On 24 August 2010 the Remuneration Tribunal released a Statement
on its 2010 Review of Remuneration for Holders of Public Office. Holders of Public Office include, among others, Senators and Members of the Federal Parliament. The Tribunal announced that it had ‘determined an adjustment of 4.1% to the remuneration of public offices in its jurisdiction with effect from 1 August 2010’.
Table A1 in Determination 2005/19: Principal Executive Office - Classification Structure and Terms and Conditions
sets out Principal Executive Office classification structure and remuneration ranges with effect from 1 August 2010. Parliamentary base salary is linked to Reference Salary A. As a result of the 2008 pay freeze on parliamentary salary the Tribunal has noted that:
In future years, parliamentary salary will be equal to Reference Salary A ($142,110), as determined by the Tribunal, less $5470 per annum.
Since 1 August 2010 the base parliamentary salary has been $136,640 pa. The base salary determines the level of office-holders salaries as these are presented as a percentage of the base salary.
The Tribunal has a formal role in advising the Minister on an appropriate base salary for Senators and Members of the Federal Parliament. The Tribunal cannot issue a determination on this matter it can only provide advice, as it does on the additional salaries payable to Ministers. The Government can choose to accept or reject the Tribunal's advice on these matters and must undertake the necessary action to bring the Tribunal's recommendations into force. Therefore the salary increase is subject to disallowance.
The Parliamentary Library will update its publication ‘Parliamentary allowances, salaries of office and entitlements’
when the Tribunal’s advice is formally accepted.
(post co-authored with Deirdre McKeown)