Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Hansard source

I have answered the question in terms of politicians and parliamentarians making submissions. That is obviously something that is available, and everyone is encouraged to do that if they see fit. I seek leave to move amendments (1) to (7) together.

Leave granted.

I move:

(1)   Schedule 2 , item 1 , page 14 (lines 14 and 15) , omit paragraph (d) of the definition of parliamentary allowance in subsection 4(1), substitute:   (d)   parliamentary base salary (within the meaning of the Remuneration Tribunal Act 1973 ), less any portion determined under subsection 7(1A) of that Act.

(2)   Schedule 2 , item 6 , page 15 (lines 24 and 25) , omit paragraph (b) of the definition of parliamentary allowance in section 3, substitute:   (b)   parliamentary base salary (within the meaning of the Remuneration Tribunal Act 1973 ).

(3)   Schedule 2 , item 14 , page 16 (lines 20 to 23) , omit the definition of parliamentary allowance in clause 1A of Schedule 3, substitute:

parliamentary allowance means parliamentary base salary (within the meaning of the Remuneration Tribunal Act 1973 ).

(4)   Schedule 2 , page 17 (after line 2) , before item 17 , insert:

16A Subsection 3(1)

Insert:

parliamentary base salary means so much of the allowances determined under subsection 7(1) as:   (a)   represents the annual allowance payable for the purposes of section 48 of the Constitution; and   (b)   is identified in the determination as base salary.

(5)   Schedule 2 , page 17 (after line 4) , after item 17 , insert:

17A After subsection 7(1)

Insert:(1A)   The Tribunal may determine that a portion of parliamentary base salary is not parliamentary allowance for the purposes of the Parliamentary Contributory Superannuation Act 1948 .

(6)   Schedule 2 , item 19 , page 17 (line 14) , after " subsection (1) ", insert " , (1A) ".

(7)   Schedule 2 , item 20, page 17 (line 25) , after " subsection 7(1) ", insert " , (1A) ".

I move these amendments because it has become clear that, under the bill as drafted, any additional salary determined by the Remuneration Tribunal would become part of a member or senator's parliamentary allowance. As senators and members would know, their parliamentary allowance is effectively their salary for superannuation purposes. Without the amendments current and former parliamentarians who are members of the Parliamentary Contributory Superannuation Scheme, established under the Parliamentary Contributory Superannuation Act 1948, could also receive increased superannuation benefits if the tribunal decides to incorporate any allowances into their parliamentary allow­ance. This would occur as, under the scheme, the benefits of former parliamentarians and eligible dependants are linked to the salaries of current parliamentarians.

As a consequence, each increase in the salary payable to current parliamentarians increases the superannuation income of members of the PCSS who are no longer in the parliament. This benefit would also flow to PCSS who subsequently leave the parliament. The amendments provide the tribunal with the authority to determine that a portion of parliamentary base salary is not 'parliamentary allowance' for the purposes of the 1948 act. Accordingly, a person covered by the 1948 act would not be entitled to receive superannuation benefits based on those amounts. The intention of the amendments is to ensure that the independent Remuneration Tribunal, should it be granted responsibility for determining parliamentarians base salaries, will be able to exercise that responsibility without creating unintended benefits for members of the 1948 act scheme. These amendments are consistent with a recommendation in the report of the review of parliamentary entitlements and further demonstrate the government's commitment to an efficient, effective and transparent system of remuneration and entitlements for parliamentarians.

Question agreed to.

Bill, as amended, agreed to.

Bill reported with amendments; report adopted.

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I move:

That this bill be now read a third time.