Source: https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1415/ParlRem2014
Timestamp: 2017-11-19 00:52:51
Document Index: 298585491

Matched Legal Cases: ['art 1', 'art 1', 'art 2', 'art 8', 'art 9', 'art 9']

Parliamentary remuneration and entitlements: 2014 update – Parliament of Australia
Home About Parliament Parliamentary Departments Parliamentary Library Research Publications Research Papers Index Page Research Papers 2014–15 Parliamentary remuneration and entitlements: 2014 update
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Appendix 1: Base salary, electorate allowance and additional salaries since 2011 12
Appendix 2: Salaries of state and territory parliamentarians and salary of office of premiers and chief ministers. 12
The Prime Minister, the Hon Tony Abbott, MP
The base salary for parliamentarians is $195,130 per annum from 1 July 2014.
The Remuneration Tribunal is the independent statutory body which determines the base salary for senators and members.[8] The Remuneration Tribunal Act 1973 establishes the Remuneration Tribunal and defines its powers and functions. Subsection 7(1) of the Remuneration Tribunal Act 1973 says that:
The passage of the Remuneration and Other Legislation Amendment Act 2011 means that the Tribunal now has the power to determine base salary for members of parliament. On 13 March 2012 the Tribunal issued the first Determination setting the base salary of $185,000 for Members of Parliament to take effect from 15 March 2012.[21]
Ministerial salary is expressed as a percentage of the base salary. The Tribunal’s Report Number 1 of 2014 Report on Ministers of State - Salaries Additional to the Basic Parliamentary Salary confirms the percentage rates that currently apply.[28] On 7 August 2014 the Tribunal issued a Statement stating that it would recommend no increase in ministerial salaries consistent with the decision not to increase base salary for senators and members.[29]
The Ministers of State Act 1952 sets the maximum number of ministers and appropriates monies for payment of ministerial salaries. This Act was amended in 2000 to include parliamentary secretaries.[30]
Subsection 7(1) of the Remuneration Tribunal Act 1973 allows the Tribunal to determine a salary for parliamentary office holders. This subsection prevails, to the extent of any inconsistency, over Schedule 4 of the Remuneration Allowances Act 1990, ministers and office holders of the Parliament.
Determination 2013/13 brought together the determination of base salary and additional salary for parliamentary office holders in the one instrument for the first time.[31] Parliamentary office holders, like ministers of state, receive a salary that is also expressed as a percentage of the base salary. Determination 2012/03 brought into effect the paying of an additional salary to shadow ministers, commencing 15 March 2012.[32]
Determination 2014/10: Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters gives the current rates.[33]
Table 2: Selected parliamentary office holders salary percentages—effective 1 July 2014
The remaining offices and percentages can be found in Schedule A, Table 1 of Determination 2014/10 (the additional salary is to be rounded up to the nearest ten dollars).
An electorate allowance is determined by the Remuneration Tribunal by virtue of ss.7(1) and ss.7(4) of the Remuneration Tribunal Act 1973 and Clause 2 of Schedule 3 of the Remuneration and Allowances Act 1990. It is ‘an expense of office allowance payable to Senators and Members to reimburse them for costs necessarily incurred in providing services to their constituents’.[34] The electorate allowance is treated as taxable income but is not regarded as salary for the purposes of the Parliamentary Contributory Superannuation Act 1948.
Remuneration Tribunal Determination 2012/04 Members of Parliament—Entitlements gives the annual rates.[35]
Chamber State or Territory/Electorate
Senators All States and Territories
Members Electorate of less than 2,000 sq km
Members Electorates of 2,000 to 4,999 sq km
Members Electorates of 5,000 sq km or more
From 20 March 2006, senators and members who choose not to be provided with a vehicle ‘will be entitled to an additional $19,500 per annum of electorate allowance in lieu of the private plated vehicle to meet the costs of transport within and for the service of the electorate’.[36]
Parliamentary Entitlements Act 1990 entitles members of parliament to benefits listed in Schedule 1 Part 1 of the Act.[37] Schedule 1 of the Act allows certain travel and accommodation to be reimbursed if it is related to ‘parliamentary or electorate business.’ The Schedule outlines stationery, office accommodation, and domestic and overseas travel entitlements.
The Act also allows benefits in the Schedule to be ‘varied or omitted’ by determination of the Remuneration Tribunal or by regulations pursuant to the Act. Where the regulations and determinations are inconsistent, the regulations prevail and the determination is void to the extent of the inconsistency.[38]
Determination 2012/04 Members of Parliament–Entitlements[39] (includes electorate allowance, various travel entitlements and office facilities), and
Determination 2014/16 Members of Parliament–Travelling Allowance[40]
From 1 July 2012, an amendment to Schedule 1 of the Parliamentary Entitlements Act 1990 has established a new pooled entitlement for overseas travel on official business by the Leader of the Opposition in the House of Representatives and other opposition members at the discretion of the Leader of the Opposition.[41] This replaces the previous entitlement that provided a lower, fixed amount, for the cost of fares for travel by the Leader and Deputy Leader of the Opposition only. The Regulation has also created a new entitlement for overseas travel on official business by the leader of a minority party and other members of the minority party at the discretion of the leader. These amendments reflect the Remuneration Tribunal’s 2011 report on the Review of the remuneration of members of parliament which recommended that ‘the overseas travel provisions for the Leader and Deputy Leader of the Opposition and Leaders of minority parties be enhanced’.[42]
In addition parliamentarians who are required to make an adjustment to any claims made after 1 January 2014 will be required to pay a loading of 25 per cent in addition to the full amount of the adjustment. This will not apply where the adjustment is the result of an error made by the Department of Finance.[43]
The Parliamentary Entitlements Legislation Amendment Bill 2014, currently before the Parliament, will strengthened the compliance provisions for claims for travel expenses.[44]
The Government is ... currently undertaking a full-scale review of the Parliamentary Entitlements Act and associated regulations, with the aim of simplifying them and making them easier for politicians and administrators to understand and comply with, with a firm legislative base for the accountability and transparency mechanisms.[45]
From the July to December 2009 reporting period, the Department of Finance reports on parliamentarians’ entitlements have been available online.[46] The following reports are tabled biannually and are available on the Department of Finance website:[47]
An annual report covering ministerial and parliamentary staffing, employed under the Members of Parliament (Staff) Act 1984, was introduced in December 2008.[48]
Parliamentary superannuation, retirement travel and a resettlement allowance are the entitlements available to former parliamentarians. Retirement travel consists of the Parliamentary Retirement Travel Entitlement (previously called the Life Gold Pass) and Severance Travel.
The Life Gold Pass benefit is outlined in the provisions of the Members of Parliament (Life Gold Pass) Act 2002.[49] The Life Gold Pass entitles eligible former parliamentarians to travel within Australia for ‘non-commercial’ purposes at government expense. Section 4A of the Act closes the Life Gold Pass scheme prospectively to new members of Parliament.
The qualifying periods for eligibility for the Life Gold Pass are determined by the Remuneration Tribunal.[50]
Post retirement (formerly called Severance) travel is available for those parliamentarians ineligible for the Life Gold Pass. It allows parliamentarians who do not qualify for a Life Gold Pass to travel domestically at government expense for a limited time. Severance travel, for ‘non-commercial’ purposes only, provides for five return trips for the first six months years from the member’s retirement from Parliament.[51]
A former senator or member who retired from the Parliament on or before 15 March 2012 continues to be entitled to travel in accordance with clauses 8.1 to 8.5 of Determination 2006/18.[52]
The Parliamentary Entitlements Legislation Amendment Bill 2014, currently before the Parliament, will reduce the entitlement to Life Gold Pass extensively for eligible senators and members.[53] For a fuller description refer to Research paper, Retirement travel.
The resettlement allowance is determined by the Remuneration Tribunal in Determination 2012/04 Clauses 9.6 – 9.8.[54]
Senators and members elected at the general election held 9 October 2004 and at subsequent elections are eligible for benefits under the Parliamentary Superannuation Act 2004.[55]
Parliamentarians who served prior to the 2004 general election are, and will remain, eligible for entitlements under the Parliamentary Contributory Superannuation Act 1948 (the principal Act).[56] This Act established the Parliamentary Retiring Allowances Trust and the Parliamentary Superannuation Contributory Scheme (the Scheme). Finance administers the Scheme under the direction of the Trust. A history of the principal Act can be read in The Parliamentary Retiring Allowances Act 1948: Debates, Committee Reports, Remuneration Tribunal Reviews and a Chronology of Legislative Amendments.
The Parliamentary Superannuation Handbook, published by Finance, outlines the Scheme’s operation.[57]
In addition to the benefits afforded under parliamentary superannuation acts, Members of Parliament (Staff) Act 1984 and the Parliamentary Retirement Travel Act 2002 former prime ministers who have left parliament have been provided with ‘a number of facilities at the discretion of the prime minister of the day’. These entitlements have included car costs and office entitlements such as office establishment and lease costs, fixtures, telecommunications, office stationery and publications. The 2010 Belcher review noted that:
While each former prime minister’s entitlements are individually determined by the incoming prime minister, they have come to be largely uniform in nature. The Prime Minister can also determine ad hoc benefits on a case-by-case basis.[58]
... the Tribunal is of the view that a case can be made for providing availability to travel to former Prime Ministers (including, as it were, future former Prime Ministers) who have served a reasonable term – probably one year – in office. Such travel would not necessarily be provided under the rubric of an LGP. The travel could be included as an entitlement for former Prime Ministers under special provisions for former holders of that office. The Tribunal will provide further comment on this proposal when it completes its consideration of CROPE’s [Belcher Review] Recommendation 35, which recommends a legislated head of authority for providing benefits to former Prime Ministers.[59]
The Remuneration Tribunal recommended that ‘any existing linkages between the remuneration of state and territory parliamentarians and assembly members and the base salary of federal parliamentarians be severed on the basis that it cannot be justified without a state or territory based work-value assessment similar to that conducted for federal parliamentarians’.[60] South Australia has enacted legislation to maintain the link with the basic salary of federal members of parliament. All other states and territories determine their own parliamentary remuneration.
Note: 2014 salaries are advisory, please contact each jurisdiction to confirm.
Australian Capital Territory Determined by the ACT Remuneration Tribunal. See Determination 7 of 2014 and Remuneration Tribunal Act 1995 (ACT)
The Remuneration Tribunal released its Final report on the review of entitlements for members of the Australian Capital Territory Legislative Assembly in April 2014. $132,755
From 1 July 2014 $146,053
110% of basic salary. Determined by ACT Remuneration Tribunal in Determination 7 of 2014 $278,808
New South Wales Parliamentary Remuneration Act 1989 (NSW) establishes the Parliamentary Remuneration Tribunal. The Tribunal determines salaries up to the amount prescribed in the government’s wages policy. The Parliamentary, Local Council and Public Sector Executives Remuneration Legislation Amendment Act 2011 (NSW) breaks the nexus with the basic salary of federal MPs and ensures that NSW members’ salary is aligned with public sector wages. The most recent Determination is 2014 Annual Report and Determination, 11 June 2014. $149,541
From 1 July 2014 $142,063
Schedule 1 of the Parliamentary Remuneration Act 1989 $291,604
Northern Territory The basic salary of Assembly members is tied to the annual rate of increase in the salary of NT Public Service (NTPS) employees.
In Report and Determination 1 of 2012 (October 2012) the Tribunal recommended that it be given the power to determine basic salary of Assembly members and additional salary of Assembly members who are also office holders and that legislation provide that ‘the Tribunal cannot determine Members’ basic salary to be more than that to which a Federal Member of parliament is entitled less a fixed amount to be nominated in the Act’. $138,953
From 16 August 2012 $133,047
Increase to additional salary of office determined by s3A Assembly Members and Statutory Officers (Remuneration and Other Entitlements) Act (NT) $272,000
Queensland In July 2013 the Queensland Independent Remuneration Tribunal was established under the Queensland Independent Remuneration Tribunal Act 2013 (QIRT Act).
On 11 July 2013, Premier, Campbell Newman, announced a five point plan to reform parliamentary entitlements including the introduction of legislation to establish the Independent Remuneration Tribunal to determine the future remuneration and allowances for state MPs and break the nexus between federal and state MPs’ remuneration. The Tribunal’s recommendations will be presented to the government by mid-October 2013. $148,848 from 1 July 2013 $230,312
Additional salary determined by the Tribunal see Determination 3/2014 Linkage specified in s115 of the Parliament of Queensland Act 2001 (Qld). See also Members’ Remuneration Handbook $379,160
South Australia Parliamentary Remuneration Act 1990 (SA) describes the linkage with federal base salary and establishes the SA Remuneration Tribunal which determines on entitlements.
Parliamentary Remuneration (Basic Salary) Amendment Act 2012 (SA) states that from 1 July 2012 SA basic salary will be $42,000 less than federal base salary. $153,130
From 1 July 2014 $153,130
Schedule of the Parliamentary Remuneration Act 1990 (SA) $306,260
Tasmania Premier’s press release, 3 June 2014, states that legislation will not be introduced to implement the recommendation of the Parliamentary and Salaries Tribunal and Members pay will be frozen for 12 months. The Parliamentary Salaries, Superannuation and Allowances Act 2012 (Tas.) repeals and replaces the 1973 Act. It breaks the nexus with the basic salary of federal MPs. The Act provides for the establishment of a tribunal to prepare a report “determining the basic salary and other matters”. The Parliamentary and Salaries Tribunal tabled a report in June 2014 recommending that the basic salary be increased to $124,000 from 1 July 2014 increasing to $128,000 from 1 July 2015. $118,466
From 1 July 2014 $136,236
Parliamentary Salaries, Superannuation and Allowances Act 2012 (Tas.) $254,702
Victoria Premier’s press release, 2 May 2012, announced the end of the link between state and federal MPs’ pay, introduction of legislation to limit pay rises for MPs to 2.5% for 2012–13 and establishment of independent review to assess alternative methods for determining remuneration of state MPs.
Parliamentary and Public Administration Legislation Amendment Act 2013 (Vic), received assent 18 June 2013, sets MPs’ salary as $140,973 from 1 July 2013 with an increase of 2.5% from 1 July 2014. From 1 July 2015 salary will be adjusted by the relevant index published by the ABS on Victorian adult average weekly ordinary time earnings. $144,497
From 1 July 2014 $144,497
Part 1 of the Parliamentary Salaries and Superannuation Act 1968 (Vic) $288,994
Western Australia As determined by WA Salaries and Allowances Tribunal and published in the government gazette.
Determination of the Salaries and Allowances Tribunal for the Remuneration of Members of Parliament 24 June 2014
(WA) establishes the Tribunal which determines parliamentary salaries, allowances and entitlements. $154,223
From 1 July 2014 $196,202
From 1 July 2014 $350,425
[1]. See Department of the Prime Minister and Cabinet, Administrative Arrangements Order, 12 December 2013, accessed 10 November 2014.
[2]. Department of Finance, Ministerial and Parliamentary Services, accessed 10 November 2014.
[3]. For further information on the history of MPs’ base salary see C Madden and D McKeown, The base salary of senators and members: 2014 update, Research paper, 2014.
[8]. Remuneration Tribunal, website, accessed 22 October 2014.
[10]. See also Remuneration Tribunal website, Determinations, accessed 22 October 2014. Note that all Remuneration Tribunal determinations—as legislative instruments—must be registered on the Federal Register of Legislative Instruments.
[11]. Australian National Audit Office, Administration of parliamentarians’ entitlements by the Department of Finance and Deregulation, ANAO, 2009, accessed 22 October 2014.
[12]. Australian National Audit Office, Parliamentarians’ Entitlements 1999–2000, Audit report no. 5 2001–02, Canberra, 7 August 2001, accessed 22 October 2014.
[14]. Committee for Review of Parliamentary Entitlements, Terms of Reference, Department of Finance website, accessed 22 October 2014.
[15]. Committee for the Review of Parliamentary Entitlements, Report, April 2010, Department of Finance website, accessed 22 October 2014.
[16]. Hon G Gray (Special Minister of State), Boost to transparency and integrity for Parliamentary entitlements, media release, 24 March 2011, accessed 22 October 2014.
[17]. Remuneration Tribunal, Review of the Remuneration of Members of Parliament: Initial report, 15 December 2011, accessed 22 October 2014.
[19]. Hon G Gray (Special Minister of State), Government to reform MPs’ entitlements, media release, 15 December 2011, accessed 22 October 2014.
[20]. Hon G Gray (Special Minister of State), Government acts on the Remuneration Tribunal decisions, media release, 9 February 2012, accessed 22 October 2014.
[21]. Remuneration Tribunal, Determination 2012/02: Members of Parliament—Base salary and related matters, 12 March 2012, accessed 22 October 2014.
[22]. Remuneration Tribunal, Determination 2012/15: Members of Parliament—Base salary, entitlements and related matters, 19 June 2012, accessed 22 October 2014.
[25]. Remuneration Tribunal, Determination 2013/13: Members of Parliament—base salary, additional salary for parliamentary office holders, and related matters, 18 June 2013, accessed 22 October 2014.
[26]. Remuneration Tribunal, 2014 Review of Remuneration for Holders of Public Office, Statement, 12 May 2014
[27]. Remuneration Tribunal, Determination 2014/10, Members of Parliament–base salary, additional salary for parliamentary office holders, and related matters, May 2014, accessed 30 September 2014.
[28]. Remuneration Tribunal, Report Number 1 of 2014: Report on Ministers of State –Salaries Additional to the Basic Parliamentary Salary, 7 August 2014, accessed 30 September 2014.
[29]. Remuneration Tribunal, Ministers of State Salaries Additional to the Basic Parliamentary Salary, Statement, 7 August 2014, accessed 30 September 2014.
[30]. Ministers of State Act 1952, accessed 22 October 2014.
[31]. Remuneration Tribunal, Determination 2013/13, op. cit.
[32]. Remuneration Tribunal, Determination 2012/03: Parliamentary additional salary and related matters, 13 March 2012, accessed 22 October 2014.
[33]. Remuneration Tribunal, Determination 2014/10: Members of Parliament – Base Salary, Additional Salary for Parliamentary Office Holders, and Related Matters, May 2014, accessed 30 September 2014
[34]. Remuneration Tribunal, Report on senators and members of Parliament, ministers and holders of parliamentary office – salaries and allowances for expenses of office – December 1999, Report 1999/01, accessed 2 July 2013.
[35]. Remuneration Tribunal, Determination 2012/04: Members of Parliament–Entitlements, 13 March 2012, consolidated to 25 February 2014, accessed 30 September 2014.
[36]. Remuneration Tribunal, Determination 2006/02: Members of Parliament–Entitlements, accessed 30 September 2014.
[37]. Parliamentary Entitlements Act 1990, accessed 10 November 2014.
[38]. Section 9, Parliamentary Entitlements Act 1990.
[39]. Determination 2012/04, op. cit.
[40]. Remuneration Tribunal, Determination 2014/16: Members of Parliament–Travelling Allowance, August 2014, accessed 30 September 2014. This Determination specifies the amount payable to Members of Parliament, Office-holders and Ministers, for accommodation during periods of stay away from a home base that is nominated to the Special Minister of State. The conditions of payment and for what purpose travel at government expense can be used are specified. Current travel allowance rates are listed in Part 2 of the Determination.
[41]. Parliamentary Entitlements Amendment Regulations 2012 (No 1) and Explanatory Statement, accessed 10 July 2013.
[42]. Remuneration Tribunal, Review of the Remuneration of Members of Parliament: Initial report, December 2011, op. cit.
[43]. Senator M Ronaldson, (Special Minister of State), Strengthening the rules governing parliamentarians’ business expenses, media release, 9 November 2013.
[44]. Parliamentary Entitlements Legislation Amendment Bill 2014, Bill homepage
[45]. G Gray, ‘Petitions: member for Fisher travel expenditure’, House of Representatives, Debates, 13 February 2012, p. 781, accessed 30 September 2014.
[46]. Department of Finance, Parliamentarians’ Entitlements, accessed 30 September 2014.
[48]. Department of Finance, Members of Parliament (Staff) Act 1984, Annual reports, accessed 30 September 2014.
[49]. Members of Parliament (Life Gold Pass) Act 2002, accessed 10 July 2013.
[50]. Remuneration Tribunal, Determination 2012/04:Member of Parliament–Entitlements, Part 8, accessed 10 July 2013.
[51]. Ibid., Part 9.
[52]. Remuneration Tribunal, Determination 2006/18: Members of Parliament–Entitlements, accessed 4 July 2013.
[53]. Bill homepage, op. cit.
[54]. Determination 2012/04, Part 9, op. cit.
[55]. Parliamentary Superannuation Act 2004, accessed 10 November 2014.
[56]. Parliamentary Contributory Superannuation Act 1948, accessed 10 November 2014.
[57]. Department of Finance, Parliamentary Superannuation, accessed 30 September 2014.
[58]. Belcher review, op. cit., p. 95.
[59]. Remuneration Tribunal, Review of the Remuneration of Members of Parliament: Initial report, op. cit., para 8.13, p. 49.
[60]. ibid., para 1.22, p. 3.