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Parliamentarians’ allowances and entitlementsThe Remuneration Tribunal Act 1973 (the Act) provides the Tribunal with the power to determine a range of allowances and entitlements for Senators and Members of the Federal Parliament, including Ministers (sub-sections 7(1), 7(2) and 7(4)). However, the Tribunal does not determine the entire range of provisions that are made for Federal parliamentarians. Other relevant pieces of legislation include the Ministers of State Act 1952, the Parliamentary Entitlements Act 1990, the Remuneration and Allowances Act 1990 (the R&A Act), the Members of Parliament (Life Gold Pass) Act 2002, the Members of Parliament (Staff) Act 1984, the Parliamentary Contributory Superannuation Act 1948 and the Parliamentary Superannuation Act 2004. The principal Tribunal determinations governing parliamentarians’ allowances and entitlements are: The major allowances determined by the Tribunal include travelling allowance rates and travel-related provisions (eg travel on scheduled domestic flights, car transport, private plated vehicle, charter allowance and overseas study travel), electorate allowance, qualifying periods for Life Gold Pass, severance travel (for those not qualifying for Life Gold Pass), and certain office facilities. All Tribunal determinations are disallowable by the Parliament. Under the Act, the Tribunal is required to review parliamentarians’ allowances at least annually. Parliamentarians’ base payThe Remuneration Tribunal does not have the power to determine Federal parliamentarians' base pay. The base parliamentary salary is governed by the R&A Act (sub-clause 1(2) of Schedule 3) and is a matter for Government decision. Sub-section 5(2C) of the the Act and sub-clause 1(3) of Schedule 3 of the R&A Act specify that the Tribunal's role is to provide advice to the Government. In December
1999, the Government made a regulation under the R&A Act (updated
in December 2005) to link the parliamentary base salary to a reference salary
(Reference Salary A) within the Tribunal’s Principal Executive Office (PEO) Structure. Footnote
9, Table A1 in Schedule A to
Determination 2005/19: Principal Executive
Office - Classification Structure and Terms and Conditions
The decision to link the parliamentary base salary to Reference Salary A in the PEO structure was taken following a request from Government in 1999 for the Tribunal’s advice on base salary for Senators and Members. Base salary had been linked to an Australian Public Service senior executive award rate, but that had been effectively frozen since October 1996 as senior executives obtained pay rises through workplace agreements. The Tribunal’s December 1999 Report Number 1 of 1999 discusses base salary for parliamentarians and a number of other significant related matters. In the period up to 30 June 2008 the base parliamentary salary was equal to 100% of Reference Salary A. However, by Remuneration and Allowances Amendment Regulations 2008 (No. 1) parliamentary base salary in 2008/09 and future years will be set at an amount equal to the Reference Salary A determined by the Tribunal, less the whole dollar increase to the reference salary determined by the Tribunal for the 2008/09 year. Rates of pay in the PEO structure (including Reference Salary A) are reviewed by the Tribunal and adjusted as appropriate, generally from 1 July each year. From 1 July 2007 until 30 June 2008 the Reference Salary A, and consequently the parliamentary base salary, was $127,060 per year. The application of the Tribunal's annual adjustment increased Reference Salary A to $132,530, with effect from 1 July 2008. The effect of the amending regulation was that (after 1 July 2008) parliamentary salary remained at $127,060, an amount of $5,470 less that Reference Salary A ($132,530). The Tribunal understands that as long as the amending Regulation remains in force, parliamentary base salary will continue to be Reference Salary A, as determined by the Tribunal, less $5,470. The Tribunal increased Reference Salary A to $142,110 with effect from 1 August 2010 - this amount less $5,470 is $136,640. The parliamentary base salary is $136,640 effective from 1 August 2010. Additional salary for Ministers and Parliamentary Office HoldersThe Tribunal is required to report to Government annually on the additional salary payable to Ministers (sub-section 6(1) of the Act). Under the Constitution, the salaries of Ministers are a matter for decision by Executive Government, and do not require legislative action for implementation. The Ministers of State Act 1952, as amended, makes provisions for an annual appropriation which is apportioned in annual salaries to the Prime Minister, Deputy Prime Minister, Treasurer, Leader of the Government in the Senate, Leader of the House, other Ministers and Parliamentary Secretaries. Report Number 1 of 2009 is the Tribunal’s most recent report on Ministers’ additional salary. Parliamentary Office Holders include the Leader and Deputy Leader of
the Opposition, the President of the Senate and Speaker of the House of Representatives,
parties’ Whips
and Deputy Whips plus the Chairs of a range of parliamentary committees. Schedule
4 of the R&A Act sets out additional salary for Parliamentary Office Holders,
but as contemplated in sub-section 3(2) of that Act, the Tribunal has made
a determination on Parliamentary Office Holders’ additional salary that
prevails over Schedule 4. Other useful information |
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