MINISTERS OF STATE REGULATION 2012 (SLI NO 34 OF 2012) EXPLANATORY STATEMENT

Section 5 of the Ministers of State Act 1952 (the Act) provides for a limit on the annual sum that can be appropriated from the Consolidated Revenue Fund to pay the salaries of Ministers of State under section 66 of the Constitution. The limit provided by the Act is $3,500,000 or such higher amount as may be prescribed by the regulations.

Section 7 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act. This Regulation is the first time regulations have been made under the Act.

The Regulation increases the limit, for the 2011-12 financial year and future financial years, from $3,500,000 to $5,000,000.

The increase to the limit on the annual sum is necessary to ensure there are sufficient funds available to pay ministerial salaries at current levels and to meet any additional expenditure, including any additional amounts payable as a result of determinations of the Remuneration Tribunal relating to the base salary of Members of Parliament.

The Act does not impose any conditions that need to be satisfied before the power to make the Regulation may be exercised.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments

Consultation was not undertaken in relation to the provisions of the Regulation, because the Regulation is of a minor or machinery nature and does not significantly alter existing arrangements. The provisions do not have a direct or significant indirect impact on business and do not restrict competition.

The Office of Best Practice Regulation has confirmed that the preparation of a Regulation Impact Statement is not necessary, as the Regulation has a nil or low impact on business or the economy or individuals.

The Regulation is compatible with the human rights and freedoms recognised or declared by the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not engage any of those rights or freedoms.

Details of the proposed Ministers of State Regulation 2012

Section 1--Name of Regulation

This section provides that the title of the Regulation is the Ministers of State Regulation 2012.

Section 2--Commencement

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.

Section 3--Definition

This section provides that, in the Regulation, Act means the Ministers of State Act 1952 (the Act).

Section 4--Salaries of Ministers

This section provides that, for paragraph 5(b) of the Act, $5,000,000 is the amount prescribed as the limit on the annual sum payable under section 66 of the Constitution for the salaries of the Ministers of State.

Commonwealth Numbered Regulations - Explanatory Statements