In order to establish whether or not an office is within the Tribunal’s jurisdiction the arrangements establishing the office must be considered. Legislation which establishes the office, board or committee will generally indicate how remuneration is to be determined, but if this is not clear it is recommended that legal advice on whether the office is in the Tribunal’s determinative jurisdiction be sought.

The Tribunal is required to determine remuneration for offices that meet the definition of “public office” in s3(4) of the Remuneration Tribunal Act 1973 (the Act). The definition captures automatically all offices established by a Commonwealth law (are also known as statutory offices) and appointments made under a Commonwealth law. It also captures (but is not limited to) appointments made by the Governor-General or a Minister of State which are formally referred in writing by the Minister responsible for the Remuneration Tribunal Act to the Tribunal President.

In summary:

Offices created by a statute (legislation) are automatically in
Offices not created by statute may be referred
In order to refer an office to the Tribunal’s jurisdiction, the relevant portfolio minister must ask Minister responsible for the Act to formally refer the office. The Minister does not have to agree and may tell the portfolio minister to use his/her executive powers under the Constitution.

2. If an office is in the Tribunal’s jurisdiction, does the Tribunal have to determine a specific level of remuneration?

No. Part 2.3 of the Part-Time determination includes a number of daily fee rates that can be agreed to by the responsible Minister without having to lodge a submission to the Tribunal.

3. Are there formal guidelines for choosing the particular fee category under Clause 2.3 (“Offices Not Specified”) (which relates to holders of part-time office)?

No. Ministers using the Determination to determine remuneration for an office should compare the office’s functions, time commitment, necessary experience or qualifications etc with similar bodies (usually in the department).

4. Do the annual or per diem fees make provision for superannuation?

There is no superannuation component in annual or per diem fees for holders of part-time office. Queries about superannuation guarantee or employer obligations can be directed to the Superannuation Group in the Department of Finance and Deregulation.

Employer superannuation contributions are included in Total Remuneration amounts determined for PEOs and Full-Time Public Offices (from 2003).

5. Must the PAYG tax be withheld from annual or per diem fees?

The Tribunal has no role in resolving taxation obligations. Questions about taxation should be directed to the Australian Taxation Office.

6. Can a Commonwealth employee or a holder of a full-time public office receive additional remuneration for participation on a Commonwealth board?

Anyone employed on a full-time basis by the Commonwealth (i.e. a member of the Australian Public Service or Public Office Holder) may not receive remuneration for holding a part-time public office, but can receive travelling allowance associated with participation on a Commonwealth board.

Section 7(11) of the Act provides that a person is not entitled to remuneration in respect of holding, or performing the duties of, a public office on a part-time basis, if the person holds any office or appointment, or is otherwise employed, on a full-time basis in the service or employment of the Commonwealth, the Administration of a Territory, a public statutory corporation, an incorporated company referred to in paragraph 3(4)(da) or an incorporated company all the stock or share in the capital or which is or are beneficially owned by the Commonwealth or by a public statutory corporation.

Whether a State public servant can receive payment for holding a part-time public office (eg on a Federal Government board) is a matter for the relevant State government.

7. What is the TA rate for a public servant serving on a Board or Committee?

While public servants may not be paid annual or per diem fees for participation on a Board or Committee, they can receive the travelling allowance rate determined by the Tribunal.

Travelling allowance rates are contained in the Official Travel Determination.

8. Can fees determined by the Tribunal be paid to a company?

It is longstanding statutory interpretation that only a natural person can hold or be appointed to a public office. Thus payment of the fee should be made to the person who holds or performs the duties of the office.

9. How can someone request a review of remuneration?

To seek a review of remuneration, a submission requesting such a review and outlining reasons must be put to the Tribunal. Guidelines are available on the website. The guidelines note that it is preferable to include an indication of support from the responsible Minister.

10. Can a submission to the Tribunal be lodged before the legislation establishing the Committee has received Royal Assent?

Yes. In that case the Tribunal may agree to make an indicative determination until the legislation is passed. Once the legislation is passed, the relevant Department should advise the Secretariat of that fact and of any amendments to the legislation. The Tribunal will issue a formal determination in due course.

11. We need remuneration for a new office determined ASAP but the responsible Minister is overseas and cannot sign the submission. What can one do?

The Tribunal will consider draft submissions, but only where the office falls automatically within the Tribunal’s determinative jurisdiction. A signed submission is required before a final determination can be made.

12. Do we have to wait for the Tribunal’s next meeting before our submission can be considered?

No. The Tribunal may consider submissions in between the holding of formal meetings if there is an urgent, real need for that to occur.

13. Is the Tribunal involved in appointment processes for Statutory Office Holders, Principal Executive Offices, Holders of Full-Time Public Office or Holders of Part-Time Public Office?

No. The Tribunal’s role is defined by the Act. It determines or advises on remuneration for a public office and has no role or authority in or over the appointment process and related policies. Questions on appointment procedures for offices considered by Cabinet should be referred to the Cabinet Secretariat in the Department of the Prime Minister and Cabinet.

14. How soon after the determination is signed can we start paying our board members? Do we have to wait for it to be tabled in Parliament?

No, you can start paying members as soon as the determination is signed or by the date specified in the determination. The only exception to this is for Judges remuneration.

15. Does the Tribunal determine fees comparable to consultants’ fees?

The rates in the Tribunal’s system are not private consultancy fees, which are negotiable by the parties and are generally higher. Note that a feature of private sector practice is to discount the daily fee where a substantial block of work is guaranteed.

In making determinations, the Tribunal considers factors such as the non-cash benefits provided and the public interest and personal status involved in holding the office. In addition, remuneration received by a holder of a part-time public office is often supplementary to his or her principal earnings. These factors have a moderating effect on the level of fees determined.

16. When does the Tribunal determine annual remuneration rather than per diem fees for a part-time office?

The Tribunal has expressed a preference to determine annual fees where possible. As a general rule the Tribunal determines:

Annual remuneration for part-time offices where the function is continuous and work load can be identified with some certainty
A per diem fee for part-time offices meeting infrequently, or with a volatile or uncertain work load.
A request to transfer from per diem to annual fees requires a submission to the Tribunal.

17. What exactly is a board member entitled to receive?

In monetary terms, only what the Tribunal determines (annual or per diem fee plus travelling allowance).

18. What is the difference between ‘business of the authority’ and a formal meeting?

See Condition of Payment of Daily Fees section in the Part-time Offices Determination.

Provided ‘business of the authority’ has been defined by the chairperson, for payment purposes there is no difference between business of the authority and a formal meeting, provided that the business/meeting is of at least 3 hours duration on any one day.

If business of the authority and a formal meeting fall on a single day, only one per diem fee is payable.

19. What is the different between ‘business of the authority’ and ‘preparation time’?

See Condition of Payment of Daily Fees section in the Part-time Offices Determination.

The Chairperson has discretion to draw a distinction. Business of the authority usually refers to formal work such as meeting with clients/stakeholders and participating in sub-committees.

The meeting fee includes a component for routine preparation time.

Home

Document Formats

Privacy Statement

Disclaimer

Accessibility

Top