the President of the Tribunal wrote to Senator the Hon Don Farrell, Special Minister of State, confirming the Tribunal’s intention to finalise its consideration of the allowances to be paid to the estate of a member who dies in office, and welcoming any views on the subject.
- On 15 November 2024, the Special Minister of State wrote to the Tribunal regarding the expansion of the Tribunal’s responsibilities under the Parliamentary Business Resources Act 2017, and highlighting considerations the Tribunal may wish to have regard to in undertaking its inquiry.
Correction
- On 24 October 2024, the Department of the House of Representatives advised the Tribunal’s Secretariat that Schedule A of the determination referred incorrectly to the ‘House of Representatives Standing Committee on Privileges’ and the ‘House of Representatives Committee of Members’ Interests’ but should instead refer only to the ‘House of Representatives Standing Committee of Privileges and Members’ Interests’. This determination corrects that error.
- The Tribunal’s Reasons for Determination are available at www.remtribunal.gov.au.
Retrospectivity
- Any retrospective application of this determination is in accordance with subsection 12(2) of the Legislation Act 2003 as it does not affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth) to that person’s disadvantage, nor does it impose any liability on such a person.
Exemption from disallowance
- Subsection 47(7) of the PBR Act provides that this determination is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to it.
- Exemption from disallowance is appropriate in the context of this instrument, as it amends the conditions for Senators and Members of the House of Representatives.
The power to repeal, rescind and revoke, amend and vary
- Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Details of the determination are as follows:
Section 1 – Name
- Section 1 specifies the name of the instrument.
Section 2 – Commencement
- Section 2 specifies the commencement date of the instrument.
Section 3 – Authority
- Section 3 specifies the authority for the instrument.
Section 4 – Schedules
- Section 4 outlines the effect of instruments specified in a Schedule to the instrument.
SCHEDULE 1—AMENDMENTS
- Item 1 creates a new section 4A in the determination which establishes an allowance to be paid to the estate of a person who dies while a member of parliament and provides for its method of calculation. New subsection 4A.3 clarifies that periods during which remuneration is payable under section 49 of the PBR Act are treated as within the relevant period of service.
- Items 2 and 3 update references to the House of Representatives Standing Committee of Privileges to the House of Representatives Standing Committee of Privileges and Members’ Interests, in Schedule A.
- Item 4 removes the House of Representatives Committee of Members’ Interests from Schedule A.
Authority: Sections 45, 46 and 46A
Parliamentary Business Resources Act 2017
Overview
The Remuneration Tribunal (Members of Parliament) Amendment Determination (No.2) 2024 was enacted under the Parliamentary Business Resources Act 2017 to address the need for adjustments in the allowances and remuneration paid to members of the Parliament, including those who pass away while in office. This amendment was made by the Remuneration Tribunal, which is tasked with determining the remuneration and allowances for members and former members of Parliament annually as per the PBR Act. The primary objective of this amendment was to correct an error in the previous determination that incorrectly referenced certain committees and to introduce a new allowance for the estates of deceased members. This determination ensures that the allowances and remuneration remain accurately aligned with the intended legislative framework, while also addressing the oversight regarding the specific allowances for deceased members' estates.
Scope and Application
The Remuneration Tribunal (Members of Parliament) Amendment Determination (No. 2) 2024 amends the determinations made under the Parliamentary Business Resources Act 2017 concerning the remuneration and allowances for members and former members of the Australian Parliament. The determination applies to current and former members of the House of Representatives and the Senate, as well as the estates of deceased members, to ensure that their entitlements are accurately assessed and paid. It addresses the remuneration to be paid to members, the rates of travel allowances for domestic travel, and the allowances and expenses to be paid to former members, along with allowances to be paid to the estate of a member who dies in office. This legislation operates on a national level within the Commonwealth of Australia, affecting both federal and state-level parliamentary members. The determination is exempt from disallowance under section 42 of the Legislation Act 2003, reflecting its importance in maintaining the integrity of parliamentary allowances. The amendments include the introduction of a new allowance for the estates of deceased members and the correction of references to parliamentary committees within the Schedules.
Key Provisions
The Remuneration Tribunal (Members of Parliament) Amendment Determination (No.2) 2024, made under the Parliamentary Business Resources Act 2017 (PBR Act), sets out specific changes in the way remuneration and allowances for Members of Parliament are calculated and paid (sections 1-4). Section 4A introduces an allowance for the estate of a member who dies in office, detailing the method of calculation, which includes considering periods of service during which remuneration is payable under section 49 of the PBR Act (Schedule 1, Item 1). Additionally, Schedule 1, Items 2 and 3 correct references to the relevant committee from the House of Representatives Standing Committee on Privileges to the House of Representatives Standing Committee of Privileges and Members’ Interests (Schedule 1, Items 2 and 3). Item 4 removes the House of Representatives Committee of Members’ Interests from Schedule A, streamlining the process and ensuring the correct entities are referenced (Schedule 1, Item 4).
The Amendment Determination imposes specific obligations on the Remuneration Tribunal, including the duty to make annual determinations regarding the remuneration, allowances, and expenses for Members and former Members of Parliament (sections 45, 46, 46A, PBR Act). It mandates the Tribunal to publish reasons for these determinations and to inquire into travel expenses and allowances for domestic travel, except on special purpose aircraft. The Tribunal must also consider any additional inquiries requested by the Special Minister of State and ensure regulations are made or amended in accordance with its recommendations. The Tribunal must consult with relevant parties, including the Special Minister of State, when considering allowances for the estates of deceased members, as evidenced by correspondence between the Tribunal and the Special Minister of State (Consultation section).
Breach of the obligations outlined in the Remuneration Tribunal (Members of Parliament) Amendment Determination (No.2) 2024 could lead to civil or administrative penalties. However, the Determination itself does not specify particular offences, penalties, or consequences for non-compliance. The PBR Act and related legislation would dictate the penalties, which could include fines or other sanctions for failure to comply with the Tribunal’s determinations. The Determination is exempt from disallowance, as per subsection 47(7) of the PBR Act, and any retrospective application does not adversely affect the rights of individuals, in accordance with subsection 12(2) of the Legislation Act 2003 (Exemption from disallowance and Retrospectivity sections). The Determination also includes a power to repeal, rescind, revoke, amend, or vary any legislative instrument, as per subsection 33(3) of the Acts Interpretation Act 1901.