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Victorian Independent Remuneration
Tribunal and Improving Parliamentary
Standards Bill 2017
Introduction Print
EXPLANATORY MEMORANDUM
General
The Victorian Independent Remuneration Tribunal and Improving
Parliamentary Standards Bill 2017 establishes a Remuneration Tribunal
and amends the Parliamentary Salaries and Superannuation Act 1968
(PSS Act), the Members of Parliament (Register of Interests) Act 1978
(MPRI Act), the Public Administration Act 2004 (PA Act), and makes
related amendments to certain other Acts.
The aim of the Bill is to comprehensively reform and strengthen the
allowances and standards regime for Victorian Members of Parliament
(Members).
Clause Notes
Part 1--Preliminary
Clause 1 provides that the main purposes of the Bill are to--
• establish the Victorian Independent Remuneration
Tribunal (Tribunal) to--
• determine salaries, work-related parliamentary
allowances and the Budget for Members of
Parliament under the Parliamentary Salaries
and Superannuation Act 1968; and
581260 1 BILL LA INTRODUCTION 12/12/2017
• determine remuneration bands for executives
employed in prescribed public entities
• determine remuneration bands for executives
employed in public service bodies; and
• perform such other functions as are specified;
and
• amend the Parliamentary Salaries and
Superannuation Act 1968 to--
• rename the Act and provide for the purpose of
the Act; and
• insert a Statement of Principles in relation to
the use of public resources by Members of
Parliament; and
• provide for work-related parliamentary
allowances and the Budget;
• create a new parliamentary travel allowance to
support the travel of Members of Parliament
where necessary for the performance of their
public duties; and
• replace the resettlement allowance with a
separation payment;
• establish a monitoring, compliance and
enforcement system to be administered by the
relevant Officer; and
• provide for a Compliance Officer (CO) to hear
and determine appeals in relation to
determinations; and
• amend the Members of Parliament (Register of
Interests) Act 1978 to promote public trust and
confidence in Members of Parliament by--
• renaming the Act and providing for the objective
of the Act; and
• inserting a Statement of Values for Members of
Parliament; and
2
• updating the Code of Conduct for Members of
Parliament; and
• expanding the Register of Interests for Members
of Parliament; and
• making other necessary amendments; and
• make related amendments to the Public
Administration Act 2004 and consequential
amendments to certain other Acts.
Clause 2 provides the relevant commencement dates for Parts and sections
of the Act.
Parts 1, 2, 3, 4 and 5 (except section 365(f) and (g)), sections 42,
50 and 55, Part 7 and section 76 come into operation on the day
after the day on which this Act receives the Royal Assent.
This is intended to facilitate the timely commencement of the
Tribunal's operations and the amendments to the resettlement
allowance.
Sections 36(f) and (g) and Parts 6 (except sections 42, 50
and 55), 8 and Part 9 (except section 77) come into operation on
the first sitting day of the 59th Parliament of Victoria. This will
ensure that most of the reforms to the Parliamentary Salaries
and Superannuation Act 1968 and the reforms to the Members
of Parliament (Register of Interests) Act 1978 will be aligned
with the commencement of the new Parliament.
Clause 3 provides for various definitions to facilitate the operation of the
Bill, including additional salary, basic salary, Budget, Member,
specified parliamentary office, specified parliamentary office
holder, and work-related parliamentary allowances.
Clause 3 also inserts definitions of public entity and public
service body Head, which are consistent with the PA Act.
Clause 3 further contains definitions of the following terms--
Chair, Compliance Officer, Determination, prescribed,
specified occupational group, Tribunal, Tribunal member,
and Tribunal officer.
3
Part 2--Victorian Independent Remuneration Tribunal
Clause 4 establishes the Tribunal.
Clause 5 determines that the Tribunal will be an independent and
impartial body, and that the Tribunal and its members will not
be subject to the direction or control of any person, to ensure
the Determinations made by the Tribunal are independent and
objective.
Clause 6 describes the functions and powers of the Tribunal.
The Tribunal has the following functions--
• inquire into and determine the basic salary and the value
of work-related parliamentary allowances for Members;
• inquire into and determine the additional salary and
value of parliamentary allowances for specified
parliamentary office holders;
• inquire into and determine the Budget;
• inquire into and determine the remuneration bands for
executives employed in prescribed public entities;
• issue guidelines with respect to the placement of
executives within the remuneration bands determined
under paragraph (d);
• at the request of the Minister, inquire into and determine
the remuneration package for a Chief Executive Officer
employed in a prescribed public entity;
• inquire into and determine the remuneration bands for
executives employed in public service bodies;
• issue guidelines with respect to the placement of public
service body Heads and other executives within the
remuneration bands determined under paragraph (g);
• provide advice about requests to approve remuneration
for public service body Heads and other executives
which is above the relevant remuneration band;
• make recommendations to the Minister about the
remuneration of any specified occupational group;
4
• conduct reviews and analyse public sector remuneration
trends in relation to any specified occupational group;
• provide advice to the Minister on any matter relating to
the remuneration of any specified occupational group;
• prepare and publish information on any matter relating
to the remuneration of any specified occupational group.
The Tribunal will not have the power to make determinations in
relation to matters that are within the jurisdiction of the Fair
Work Commission.
Clause 7 provides that the Tribunal will consist of up to 3 members,
including a Chair. This ensures that matters decided by the
Tribunal will have a deciding vote, and is largely consistent with
Tribunals in other jurisdictions. Members will be appointed by
the Governor in Council on recommendation of the Minister.
Clause 8 outlines the eligibility criteria that individuals must meet to be
appointed as a Tribunal member. This criteria aims to ensure
that Tribunal members have specialist expertise in a relevant
field. To ensure independence, the criteria further disqualifies
individuals who would be affected by the Determinations of
the Tribunal.
Clause 9 establishes the terms and conditions under which a Tribunal
member is appointed, including terms of remuneration, and
eligibility for re-appointment.
Clause 10 establishes the conditions under which a Tribunal member
ceases to hold office, resigns or is removed from office.
These conditions are consistent with modern workplace
arrangements, and are included to safeguard against misconduct,
neglect of duty or an inability to perform the duties that the
position requires.
Clause 11 outlines the conditions under which the Governor in Council or
responsible Minister may appoint an acting Tribunal member,
and provides that an acting Tribunal Member may exercise all the
powers, and perform the functions of the office of a Tribunal
member. This provides operational flexibility, and ensures the
Tribunal can continue to operate if a Member cannot fulfil their
duties for any reason.
5
Clause 12 outlines the structure of meetings of the Tribunal, including
that 2 Tribunal members constitutes a quorum. To allow for
operational flexibility, the Tribunal will determine its own
procedure.
Clause 13 states that while performing the functions of the Tribunal, the
Tribunal may inform itself in any manner, and is not required to
conduct proceedings in a formal manner. This is to ensure that
the Tribunal has operational flexibility, and is consistent with
methods of inquiry for some other special bodies established
under the PA Act.
Clause 14 pertains to the disclosure of interest of Tribunal members.
It states that if a Tribunal member has an interest (financial or
otherwise), in a matter to be considered by the Tribunal, the
nature of the interest must be disclosed at a meeting of the
Tribunal. The affected Tribunal member must not take part in
the consideration of the decision without the consensus of the
other members. This provision is to ensure that the Tribunal
members remain objective and accountable in their decisions,
and are not unduly influenced by conflicting interests.
Clause 15 states that the Secretary of the Department must make employees
available to assist with the functions of the Tribunal (known as
Tribunal officers). It is intended that these officers will be part of
the Secretariat that supports the Tribunal.
The Chair will be able to delegate powers, except for the powers
listed (such as the power of delegation).
To ensure that the Tribunal remains independent (while
supported by a Secretariat provided to it by the Department),
there will be a clear delineation of the roles and functions of the
Tribunal and Secretariat respectively, and Tribunal officers will
be exempt from relevant parts of the VPS Code of Conduct
(which is consistent with arrangements for Formal Reviews
under the Inquiries Act 2014).
6
Part 3--Determinations
Clause 16 grants the Tribunal the power to make Determinations as outlined
in Part 3.
Clause 17 outlines the Tribunal's jurisdiction for making Determinations
relating to Members, including setting the value of salaries,
allowances and the Budget made available to Members.
The Tribunal can determine the value of an allowance be set
at zero, or that there is no change to the value of allowances
or salaries between determinations or annual adjustments.
Ensuring that Members no longer determine their own salaries
and allowances will significantly contribute to a more
independent and objective regime, and will bring Victoria
into line with other Australian jurisdictions.
Clause 17 also provides that the first Determination will
come into effect within 6 months of the commencement of
the 59th Parliament. This allows the Tribunal time to begin its
operations, and complete its comprehensive review of allowances
currently available to Members. Consistent with this, the
Tribunal will make subsequent comprehensive Determinations
within 6 months after the first sitting day of each subsequent
Parliament.
Clause 18 provides that the Tribunal must make an annual adjustment
in relation to Members, of the value of salaries, additional
salaries, work-related parliamentary allowances and the Budget.
To ensure adjustments do not occur within a short space of time,
the provision further states that an annual adjustment must not be
made within 9 months of a Determination.
Clause 19 outlines the Tribunal's jurisdiction for making Determinations
for remuneration bands for executives employed by prescribed
public entities. It states that alongside a new Determination, the
Tribunal must produce a comprehensive review analysing the
roles of public sector executives employed by prescribed public
entities and existing remuneration.
Clause 19 also mandates that the Tribunal must make a new
Determination for these executives every 4 years.
Clause 20 determines that the Tribunal must make an annual adjustment
to remuneration bands for executives employed by prescribed
public entities. This is intended to reflect increases in inflation.
7
To ensure that multiple adjustments do not occur within a short
space of time, the provision further notes that an adjustment must
not be made if a Determination has been made in the preceding
9 months.
Clause 21 provides that the Tribunal must make a new Determination
setting the values of remuneration bands set for the executives
in public service bodies. It states that alongside a new
Determination, the Tribunal must undertake a comprehensive
review of the roles of executives in public service bodies and
existing remuneration.
Clause 21 further states that the Tribunal must make a new
Determination for these executives every 4 years.
Clause 22 determines that the Tribunal must make an annual adjustment
to remuneration bands for executives in public service bodies.
This is intended to reflect increases in inflation. To ensure that
multiple adjustments do not occur within a short space of time,
the provision further notes that an adjustment must not be made
if a Determination has been made in the preceding 9 months.
Clause 23 provides that the Minister may request the Tribunal make a
Determination in relation to any matter relating to remuneration
of a specified occupational group being a matter of which the
Tribunal has the power to make a determination. This facilitates
the Tribunal in having a role, amongst other things, in analysing
potential new trends and issues related to remuneration and
allowances. The requirements in clauses 24 and 26 will not
apply to determinations made under clause 23.
Clause 24 outlines requirements for when the Tribunal is considering, and
publishing a Determination. It is intended that there is reasonable
opportunity for the public, and groups of people affected by the
Determinations of the Tribunal, to make submissions to the
Tribunal. The Tribunal must consider various factors in the
Determination-making process and their deliberations and
assessment of factors are required to be published in a public
statement of reasons that accompany a Determination.
Clause 25 outlines when specific Determinations for the various
occupational groups under the Tribunal's jurisdiction take effect.
Determinations will generally take effect on the day specified
in the Determinations. However, the first comprehensive
Determinations for executives will take effect from 1 July 2019,
8
and annual adjustment Determinations will take effect on 1 July
of the year in which it is made.
Clause 26 ensures that the Tribunal remains accountable and transparent in
its decision-making, by requiring that the Chair of the Tribunal
provide a copy of a Determination about Members to the Clerk
of each House of Parliament, for tabling on the next sitting day.
All Determinations about remuneration bands for executives will
also be published online, to ensure the public has access to these
decisions, and they are consolidated and available in a single
location.
Part 4--Compliance Officer
Clause 27 establishes the office of CO attached to the Tribunal.
Clause 28 outlines the functions and powers of the CO. The CO will
initially hear and determine appeals regarding the separation
payment, but after the commencement of the 59th Parliament,
will also hear and determine appeals regarding the misuse of
work-related parliamentary allowances and the Budget.
Clause 28 also provides that the CO role is not bound by the
rules of evidence, may conduct a proceeding with as little
formality as considered appropriate, and is not subject to
direction or control of any person. This ensures that the CO is
an independent adjudicator, and can undertake its functions
without undue influence from outside parties.
Clause 28 further notes that the function of the CO will be
performed by the primary CO, and if the primary CO is unable to
hear an appeal, the secondary CO will perform the functions of
the office. This ensures that the functions of the CO can still be
completed even if the primary officer cannot, for any reason,
acquit the duties of the position.
Clause 29 outlines that a primary and secondary CO will be appointed by
the Governor in Council, on the recommendation of the Minister.
Clause 29 further states that a person is eligible to be appointed
as a CO if they are, or have been, qualified for appointment as a
judge of specified jurisdictions in any Australian state or territory
or has extensive or specialist knowledge in a relevant field.
This eligibility criteria guarantees that only appropriately
qualified individuals will be responsible for determining appeals.
9
Further, a person is not eligible to be appointed as a primary or
secondary CO if that person is a Member or nominates for
election as a Member. This criteria aims to avoid potential
conflicts of interest.
Clause 30 details that a primary or secondary CO can hold office for up to
5 years, is not eligible for re-appointment, and is appointed on a
sessional basis. Restricting the period of time an individual can
serve as a CO safeguards against the development of personal or
professional conflicts of interest, and protects their independence.
The remuneration provided to a CO cannot be reduced during
their term of office unless they consent, which further safeguards
their independence.
Clause 31 outlines the circumstances under which a primary or secondary
CO can resign, cease to hold, or be removed from office.
These provisions (including becoming insolvent, convicted of
an indictable offence, or nominates as a Member) are generally
consistent with arrangements for other Victorian office-holders
(including Tribunal Members). They provide flexibility for an
individual wishing to leave the role, but simultaneously assure
that the Governor in Council may remove an individual from
the office on the grounds of misconduct, neglect of duty, or an
inability to perform the duties of office.
Clause 32 provides that a CO must avoid any actual or potential conflict of
interest with their function as a CO. It also provides that a CO
may declare that they are unable to hear an appeal if they believe
that they have an actual or potential conflict of interest in relation
to any matter relating to the appeal.
Part 5--General
Clause 33 provides that the Tribunal may make and publish guidelines
regarding the placement of executives employed in prescribed
public entities, or public service body Heads and other executives
employed in public service bodies, within the remuneration bands
set by a Determination. This role complements the Tribunal's
Determination-making function, as it allows it to conduct
analysis and publish helpful guidelines in relation to groups
under its jurisdiction.
10
Clause 34 notes that if an employer proposes to pay a relevant executive
remuneration that exceeds the maximum of the relevant band as
set by the Tribunal for that classification, the employer must
apply to the Tribunal for advice. The Tribunal must then provide
advice on this application within a reasonable time, and the
employer must consider the Tribunal's advice.
Clause 34 also states that the Minister may require the Tribunal
to provide advice about any matter relating to the remuneration
provided to any specified occupational group. These functions
are consistent with the Tribunal's expertise on matters relating to
remuneration for Members and executives in the public sector.
Clause 35 affords that the Tribunal may publish reports about any matter
relating to remuneration of any specified occupation group
within its jurisdiction. This provides flexibility for the Tribunal
to undertake research it considers relevant, but that may not be
specifically requested by a Minister.
Clause 36 mandates that as soon as practicable after the end of the financial
year, but no later than the following October 31, the Tribunal
must submit an annual report to the Minister containing
information including--
• the number of Determinations made;
• details of disclosed interests;
• an operational review;
• the number of Members who have not complied with
requests from the CO for information in relation to
determinations about the separation payment, or the
misuse of work-related parliamentary allowances or
the Budget;
• the number of appeals heard by the CO about the
separation payment, or the misuse of work-related
parliamentary allowances or the Budget; and
• a report on the performance of the function of the CO.
The publication of an annual report is standard practice
for independent entities, and facilitates good practice and
transparency about the activities of the Tribunal and CO.
11
Clause 37 outlines that a Tribunal member, a Tribunal officer, or a CO
must not knowingly disclose any information acquired during
the performance of their duties, except--
• in carrying out their role;
• if the information is already in the public domain; or
• is otherwise authorised.
This is to ensure the confidentiality of personal or sensitive
information, is consistent with procedures for similar bodies.
Clause 38 provides exceptions to the disclosure of information outlined
in Clause 37. If a Tribunal member, Tribunal officer or CO
considers that information is relevant to the performance of the
functions of the body or person, and considers disclosure is
appropriate, they may provide that information. This caveat is
designed to provide discretion to the members and officers in
determining appropriate circumstances for the disclosure of
information.
Clause 39 relates to a person to whom the Tribunal member, Tribunal
officer, or CO gives information to, during the course of their
duties or functions. Unless this information is already available
in the public domain, the person must not take advantage of the
information to benefit themselves, or another person.
Clause 40 specifies that the Governor in Council may make regulations
for, or with respect to any matter or thing required or permitted
by the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017.
Clause 41 requires the Minister to undertake a review of the Act after
10 years, and cause a copy of the review to be laid before each
House of Parliament within 12 months. This review mechanism
is consistent with review mechanisms in other reforms (such as
the introduction of the Charter of Human Rights and
Responsibilities).
12
Part 6--Amendment of the Parliamentary Salaries and
Superannuation Act 1968
Clause 42 specifies that the Principal Act in Part 6 is the PSS Act.
Clause 43 renames the Principal Act the Parliamentary Salaries,
Allowances and Superannuation Act 1968, to better reflect
the intent and jurisdiction of the Act.
Clause 44 outlines the purpose of the Principal Act, including the provision
of salaries, work-related parliamentary allowances, the Budget,
and superannuation arrangements for Members.
It also sets out a Statement of Principles with respect to the use of
public resources by Members.
Additionally, it is intended that the Principal Act establish a
monitoring, compliance and enforcement scheme in relation to
the use of work-related parliamentary allowances and the Budget.
This aims to ensure that public resources made available to
Members to facilitate them in undertaking their public duties are
used responsibly, transparently and in accordance with relevant
legal obligations.
Clause 45 amends and inserts definitions necessary for the operation of the
Principal Act, including basic salary, additional salary, Budget,
prescribed, public resources, relevant Clerk, relevant Officer,
specified parliamentary office, and work-related parliamentary
allowances.
Clause 45 further inserts definitions of Compliance Officer,
Determination, and Tribunal.
Clause 45 also inserts a definition of public duties, which is
consistent with definition in the Members of Parliament
(Standards) Act 1978.
Clause 46 amends the heading of Part 2 of the Principal Act to reflect that
the Part also includes the Budget.
Clause 47 inserts a New Division 1 in Part 2 of the Principal Act that
describes a Statement of Principles that applies to the use of
public resources by Members. The Principles reflect that--
• Members should receive fair and reasonable
recompense for public duties;
13
• public resources are provided to Members to support
them in performing their public duties;
• Members must act ethically, reasonably, and in good
faith when using, and accounting for the use of public
resources; and
• Members must be responsible and accountable for their
use of public resources.
The insertion of a Statement of Principles aims to assist the
decision-making of Members when utilising public resources.
The introduction of Principles is consistent with recent
Commonwealth reforms, and provides overarching guidance for
Members when utilising public resources made available to them.
Clause 48 is a consequential amendment, and inserts the title of Division 2
into the Principal Act.
Clause 49 substitutes section 6 of the Principal Act and reflects that a
Member is to be paid a salary (and additional salary, if the
Member is an additional office holder), and outlines the
allowances made available to a Member to support them in the
exercise of their public duties. This complements the principle
that Members should receive recompense for their role, and that
public resources are made available to them to facilitate their
performance of public duties. This is standard practice, and aims
to fairly and reasonably reward Members.
The new travel allowance is intended to consolidate and replace
the existing Melbourne allowance, general travel allowance,
overnight electorate allowance, and commercial transport
allowance.
Clause 49 also sets out notification requirements for the Leader
of the Opposition to notify the relevant Clerk of a House of
Parliament in writing of the name of any Member of that House
who holds the specified parliamentary office of Shadow Minister
within 7 days of the Member holding or ceasing to hold that
office.
14
Clause 50 substitutes a new section 7E and replaces the resettlement
allowance with the separation payment.
Consistent with the existing resettlement allowance, the
separation payment will be available to eligible Members who
are not part of the Parliamentary Contributory Superannuation
Fund (the pre-2004 defined benefits scheme).
New subsection 7E(1) provides that section 7E applies to a
person who is not a member of the Scheme under Part 3 and
who--
• dies whilst in office as a Member of Parliament; or
• otherwise ceases to be a member of either House of the
Parliament or does not seek re-election at a general
election for any reason, other than corrupt conduct or a
significant and wilful breach of the Code of Conduct
that applies to Members.
To better reflect the eligibility of the revised allowance, the Bill
renames the allowance the "separation payment".
The Bill allows for the recovery of the value of the separation
payment (without any penalty) if a former Member is later
convicted of a corrupt conduct offence relating to their term as an
Member, or significant and wilful breach of the Code of Conduct,
as determined by the Clerk of the relevant House, or by the CO
at appeal.
This reflects a community expectation that Members not
receive a separation payment if they leave Parliament because
they have acted unlawfully or otherwise breached the public's
trust. Recovery is contemplated due to the expected time lag
involved with convictions for corrupt conduct or a finding that
a Member has committed a significant and wilful breach of the
Code of Conduct during a person's time as a Member.
New subsection 7E(3) provides that the separation payment
amount is calculated as follows is--
• if the person served as a member in the Parliament for
a period of one term or less, an amount equivalent to
3 months of the annual basic salary payable to the
member immediately before the day that the person
died or otherwise ceased to be a member or did not
seek re-election; or
15
• if the person served as a member for a period of more
than one term, an amount equivalent to 6 months of the
annual basic salary payable to the member immediately
before the day that the person died or otherwise ceased
to be a member or did not seek re-election.
This provision is modelled on the existing basis for calculation of
the amount of the resettlement allowance.
New subsection 7E(4) provides that, for the purposes of new
subsection 7E(3), a person who becomes a member as a result of
being--
• elected at a by-election to fill a vacancy in the
Assembly; or
• chosen under section 27A of the Constitution Act 1975
to fill a casual vacancy in the Council--
is to be taken to have been elected for the duration of the
Parliament during which the vacancy occurred.
New subsection 7E(5) provides that a person must repay a
separation payment received under this section if, during the
Parliament immediately after the general election at which he
or she ceased to be a member, the person--
• is declared elected as a result of a declaration of
the Court of Disputed Returns under the Electoral
Act 2002; or
• is re-elected as a member of either House of the
Parliament; or
• becomes a member as a result of being chosen under
section 27A of the Constitution Act 1975 to fill a
casual vacancy in the Council.
This is to reflect that a person who returns to Parliament
no longer requires a bridging payment to transition to
non-parliamentary life.
New subsection 7E(6) provides that if a person ceases to be
a member of either House of the Parliament because of their
death, the separation payment can be provided to the person's
beneficiary or beneficiaries.
16
New section 7E provides that if--
• a former Member is convicted of corrupt conduct in
connection with their period in office as a Member; or
• the Clerk of the relevant House of the Parliament or the
CO determines that a former Member has committed a
significant and wilful breach in connection with their
period in office as a Member,
the separation payment made to the former Member becomes a
debt due to the State and may be recovered by the Clerk of the
relevant House of the Parliament as a debt due to the State in a
court of competent jurisdiction.
This reflects that a Member should not obtain the separation
payment if they have misused their office during their time as a
Member.
New section 7E also sets out the procedure and requirements that
apply in relation to determinations and appeals about significant
and wilful breaches of the Code of Conduct by former Members.
These include--
• allowing the relevant Clerk to request that a former
Member provides information;
• allowing the relevant Clerk to determine that a former
Member has committed a significant and wilful breach
if the Member does not comply with a request for
information;
• providing the former Member with reasonable notice of
a proposed determination;
• providing the former Member a reasonable opportunity
to make submissions in relation to a proposed
determination;
• providing the former Member with the opportunity to
appeal a determine to the CO;
• allowing the CO to request that a former Member
provides information;
• allowing the CO to determine that a former Member has
committed a significant and wilful breach if the Member
does not comply with a request for information;
17
• requiring the CO to notify the Member and the relevant
Clerk of the findings of an appeal, and to publish the
findings; and
• limiting reimbursement of legal costs.
These provisions are consistent with other provisions in the
Bill regarding determinations, such as those in relation to
determinations regarding the misuse of work-related
parliamentary allowances and the Budget.
New subsection 7E(22) provides that the Clerk of the relevant
House of the Parliament must include the following in the annual
report of the Parliament--
• the number of Members who received a separation
payment;
• the number of determinations made under
subsection (8);
• the number of former Members who have not complied
with a request under subsection (9).
This aims to improve transparency about the separation payment.
New subsection 7E(23) provides that in this new section 7E--
• corrupt conduct has the meaning given in section 4
of the Independent Broad-based Anti-corruption
Commission Act 2011; and
• significant and wilful breach means a significant
and wilful breach of the Code of Conduct under the
MPRI Act;
• general election includes--
• a supplementary election held as a result of a
failed election at a general election; or
• a re-election held as a result of a tied election
at a general election.
It is intended that the general election definition will also
draw upon the definition of general election in the Electoral
Act 2002.
18
Clause 51 inserts New Division 3 in Part 2, which establishes the
Electorate Office and Communications Budget (Budget) in the
Act. The Budget will be made available to Members to fund the
operating costs and maintenance of their electorate offices, and
communicate with their electorate in relation to the performance
of their public duties. The Budget will be funded in the annual
Appropriation (Parliament) Act. The establishment of the Budget
in the Act ensures that public resources made available to
Members to facilitate them in undertaking their public duties,
are consolidated in a single piece of legislation. While the
Budget is not strictly an 'allowance' payable to Members, the
Budget represents a significant expenditure to enable Members
to serve their constituents. Establishing it in legislation will
subsequently increase transparency about the allowances
available to Members, and the intended purpose of those
allowances.
Clause 52 makes consequential amendments by repealing section 8, 8A
and 8B and amending section 31(2)(a)(ii) of the Principal Act.
Clause 53 amends section 9 of the Principal Act to maintain the Budget's
existing source of funding and provide that the Budget will not be
funded by a Special Appropriation from the Consolidated Fund.
Clause 54 inserts New Divisions 4, 5, and 6 into Part 2 of the Principal
Act and establishes monitoring, compliance and enforcement
provisions relating to work-related parliamentary allowances
and the Budget.
Proposed new sections 9A, 9B, and 9C outline legal principles
that will underpin the regime relating to the administration
of work-related parliamentary allowances and Budget.
These include that a Member must obtain value for money,
that allowances and the Budget must be used for the dominant
purpose of performing their public duties, and that a Member
must not make claims or incur expenses in breach of terms or
conditions.
Members will be required to ensure their use of allowances
adheres to these legal principles, and violation may result in a
determination by the relevant Officer that misuse has occurred.
Proposed new section 9D determines that a Member may
only claim a travel allowance by making a claim for the
reimbursement of costs incurred. This provision increases the
19
accountability of Members who undertake travel as part of their
public duties, as it ensures that compensation will only occur for
certifiable and reasonable costs relating to travel undertaken.
This reduces the potential for misuse of the travel allowance.
Proposed new section 9E outlines the procedure for making a
claim for a work-related parliamentary allowance or under the
Budget. It determines that the claim must be lodged with the
relevant Officer, and include a certificate provided by the
Member stating that the claim complies with the Act, regulations
and any other prescribed documents. The Member must include
an explanation for any claims relating to a travel allowance if
they have already claimed 68 nights of allowance in a calendar
year. All claims relating to work-related parliamentary
allowances or the Budget must be accompanied by the
prescribed supporting documents (and any additional
prescribed documentation if a travel allowance claim of a
Member exceeds 68 nights of travel claims in a calendar year).
These stringent compliance mechanisms aim to ensure that the
regime is simple, straight-forward, and reflective of modern
workplace arrangements. By mandating that a Member include
a certificate of compliance when submitting a claim, the
responsibility to ensure that costs are appropriate and publicly
justifiable is placed with the Member.
Proposed new section 9F outlines that the relevant Officer may
request further information in support of, or about the claim for,
a work-related parliamentary allowance or the Budget, where
the Officer considers it reasonable to determine that claim. If a
Member does not comply with this request, the relevant Officer
may determine that the claim made by the Member does not
comply with the Act.
Proposed new section 9G outlines that the relevant Officer must
determine whether the claim for a work-related parliamentary
allowance or under the Budget, or the conduct in relation to a
claim complies with the Act or regulations. If the relevant
Officer is satisfied that a claim complies in whole or in part
with the Act and other requirements, the relevant Officer will
be required to pay the value of the claim that complies with the
Act or regulations. However, if a relevant Officer proposes to
determine that a claim does not comply with the Act and other
requirements in whole or in part, the relevant Officer will be
required to notify the relevant Member and provide the Member
20
with a reasonable opportunity to make submissions about the
proposed adverse determination. If it is determined that a
Member has misused an allowance or the Budget, the Member
will be required to repay the amount that was misused, together
with a 25% penalty on the amount that was misused. If the
Member does not pay the amount, relevant Officers will be
allowed to deduct the outstanding amount from future payments
to the Member, and if necessary, recover the outstanding amount
in a court of competent jurisdiction.
A Member is not entitled to the reimbursement of any legal costs
incurred by the Member in relation to a determination. This aims
to ensure that these proceedings are as informal as possible.
These provisions ensure there is strict due process, and
reasonable opportunity for a Member to clarify their expenditure,
or conduct in relation to a claim in consultation with the relevant
Officer. Additionally, the application of a 25% penalty is
intended to act as a sufficient deterrent for Members to wilfully
or inadvertently misuse public resources made available to them
in undertaking their public duties.
Proposed new section 9H outlines the appeal procedure available
to Members who are aggrieved by the determination of a relevant
Officer that a claim does not comply with the Act. A Member
may appeal the determination of the relevant Officer to the CO
within 28 days of the initial determination that a claim does not
comply with the Act.
A Member will be provided reasonable opportunity to make a
submission in relation to the appeal. Additionally, the CO may
request further information from the Member. The CO must
notify the Member and publish a statement of findings. If the
CO determines to reject the appeal, the Member must, within
28 days, repay the amount of the claim received in breach and
a penalty that is equal to 25% of the value claimed. If a Member
does not make this payment, the relevant Officer may deduct the
amount from any salary or allowance payable to the Member.
If the CO upholds the appeal, the relevant Officer must pay the
amount in question.
These provisions ensure that a Member has reasonable and
fair recourse for pursuing an appeal of a relevant Officer's
determination that the Member's claim did not comply with
the Act.
21
As above, a Member is not entitled to the reimbursement of any
legal costs incurred by the Member in relation to these matters.
This aims to ensure that these proceedings are as informal as
possible.
Proposed new section 9I provides that every quarter, the
relevant Officer must publish the prescribed details in respect to
claims for work-related parliamentary allowances or the Budget.
This ensures that expenditure of public resources by Members
is publicly available, and increases the accountability and
transparency of the overall system.
Proposed new section 9J requires that as soon as practicable after
30 June each year, the relevant Officer tables an annual report
which details the claims and determinations for work-related
parliamentary allowances and under the Budget lodged during
that year, the Members who have submitted claims for a travel
allowance which cumulatively exceeds 68 nights, Members who
have not complied with a request made by the relevant Officer,
and any other prescribed matter. Requiring the publication of an
annual report will provide a comprehensive overview use of the
allowances regime for a financial year, and consolidate
information regarding expenditure of public resources in a
single, easily accessible document, improving transparency
and accountability.
Proposed new section 9K provides that the Governor in
Council may make regulations for or with respect to any matter
or thing required or permitted by Parts 1 or 2 to be prescribed
or necessary to be prescribed to give effect to Parts 1 or 2.
This includes prescribing--
• allowances payable;
• the terms and conditions that apply to the provision and
use of work-related parliamentary allowances and the
Budget;
• the provision of any article, equipment or service to a
Member;
• and the terms and conditions which are to apply to the
provision and use of the article, equipment or service.
Further, 9K allows the Governor in Council to make regulations
with respect to the provision of motor vehicles, and the terms and
conditions which are to apply to that provision.
22
Regulations made under proposed new subsection 9K(2)(a)
(which allow additional parliamentary offices to be prescribed for
the purposes of the definition of specified parliamentary office)
can only be made after the Minister has obtained the approval of
the Presiding Officers.
If regulations are inconsistent with a Tribunal Determination,
the Determination will prevail to the extent of the inconsistency,
which reflects the primacy of the Tribunal.
Proposed new section 9L provides that the Minister may make
guidelines in relation to regulations made in relation to the
provision of, and the terms and conditions applying to the
provision of motor vehicles. A Member must comply with
these Guidelines.
Proposed new section 9M provides that the purpose of new
Division 6 is to provide transitional arrangements until the
Tribunal makes relevant Determinations. This ensures that many
of the amendments will be in effect from the commencement of
the 59th Parliament.
Proposed new section 9N provides that despite the amendment of
the Principal Act by the Victorian Independent Remuneration
Tribunal and Improving Parliamentary Standards Act 2017,
until the relevant Determinations are made, the Principal Act
applies as if--
• the definitions of additional salary, basic salary,
specified parliamentary office, specified parliamentary
office holder and work-related parliamentary
allowances had not been inserted by section 45 of the
Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017;
• the amendments made to the PSS Act by sections 48
and 49 were not in operation;
• a reference in Divisions 4 and 5 to work-related
parliamentary allowances was a reference to allowances
under the PSS Act and the regulations as in force
immediately before the amendment of the PSS Act by
the Victorian Independent Remuneration Tribunal
and Improving Parliamentary Standards Act 2017.
23
The transitional provisions also provide that, despite the
repeal of sections 8 and 8A by section 52(1) of the Victorian
Independent Remuneration Tribunal and Improving
Parliamentary Standards Act 2017, any regulations made
under section 8 or 8A and in force immediately before the
commencement of section 52(1) of the Victorian Independent
Remuneration Tribunal and Improving Parliamentary
Standards Act 2017 continue in force as if made under
section 9K--
• until the regulations are repealed by regulations made in
substitution for those regulations under section 9K; or
• except to the extent that they are inconsistent with any
Determination made after that commencement.
Proposed new subsection 9N(3) provides that, despite the repeal
of section 8B by section 52(1) of the Victorian Independent
Remuneration Tribunal and Improving Parliamentary
Standards Act 2017, any guidelines made under section 8B and
in force immediately before the commencement of section 52(1)
of the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017 continue in
force as if made under section 9L--
• until the guidelines are revoked by guidelines made in
substitution for those guidelines under section 9L; or
• except to the extent that they are inconsistent with any
Determination made after that commencement.
Proposed new section 9O mandates that after the first 10 years
of operation of the amendments to Part 2, the Minister must
cause a review of Part 2 of the PSS Act and subsequently table
the review in Parliament. Reviewing the compliance and
enforcement mechanism enshrined in this Part provides an
opportunity for reflection on its operation, and allows
recommendations for amendments to be made.
Clause 55 amends sections 30 and 31 of the Principal Act, which relates
to the State's obligations to make superannuation contributions.
It provides that for the purposes of determining the amount of
the contributions for the financial year ending 30 June 2018, the
amount of parliamentary salary and additional salary (if any)
is to be determined in respect of the whole financial year.
Additionally, a Member may request in writing that the State
24
limit employer contributions to the amount specified in the
request.
This will ensure that MPs can receive the full entitlement above
the Commonwealth superannuation concessional cap. Members
will then be allowed to choose to 'opt out' of being paid the full
super contribution above the cap.
Clause 56 inserts a new section 44 into the Principal Act. Proposed new
section 44 is a construction provision which provides that any
reference to the PSS Act in any Act, subordinate instrument,
agreement or other document, so far as it relates to any period
after the commencement of section 43 of the Victorian
Independent Remuneration Tribunal and Improving
Parliamentary standards Act 2017, is to be construed as a
reference to the Parliamentary Salaries, Allowances and
Superannuation Act 1968, unless the contrary intention appears.
It also provides for constructing references to "members".
Part 7--Amendment of the Public Administration Act 2004
Clause 57 amends section 4 of the Public Administration Act 2004
to insert a definition of Tribunal to mean the Victorian
Independent Remuneration Tribunal established under section 4
of the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017.
Clause 58 amends section 6 of the Public Administration Act 2004 so
that the Tribunal will be established as a special body.
Clause 59 amends section 25 of the Public Administration Act 2004 to
insert that remuneration paid to an executive under a contract
of employment must be within the relevant remuneration band
in a Determination made by the Tribunal, or may exceed the
maximum of that band only if the employer of the executive has
obtained the advice of the Tribunal. This provision ensures that
the jurisdiction of the Tribunal is consistent across relevant
legislation.
Clause 60 amends section 44 of the Public Administration Act 2004
to provide that remuneration paid to the Commissioner
under subsection (1) must be within the relevant band in a
Determination made by the Tribunal, or may exceed the
maximum of the relevant remuneration band only if the
employer of the Commissioner has obtained the advice of the
25
Tribunal. This provision ensures that the jurisdiction of the
Tribunal is consistent across relevant legislation.
Clause 61 amends section 47 of the Public Administration Act 2004 to
provide that remuneration paid to the Acting Commissioner
under subsection (6) must be within the relevant band in a
Determination made by the Tribunal, or may exceed the
maximum of the relevant remuneration band only if the
employer of the Acting Commissioner has obtained the advice
of the Tribunal. This provision ensures that the jurisdiction of
the Tribunal is consistent across relevant legislation.
Clause 62 inserts a transitional provision into the Public Administration
Act 2004, and provides that despite the commencement of Part 7
of the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017, this Act as in
force immediately before that commencement continues to apply
in respect of the remuneration of an executive, the Commissioner
or the Acting Commissioner until the relevant Determination
takes effect under the Victorian Independent Remuneration
Tribunal and Improving Parliamentary Standards Act 2017.
Part 8--Parliamentary Standards--Amendments to the Members
of Parliament (Register of Interests) Act 1978
Clause 63 states that the Members of Parliament (Register of Interests)
Act 1978 is the Principal Act in Part 8 of the Bill.
Clause 64 renames the Principal Act, the Members of Parliament
(Standards) Act 1978.
Clause 65 inserts a Part heading, and repeals section 1(3) of the Principal
Act.
Clause 66 substitutes the definitions in section 2 of the Principal Act, and
inserts definitions including beneficial interest, debt, domestic
partner, family, gift, hospitality, income, listed corporation,
official capacity, political donation, prescribed, private
superannuation fund, public duties, public superannuation
fund, Register, relevant Clerk, return period, specified person,
and trade or professional organisation.
26
Clause 66 further inserts definitions of Member and public
resources, which are consistent with the definitions in the
renamed Parliamentary Salaries, Allowances and
Superannuation Act 1968.
Clause 67 inserts a new section 3 to provide that the objective of the
Principal Act is to ensure that the responsibilities and obligations
of Members reflect current community expectations.
Clause 68 inserts a new Statement of Values, which provides a framework
to guide Members' conduct. Proposed new section 4 sets out
7 values that Members should demonstrate when carrying out
their public duties--(a) serving the public interest, (b) upholding
democracy, (c) integrity, (d) accountability, (e) respect for the
diversity of views and backgrounds within the Victorian
community, (f) diligence, and (g) leadership. Members should
aim to apply these values when considering their actions and
obligations under the Code of Conduct.
Clause 69 substitutes a new Part 3 for the existing Part I of the Principal
Act, and contains the updated Code of Conduct.
Proposed new section 5 sets out the Code of Conduct that
Members must observe when carrying out their public duties,
and the manner in which a Member demonstrates the values set
out in the Statement of Values.
Proposed new section 6 determines that Members must uphold
democracy and respect others regardless of background.
Proposed new section 7 outlines obligations for Members
regarding conflicts of interest. Subclause (1) provides that
Members must avoid actual and perceived conflicts of interest
and declare any actual or perceived conflict of interest when
speaking in parliamentary proceedings, including the proceedings
of parliamentary committees. Subclause (2) provides guidance
on the circumstances where a Member will have a conflict of
interest. A Member has a conflict of interest if the Member
participates in, or makes a decision in the execution of, the
Member's office which furthers their private interests or the
private interests of a specified person. Subclause (3) provides
further guidance on conflicts of interest, stating that a Member
will not have a conflict of interest where the Member or a
specified person is affected as a member of the public or as a
27
broad class of persons (i.e. a drivers licence holder, a parent, or
a rate payer).
Proposed new section 8 provides that Parliamentary salary,
work-related parliamentary allowances, or funds provided under
the Budget or any other public resources are not considered to be
fees or profits of Members. This reflects that these payments are
provided to Members as recompense or to support them in
discharging their public duties.
Proposed new section 9 makes provisions in relation to
Members' outside employment and activities, and states that
Members may engage in employment, business and other
activities, but must avoid actual or perceived conflicts of interest
from those activities, including where those activities may
compromise the Members ability to fulfil their public duties.
This is deliberately intended to limit Members' activities outside
of Parliament and ensure that any activities that a Member may
participate in outside their public duties do not negatively
interfere with their role as an elected representative.
Proposed new section 10 provides that Members must not
accept gifts, hospitality or other benefits which create an actual
or perceived conflict of interest, or might create a perception of
an attempt to influence the Member in the exercise of his or her
public duties. This provision prevents a Member being unduly
influenced, or perceived to be unduly influenced, by the
provision of any gifts, hospitality or benefits.
Proposed new section 11 provides that Members must exercise
their influence as Members responsibly and not use their
influence to improperly further their own interests or the
interests of specified persons.
Proposed new section 12 relates to the use of public resources.
Under the provision, a Member must comply with the
Parliamentary Salaries, Allowances and Superannuation
Act 1968, and any regulations made under that Act. Further, a
Member must also comply with any other rule, rule or guidance
regarding the use of public resources. This ensures that Members
behave lawfully and appropriately use public resources made
available to them.
Proposed new section 13 relates to Members' personal conduct.
Subclause (1) provides that Members must ensure that their
conduct as Members does not bring discredit upon the
28
Parliament. Subclause (2) provides that Members must act
ethically, reasonably, and in good faith when using, and
accounting for the use of, public resources in relation to the
performance of their public duties, and must not deliberately
mislead the Parliament or the public about any matter relating to
the performance of their public duties. Subclause (3) provides
that Members must be fair, objective and courteous in their
dealings with the community and, without detracting from the
importance of robust public debate in a democracy, their
colleagues. These provisions are to ensure that a Members'
conduct reflects community expectations for politeness and
respect, and meets a high professional standard.
Proposed new section 14 outlines provisions for the management
of confidential and person information. Subclause (1) provides
that Members must not use confidential information gained in the
performance of their public duties to further their own interests or
the interests of a specified person. Subclause (2) provides that
Members must respect the confidentiality of information they
receive in the course of their public duties. This is to maintain
public trust in the information made available to Members.
Proposed new section 15 provides that a Member must not
take improper advantage of any office held as a Member of
Parliament after they cease to be a Member. This ensures that
a Member cannot inappropriately obtain advantage from the
information and access gained by virtue of being an elected
representative.
Proposed new section 16 provides that nothing in this Part of the
Act is intended to repeal, alter or vary, or affect the operation of
Division 8 of Part II of the Constitution Act 1975.
Clause 70 substitutes Part 4 for the existing Part II of the Principal Act, and
provides for the updated Register of Interests.
Proposed new section 17 provides for the submission of primary
returns. Each Member of Parliament is required to submit a
primary return once. Subclause (1) provides that a person who
is a Member as at the commencement of section 70 of the
Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017 must submit
a primary return to the relevant Clerk within 28 days after that
commencement. Subclause (2) provides that a person who
becomes a Member after the commencement of section 70 of
29
the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017 must submit a
primary return to the relevant Clerk within 28 days after taking
and subscribing the oath or affirmation as a Member. This is to
ensure that each Member of Parliament efficiently fulfils their
obligations to complete a primary return in relation to the
Register of Interests.
Proposed new section 18 provides that a Member must submit
an ordinary return to the relevant Clerk within 28 days after
31 January and 30 June each year.
Proposed new section 19 determines that a primary return must
be in the prescribed form. The requirements described below in
the primary return are intended to be comprehensive. They aim
to ensure increased transparency by detailing the interests of
Member so that at the time they are elected, potential conflicts
of interest can be identified. The Register provides Members
an opportunity to publicly disclose any relevant information.
Information required in the primary return is outlined below--
• the source of any income that the Member has or
expects to have before 30 June in the year next
following, including the name and address of the
payer and, where the income arises from service
provided by the Member, a description of those
services. This ensures a Member is not benefiting
financially from an outside entity, which may seek
to influence a Member's behaviour as an elected
representative;
• the name of any corporation, partnership or other body
in which the Member holds a beneficial interest, or in
which a private superannuation fund holds a beneficial
interest for the benefit of the Member, a description of
that interest including the number of any shares held
and, except in the case of a listed corporation, the
address of the corporation, partnership or body, and a
description of its objects or activities. Requiring that
a Member publicly discloses a personal beneficial
interest ensures that the personal interest does not affect
a Member's behaviour in matters that may directly or
indirectly affect that interest;
30
• the location by suburb or town or, where that is not
applicable, the nearest town, of any land in which the
Member holds a beneficial interest, other than by
way of security for a debt, that is used as a primary or
secondary place of residence by any person. Requiring
a Member to list these items ensures that the public is
aware of any potential conflicting interests that the
Member may encounter as a land or residential property
owner;
• the address or, if there is no address, a precise
description of the location of any land, other than land
referred to in subclause 19(1)(c), in which the Member
holds a beneficial interest, other than by way of security
for a debt. This further increases transparency around
potential conflicts involving land ownership;
• the name of any corporation, partnership or other body
in which the Member holds office, a description of that
office and, except in the case of a listed corporation, the
address of the corporation, partnership or body, and a
description of its objects or activities. This ensures that
the public is aware of any past or current entities that
the Member has held office with, and aims to safeguard
against vulnerability to improper lobbying;
• a description of any personal debt held by the Member,
including the name of the creditor;
• a description of any trust under which the Member
holds a beneficial interest or in respect of which the
Member is a trustee and a member of the Member's
family holds a beneficial interest, and a description of
the activities of the trust. This provides transparency
around potential conflicts involving participation of a
Member in any trust;
• in the case of a trust referred to in proposed new
subsection 19(1)(g)--
• if it receives or holds any income, beneficial
interest (such as private superannuation or
shares), or interest in land, as described in
subclauses 19(1)(a) to 19(1)(d), the Member
must disclose this information; and
31
• if it receives or holds any other substantial
interest, of which the Member is aware or ought
to be aware, where a material conflict between
the Member's private interest and their public
duties would arise, or would reasonably be seen
to arise, the Member must disclose this
information;
• the name of an estate in which the Member is appointed
as executor and holds a beneficial interest, and a
description of that interest. This provides transparency
around potential conflicts where a Member is acting as
an executor;
• the name of any political party, body or association or
trade or professional organisation of which the member
is a Member. This guarantees that the public is aware
of any involvement of the Member with the outlined
bodies, and aims to safeguard against vulnerability to
lobbying;
• the name of any other organisation of which the
Member is a member or with which the Member is
otherwise associated, if a conflict of interest could
arise, or reasonably be seen to arise, because of that
membership or association;
• a description of any other interest that the Member has
where a conflict of interest could arise, or reasonably be
seen to arise, because of that interest. This is intended
to broadly capture any interest that may be relevant, but
is not covered by any other proposed clause.
Proposed new subsection (2) provides that if the trust in which
the Member holds a beneficial interest is a blind trust, the
Member need only provide the name and address of the person
who manages a trust in the Member's primary return.
Proposed new subsection (3) provides that the Member may also
include the name of any other organisation of which the Member
is a member or with which the Member is otherwise associated,
if the Member chooses to do so.
Proposed new subsection (4) provides that proposed new
section 20 is subject to proposed sections 22 to 24.
32
Proposed new section 20 outlines that the information provided
in an ordinary return is the information required in the primary
return, but additionally includes--
• a description of any gift received by the Member,
including the name and address of the donor.
This ensures that a record of any gift (the value of
which exceeds the relevant threshold) provided to
any Member is retained, and available to the public.
This aims to prevent the occurrence of, or the perception
of, lobbying and ensuring that the independence and
objectivity of the Member is maintained; and
• a description of any travel undertaken by the Member
outside of Victoria that was funded fully or partially by
another person, other than the State or a member of the
Member's family, including the dates, destinations and
purposes of that travel, and the name and address of the
donor of the travel contribution. This further aims to
prevent the occurrence of, or the perception of, lobbying
and ensuring the independence and objectivity of the
Member is maintained.
The provision of information related to gifts and travel is only
necessary in the ordinary return, as travel or gifts provided to an
individual before they were elected as a Member of Parliament
are irrelevant.
This section further provides that if the trust in which the
Member holds a beneficial interest is a blind trust, the
Member need only provide the name and address of the
person who manages the trust in the Member's ordinary return.
Additionally, that the Member may also include the name of any
other organisation of which the Member is a member or with
which the Member is otherwise associated, if the Member
chooses to do so. Ordinary returns are intended to provide
regular updates of Member's interests. Section 20 will also
be subject to proposed sections 22 to 24.
Similarly, proposed new section 21 provides that if a Member
becomes aware of a material change in any information required
to be submitted under section 19 or 20, the Member must submit
to the Clerk, as soon as is practicable, a description in the
prescribed form of the material change. This ensures that the
33
Register stays updated, and accurately reflects the Member's
circumstances as relevant to the Register.
Proposed new section 22 outlines the thresholds under which
a Member is not required to include information in a return.
Proposed new subsection (1) provides that, in relation to the
following matters--
• a source of income if the total amount of income from
that source does not exceed the threshold amount for
income; or
• a beneficial interest in a particular corporation,
partnership or other body if the total value of the
beneficial interests held in that corporation, partnership
of other body does not exceed the threshold amount for
beneficial interests; or
• a personal debt with a particular creditor if the total
value of personal debts with that creditor does not
exceed the threshold amount for debts; or
• a gift from a particular source if the total value of gifts
from that source does not exceed the threshold amount
for gifts; or
• travel contributions from a particular source if the total
value of travel contributions received from that source
does not exceed the threshold amount for travel
contributions.
For the purpose of this section, the value of any income,
beneficial interest or gifts held or received by a trust referred to
in proposed section 19(1)(g) (other than a blind trust) is to be
taken into account when determining the total value of income,
beneficial interests or gifts.
Additionally, a Member is required to include information
relating to an interest referred to in subsection (1) if the Member
holds or receives on 2 or more occasions, any income, beneficial
interests or gifts with or from a particular source and the total
amount of the value of that income, beneficial interest of gift
exceeds the prescribed threshold amount for those items.
For example, if a Member receives 2 gifts from the same
individual or company, and the separate value of these gifts is
below the relevant threshold, but the combined value exceeds
the relevant threshold, the Member must disclose the gifts.
34
This provision ensures that the Member provides a
comprehensive account of their accumulated interests.
Proposed section 23 provides details for the threshold amounts
for the matters referred to in clause 22 in the year ending 30 June
2018.
Proposed section 24 provides a mechanism for adjusting the
threshold amounts by reference to CPI.
Proposed section 25 requires the relevant Clerk to notify
Members of a CPI adjusted threshold before 30 June 2019 and
before 30 June for each subsequent year.
Proposed section 26 imposes obligations on the relevant Clerk in
relation to the Register of Interests.
Proposed new subsection 26(1) provides that the relevant Clerk
must continue to maintain the Register of Interests.
Proposed new subsection 26(2) provides that the relevant Clerk
must enter information submitted in the ordinary and primary
returns in the Register.
Proposed new subsection 26(3) prevents the relevant Clerk or any
authorised person from communicating any information received
under the Act or use that information, other than for its intended
purpose.
Proposed new subsection 26(4) denotes that for the purpose of
Subsection (3), authorised person means any person appointed
or employed for the purposes of the Principal Act or authorised to
discharge any functions of the relevant Clerk for or on behalf of
the relevant Clerk.
Proposed new section 27 requires the Clerk to report a Member
to the Presiding Officer of the Member's House if--(a) the
Member does not submit a return within the required time, and
after the Clerk has given the Member a further reasonable time
to submit the return it is still not submitted, or (b) the Clerk
reasonably believes that a Member has submitted an inaccurate
or incomplete return and the return remains inaccurate or
incomplete after the Clerk has given the Member a reasonable
opportunity to correct it. Providing this power to the relevant
Clerk facilitates their role in ensuring compliance with the
Register, and that the Register represents a comprehensive
overview of Members' interests.
35
Proposed new section 28 prevents any person from publishing in
the Parliament or outside of the Parliament--(a) any information
derived from the information entered into the Register unless that
information amounts to a fair and accurate summary of the
information entered into the Register or (b) any comment on the
information entered into the Register unless that comment is fair
and published in the public interest without malice. These
provisions safeguard against the partisan or malevolent use of
information procured through disclosures made to the Register.
Proposed new section 29 provides that the relevant Clerk must
cause a return submitted under Part 4 to be laid before each
House of Parliament of which the Member submitting the return
is a Member--(a) within 14 days of the return being submitted
if that House of Parliament is then sitting, or (b) if that House of
Parliament is not then sitting, within 14 days of the next sitting of
that House of Parliament. Mandating the timely publication of
returns increases the transparency and accountability of the
system.
Clause 71 substitutes a new Part 5 for the existing Part III of the Principal
Act. The new Part 5 relates to general matters, and contains the
consequences of a Member's failure to comply with obligations
relating to the Code of Conduct and the Register of Interests.
Proposed new section 30 provides mechanisms to refer
allegations of breaches of Part 3 or 4 of the Act. Proposed
section 30 determines that a Member who considers there has
been a contravention of a requirement under Part 3 or 4 may refer
the alleged contravention to the Presiding Officer of the House of
which the Member alleged to have contravened the requirement
is a Member. The Presiding Officer who receives this referral
must determine whether to refer the alleged contravention to
the relevant Privileges Committee. If the Presiding Officer
determines that this referral may involve conduct that may
constitute a criminal offence, the Presiding Officer must refer the
alleged contravention to the appropriate law enforcement agency.
This section will ensure that the referrals of allegations are
treated seriously, fairly and proportionately. It reflects that law
enforcement, and not Parliament, should investigate any alleged
criminal offences.
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Proposed new section 31 outlines that a wilful contravention of a
requirement in Part 3 or 4 by a person is contempt of Parliament.
In addition to any other punishment that may be awarded by a
House of Parliament for contempt of Parliament, a variety of
punishments may be imposed for a contravention.
For the more severe of these punishments (i.e. suspension, or
declaring a seat vacant), the motion must be passed by a special
majority. This safeguards against the potential for punishments
to become political devices. Further, these punishments can be
imposed on a person who is no longer a Member of Parliament,
which provides a mechanism to enforce a retrospective
punishment for a contravention committed while a Member
of Parliament. These punitive measures aim to incentivise
compliance with the Code of Conduct and the Register of
Interests.
Proposed new section 32 provides that the Governor in Council
may make regulations for, or with respect to, any matter or thing
required or permitted by the Principal Act to give effect to the
Principal Act.
Proposed new section 33 provides that any reference to
the MPRI Act so far as it relates to any period after the
commencement of section 64 of the Victorian Independent
Remuneration and Improving Parliamentary Standards
Act 2017 is to be construed as a reference to the Members of
Parliament (Standards) Act 1978, unless the contrary intention
appears.
Proposed new section 34 introduces a new Part 6 into the
Principal Act, which requires the Minister to undertake a
review of the amendments to the Principal Act after 10 years of
operation, and cause a copy of the review to be laid before each
House of Parliament within 12 months, which is consistent with
other reforms (such as the introduction of the Charter of Human
Rights and Responsibilities).
Part 9--Consequential amendments and repeal
Clause 72 amends a reference to the Members of Parliament
(Register of Interests) Act 1978 in section 7E(23) of
the renamed Parliamentary Salaries, Allowances and
Superannuation Act 1968. This is intended to facilitate
the transition from existing arrangements.
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Clause 73 amends references to the Parliamentary Salaries and
Superannuation Act 1968 in other legislation to reflect the
updated title.
Clause 74 updates references to the Parliamentary Salaries and
Superannuation Act 1968 and provides that, in section 28
of the Victorian Independent Remuneration Tribunal and
Improving Parliamentary Standards Act 2017--
• in subsections (1), (2)(c) and (5), for section 7E of
the Parliamentary Salaries and Superannuation
Act 1968 substitute sections 7E and 9H of the
Parliamentary Salaries, Allowances and
Superannuation Act 1968; and
• in subsection (2)(d), for Parliamentary Salaries and
Superannuation Act 1968 substitute Parliamentary
Salaries, Allowances and Superannuation Act 1968.
Clause 75 amends the Protected Disclosure Act 2012 to provide that
the Act does not apply to any disclosure regarding conduct
that may constitute a criminal offence in relation to an alleged
contravention under section 30 of the Member of Parliament
(Standards) Act 1978 that is referred by the Presiding Officer
to the appropriate law enforcement agency under section 30(3)
of that Act. This enables the Presiding Officers to refer an
allegation of potential criminal conduct to an appropriate law
enforcement agency without being subject to the Protected
Disclosure Act 2012.
Clause 76 repeals Parts 6 to 9 on 31 December 2019.
The repeal does not affect the continuing operation of the
amendments made by these Parts.
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