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Salaries and Allowances Tribunal - Determination - 17 August 2007
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Determination - 17 August 2007
The Salaries and Allowances Act 1975 requires the Tribunal, at intervals of not more than twelve months, to enquire into and determine the remuneration to be paid or provided to Ministers of the Crown, the Parliamentary Secretary to the Cabinet, a Parliamentary Secretary appointed under Section 44A(1) of the Constitution Acts Amendment Act 1899, members of committees, and officers and Members of the Parliament (MPs). The Tribunal issued its last such determination on 18 August 2006. The Tribunal has now completed a further enquiry.
In 2006, the Tribunal reviewed the basis on which it determined the base salary for Members of the Western Australian Parliament, including the relativity of this salary to that paid to Members of the Commonwealth Parliament. It confirmed that it was not committed to there being a fixed relationship and an automatic flow-on to Western Australian Members of base salary adjustments granted to Federal Members.
The 2006 determination removed an allowance of $6,950 paid to certain office holders in lieu of the use of a second vehicle. The Tribunal also reiterated that there were legislative impediments to its determining appropriate remuneration for Parliamentary Secretaries, the Chairman and members of Parliamentary standing committees. These impediments were subsequently removed through amendments to the Salaries and Allowances Act 1975 in November 2006, and the Tribunal determined additional remuneration for these office holders. This determination was published on 28 March 2007.
Effective from 1 July 2007, Members of the Commonwealth Parliament and of most other state parliaments received increases in remuneration of 6.7 percent. This resulted from a determination made by the Commonwealth Remuneration Tribunal (CRT) relating to its Principal Executive Officer Structure in the Australian Public Service. The CRT is not empowered to determine the base salary for MPs, however, since December 1999, a regulation under the Remuneration and Allowances Act 1990 links Members’ base salary to a reference salary within the Tribunal’s Principal Executive Officer Structure. This Structure is reviewed by the CRT and adjusted as appropriate, from 1 July each year.
The determination of 1 July 2007 relating to the Principal Executive Officer Structure granted the increase of 6.7 percent. This had two components: one of 4.2 percent which recognised increases in the costs of living and the second of 2.5 percent which was in recognition of an increase in productivity. The full 6.7 percent flowed automatically to Members of the Commonwealth Parliament.
The concept of productivity is difficult to apply to any positions where service to the public is a prime objective. The Western Australian Tribunal has no data relating to the productivity of parliamentarians in this state, nor is it aware of any systematic measures of the productivity of the role of MPs in general. Accordingly, it has no means of assessing the appropriateness or otherwise for MPs of the productivity measures applied to the Principal Executive Officer Structure. The Western Australian Tribunal, because of these circumstances, is not able to factor in a productivity component to its determination.
In relation to the base salary component, movements for MPs in all states and territories other than Western Australia and the Australian Capital Territory are tied through state legislation to fixed relativities with salary movements in the Federal Parliament. As a result, there is no independent assessment of the remuneration for Members in these states by an independent tribunal. Consequently, MP’s in most states became eligible for the 6.7 percent increase. The table below shows the base remuneration for MPs in the Commonwealth Parliament and the states as a result of the 2007 determination.
Table 1: Base Remuneration of Australian MPs as at 1 July 2007
Base Remuneration at 1 July 2007 ($)
Relativities between Australian Governments
NSW 126,560 $500 less
Queensland 126,560 $500 less
Victoria 125,618 $1,442 less
South Australia 125,060 $2000 less
Northern Territory 124,060 $3000 less
Western Australia 118,450 No link
Tasmania 108,242 85.19 per cent of C/wealth
ACT 108,211 No link
The 2007 determination by the CRT attracted considerable public interest. For example, the Victorian Government did not support full flow-on of the CRT determination to its Members of Parliament. Instead it moved to restrict the increase to 3.25 percent. A Bill to amend the Victorian Parliamentary Salaries and Superannuation Act 1968 is before the Victorian Parliament at present. If passed, it will increase the difference between the remuneration of Federal and Victorian Members from $1,442 to $5,733.
In some quarters it was believed that the Western Australian Tribunal's 2006 determination linked Western AustralianMembers to the Commonwealth decision and that the full increase would flow automatically to state Members. The Western Australian Tribunal issued a variation of its 2006 determination on 29 June 2007 to clarify the situation and to affirm that there was no automatic link.
Written submissions from interested individuals and organisations were invited in an advertisement placed in The West Australian on 30 May 2007. This process provides an opportunity for members of the public, the Government, MPs themselves or any other interested party to make a submission on the appropriate level of parliamentary remuneration. Six submissions were received - from the Government, a political party, individual MPs and a member of the general public.
In addition to general comments relating to the level of the remuneration of MPs, specific issues raised in these submissions included the need for Members to have access to cable broadband and other improvements in the use of contemporary telecommunications facilities; the need for an augmented Electorate Allowance for those rapidly-expanding electorates where the number of electors significantly exceeds the quotient; and the desirability of salary payments being made fortnightly rather than monthly.
The Tribunal is conscious that MPs are expected to model restraint to the rest of the community in their salary increases. The submissions from both the Government and the member of the public reflected this. The Government’s submission emphasised that parliamentarians did not wish to be put into a position where they were out of step with broad trends in the community. It stated that any increase should be ‘moderate and economically responsible’.
In making this determination, the Tribunal has considered the submissions it received; the level of remuneration of senior officers in the other jurisdictions for which it has responsibility; movements in a range of economic indicators for salaries and prices; and advice from its Statutory Advisor.
It has also considered in detail the relativity between the base remuneration of Federal and Western Australian Members. The July 2007 decision of the CRT has brought the relativities between the base remuneration of Members of the Western Australian Parliament and those elsewhere in Australia into focus.
The Tribunal has always recognised that the Commonwealth Parliament is the superior legislature in Australia and that Members’ salaries should reflect an appropriate differential, all things being equal. However, inevitably, all circumstances will not always be equal. As a result, the base salaries of Western Australian parliamentarians have fluctuated over the years in relation to those of Federal parliamentarians. In a similar vein, whilst the base salary of parliamentarians in most other states is determined through a fixed relativity to that of Federal MPs, these relativities differ between states (see Table 1).
Members of the Australian Parliaments have in common several important functions such as law-making, calling the Executive to account and representing the interests of their electors. However, the contexts in which they work vary. One major difference between them is the number of electors they represent. These differences are illustrated in Table 2 below. The present level of remuneration of Members of the Western Australian Parliament is based on an assessment of their work that was undertaken by the Tribunal in 1999. In order to prepare for the introduction of revised electoral boundaries at the next state election, the Tribunal has decided to review the 1999 assessment and to establish a new base for the remuneration of Members.
The separate matter of payment of salary being fortnightly rather then monthly has been raised with the Tribunal from time to time. However, over the last 12 months, the matter has been raised more widely, including in submissions to this enquiry. Members of the state Public Service are paid fortnightly. The Tribunal has looked into the implications of such a change for MPs and is of the opinion that more frequent payment is appropriate, but has been advised that fortnightly payment presents administrative difficulties. Therefore, as of 1September 2007, Members will have the option of continuing the present arrangements or being paid twice-monthly.
Provision has also been made in this determination to make MPs salary packaging arrangements more consistent with the broad guidelines for agencies contained in the Government’s “Guidelines for Salary Packaging in the WA Public Sector”.
The Tribunal has determined a base remuneration for a Western Australian MP of $123,780 per annum with effect from 1 September 2007. This represents a 4.5 percent increase. This will result in the base remuneration of Members of the Western Australian Parliament, as of 1 September 2007, being $3,280 less than that of Members of the Commonwealth Parliament. The relativity between it and that paid to their counterparts in most other states will also be affected. The likely position as of 1September 2007 is set out in the table below.
Table 2: Likely base remuneration, relativities and number of electors per Lower House Members, Australian Parliaments, 1 September 2007
Likely Base Remuneration at 1September 2007 ($)
Ave. number of Electors per Lower House Member as at 30June 2007
NSW 126,560 $500 less than C/wealth 47,605
Queensland 126,560 $500 less 28,799
South Australia 125,060 $2,000 less 22,727
Northern Territory 124,060 $3,000 less 4,530
Western Australia * 123,780 $3,280 less 12,126 to 39,280
Victoria ** 125,618/121,327 $1,422/$5,733 less 38,694
Tasmania 108,242 85.19 per cent of C/wlth ($18,818 less) 13,876
ACT 108,211 $18,849 less 13,824
Sources: The data on electoral enrolments have been taken from the websites of the respective Parliaments, Electoral Commissions, Offices or Departments in each jurisdiction. * The range of elector numbers illustrates the variance between regional and metropolitan electorates. ** Alternative base remuneration figures are provided for Victorian MPs dependent upon whether legislation is passed to limit full flow-on of the 2007 CRT determination.
In each of its determinations in recent years, the Tribunal has moved towards a more generic approach to the Electorate Allowance paid to MPs to assist them in undertaking their duties. This trend is continued in this determination.
The significant increase in the Electorate Allowance awarded in the 2005 determination particularly recognised the need of Members to be able to communicate more regularly and directly with their constituents. It also recognised increases in the technologies available to Members by which they could communicate with their constituents more effectively and efficiently. In the short time since that determination, cable and wireless broadband have become more widely available in the community and there is a far greater use of mobile phones by Members. The Tribunal considers that it should move further in its generic approach to communications technologies in order to continue to facilitate Members communicating with their electors.
Accordingly, this determination removes Members’ entitlement to a specific allowance for fixed telephone lines in their private residence(s) and 85 percent of the calls made on these lines. An amount of $3,500 has been added to the Electorate Allowance to compensate for the discontinuing of the entitlement as outlined in Part7, Section 2 of the previous determination and to provide for greater flexibility overall in the use of communications technologies.
This arrangement will take effect from 1 September 2007. However as telephone billing cycles may not coincide with this date, MPs may be reimbursed for the appropriate rental and call charges on a pro-rata basis up to 31 August 2007 in accordance with the Tribunal’s determination of 18 August 2006.
The exception to this change will be those Members (as specified in Part3, Section2) who have their private telephone rentals and calls paid from public funds under arrangements not dealt with by this Tribunal. The arrangement outlined in Part 7, Section 2 in the 2006 determination will remain for these nominated officers who will not receive the additional $3,500 in their Electorate Allowance.
An adjustment of approximately 10 percent has been made to the Charter Transport Allowance in recognition of the increased costs of air charter.
This allowance is currently granted to Members representing the largest, most remote or least accessible electorates.
Submissions have been received advocating an additional Electorate Allowance for particular Members whose electorates are growing rapidly. One of these, the electorate of Wanneroo, had an enrolment of 39,280 at 30 June 2007, 74 percent above the enrolment at February 2002. There are substantially increased costs for the Member given the rapid growth in enrolments. Other electorates also have grown in enrolments but from a smaller base. For this reason, the Tribunal has determined that an allowance for an electorate growing at an exceptional rate will apply only to the seat of Wanneroo. An amount of $6,500 is allowed for this purpose.
The Tribunal, having regard to the circumstances outlined above and also taking account of the allowances and resources available to Members from other than the Tribunal, has determined to increase the Electorate Allowance from $43,000 per annum to $48,500 per annum – this includes the additional $3,500 communications technologies component.
Signed this 17th day of August 2007
Pursuant to the provisions of the Salaries and Allowances Act 1975, the Salaries and Allowances Tribunal (“the Tribunal”) determines the remuneration to be paid to Ministers of the Crown, the Parliamentary Secretary of Cabinet, a Parliamentary Secretary appointed under Section 44A (1) of the Constitution Acts Amendment Act 1899, members of committees, officers and Members of the Parliament, as hereunder follows with effect from 1 September 2007, unless otherwise stated:
Section 2: Additional remuneration of Ministers of the Crown, Parliamentary Secretary of the Cabinet and office holders of the Parliament #
1.1 There is payable to each Member of Parliament an annual base remuneration of $123,780.
SECTION 2: ADDITIONAL REMUNERATION OF MINISTERS OF THE CROWN, PARLIAMENTARY SECRETARY OF THE CABINET AND OFFICE HOLDERS OF THE PARLIAMENT
Premier in conjunction with a ministerial office 132 $163,390 $287,170
Deputy Premier in conjunction with a ministerial office 97 $120,067 $243,847
Leader of the Government in the Legislative Council in conjunction with a ministerial office 90 $111,402 $235,182
Minister of the Crown 80 $99,024 $222,804
Leader of the Opposition in the Legislative Assembly 80 $99,024 $222,804
President of the Legislative Council 66 $81,695 $205,475
Speaker of the Legislative Assembly 66 $81,695 $205,475
Leader of the Opposition in the Legislative Council 45 $55,701 $179,481
Deputy Leader of the Opposition in the Legislative Assembly 45 $55,701 $179,481
The person who not being a Minister of the Crown is the leader in the Parliament of a party of at least five Members of Parliament other than a party whose Leader is the Premier or the Leader of the Opposition (referred to in this determination as the “Leader of a recognised non-Government party”) 45 $55,701 $179,481
Parliamentary Secretary of the Cabinet 45 $55,701 $179,481
Chairman of Committees in either House (Deputy Speaker) 30 $37,134 $160,914
Government Whip in the Legislative Assembly 18 $22,280 $146,060
Opposition Whip in the Legislative Assembly 18 $22,280 $146,060
Parliamentary Secretary 15 $18,567 $142,347
Government Whip in the Legislative Council 12 $14,854 $138,634
Opposition Whip in the Legislative Council 12 $14,854 $138,634
Chairman of a Standing Committee 10 $12,378 $136,158
Deputy Chairman of a Standing Committee 7.5 $9,284 $133,064
Member of a Standing Committee 7 $8,665 $132,445
3.1 Salary packaging contributions may be made within the limits prescribed in the “Guidelines for Salary Packaging in the WA Public Sector”. A copy of these guidelines can be found at www.docep.wa.gov.au/lr/LabourRelations/Content/Public%20Sector/Resources/Circulars/Pages/1198attach.html. Contributions to the Parliamentary Superannuation Scheme may be salary sacrificed up to the maximum amount allowed under the Scheme.
1.1 In consideration of the obligations of a Member effectively to represent the needs of an electorate and to undertake parliamentary duties the amounts specified in this Part are provided in the form of an Electorate Allowance, to be utilised as the Member sees fit.
2.1 In addition to the basic remuneration payable under Part 2 of this determination, there is payable to a Member an Electorate Allowance of $48,500 per annum:
2.1.2 less $3,500 for the holder of any office who receives payment of private telecommunication charges from public funds not dealt with by this determination, including Ministers of the Crown, the President of the Legislative Council, the Speaker of the Legislative Assembly, the Leader of the Opposition in the Legislative Assembly and the Chairman of Committees.
South West Region $8,700
Stirling and Warren-Blackwood $7,200
Agricultural Region $12,900
Avon and Wagin $ 7,200
Greenough, Merredin, Moore and Roe $11,200
Mining and Pastoral Region $19,300
Central Kimberley-Pilbara, Kimberley, Murchison-Eyre, and North West Coastal $18,200
3.2 In recognition of the exceptional rate of population growth in the Wanneroo electorate, an additional electorate allowance of $6,500 will be provided to meet increased costs of serving this electorate.
4.3 Any Member who foregoes the entitlement in paragraph 4.1 or 4.2 of this Section and has no other Government supplied motor vehicle shall be paid an amount of $15,000 per annum, payable monthly or twice monthly with the Base Electorate Allowance provided in Section 2 of this Part. Where any Member becomes entitled to access a Government supplied motor vehicle under an arrangement not covered by this determination and is thereby provided with such a motor vehicle, then any entitlement under this Section shall cease immediately upon provision of the motor vehicle.
4.4 Motor vehicles issued to Members through this provision shall be of a standard, the cost of which does not exceed the more expensive of a Ford Futura or Commodore Berlina(6 cylinder), fitted with an automatic transmission, power steering, cruise control, air conditioning, ABS, driver’s airbag and tow-bar, with all running and maintenance costs for up to three years or eighty thousand kilometres met by the State.
4.5 Members representing the South West, Agricultural and Mining and Pastoral Regions or any District contained therein can apply to the Tribunal for the issue of a four wheel drive vehicle in lieu of that mentioned in paragraph 4.4 of this Section, provided that the vehicle will be used predominantly in the Region or District to which the Member has been elected. Four wheel drive vehicles shall be of a standard, the cost of which does not exceed the more expensive of the Prado GXL Manual 3.0litre Turbo Diesel or the Nissan Patrol ST Manual 3.0litre Turbo Diesel.
4.8 Where a Member requires, for operational or personal reasons, a model of vehicle, the cost of which exceeds the benchmarks specified in paragraphs 4.4 and 4.5 of this Section or on the basis referred to in paragraph 4.7 of this Section, all additional costs, (including Goods and Services Tax, Fringe Benefits Tax and insurance), shall, subject to there being sufficient funds, be met from the Member’s Base Electorate Allowance under Section 2 of this Part or the Charter Transport Allowance under Section 2 of Part 4. In that event, the relevant allowance shall immediately be reduced proportionately.
1.2 Where, in the opinion of the Salaries and Allowances Tribunal as the case may require, a scheduled commercial air service could have been used for the travel referred to in paragraph 1.1 in this Section, the motor vehicle allowance payable under this Section shall not exceed the value of the commercial air fare between the Member’s residence and the nearest airport in order to travel to and from Perth by aircraft for the purposes listed in paragraph 1.1.2 of this Section.
2.2 Members representing the under mentioned electorates shall, except where scheduled airlines are operating at reasonably convenient times, be entitled at Government cost to use charter transport within or for the service of their electorates (within Western Australia) and to undertake parliamentary duties, but such cost shall not exceed the amounts specified hereunder, less any expenditure incurred at the request of the Member in seeking a variation to the standard applied in Section 4 of Part 3, with effect from 1 July 2007.
Mining and Pastoral Region $35,700
Central Kimberley-Pilbara, Murchison-Eyre and North West Coastal $35,700
Kimberley $24,200
Kalgoorlie* $8,200
Agricultural Region $24,200
Greenough, Merredin, Moore and Roe $19,400
Avon and Wagin $8,200
Geraldton* $8,200
South West Region $19,400
Albany*, Stirling and Warren-Blackwood $8,200
1.6 Claims made under paragraph 1.5 of this Section in respect of the entitlement granted in Section 6 of this Part form part of the annual entitlement. A claim for Accommodation Allowances under this Part must be submitted within 90 days from the date the travel is completed. In exceptional circumstances the Tribunal may approve an extension of time to submit a claim. Where a claim is made after 90 days and no extension has been granted, payment against the claim will not be made.
Claims made in respect of non-commercial accommodation shall be paid at 40percent of the applicable commercial rate contained in the above table.
Leader of a recognised non-Government party (as defined in Section2 of Part2) $ 7,500
Signed at Perth this 17th day of August 2007.