Introduction
The Parliamentary
Business Resources Act 2017 (PBR Act) and the Independent
Parliamentary Expenses Authority Act 2017 provide an overarching
framework for members of parliament’s (MPs) business resources. However, much
of the detail is outlined in determinations and regulations. For example, since
1 January 2018 the Parliamentary
Business Resources Regulations (PBR Regs) have defined parliamentary
business, work/travel expenses and allowances; public resources available to and
obligations on MPs; and which parliamentary positions are eligible for office
holder salary.
This quick guide provides:
- an
overview of parliamentary remuneration, business resources and their frameworks
- an update
on reforms through legislative and administrative changes
- links
to relevant resources, including Bills Digests and other Parliamentary Library
publications, Bill homepages and Acts, and
- Remuneration
Tribunal decisions regarding MPs, ministers and parliamentary office holders from
2017 to mid-2024, the most recent of which granted MPs a 3.5% pay rise
(Appendix A).
Parliamentary remuneration
Under the PBR Act, the Remuneration Tribunal must annually
determine current MP’s remuneration, former MP’s allowances and expenses, and the
rates of domestic travel allowance (see Appendix A). Remuneration must include
the base salary and may include electorate allowance and office holder salary
where applicable. The Tribunal also determines the portion of salary excluded
from superannuation benefits calculations, under the Parliamentary
Contributory Superannuation Act 1948. Additionally, the Tribunal annually
reports on ministerial salaries, provided for in section
66 of the Australian Constitution.
On 17 June 2024 the Tribunal announced
a 3.5% increase to public offices within its jurisdiction, applied from 1 July
2024. On 28 June 2024 the Tribunal issued a Determination increasing
MPs base salary by 3.5% to $233,660 from 1 July 2024. On 29 July 2024 the
Tribunal determined to maintain the current rate of ministerial
salaries.
The separate appendix table to this quick guide, Remuneration
of members of parliament, parliamentary office holders
and ministers of state, provides MP’s base salary and salaries for
ministers and parliamentary officer holders.
Parliamentary business resources
The PBR Act and the Parliamentary
Business Resources (Consequential and
Transitional Provisions) Act 2017 commenced on 1 January 2018. This streamlined
the MP remuneration and work expenses legislative framework from 8 previous
Acts and implemented many recommendations from the 2016 review An Independent
Parliamentary Entitlements Scheme. Specifically, the Parliamentary
Library’s Bills
Digest noted the new ‘principles-based framework that delineates between
parliamentarians’ remuneration and work expenses, as recommended by numerous
reviews and audits.’
Along with the PBR Regs, the Minister makes Determinations
relating to parliamentary
business, which parliamentary positions are designated as an office holder, and
public resources provided to former prime
ministers.
Independent Parliamentary Expenses Authority
On 13 January 2017 the then Prime Minister, Malcolm
Turnbull, proposed
establishing an Independent Parliamentary Expenses Authority (IPEA).
Accordingly, the Independent
Parliamentary Expenses Authority Act 2017 established the IPEA as an independent statutory authority
to commence operating from 1 July 2017. The IPEA’s responsibilities include providing
advice, administering and reporting on the work and travel resources (including
expenses and allowances) of MPs and staff employed under the Members of
Parliament (Staff) Act 1984. Within this framework, the IPEA can:
The IPEA is
responsible (by default) for the administration, reporting and auditing of all
PBR Act resources (except for those expressly excluded).
Recent reforms
Following a 2021 Independent
Review, in 2024 the Parliamentary
Business Resources Legislation Amendment (Review Implementation and Other
Measures) Act 2024 (PBR Review Act) amended the PBR and IPEA Acts to incorporate
a number of the review’s recommendations. Specifically, from 1 July 2025 further
related resource administration will transfer from the Department of Finance to
the IPEA. However, Finance will maintain responsibility for property management
and support; COMCAR transport services; private-plated vehicles and residential internet and telephone services for MPs
and former prime ministers and certain specialised functions. The PBR Review
Act also changes MP’s salary to being paid fortnightly rather than monthly.
Sources and further reading
Acts and Bill homepages
Parliamentary Library
publications
- C
Madden, Parliamentary
Business Resources Legislation Amendment (Review Implementation and Other
Measures) Bill 2024, Bills Digest, no. 67, 2023–34 (Canberra: Parliamentary
Library, May 2024).
- C
Madden, 2023
Parliamentary remuneration and business resources: a quick guide, Research
Paper Series 2023–24 (Canberra: Parliamentary Library, November 2023).
- C
Madden and D McKeown, ‘Independent
Parliamentary Expenses Authority’, FlagPost (Parliamentary Library blog), 7
February 2017.
- C
Madden and D McKeown, Independent
Parliamentary Expenses Authority Bill 2017 and Independent Parliamentary
Expenses Authority (Consequential Amendments) Bill 2017, FlagPost
(Parliamentary Library blog), 14 February 2017.
- C
Madden and D McKeown, Parliamentary
Business Resources Bill 2017 [and] Parliamentary Business Resources
(Consequential and Transitional Provisions) Bill 2017, Bills Digest,
97, 2016–17, (Canberra: Parliamentary Library, 2017).
- C
Madden, Parliamentary
Entitlements Legislation Amendment Bill 2017, Bills Digest, 62,
2016–17, (Canberra: Parliamentary Library, 2017).
- C
Madden and D McKeown, Parliamentary
remuneration and entitlements: 2016 update, Research paper series,
2015–16, (Canberra: Parliamentary Library, 2016).
Appendix A: Chronology of changes to parliamentarian’s base and ministerial salaries,
2017 to 2024
| Date |
Tribunal determination relating
to base salary |
Ministerial salaries |
| 22 June 2017 |
In its 2017
Review of remuneration for holders of public office, the Remuneration
Tribunal announced a 2% increase for public offices in its jurisdiction stating
that this ‘represents an increase of 1.6% per annum over the 18 months since
the last general increase decided by the Tribunal, effective from 1 January
2016’. Determination
2017/12 increased MP’s base salary from $199,040 to $203,030 per annum
from 1 July 2017. |
|
| 23 June 2018 |
The Tribunal announced a 2% increase for public offices in
its jurisdiction resulting in the base salary for MPs increasing to $207,100
per annum from 1 July 2018. Office holder salary was not changed. |
The Tribunal did not suggest any changes to ministerial
salary. |
| 6 June 2019 |
The Tribunal announced a 2% increase for public offices in
its jurisdiction. The Remuneration
Tribunal (Members of Parliament) Determination 2019 increased MP’s base
salary to $211,250 per annum from 1 July 2019. For office holder salary and other allowances see Remuneration
Tribunal (Members of Parliament) Determination 2019. |
The Tribunal made no change to ministerial
salary. |
| 11 June 2020 |
In its 2020
Remuneration Review Statement the Tribunal decided to provide no
adjustment to remuneration for public office for the ensuing year. |
|
| 10 June 2021 |
The Tribunal notified
its decision to determine no adjustment to remuneration for public
offices in its jurisdiction with effect from 1 July 2021. Remuneration
Tribunal (Members of Parliament) Determination 2020 and Remuneration
Tribunal (Members of Parliament) Determination 2021 put the decisions
into effect. |
The Tribunal issued a report
on ministerial salary in July 2021 that provided no alterations to the
existing percentage levels. |
| 13 June 2022 |
The Tribunal
decided an increase
of 2.75% for public offices in its jurisdiction with effect from 1 July
2022. The Remuneration
Tribunal (Members of Parliament) Determination 2022 provided for the base salary to increase from
$211,250 to $217,060. |
|
| 8 June 2023 28 August 2023 |
The Tribunal announced
that it would defer its annual review until August 2023. The Tribunal released Remuneration
Review Statement–Adjustment providing a 4% increase to public offices
within its jurisdiction. The Tribunal issued Remuneration
Tribunal (Members of Parliament) Amendment Determination (No 1) 2023 that
provided the base salary to increase to $225,750 from 1 September 2023. This
has been incorporated into Remuneration
Tribunal (Members of Parliament) Determination (No. 2) 2023 |
The Tribunal issued a report on ministerial
salaries in July 2023 that provided no alterations. |
| 17 June 2024 28 June 2024 |
The Tribunal announced
a 3.5% increase to public offices within its jurisdiction: the increase
applies from 1 July 2024. The Tribunal issued Remuneration
Tribunal (Members of Parliament) Determination 2024 that provided
the base salary to increase to $233,660 from 1 July 2024. |
On 29 July 2024 the Tribunal issued a report on ministerial
salaries |