2013-2014 

 

The Parliament of the 

Commonwealth of Australia 

 

THE SENATE 

 

 

 

 

Presented and read a first time 

 

 

 

 

 

 

 

Defence Amendment (Fair Pay for 

Members of the ADF) Bill 2014 

 

No.      , 2014 

 

(Senator Lambie) 

 

 

 

A Bill for an Act to link pay for members of the 

Defence Force to pay for Parliamentarians or to 

CPI, and for related purposes 

   

   

 

 

No.      , 2014 

Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

i 

 

Contents 

1 

Short title ........................................................................................... 1

 

2 

Commencement ................................................................................. 1

 

3 

Schedule(s) ........................................................................................ 2

 

Schedule 1--Amendments

 

3

 

Defence Act 1903

 

3

 

 

 

 

 

No.      , 2014 

Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

1 

 

A Bill for an Act to link pay for members of the 

1 

Defence Force to pay for Parliamentarians or to 

2 

CPI, and for related purposes 

3 

The Parliament of Australia enacts: 

4 

1  Short title 

5 

 

  This Act may be cited as the Defence Amendment (Fair Pay for 

6 

Members of the ADF) Act 2014. 

7 

2  Commencement 

8 

 

  This Act commences on the day this Act receives the Royal 

9 

Assent. 

10 

   

   

 

 

2 

Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

No.      , 2014 

 

3  Schedule(s) 

1 

 

  Each Act that is specified in a Schedule to this Act is amended or 

2 

repealed as set out in the applicable items in the Schedule 

3 

concerned, and any other item in a Schedule to this Act has effect 

4 

according to its terms. 

5 

Amendments  Schedule 1 

   

 

 

No.      , 2014 

Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

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Schedule 1

--Amendments 

1 

   

2 

Defence Act 1903 

3 

1  At the end of Part IIIA 

4 

Add: 

5 

Division 4--Defence Force pay to be linked to the higher of 

6 

increases in Parliamentary allowance and CPI 

7 

58Z  Definitions 

8 

 

  In this Division: 

9 

CPI index number has the meaning given by section 58ZA. 

10 

Defence Force pay means salary (within the meaning of 

11 

Division 2) of members. 

12 

Defence Force pay determination means a determination, made by 

13 

the Minister under Division 1 or by the Defence Force 

14 

Remuneration Tribunal under Division 2, in relation to Defence 

15 

Force pay. 

16 

Defence Force Remuneration Tribunal means the Defence Force 

17 

Remuneration Tribunal established by section 58G. 

18 

Parliamentary allowance amount has the meaning given by 

19 

section 58ZB. 

20 

total Parliamentary allowance is the total of the allowances 

21 

(including allowances in accordance with section 48 of the 

22 

Constitution) determined under subsection 7(1) of the 

23 

Remuneration Tribunal Act 1973 to be paid to a member of the 

24 

Parliament by reason of his or her membership of either House of 

25 

the Parliament. 

26 

58ZA  Meaning of CPI index number 

27 

 

(1)  In this Division, the CPI index number for a quarter is the All 

28 

Groups Consumer Price Index number (being the weighted average 

29 

Schedule 1  Amendments 

   

 

 

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Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

No.      , 2014 

 

of the 8 capital cities) published by the Australian Statistician in 

1 

respect of that quarter (subject to subsections (2) and (3)). 

2 

 

(2)  Subject to subsection (3), if, at any time before or after the 

3 

commencement of this subsection: 

4 

 

(a)  the Australian Statistician has published or publishes an 

5 

index number in respect of a quarter; and 

6 

 

(b)  that index number is in substitution for an index number 

7 

previously published by the Australian Statistician in respect 

8 

of that quarter; 

9 

disregard the publication of the later index number for the purposes 

10 

of this Division. 

11 

 

(3)  If, at any time before or after the commencement of this 

12 

subsection, the Australian Statistician has changed or changes the 

13 

index reference period for the Consumer Price Index, then, for the 

14 

purposes of applying this Division after the change took place or 

15 

takes place, have regard only to index numbers published in terms 

16 

of the new index reference period. 

17 

58ZB  Meaning of Parliamentary allowance amount 

18 

 

(1)  In this Division, the Parliamentary allowance amount for a 

19 

quarter is the total Parliamentary allowance that applies during that 

20 

quarter. 

21 

 

(2)  If more than one total Parliamentary allowance applies during a 

22 

quarter, the Parliamentary allowance amount for the quarter is the 

23 

highest of those total Parliamentary allowances. 

24 

58ZC  Defence Force pay to be linked to the higher of increases in 

25 

Parliamentary allowance and CPI 

26 

 

(1)  A Defence Force pay determination must, for the first period of 12 

27 

months, and each following period of 12 months, for which the 

28 

determination is force, provide for an increase in the Defence 

29 

Force pay covered by the determination that: 

30 

 

(a)  when expressed as a percentage change, is at least as large as 

31 

the minimum Defence Force pay increase percentage for that 

32 

period; and 

33 

 

(b)  takes effect at the start of the period. 

34 

Amendments  Schedule 1 

   

 

 

No.      , 2014 

Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

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Note: 

This section is not to be taken as an appropriation of public money 

1 

(see section 7). 

2 

 

(2)  For the purposes of this section, the minimum Defence Force pay 

3 

increase percentage for a period is the higher of the following 

4 

percentages: 

5 

 

(a)  the change in the CPI index number between: 

6 

 

(i)  the quarter one year before the quarter (the latest 

7 

quarter) that ended most recently before the start of the 

8 

period; and 

9 

 

(ii)  the latest quarter; 

10 

 

  expressed as a percentage of the CPI index number for the 

11 

quarter one year before the latest quarter; 

12 

 

(b)  the change in the Parliamentary allowance amount between 

13 

the quarter one year before the latest quarter and the latest 

14 

quarter, expressed as a percentage of the Parliamentary 

15 

allowance amount for the quarter one year before the latest 

16 

quarter. 

17 

 

(3)  To avoid doubt, a Defence Force pay determination may provide 

18 

for future increases in Defence Force pay with reference to future 

19 

changes in Parliamentary allowance amounts and future CPI index 

20 

numbers that are not known at the time the determination is made. 

21 

 

(4)  If the minimum Defence Force pay increase percentage worked out 

22 

under subsection (2) for a period is less than zero per cent, the 

23 

minimum Defence Force pay increase percentage for that period is 

24 

taken to be zero per cent. 

25 

58ZD  Sunset provision 

26 

 

  Subsection 58ZC(1) does not apply in relation to a period of 12 

27 

months that begins more than 3 years after the day this Division 

28 

commences. 

29 

2  Application and transitional provisions 

30 

(1) 

The amendments made by this Schedule apply in relation to Defence 

31 

Force pay determinations made on or after the day this Schedule 

32 

commences. 

33 

(2) 

As soon as practicable after the commencement of this Schedule, and in 

34 

any case within 28 days after that commencement, new Defence Force 

35 

Schedule 1  Amendments 

   

 

 

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Defence Amendment (Fair Pay for Members of the ADF) Bill 2014 

No.      , 2014 

 

pay determinations must be made, under Part IIIA of the Defence Act 

1 

1903 and in accordance with Division 4 of that Part as inserted by this 

2 

Schedule, determining and providing for the remuneration of all 

3 

members. 

4 

(3) 

A determination made in accordance with subitem (2) takes effect when 

5 

it is made. 

6