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CLAUSE NOTES
Parliamentary Salaries, Superannuation and Allowances Amendment Bill 2015
PART 1 – PRELIMINARY
Clause 1: Short Title
This provides the short title to be used when citing the Act for any legal purpose.
Clause 2: Commencement
The Act commences on 1 July 2015, even if Royal Assent has to occur on a later date.
PART 2 – INDUSTRIAL RELATIONS ACT 1984 AMENDED
Clause 3: Principal Act
This Clause specifies that the Industrial Relations Act 1984 (the IR Act) is the Act to be
amended by this Part of the Bill.
Clause 4: Long title amended
The long title of the IR Act is to be amended by including a reference to the determination of
the salaries, allowances and benefits for members of Parliament (MPs) as one of the purposes
of that Act.
Clause 5: Section 15 amended (General functions and powers of the President)
This Clause amends section 15(1) of the IR Act, which specifies the general functions and
powers of the President of the Tasmanian Industrial Commission (the Commission).
It adds a new function to the existing functions of the President.
The new function is for the President to appoint a Full Bench of the Commission, which will
include the President as one member, to undertake the tasks required of the Commission
under the Parliamentary Salaries, Superannuation and Allowances Act 2012 (the PSSA Act).
Clause 6: Section 19AB inserted
This Clause inserts a new section (19AB) into Division 2 of Part II of the IR Act.
Division 2 Part II of the IR Act deals with the jurisdiction, function and powers of the
Commission.
The new section to be inserted by this amendment provides for the full bench of the
Commission, properly constituted by the President in accordance with section 15(1)(l), to
determine the salaries, allowances and benefits for members of Parliament under the PSSA
Act.
Clause 7: Section 94 amended (costs of administration)
This Clause amends section 94 of the IR Act which deals with the costs of administration of
the IR Act.
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The amendment ensures that the Commission is able to use the funds provided to it by the
Parliament to meet the costs and expenses incurred by the Commission in determining the
salaries, allowances and benefits for MPs under the PSSA Act.
PART 3 – PARLIAMENTARY SALARIES, SUPERANNUATION AND ALLOWANCES
ACT 2012 AMENDED
Clause 8: Principal Act
This Clause specifies that the PSSA Act is the Act to be amended by this Part of the Bill.
Clause 9: Part 1: Heading inserted
This Clause inserts a new heading before section 1 of the PSSA Act.
Clause 10: Section 3 amended (Interpretation)
This Clause inserts certain new definitions into the Interpretation section of the PSSA Act to
assist users of the Act to properly interpret its provisions.
The new terms defined for the purpose of the PSSA Act are: amending Act, determination
and President of the Commission.
The Clause also provides for the removal of terms that no longer need defining in the PSSA
Act once this amending Act commences.
The definition of basic salary is also amended to remove a reference to the previous means of
the determination of the salary.
Clause 11: Parts 2 and 3 inserted
This Clause inserts two new parts (2 and 3) into the PSSA Act.
The new Part 2 deals with the functions of and method of inquiry to be used by the
Commission in determining the salaries, allowances and benefits for MPs under the PSSA Act.
The new Part 3 deals with the Inquiries, Reports and Determinations to be made by the
Commission.
New PART 2 – PERFORMANCE BY COMMISSION OF FUNCTIONS UNDER THIS ACT
New section: 3A Functions of Commission
This new section provides that it is a function of a Full Bench of the Commission, as
constituted under section15(1)(l) of the IR Act, to inquire into the kinds of and amounts of
salary, allowances and benefits to which MPs are entitled and make determinations about
those matters. (3A(1)(a) and (c))
In its first determination due before 1 March 2016 the Commission is also to inquire and
report into the report of the tribunal established by Order-in-Council dated 26 June 2013 to
determine the basic salary, allowances and benefits of members of Parliament. The report of
the tribunal was tabled in Parliament on 3 June 2014. The recommendations in that report
have not been implemented. (3A(1)(b))
The section also gives the Commission the powers necessary to perform its functions.
(3A(2))
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New section: 3B Method of Inquiry by Commission
This new section provides for the Commission in undertaking its functions to inform itself on
matters as it sees fit and to receive written or oral submissions. Proceedings of the
Commission are not required to be formal and the Commission is not bound by the rules of
evidence.
If the Commission requests assistance, the Secretary, Department of Premier and Cabinet
may appoint people to assist the Commission with its inquiries.
New PART 3 – INQUIRIES, REPORTS AND DETERMINATIONS BY COMMISSION
New section: 3C Inquiries by Commission
Subclause (1) provides for the matters into which the Commission must inquire. These
matters are:
(i) The amount of basic salary paid to MPs;
(ii) The kinds of and amounts of any additional salary paid to MPs who are the holders
of specific offices; and
(iii) The kinds of and amounts of allowances paid to MPs.
The Commission may also inquire into matters related to these specified matters (Subclause
(2)).
As the Minster administering the PSSA Act, the Premier may write to the Commission
requiring that it inquire into a related matter. The Commission must do so if asked. Any
notice by the Premier to the Commission must be tabled in Parliament (Subclauses (3), (4)
and (5)).
New section: 3D Contents of reports
This Clause requires that the Commission, after conducting its inquiry, must prepare a report
which is to be tabled in Parliament (new section 3F).
The report that the Commission must prepare is to contain:
(i) Information that the Commission thinks appropriate to include; and
(ii) The Commission’s recommendations and determinations in relation to:
• The amount of basic salary to be paid to MPs;
• The kinds of and amounts of any additional salary to be paid to MPs who hold
specific offices (which are the offices specified in Tables 1 and 2 of clause 1 of Part
2 of Schedule 1 of the PSSA Act or other offices the Commission decides to
include for the purpose of an entitlement to additional salary); and
• The kinds of and amounts of allowances to be paid to MPs.
In its first report the Commission must report on its inquiry into the report of the tribunal
established by Order-in-Council dated 26 June 2013 to determine the basic salary, allowances
and benefits of MPs which was tabled in Parliament on 3 June 2014 (subclause (1)(c)).
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The Commission’s determination is also to include the date on which the determination is to
take effect, the date it is to cease and the date (not less than 12 months later) when the next
inquiry and report by the Commission is to be made (subclauses (2)(e), (f), (g)).
A report, including a determination, by the Commission has to be tabled in Parliament (new
section 3F) and may be disallowed (new section 3G).
Subclause (3) provides that the date of effect of a determination may be before the date it is
tabled as part of a report, or before the period that the Houses of Parliament have to
disallow the report and determination expires.
New section: 3E When inquiries and reports to be made
The first report of the Commission must be made before 1 March 2016 (subclause (1)).
This report will also include a report on the report of the tribunal established by Order-in-
Council dated 26 June 2013 to determine the basic salary, allowances and benefits of MPs
which was tabled in Parliament on 3 June 2014 (subclause (2)).
The first determination will specify the date by which the next report is due (in accordance
with section 3D(2)(g)).
Future reports of the Commission will be required by the date specified in a determination as
to when the next report is due (subclause (3)).
If a determination is disallowed by both Houses under section 3G, then a report must be
provided by the Commission within 12 months from the date the determination was
disallowed (subclause(4)).
New section: 3F Tabling of report
A report of the Commission must be tabled in both Houses of Parliament. The President
provides a copy of the report to each Clerk who arranges for its tabling.
New section: 3G House may disallow determination
Once a report has been tabled each House of Parliament has 10 sitting days to consider a
resolution, if one is put, disallowing the determination contained in the report.
A House may also by resolution extend the time for considering disallowance.
New section: 3H When determination takes effect
Unless it has been disallowed by both Houses of Parliament, a determination comes into
effect on a date specified in the determination (subclause (1)).
The date of effect specified in a determination may be a date that is before it is tabled in the
Parliament, as part of a report, or before the date by which disallowance would need to be
resolved (subclause (2)).
New section: 3I Notice of determination
If both Houses of Parliament do not resolve to disallow a determination and it is to take
effect, a notice is to be placed in the Gazette setting out the determination (subclause (1)).
Any such notice is not a statutory rule (subclause (2)).
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Clause 12: Part 4 Heading inserted
This Clause inserts a new heading to cover the subject matter of sections 4 to 8 of the PSSA
Act that deal with the entitlement of MPs to salaries, allowances and benefits.
Clause 13: Part 5 Heading inserted
This Clause inserts a new heading to cover the subject matter of sections 9 to 12 of the PSSA
Act that deal with miscellaneous administration matters.
Clause 14: Section 10A inserted
This Clause inserts a power for regulations to be made for the purposes of the PSSA Act.
Currently this power does not exist in the PSSA Act.
Clause 15: Schedule 1 amended (Salaries Payable to Members of Parliament)
Schedule 1 deals with the salaries (basic and additional) payable to MPs. A number of
amendments are made by this Clause.
Basic Salary
The first set of amendments, subclauses 15(a) to (e), deal with the determination of the basic
salary of a MP.
The basic salary for each of the financial years commencing 1 July 2012 and 1 July 2013 was
determined by the Auditor-General in accordance with clause 3 of the Schedule. This clause
is to be omitted by the amending Act and so the reference needs to refer to the wording of
clause 3 as it was prior to the amending Act commencing (subclauses 15(a) and 15(b)).
The basic salary from 1 July 2014 was set by clause 2(3) of the PSSA Act and was fixed. The
provision did not provide for any future increase, and was not for a specified period.
Subclause 15(c) limits the effect of clause 2(3) of Schedule 1 to the 2014-15 financial year.
Subclause 15(d) inserts two new subclauses into clause 2 of Schedule 1 after subclause (3).
The new subclause 2(4) sets the basic salary for the 2015-16 financial year as $120,835. This
is 2 per cent more than the salary applying in the 2014-15 financial year, which was $118,466.
The new subclause 2(5)(a) provides that the basic salary from 1 July 2016 is that set out in a
determination of the Commission, which has taken effect and has not been disallowed.
If a determination does not come into effect when it is due to, because it has not been made,
or the disallowance period has not expired, or it has been disallowed, the basic salary to
which MPs are entitled immediately before the determination was due to take effect
continues until a new determination is made (new subclause 2(5)(b)).
Subclause 15(e) removes the existing clauses 3 and 4 of Schedule 1 from the PSSA Act.
These clauses are no longer necessary as they refer to past determinations.
Additional salary – offices specified in Table 1
The second set of amendments, subclauses 15(f) and (g), deals with the determination of the
additional salary payable to some MPs that hold certain offices.
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Clause 1(1) of Part 2 of Schedule 1 deals with the additional salary payable to the Premier,
Deputy Premier, Ministers of the Crown, Secretary to Cabinet and Certain Officers of the
Parliament, in addition to the basic salary.
The offices that currently attract additional salary are set out in two tables, Table 1 and Table
2, as part of clause 1 of Part 2 of Schedule 1 of the PSSA Act.
Subclause 15(f) changes a reference in subclause 1(1) of Part 2 of Schedule 1 from subclause
(3) to subclause (4). This is required because of the insertion of some new subclauses into
subclause 1(1) of Part 2 of Schedule 1 in accordance with subclause 15(g).
Subclause 15(g) removes the existing subclauses (2) and (3) from clause 1 of Part 2 of
Schedule 1. New subclauses (2), (3), (4) and (5) are substituted.
The new subclause 1(2) of Part 2 of Schedule 1 sets the additional salary for offices specified
in Table 1 for the 2015-16 financial year as the percentage of basic salary specified for that
office in Schedule 4. These percentages have not changed from those payable currently.
The new subclause 1(3)(a) of Part 2 of Schedule 1 provides that the additional salary payable
for offices specified in Table 1 from 1 July 2016 is that set out in a determination of the
Commission, which has taken effect and has not been disallowed.
The amount of additional salary determined by the Commission may be expressed as an
amount or as a percentage of the amount of the basic salary.
If a determination does not come into effect when it is due to, because it has not been made,
or the disallowance period has not expired, or it has been disallowed, the additional salary to
which MPs who hold offices specified in Table 1 are entitled immediately before the
determination was due to take effect continues until a new determination is made (new
subclause 1(3)(b)).
Additional salary – office specified in Table 2 and certain other offices
The new subclause 1(4) of Part 2 of Schedule 1 sets the additional salary for the office
specified in Table 2 for the 2015-16 financial year as the percentage of basic salary specified
for that office in Schedule 5. This percentage has not changed from that payable currently.
The new subclause 1(5)(a) provides that the additional salary payable from 1 July 2016 for the
office specified in Table 2, and any other offices that the Commission decides to include for
the purpose of an entitlement to additional salary, is that set out in a determination of the
Commission, which has taken effect and has not been disallowed.
The amount of additional salary determined by the Commission may be expressed as an
amount or as a percentage of the amount of the basic salary.
If a determination does not come into effect when it is due to, because it has not been made,
or the disallowance period has not expired, or it has been disallowed, the additional salary to
which MPs who hold offices specified in Table 1 are entitled immediately before the
determination was due to take effect continues until a new determination is made (new
subclause 1(5)(b)).
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Clause 16: Schedule 2 amended (Allowances and Benefits to Which Members of
Parliament are Entitled)
Schedule 2 of the PSSA Act deals with the allowances and benefits to which MPs are entitled.
A number of amendments to Schedule 2 are made by this Clause.
Subclause 16(a) removes subclause 1(1) of Schedule 2. This subclause refers to a previous
determination of allowances and benefits which is no longer required.
Subclause 16(b) makes a minor editorial change to subclause 1(2) of Schedule 2 – replacing
‘amount’ with ‘amounts’.
Subclause 16(c) specifies that the allowances and benefits set out in Schedule 6 apply for the
2015-16 financial year.
Subclause 16(d) removes subclauses 1(3), (4), (5) and (6) of Schedule 2 as they refer to a
previous determination mechanism which is no longer required. It substitutes a new
subclause 1(3).
The new subclause 1(3)(a) of Schedule 2 sets the amounts of allowances and benefits to
which MPs are entitled from 1 July 2016 to be those set out in a determination of the
Commission, which has taken effect and has not been disallowed.
The amount of an allowance or benefit determined by the Commission may be expressed as
an amount or as a percentage of the amount of the basic salary.
If a determination does not come into effect when it is due to, because it has not been made,
or the disallowance period has not expired, or it has been disallowed, the allowances and
benefits to which MPs are entitled immediately before the determination was due to take
effect continue until a new determination is made (new subclause 1(3)(b) of Schedule 2).
Clause 17: Schedule 5 amended (Relevant Provisions for Purposes of clause 1(3) of Part 2
of Schedule 1))
Schedule 5 specifies the additional salary that applies to an office specified in Table 2 of Part 2
of Schedule 1.
This clause changes the reference in the heading from clause 1(3) to clause 1(4) to reflect an
amendment made to Schedule 1 by clause 15 of this Bill, and removes the words ‘of Notice’
from the heading as they are no longer required.
Clause 18: Schedule 6 amended (Relevant Provisions for Purposes of clause 1(2) of
Schedule2))
Schedule 6 specifies the amounts of the allowances and benefits to which MPs are entitled for
the 2015-16 financial year. The Motor Vehicle Allowance and the Electorate Allowances are
set as dollar amounts and are updated to reflect the 2 per cent increase in the basic salary
that applies from 1 July 2015.
Subclause 18(a) removes the words ‘of Notice’ from the heading as they are no longer
required.
Subclause 18(b) sets the amount of the Motor Vehicle Allowance to $15,305. The previous
amount was $15,005.
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Subclause 18(c) removes the direct link between increases in the Motor Vehicle Allowance
with increases in the basic salary. In the future the Commission will determine how the
Motor Vehicle Allowance will vary.
Subclause 18(d) resets the Electorate Allowances, by removing the amounts of allowances
specified in clause 2 and specifying new amounts. The amounts of the Electorate Allowances
applying from 1 July 2015 are a 2 per cent increase over those applying as at 1 July 2014. The
subclause also omits subclause 2(2) of Schedule 2 and so removes the direct link between
increases in the Electorate Allowances with increases in the basic salary. In the future the
Commission will determine how the Electorate Allowances will vary.
PART 4 – CONCLUDING PROVISION
Clause 19: Repeal of Act
The Parliamentary Salaries, Superannuation and Allowances Amendment Act 2015 is repealed a
year after it commences.
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