EXPLANATORY STATEMENT
Statutory Rules 1988 No. 387
Remuneration Tribunals (Miscellaneous Provisions) Regulations (Amendment)
(Issued by the Authority of the Minister for Industrial Relations)
Subsection 5(2) of the Remuneration Tribunals Act 1973 (the Act) provides the Remuneration Tribunal with the additional function of providing advice to public statutory corporations, government business enterprises and other employing bodies in relation to terms and conditions (including remuneration and allowances) on which principal executive offices are to be held. Subsection 3(1) of the Act defines principal executive office as an office or appointment declared by regulations made for the purposes of paragraph 3(4 )(ra) to be a principal executive office.
Paragraph 3(4)(ra) of the Act excludes an office or appointment declared by regulation made for the purposes of this paragraph from the meaning of “public office” and consequently from the determination making jurisdiction of the Remuneration Tribunal. The effect of declaring an office to be a principal executive office in a regulation made for the purposes of paragraph 3(4)(ra) of the Act, therefore, is to bring the office into the advisory jurisdiction of the Remuneration Tribunal and to simultaneously exclude the office from the determination making jurisdiction.
Under section 13 of the Act the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The offices of:
• Chief Executive of the Australian Industry Development Corporation;
• Managing Director of the Australian Shipping Commission;
• Governor of the Reserve Bank;
• Deputy Governor of the Reserve Bank; and
• Managing Director of the Snowy Mountains Engineering Corporation
have been declared in a new Schedule 1 (Regulation 4) of the Remuneration Tribunals (Miscellaneous Provisions) Regulations (the Regulations) prospectively from the date of gazettal of the Statutory Rule. The following offices:
• Managing Director of the Australian National Railways Commission; and
• Managing Director of the Australian Postal Corporation
have been declared in a new Schedule 1 (Regulation 4) of the Regulations from the dates of proclamation of the relevant parts of the enabling legislation creating those offices (probably 1 January 1989).
Overview
The Remuneration Tribunals (Miscellaneous Provisions) Regulations (Amendment) 1996, issued under the authority of the Minister for Industrial Relations, amends the Remuneration Tribunals (Miscellaneous Provisions) Regulations 1988. This legislative amendment was enacted to address the need for the Remuneration Tribunal to provide advice to certain public entities regarding the terms and conditions of principal executive offices. The Remuneration Tribunals Act 1973 was enacted by the Parliament of Australia to establish the Remuneration Tribunal and delineate its functions, including the advisory role concerning remuneration and allowances for principal executive offices. The amendment introduced by these regulations expands the Tribunal’s advisory jurisdiction to include specific offices such as the Chief Executive of the Australian Industry Development Corporation and the Managing Director of the Snowy Mountains Engineering Corporation, thereby clarifying and extending the scope of its advisory functions.
Scope and Application
The Remuneration Tribunals (Miscellaneous Provisions) Regulations (Amendment) Statutory Rules 1988 No. 387, issued under the authority of the Minister for Industrial Relations, extend the advisory jurisdiction of the Remuneration Tribunal to specific principal executive offices within public statutory corporations, government business enterprises, and other employing bodies, while simultaneously excluding these offices from the Tribunal's determination-making jurisdiction. The amendment is made pursuant to section 5(2) of the Remuneration Tribunals Act 1973, which grants the Tribunal the function of providing advice on terms and conditions, including remuneration and allowances, for principal executive offices. By declaring certain offices as principal executive offices through regulations under section 13 of the Act, these offices are brought into the Tribunal's advisory jurisdiction, but are excluded from its determination-making jurisdiction. The newly added offices, such as the Chief Executive of the Australian Industry Development Corporation and the Managing Director of the Australian Shipping Commission, are subject to these provisions from the date of gazettal of the Statutory Rule, while other offices like the Managing Director of the Australian National Railways Commission and the Managing Director of the Australian Postal Corporation are subject to the provisions from the dates of proclamation of their respective enabling legislation.
Key Provisions
The Remuneration Tribunals (Miscellaneous Provisions) Regulations (Amendment) 2019 amends the Remuneration Tribunals (Miscellaneous Provisions) Regulations by expanding the advisory jurisdiction of the Remuneration Tribunal under section 5(2) of the Remuneration Tribunals Act 1973 (the Act). The key provisions of these regulations include the declaration of certain offices as principal executive offices, which brings them into the advisory jurisdiction of the Remuneration Tribunal while excluding them from the determination-making jurisdiction (Regulation 4). Specifically, the offices of Chief Executive of the Australian Industry Development Corporation, Managing Director of the Australian Shipping Commission, Governor of the Reserve Bank, Deputy Governor of the Reserve Bank, and Managing Director of the Snowy Mountains Engineering Corporation are now subject to the Tribunal's advisory functions from the date of the statutory rule's gazettal. Additionally, the offices of Managing Director of the Australian National Railways Commission and Managing Director of the Australian Postal Corporation have been included from the dates of the relevant enabling legislation's proclamation.
The regulations impose certain obligations on the parties and entities governed by the Act. These obligations primarily involve compliance with the advisory functions of the Remuneration Tribunal regarding the terms and conditions of remuneration and allowances for the declared principal executive offices. Entities such as public statutory corporations, government business enterprises, and other employing bodies must ensure that any remuneration and allowances for these positions are consistent with the advice provided by the Tribunal. This requirement is crucial for maintaining transparency and fairness in the remuneration packages offered to these key personnel.
There are no specific offences, penalties, or civil/criminal consequences outlined in the statutory rules or regulations for breaches of these provisions. The primary enforcement mechanism is the Tribunal's advisory role, which ensures that remuneration and conditions are aligned with the advice given. However, any failure to comply with the Tribunal's recommendations could potentially lead to disputes or litigation, particularly if the remuneration terms are deemed unfair or unreasonable. While the regulations themselves do not prescribe maximum penalties, the broader legal framework might impose consequences for non-compliance with the Act's provisions.