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.

2. Can remuneration 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 remuneration should be made to the person who holds or performs the duties of the office.

3. 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.

4. Can we put in a submission to the Tribunal before the legislation establishing an office 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.

5. We need remuneration for a new office determined ASAP but the responsible Minister is overseas and cannot sign the submission. What can we 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.

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

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

7. 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.

8. How is a PEO’s cash salary calculated?

Total Remuneration (TR) represents the total value of all cash and non-cash benefits available to the office holder.

To deconstruct a PEO’s TR package:

Reduce TR by the notional value of employer superannuation contributions. Determination 2005/19 provides that the maximum salary for superannuation purposes is 73% of TR (unless the Remuneration Tribunal has ‘grandfathered’ a higher percentage at the time of translation). For CSS/PSS members, the notional value of employer contributions is 15.4% of the superannuation salary (ie 15.4% of 73% of TR). This is the maximum amount deducted from TR to meet employer superannuation obligations. Amounts remaining (TR minus value of employer superannuation) can be taken as cash and other benefits.
If actual superannuation contributions in respect of a PEO in the CSS/PSS are higher than 15.4% of superannuation salary, the employing body meets the additional expense without reducing a PEO’s TR.
The same deconstruction principle applies to PEOs in a private superannuation fund, however a value less than 15.4% of 73% of TR may apply. Refer to clause 2.8 of Determination 2005/19 for details.
If actual superannuation contributions in respect of a PEO are lower than 15.4% of superannuation salary, the excess is returned to cash salary.

9. Do performance payments for PEOs have to be validated by the Remuneration Tribunal?

No. Clause 2.11 of Determination 2005/19 states that the employing body is not required to consult with the Tribunal on the Performance Pay to be paid to an office holder providing:

the payment is within the limit prescribed by the Tribunal – 15% of Total Remuneration for offices in Bands A, B or C and 20% for offices in Bands D or E (Clause 2.11 of the Determination )
the payment is assessed in accordance with the Performance Remuneration Guidelines issued by the Tribunal from time to time.

10. What is ‘person- specific’ Total Remuneration reference rate?

In translating a large number of public offices into the PEO Classification Structure, the Remuneration Tribunal has had to take into account a wide range of personal circumstances of office holders in addition to considerations such as relative job values and portfolio relativities. In doing so, the Tribunal is careful to ensure that existing office holders are not materially disadvantaged by the transition.

In all cases where such office holders are receiving loadings or allowances in recognition of personal circumstances, Tribunal policy is to incorporate these amounts into Total Remuneration (TR) reference rate for the duration of that person’s term of office. The Tribunal will review the TR reference rate for the office on vacancy and consider whether the existing remuneration is appropriate to the then circumstances of the position.

Home

Document Formats

Privacy Statement

Disclaimer

Accessibility

Top