Remuneration Tribunal (Specified Statutory Offices—Remuneration and Allowances) Determination 2021

Administered by Department of the Prime Minister and Cabinet

Legislation au F2021L00768 Not in force Legislative Instrument

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Explanatory Statement:  Remuneration Tribunal (Specified Statutory Offices – Remuneration and Allowances) 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 (Specified Statutory Offices – Remuneration and Allowances) Determination 2021 formalises the Tribunal’s decision for Specified Statutory 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 supersedes the previous principal Remuneration Tribunal (Specified Statutory Offices - Remuneration and Allowances) Determination 2020 (as amended) applying to the offices covered by this determination.  This part also contains definitions of certain words used in the determination. 

PART 2 – REMUNERATION

15.  Part 2 sets out the remuneration and travel arrangements.

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 the superannuation arrangements.

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

PART 4 – VEHICLES AND OTHER BENEFITS

19.  Part 4 sets out the provisions relating to vehicles, parking and housing assistance for the Chief of the Defence Force.

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

SCHEDULE 1 – REPEALS

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  Schedule 1 specifies instruments which have been amended or repealed.

Authority: Subsections 7(3) and 7(4)

Remuneration Tribunal Act 1973


Overview

The Remuneration Tribunal (Specified Statutory Offices – Remuneration and Allowances) Determination 2021 was enacted under the authority of the Remuneration Tribunal Act 1973 to formalise the Tribunal's decision regarding the remuneration, allowances, and entitlements for specified statutory offices within its jurisdiction. This Determination was made by the Remuneration Tribunal, an independent statutory authority established to oversee the remuneration of key Commonwealth office holders, including judges and public office holders. The primary objective of the Determination is to set out the remuneration framework for these offices, taking into account various factors such as economic conditions, public and private sector remuneration trends, and outcomes of reviews conducted by the Tribunal. The Determination also ensures that the remuneration remains unchanged from the previous year, reflecting the Tribunal's assessment that no general increase is warranted based on the reviewed factors. The Determination operates without retrospective effect unless explicitly stated, and it includes provisions for superannuation arrangements, travel allowances, and other benefits such as vehicles and housing assistance. The Remuneration Tribunal (Specified Statutory Offices – Remuneration and Allowances) Determination 2021 supersedes the previous determination from 2020, ensuring continuity and consistency in the remuneration framework for the specified statutory offices. The Determination was made in accordance with the Act, and consultation with relevant ministers and stakeholders was deemed unnecessary given the comprehensive considerations and authoritative sources used in the Tribunal's decision-making process.

Scope and Application

The Remuneration Tribunal (Specified Statutory Offices – Remuneration and Allowances) Determination 2021 applies to the remuneration, allowances, and entitlements of key Commonwealth office holders, including Judges of Federal Courts and most full-time and part-time holders of public offices, specifically Specified Statutory Offices. This Determination formalises the decision of the Remuneration Tribunal, established under the Remuneration Tribunal Act 1973, regarding the remuneration for these offices. The Determination does not apply to persons or entities outside the scope of these public offices unless specifically mentioned in the Determination or related legislation. The Tribunal, in making its determinations, considers factors such as the main functions, responsibilities, and accountabilities of the office, the organisational structure, budget, workforce, requisite characteristics, skills or qualifications of the office holders, and the remuneration of similar offices. The Determination applies on a Commonwealth level and does not extend beyond this jurisdiction unless otherwise specified. The Determination also notes that it does not have retrospective application that would affect the rights of a person to their disadvantage, in accordance with subsection 12(2) of the Legislation Act 2003. The Determination is subject to amendment or variation by the Tribunal as per subsection 33(3) of the Acts Interpretation Act 1901.

Key Provisions

The primary sections of the Remuneration Tribunal (Specified Statutory Offices – Remuneration and Allowances) Determination 2021 (the Determination) concern the establishment of remuneration and allowances for specified statutory offices. Section 14 of Part 1 outlines the authority and commencement date of the Determination, while Part 2, as noted in section 15, sets out the remuneration and travel arrangements for the offices covered. Part 3, referenced in section 17, deals with superannuation arrangements, and Part 4, mentioned in section 19, outlines provisions relating to vehicles, parking, and housing assistance, specifically for the Chief of the Defence Force. These parts are structured to maintain consistency with the previous determination, as indicated in sections 16 and 18. The Determination imposes several obligations on the parties it governs. According to section 3, the Remuneration Tribunal (the Tribunal) is tasked with determining the remuneration, allowances, and entitlements of specified statutory offices. The Tribunal must consider various factors, such as the main functions, responsibilities, and accountabilities of the office, the organisational structure, budget, and workforce, requisite characteristics, skills or qualifications required of the office holder, and the remuneration of similar comparator offices within its jurisdiction. Additionally, the Tribunal is mandated to review remuneration periodically, as stated in section 7, and it must consider economic conditions, public and private sector remuneration trends, and the outcomes of reviews of public offices completed by the Tribunal, among other relevant matters. In terms of potential breaches, section 12 of the Determination clarifies that any retrospective application does not affect the rights of a person to their disadvantage or impose any liability on such a person. Furthermore, the power to repeal, rescind, revoke, amend, or vary any legislative or administrative instrument is conferred under subsection 33(3) of the Acts Interpretation Act 1901. While the Determination does not explicitly outline specific offences, penalties, or consequences for breach, it is bound by the Remuneration Tribunal Act 1973. This Act, in turn, may have provisions that outline penalties for non-compliance with the Tribunal’s determinations, although such details are not provided in the explanatory statement.

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