Commonwealth Numbered Regulations - Explanatory Statements

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REMUNERATION TRIBUNAL (MEMBERS' FEES AND ALLOWANCES) REGULATION 2016 (F2016L00396)

EXPLANATORY STATEMENT

Issued by the authority of the Assistant Cabinet Secretary,
Parliamentary Secretary to the Cabinet Secretary

Remuneration Tribunal Act 1973

Remuneration Tribunal (Members' Fees and Allowances) Regulation 2016

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 members of the Parliament, Judges of Federal Courts and Territory Supreme Courts, most full-time and part-time holders of public offices and Principal Executive Offices.

The Tribunal advises boards and Ministers on the remuneration of Chief Executive Officers of certain Government Business Enterprises. It also advises Ministers on the remuneration of Heads of Executive Agencies and the Prime Minister on the remuneration of Secretaries of Departments.

Section 17 of the Act provides that 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.

Under Section 4 of the Remuneration Tribunal Act 1973 (the Act), the Tribunal consists of three members appointed by the Governor-General on a part-time basis, one of whom is also appointed as President of the Tribunal.  Section 12 of the Act provides that a member of the Tribunal shall be paid such fees and allowances as are prescribed by the Remuneration Tribunal (Members Fees and Allowances) Regulations 2005 (the 2005 Regulations).

The 2005 Regulations will sunset on 1 April 2016. The proposed Remuneration Tribunal (Members' Fees and Allowances) Regulation 2016 (the proposed Regulation) will replicate the 2005 Regulations.  The proposed Regulation would increase the fees for the three
part-time members of the Tribunal as follows:

*         from $87,343 to $89,090 per year for the President (paragraph 6(a)); and

*         from $42,250 to $43,095 per year for Members (paragraph 6(b)).

The proposed Regulation would also ensure that the definition of 'member' is consistent with the definition of 'member in section 3 of the Act. This would ensure that the fees and allowances prescribed by the proposed Regulation also apply to individuals appointed temporarily in the place of a member under subsection 33(4) of the Acts Interpretation Act 1901.The proposed Regulation would also prescribe travelling allowances payable to members when travelling on official business by reference to determinations made under section 61 of the Public Service Act 1999. The proposed Regulation does not affect allowances currently paid to members.

The Act specifies no conditions that need to be satisfied before the power to make the proposed Regulation may be exercised.

The Regulation would be a legislative instrument for the purposes of the Legislation Act 2003.

The Regulation would commence on 1 April 2016.