Commonwealth of Australia Explanatory Memoranda

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GOVERNOR-GENERAL AMENDMENT (SALARY) BILL 2014

                              2013-2014




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                  HOUSE OF REPRESENTATIVES




 GOVERNOR-GENERAL AMENDMENT (SALARY) BILL 2014




                 EXPLANATORY MEMORANDUM




(Circulated by authority of the Prime Minister, the Hon Tony Abbott MP)


GOVERNOR-GENERAL AMENDMENT (SALARY) BILL 2014 GENERAL OUTLINE The Governor-General Amendment (Salary) Bill 2014 amends the Governor-General Act 1974 to set the salary for the next Governor-General, General Peter Cosgrove AC MC, prior to his swearing-in on 28 March 2014. Section 3 of the Constitution provides that the salary of the Governor-General shall not be altered during their continuance in office. The Bill amends the Governor-General Act 1974 to change the sum payable for the salary of the Governor-General from $394,000 to $425,000. In line with past practice, the proposed salary was calculated with reference to the estimated average salary of the Chief Justice of the High Court of Australia over the notional five year term of the appointment of the Governor-General. The salary figure has been reduced to take account of General Cosgrove's entitlement to a Commonwealth-funded military pension. The amendment will take effect on Royal Assent. FINANCIAL IMPACT STATEMENT There will be a financial cost from increasing the Governor-General's salary. The net financial impact of the new arrangements is unquantifiable as it is not possible to estimate the exact taxation liabilities, which will depend on the individual financial circumstances of the Governor-General. However, the overall impact is expected to be negligible. REGULATORY IMPACT STATEMENT The Office of Best Practice Regulation has advised that no regulation impact statement is required for the measures contained in this bill. 1


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Governor-General Amendment (Salary) Bill 2014 This Bill 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 Bill The Bill proposes an amendment to the Governor-General Act 1974 to set the salary for the next Governor-General, General Peter Cosgrove AC MC, prior to his swearing-in on 28 March 2014. The Bill amends the Governor General Act to change the sum payable for the salary of the Governor-General from $394,000 to $425,000. Human rights implications This Bill does not engage any of the applicable rights or freedoms. Conclusion This Bill is compatible with human rights as it does not raise any human rights issues. The Hon Tony Abbott MP Prime Minister 2


NOTES ON CLAUSES Clause 1 - Short title This clause provides for the Act to be cited as the Governor-General Amendment (Salary) Act 2014. Clause 2 - Commencement This clause provides for the Act to commence on Royal Assent. Clause 3 - Schedule(s) This clause provides that an Act specified in the Schedule to this Act is amended or repealed as set out in the Schedule, and that any other item in the Schedule operates according to its terms. SCHEDULE 1 - AMENDMENTS Item 1 Section 3 of the Governor-General Act 1974 (the Act) provides that the annual sum payable for the salary of the Governor-General shall be $394,000. Item 1 omits the annual sum of $394,000 and substitutes a new annual sum of $425,000. Item 2 Item 2 is a transitional provision to ensure that the amendments do not apply during the continuance in office of the person holding office as Governor-General immediately before the commencement of this Part. 3


 


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