Remuneration Tribunal (Principal Executive Offices—Classification Structure and Terms and Conditions) Determination 2021

Administered by Department of the Prime Minister and Cabinet

Legislation au F2021L00767 Not in force Legislative Instrument

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Explanatory Statement: Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021

  1. The Remuneration Tribunal Act 1973 (the Act) establishes 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 Judges of Federal Courts and most full-time and part-time holders of public offices, including Specified Statutory Offices.  An additional function of the Tribunal is to determine a classification structure for Principal Executive Offices and the terms and conditions applicable to each classification within the structure.

Consultation

2.       Section 11 of the Act advises that in the performance of its functions the Tribunal:

  • may inform itself in such manner as it thinks fit;
  • may receive written or oral statements;
  • is not required to conduct any proceeding in a formal manner; and
  • is not bound by the rules of evidence.

3.       The Tribunal normally receives submissions on remuneration from a portfolio minister, or a secretary, program manager or employing body (in respect of a Principal Executive Office) with responsibility for the relevant office(s).  The Tribunal will normally seek the views of the relevant portfolio minister prior to determining remuneration for an office.

4.       The Tribunal may reach a decision based on the information provided in the submission and other publicly available information such as portfolio budget statements, annual reports, corporate plans, legislation and media releases.  On occasion it may wish to meet with relevant parties or seek further information from the relevant minister or person making the submission.

5.       Amongst other relevant matters in deliberating on appropriate remuneration for an office the Tribunal informs itself on:

  • the main functions, responsibilities and accountabilities of the office;
  • the organisational structure, budget and workforce;
  • the requisite characteristics, skills or qualifications required of the office holder(s); and
  • the remuneration of similar, comparator, offices within its jurisdiction.

Review of Remuneration for Holders of Public Office

6.       The Tribunal’s obligations, under sub-sections 7(3) and 8(1)(b) of the Act are to make determinations in respect of remuneration for various offices within its jurisdiction at periods of not more than one year.  To meet these obligations, the Tribunal issued determinations on 16 June 2020 and at that time determined no adjustment to remuneration for all offices in its jurisdiction.

7.       In complying with its obligations to make new determinations the Tribunal takes the opportunity to consider whether any general increase to remuneration for offices might be warranted.  In conducting this review the Tribunal takes account of economic conditions in Australia, past and projected movements in remuneration in the public and private sectors (including the Australian Public Service), as well as the outcomes of reviews of public offices completed by the Tribunal.  In order to inform its conclusions the Tribunal draws upon authoritative external sources such as the published material available from the Government, the Reserve Bank of Australia and the Australian Bureau of Statistics as well as trends in public and private sector remuneration.  The Tribunal is also obliged by the Act to consider the Annual Wage Reviews of the Fair Work Commission.  The Commission’s 2020 decision was taken into account, as its 2021 decision was not available at the time the Tribunal concluded its deliberations. 

8.       The Tribunal did not receive any submissions on this matter.

9.       On 10 June 2021 the Tribunal notified its decision to determine no adjustment to remuneration for public offices in its jurisdiction with effect from 1 July 2021.  A statement setting out the Tribunal’s reasons for decision is available at www.remtribunal.gov.au.

10.  Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021 formalises the Tribunal’s decision for Principal Executive Offices.

11.  Consultation on this outcome was considered unnecessary given the matters considered by the Tribunal in making its decision.

Retrospectivity

12.  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.

The power to repeal, rescind and revoke, amend and vary

13.  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:

PART 1 - PRELIMINARY

14.  Part 1 specifies the authority for and the commencement date of the determination and revokes and supersedes the previous principal Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination (No. 2) 2020 applying to the offices covered by this determination.  This part also contains definitions of certain words used in the determination.

PART 2 – CLASSIFICATION AND REMUNERATION, AND RELATED MATTERS

15.  Part 2 specifies the classification structure, remuneration arrangements and performance pay for PEOs.

16.  The provisions of this Part remain unchanged from those contained in Part 2 of the previous determination.

PART 3 - SUPERANNUATION

17.  Part 3 sets out superannuation arrangements for PEOs.

18.  The provisions of this Part remain unchanged from those contained in Part 3 of the previous determination.

PART 4 - VEHICLES

19.  Part 4 sets out the provisions relating to vehicles and vehicle parking.

20.  The provisions of this Part remain unchanged from those contained in Part 4 of the previous determination.

PART 5 - ALLOWANCES

21.  Part 5 sets out the provisions relating to geographic relocation, accommodation allowance, reunion travel and remote localities.  

22.  The provisions of this Part remain unchanged from those contained in Part 5 of the previous determination.

PART 6 – OFFICIAL TRAVEL

23.  Part 6 sets out the provisions for official travel and the travel tiers that apply.  

24.  The provisions of this Part remain unchanged from those contained in Part 6 of the previous determination.

PART 7 - LEAVE

25.  Part 7 sets out that provisions for a leave of absence.  

26.  The provisions of this Part remain unchanged from those contained in Part 7 of the previous determination.

PART 8 – COMPENSATION FOR EARLY LOSS OF OFFICE

27.  Part 8 sets out the provision for compensation for early loss of office. 

28.  The provisions of this Part remain unchanged from those contained in Part 8 of the previous determination.

SCHEDULE 1

29.  Schedule 1 specifies instruments which have been amended or repealed.

 

Authority: Sub-sections 7(3) and 7(4)

Remuneration Tribunal Act 1973


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Overview of the Legislative Instrument

The legislative instrument, or determination, formalises the Tribunal’s review decision to determine no adjustment to the remuneration of Principal Executive Offices from 1 July 2021.

The determination revokes and supersedes the previous Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination (No. 2) 2020.

The decision follows a review of remuneration (and significantly related matters) carried out by the Tribunal consistent with sub-section 7(3) of the Remuneration Tribunal Act 1973.

The instrument maintains the principle of fair, and current, remuneration for work performed.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

The Remuneration Tribunal

 

Overview

The Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021 was enacted to formalise the decisions of the Remuneration Tribunal in relation to the remuneration, classification structure, and terms and conditions for Principal Executive Offices within the Commonwealth public service. This Determination is a legislative instrument made under the authority of the Remuneration Tribunal Act 1973, which established the Tribunal as an independent statutory body responsible for determining the remuneration of key Commonwealth office holders. The primary objective of this Determination is to ensure that the remuneration for Principal Executive Offices remains fair, current, and aligned with economic conditions and relevant public and private sector remuneration trends. This Determination follows a review process where the Tribunal considered various factors such as the main functions, responsibilities, and accountabilities of the offices, the requisite skills and qualifications, and the remuneration of similar offices. The Tribunal's decision not to adjust remuneration was made after considering economic conditions, past and projected remuneration movements, and outcomes of reviews of public offices. The Determination revokes and supersedes the previous 2020 Determination and maintains the existing classification structure and terms and conditions for Principal Executive Offices, ensuring consistency and fairness in the remuneration arrangements. The Remuneration Tribunal, established under the Remuneration Tribunal Act 1973, operates as an independent statutory authority with the mandate to review and determine the remuneration for various public offices within the Commonwealth. The Tribunal ensures that the remuneration for these offices is fair and reflective of the duties, responsibilities, and market conditions. In line with its obligations under the Act, the Tribunal periodically reviews remuneration, as mandated by sub-sections 7(3) and 8(1)(b) of the Act, to ensure that it remains appropriate. This Determination formalises the Tribunal's latest review decision, which concluded that no adjustment to the remuneration for Principal Executive Offices was necessary as of 1 July 2021. The Determination also addresses superannuation, vehicles, allowances, official travel, leave, and compensation for early loss of office, maintaining the existing structures and conditions for these aspects. This legislative instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms as recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021 applies to the classification structure and terms and conditions for remuneration, superannuation, vehicles, allowances, official travel, leave, and compensation for early loss of office of Principal Executive Offices within the Commonwealth jurisdiction. This includes key public office holders such as Judges of Federal Courts and holders of Specified Statutory Offices. The Tribunal, established under the Remuneration Tribunal Act 1973, is an independent statutory authority responsible for determining these matters. The Determination revokes and supersedes the previous 2020 determination and sets out the unchanged classification structure and terms applicable from 1 July 2021. The decision not to adjust remuneration for these offices was made based on a review of economic conditions, public and private sector remuneration trends, and other relevant factors. The Determination is made under the authority of the Remuneration Tribunal Act 1973 and does not adversely affect the rights of any person or impose any liability. The Tribunal may amend or vary this Determination in the future as needed.

Key Provisions

The Remuneration Tribunal (Principal Executive Offices – Classification Structure and Terms and Conditions) Determination 2021 (the Determination) outlines the classification structure and terms and conditions applicable to Principal Executive Offices (PEO). This Determination formalises the decision of the Remuneration Tribunal (the Tribunal) that no adjustment to the remuneration for PEOs will be made from 1 July 2021. This follows the Tribunal’s review of remuneration for these offices, considering factors such as economic conditions in Australia, movements in remuneration in the public and private sectors, and the outcomes of reviews of public offices completed by the Tribunal. The Determination is structured into various parts, each addressing different aspects of the classification and terms and conditions for PEOs. The Determination imposes obligations on the Tribunal to conduct reviews and make determinations regarding the remuneration, classification structure, and terms and conditions for PEOs. According to sections 7(3) and 8(1)(b) of the Remuneration Tribunal Act 1973 (the Act), the Tribunal must make these determinations at intervals of no more than one year. The Tribunal is required to consider various factors, including the functions, responsibilities, and accountabilities of the offices, the organisational structure, budget and workforce, the requisite characteristics and skills required of office holders, and the remuneration of similar offices. The Tribunal also has a duty to consider economic conditions and authoritative external sources, such as those from the Government, the Reserve Bank of Australia, and the Australian Bureau of Statistics. Furthermore, the Tribunal is obliged to take into account the Annual Wage Reviews of the Fair Work Commission. Breach of the obligations under the Act can result in legal consequences. While specific offences and penalties are not detailed in the Determination, any failure by the Tribunal to comply with its statutory obligations could potentially lead to judicial review or other legal challenges. The Act itself does not explicitly outline penalties for non-compliance, but the broader legal framework may impose consequences for such breaches. The Tribunal’s determinations are subject to review by the courts, and failure to adhere to legal and procedural requirements could result in the determinations being quashed or modified. The Determination explicitly states that it does not have retrospective application that would disadvantage any person other than the Commonwealth or an authority of the Commonwealth, in accordance with subsection 12(2) of the Legislation Act 2003. This ensures that the determination does not impose any liability on individuals adversely. Additionally, the Act confers a power to repeal, rescind, revoke, amend, or vary the Determination, aligning with subsection 33(3) of the Acts Interpretation Act 1901. This provision allows for the flexible adjustment of the Determination to ensure it remains relevant and effective in addressing the remuneration and classification needs of PEOs.

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