Remuneration Tribunal (Members of Parliament) Determination (No.2) 2023

This Determination deals with the remuneration of members of the Parliament, the rates of travel allowance payable to such members, and the allowances and expenses to be paid to former members. The remuneration, allowances and expenses are to be paid out of the public money of the Commonwealth.

Contents

PART 1 – LEGAL MATTERS AND EXPLANATION OF TERMS

PART 2 – REMUNERATION OF MEMBERS: SALARIES AND ELECTORATE ALLOWANCE

PART 3 – REMUNERATION OF MEMBERS: OTHER REMUNERATION

PART 4 – ALLOWANCES AND EXPENSES OF FORMER MEMBERS

PART 5 – RATES OF AUSTRALIAN TRAVEL ALLOWANCE FOR TRAVEL WITHIN AUSTRALIA

PART 6 – PRIVATE VEHICLE ALLOWANCE

PART 7 – TRANSITIONAL PROVISIONS

SCHEDULE A – OFFICE HOLDER’S SALARY

SCHEDULE B – TRAVEL ALLOWANCE RATES

PART 1 – LEGAL MATTERS AND EXPLANATION OF TERMS

1.1            Authority: This Determination is made under sections 45 and 46 of the PBR Act.

1.2            Effective Date: This Determination commences on 27 August 2023 and revokes and supersedes Remuneration Tribunal (Members of Parliament) Determination (No.1) 2023

1.3            Definitions: The following definitions apply in this Determination:

1. ‘home base’ has the same meaning as in the PBR Regulations;
2. ‘luxury car’ means a car the value of which exceeds the luxury car tax threshold (for non-fuel-efficient cars) mentioned in subsection 25-1(3A) of the A New Tax System (Luxury Car Tax) Act 1999;
3. ‘PBR Act’ means the Parliamentary Business Resources Act 2017;
4. ‘PBR Regulations’ means the Parliamentary Business Resources Regulations 2017.

Note: Some other terms are defined in the PBR Act, including the following:

‘former member’ means a person who was, but is no longer, a member;

‘member’ means:

(a)    a senator; or

(b)    a member of the House of Representatives; or

(c)    a Minister of State who is not a senator or member of the House of Representatives; or

(d)    a person who is taken to be the President of the Senate under the Parliamentary Presiding Officers Act 1965 and who is not a senator or member of the House of Representatives; or

(e)    a person who is taken to be the Speaker of the House of Representatives under the Parliamentary Presiding Officers Act 1965 and who is not a senator or member of the House of Representatives.

PART 2 – REMUNERATION OF MEMBERS: SALARIES AND ELECTORATE ALLOWANCE

Base salary

2.1            For subsection 14(2) of the PBR Act, the annual allowance payable to a senator or member of the House of Representatives for the purposes of section 48 of the Constitution (known as ‘base salary’) is $217,060.

2.2            For paragraph 45(3)(a) of the PBR Act, the portion of base salary that is not parliamentary allowance for the purposes of the Parliamentary Contributory Superannuation Act 1948 is $45,320.

Office holder’s salary

Determination of office holder’s salary

2.3            For paragraph 14(3)(b) of the PBR Act, the amounts in Column 2 of the Table in Schedule A (‘office holder’s salary’) are determined for the corresponding office holders in Column 1 of that Table.

Note: The amounts in Schedule A are expressed as specified percentages of the base salary. For example, the office holder’s salary for the Speaker of the House of Representatives is $162,800 per annum, being 75% of the base salary of $217,060, rounded up to the nearest $10.

2.4            For Shadow Ministers, the following rules apply:

2.4.1          An amount is determined for paragraph 14(3)(b) of the PBR Act for a Shadow Minister only if:

1. the Shadow Minister is a person specified in a notice given to the paying authority by the Leader of the Opposition as a person to whom

clause 2.4.2 applies or a person to whom clause 2.4.3 applies; and

b.                      the Shadow Minister does not hold another office for which the office holder’s salary is more than 25% of the base salary.

2.4.2          For the following persons, and in the following circumstances, the amount is 25% of the base salary:

1. the person is specified in the notice as a person to whom this clause applies;
2. the number of persons specified in the notice as persons to whom this clause applies does not exceed:

A – B

where

A = the number of Ministerial positions determined by the Government at the relevant time to be Ministerial positions of Cabinet rank

B = the number of parliamentarians who are members of the Opposition and hold an office other than Shadow Minister for which the office holder’s salary is more than 25% of the base salary.

2.4.3          For the following persons, and in the following circumstances, the amount is 20% of the base salary:

1. the person is specified in the notice as a person to whom this clause applies;
2. the number of persons specified in the notice as persons to whom this clause applies does not exceed:

A – B – C

where

A = the number of Ministers specified in paragraph 4(b) of the Ministers of State Act 1952

B = the number of Shadow Ministers to whom clause 2.4.2 applies C = the number of parliamentarians who are members of the

Opposition and hold an office other than Shadow Minister for which the office holder’s salary is more than 25% of the base salary.

2.4.4          If a Shadow Minister is a person for whom an amount is determined under clause 2.4.1, clause 2.3 does not apply in relation to any other office the person holds.

Note: A Shadow Minister who also holds another office will not receive the salary for both.

2.5            For each office holder the annual amount of office holder’s salary is to be rounded up to the nearest $10.

Portion of salary to be disregarded for certain superannuation purposes

2.6            For paragraph 45(3)(b) of the PBR Act, the portion of office holder’s salary that is not allowance by way of salary for the purposes of the Parliamentary Contributory Superannuation Act 1948 is 20%.

Ministerial salary: superannuation

2.7            For subsection 45(5) of the PBR Act, the portion of Ministerial salary that is not salary for the purposes of the Parliamentary Contributory Superannuation Act 1948 is 20%.

Note: The Remuneration Tribunal does not determine Ministerial salary.

Electorate allowance

2.8            For paragraph 14(3)(a) of the PBR Act, the following amounts are determined as

‘electorate allowance’:

2.8.1          For all senators and members of the House of Representatives – $32,000 per annum.

2.8.2          For a member of the House of Representatives for an electoral division the area of which is at least 2,000km2 and less than 5,000km2 – an additional $6,000 per annum.

2.8.3          For a member of the House of Representatives for an electoral division the area of which is 5,000km2 or more – an additional $14,000 per annum.

PART 3 – REMUNERATION OF MEMBERS: OTHER REMUNERATION

Provision of private plated vehicles: PBR Act, paragraph 14(4)(a)

3.1            A senator or member of the House of Representatives is, upon request, to be provided with a private plated standard vehicle that is generally made available by the Commonwealth for the purpose and is not a luxury car.

3.2            A senator or member of the House of Representatives for an electoral division the area of which is less than 300,000km2 is, upon request, to be provided with a private plated vehicle that is not generally made available by the Commonwealth for the purposes of clause 3.1 but which is made available by the Commonwealth for the purposes of this clause. Despite anything else in this Determination, the following amount (the ‘excess lease cost’) is to be applied in accordance with clause 3.3:

A – B

where

A = the cost, per annum, of the lease of the vehicle

B = the cost, per annum, of the lease of the most expensive vehicle made available by the Commonwealth for the purposes of clause 3.1.

3.3            The excess lease cost is to be applied in accordance with the following method:

1. first, to reduce one of the following amounts:
   1. the amount applicable in subsection 14(1) of the PBR Regulations for the senator or member;
   2. the electorate allowance determined in clause 2.8 for the senator or member; and
2. if that amount is reduced to zero—to reduce the other amount.

1.             A vehicle provided in accordance with clause 3.2 is provided instead of a vehicle provided in accordance with clause 3.1.
2.             A member of the House of Representatives for an electoral division the area of which is 300,000km2 or more is, upon request, to be provided with a private plated four-wheel-drive vehicle made available by the Commonwealth for the purposes of this clause instead of a vehicle provided in accordance with clause 3.1 or 3.2.
3.             A senator for the Northern Territory or a member of the House of Representatives for an electoral division the area of which is 300,000km2 or more is, upon request, to be provided with up to two private plated four-wheel-drive vehicles made available by the Commonwealth for the purposes of this clause in addition to any other vehicle provided in accordance with clause 3.1, 3.2 or 3.5.
4.             If one or more  additional vehicles are provided then, despite anything else in this Determination, the cost of the lease, per annum, of the additional vehicle is to be applied in accordance with the following method:
   1. first, to reduce one of the following amounts:
      1. the amount applicable in subsection 14(1) of the PBR Regulations for the senator or member;
      2. the electorate allowance determined in clause 2.8 for the senator or member; and
   2. if that amount is reduced to zero—to reduce the other amount.
5.             Where clause 3.3 or 3.7 applies, the senator or member may request that one of the methods in that clause be applied before the other method.
6.             The provision of a private plated vehicle includes the provision (by the Commonwealth) of the costs of operating and maintaining the vehicle.
7.        A private plated vehicle is provided for non-commercial purposes only.

Note: Paragraph 47(2)(a) of the PBR Act provides for the Remuneration Tribunal to impose limits and other conditions on remuneration including the provision of private plated vehicles.

Allowance instead of the provision of a private plated vehicle: PBR Act, paragraph 14(4)(b)

3.11       If a senator or member of the House of Representatives, by notice to the relevant Department, elects not to be provided with a private plated vehicle pursuant to clause 3.1, 3.2 or 3.5, an allowance of $19,500 per annum (known as ‘additional electorate allowance’) is payable to the senator or member.

3.12       If a senator or member makes an election under clause 3.11, the senator or member is not to be provided with a private plated vehicle under clause 3.1, 3.2 or 3.5 until at least 12 months after making the election. Upon the provision of the vehicle, the additional electorate allowance ceases to be payable.

3.13       An election has no effect if:

1. the senator or member has been provided with a particular vehicle under clause 3.1, 3.2 or 3.5 for less than 12 months; or
2. the Commonwealth would incur administrative or other expenses (for example, lease cancellation fees) as a result of ceasing to provide a private plated vehicle and the senator or member has not reimbursed the Commonwealth for those expenses.

1.        Upon making an election, the senator or member is no longer to be provided with a vehicle under clause 3.1, 3.2 or 3.5.

Internet and telephone services at private residences: PBR Act, paragraph 14(4)(c)

3.15       The following expenses are payable to a senator or member of the House of Representatives in relation to his or her private residence or residences:

1. the cost of up to two services; and
2. if the senator or member is a Minister, the Leader or Deputy Leader of the Opposition in the House of Representatives or the Senate, a presiding officer, or the leader of a minority party within the meaning of the PBR Regulations— the cost of an additional fixed internet and telephone service for a private residence of the person in Canberra; and
3. if the senator or member is a Chief Government Whip or Chief Opposition Whip in the House of Representatives or the Senate—the cost of an additional telephone service for a private residence of the person not in Canberra and the cost of an additional telephone service for a private residence of the person in Canberra.

1.        In clause 3.15, the cost of a service includes installation, maintenance, rental, transfer and call and data costs.
2.        In clauses 3.15 and 3.16, “service” means a telephone service (including VoIP), an internet service, or a service under which a telephone service and an internet service are provided under the one contract, and does not include a streaming or similar service.

PART 4 – ALLOWANCES AND EXPENSES OF FORMER MEMBERS

Post-retirement travel expenses

4.1 For section 15 of the PBR Act, the expenses in clause 4.2 or 4.2A, whichever applies, are determined for persons who become former members after the commencement of this Determination and are not persons to whom item 1 of the table in subsection 10(1) of the Parliamentary Retirement Travel Act 2002 applies (certain former Prime Ministers).

4.2 Subject to clause 4.2A:

whichever is lower.

4.2A Where, immediately before the person became a former member, the Commonwealth provided the person with three or more electorate offices of a kind mentioned in subsection 72(1) of the Parliamentary Business Resources Regulations 2017:

whichever is lower.

4.3 Where a trip is on a service that provides for more than one class of passenger travel, expenses are determined only for a trip in economy class.

4.4 Expenses are not payable for trips taken by a person other than the former member.

4.5 Terms in clauses 4.1 to 4.4 that are defined in the PBR Regulations have the same meaning as in those Regulations.

Multiple entitlements

4.6            To avoid doubt, expenses to which clause 4.2 and 4.2A refer are determined in relation to each occasion on which a person becomes a former member.

Resettlement allowance

4.7            For section 15 of the PBR Act, the allowances mentioned in Table 4.7 are determined for a person who is a former member and:

a                         the person is a former member by reason of either of the following circumstances:

1. if the person was a member of a political party in the most recent Parliament – the person decided not to nominate for re-election having sought, and failed (for reasons other than misconduct) to receive, the endorsement of that party;
2. the person nominated for re-election and was not declared elected (for this purpose, it does not matter whether the person sought re-election to the same, or a different, House of Parliament, or for the same, or a different electoral division or State); and

b                        either:

1. the person was first elected before 9 October 2004, and is not entitled to a retiring allowance under the Parliamentary Contributory Superannuation Act 1948 upon ceasing to be entitled to a parliamentary allowance by reason only of section 22DC of that Act (deferral of retiring allowance); or
2. the person was first elected on or after 9 October 2004 and declares in writing to the Clerk of the relevant House of Parliament that it is his or her intention to seek employment.

TABLE 4.7

4.8            The allowances determined in clause 4.7 are calculated by reference to the base salary applicable at the time that the Parliament was prorogued for the purpose of the election in relation to which the relevant person became a former member.

PART 5 – RATES OF AUSTRALIAN TRAVEL ALLOWANCE FOR TRAVEL WITHIN AUSTRALIA

Rates

5.1            For subsection 31(2) of the PBR Act, the rates in the table in Schedule B are determined as the nightly rates of Australian travel allowance payable in accordance with section 10 of the PBR Regulations.

5.2            The rates in Column 2 of the table apply to a member who is a Minister or holds one of the following offices:

1. Leader or Deputy Leader of the Opposition in the House of Representatives or the Senate;
2. Speaker or Deputy Speaker of the House of Representatives;
3. President, or Deputy President and Chair of Committees, of the Senate;
4. Chief Government Whip or Chief Opposition Whip in the House of Representatives or the Senate;
5. Leader of a minority party.

1.             If the member is the Prime Minister or Acting Prime Minister, clause 5.1 does not apply, and the rate of travel allowance is $612 for each night in commercial accommodation that is away from the home base of the Prime Minister or Acting Prime Minister.
2.             Where a member, including the Prime Minister or Acting Prime Minister, stays in non-commercial accommodation, the rate of travel allowance for the night is one-third of the rate in clause 5.1 or 5.3, rounded up to the nearest $1. This provision does not apply to stays in Canberra.
3.             Where the Commonwealth pays for the accommodation of a person who is a Minister, the rate determined is, instead of the rate that would otherwise apply, the lesser of:
   1. $204 for each night; and
   2. the amount spent by the person for meals and incidental expenses in relation to the person’s travel.

Definitions

5.6            Terms in this Part that are defined in the PBR Regulations have the same meaning as in those Regulations.

5.7            ‘Commercial accommodation’ means accommodation in a commercial establishment such as a hotel, motel or serviced apartment. However, if the member does not produce to the Administrator a receipt for accommodation given to the member by the accommodation provider, or provide certification to the Administrator that such a receipt can be produced upon request and does not subsequently provide such a receipt when requested, the accommodation is taken to be non-commercial accommodation.

5.8            In Schedule B:

1. references to ‘Adelaide’, ‘Brisbane’, ‘Melbourne’, ‘Perth’ and ‘Sydney’ are references to locations within a ten kilometre radius of the General Post Office of the city or within a five kilometre radius of the city’s principal airport; and
2. references to ‘Darwin’ and ‘Hobart’ are references to locations within a five kilometre radius of the General Post Office of the city or within a five kilometre radius of the city’s principal airport.

Note: The PBR Regulations, which apply through clause 5.6, define ‘Canberra’ to mean locations within a 30 kilometre radius of Parliament House.

PART 6 – PRIVATE VEHICLE ALLOWANCE

6.1 For subsection 31(2) of the PBR Act, the rate of the allowances prescribed in sections 12, 27 and 28 of the PBR Regulations is 85 cents per kilometre.

Note: Section 12 of the PBR Regulations prescribes a private vehicle allowance for travel between a member’s home base and Canberra. Section 27 prescribes a private vehicle allowance for family member travel to or from Canberra. Section 28 prescribes a private vehicle allowance for the spouse of a senior office holder to travel to or from Canberra.

PART 7 – TRANSITIONAL PROVISIONS

Private plated vehicles

7.1 Despite the repeal of Remuneration Tribunal (Members of Parliament) Determination (No.1) 2023 by this Determination, a thing that was taken to have been done under or for the purposes of a provision of that Determination by Part 7 of that Determination, and that was still in effect immediately before the commencement of this Determination, is taken to have been done under or for the purposes of the same provision of this Determination.

Signed this 11th day of August 2023

SCHEDULE A – OFFICE HOLDER’S SALARY

SCHEDULE B – TRAVEL ALLOWANCE RATES