Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | Hansard source

I table a revised explanatory memorandum relating to the bill and I move:

That this bill be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speech read as follows—

The Parliamentary Business Resources Legislation Amendment (Review Implementation and Other Measures) Bill 2024 will progress important reforms to simplify how services to parliamentarians are delivered, including joining up administration, enhancing client experience and streamlining service delivery. These reforms build on significant reforms made in 2017 and 2018 to the administration of parliamentary work expenses.

The Bill will amend the Parliamentary Business Resources Act 2017 and the Independent Parliamentary Expenses Authority Act 2017 to respond to recommendations of the Independent Review into the Parliamentary Business Resources Act 2017 and Independent Parliamentary Expenses Authority Act 2017, which was conducted by the former Member for Hinkler, the Hon Kelly O'Dwyer, and the former Member for Adelaide, the Hon Kate Ellis in late 2021.

The Review found that the legislative framework is broadly meeting its objectives, but identified areas for improvement and made 30 recommendations, including to reporting and certification processes, improving service delivery and training, changes to the administration of public resources, and supporting a modern, diverse parliament.

The Government announced its in-principle support for all of the recommendations of the Review when the report was tabled in the Parliament on 2 August 2022. Significant work has been progressed to implement these recommendations.

The PBR Act and the IPEA Act set out the framework for the provision and administration of resources for parliamentarians. The PBR Act commenced in 2018 and established a principles-based framework for the provision of public resources to senators and members of Parliament. The IPEA Act commenced in 2017 and established IPEA as an independent statutory authority.

IPEA currently has functions relating to the provision of travel resources to current and former senators and members under the PBR Act and other legislation. This includes the administration of those resources (including processing claims, paying or providing resources and providing personal and general advice). IPEA's transparency and accountability functions include reporting and auditing resources and giving rulings relating to the public resources IPEA administers under the PBR Act.

This Bill directly implements three recommendations of the Review which require amendments to primary legislation and substantially advances the implementation of a further five recommendations aimed at joining up administration, enhancing client experience and streamlining service delivery by transferring the administrative responsibility for certain PBR resources to IPEA.

Since the Review was tabled, the Department of Finance has been working closely with all administering entities to progress the other recommendations of the Review. Implementation is being progressed in a sequenced and considered way, noting the complexities of the parliamentary environment and the interaction with different reviews being simultaneously implemented across the Commonwealth Parliamentary Workplace.

These changes to the parliamentary business resources framework have been developed in the context of the Government's broader reform activities to improve our parliamentary workplaces arising from the Australian Human Rights Commission's Set the Standard Report, including the establishment of the statutory Parliamentary Workplace Support Service and legislative amendments to the Members of Parliament (Staff) Act 1984 at the end of last year. An efficient and transparent administration regime that effectively supports parliamentarians to perform their duties in the public interest is an important feature of this system.

The Bill is making three main changes to the legislative framework. Firstly, the Bill will provide for the transfer of the administration of certain PBR resources, including office expenses, from the Department of Finance to IPEA on 1 July 2025, implementing recommendation 23 of the Review.

Secondly, the Bill will implement recommendations 8 and 11 of the Review by extending IPEA's personal advice and rulings functions.

Thirdly, the Bill will provide enhancements to the PBR Act and IPEA Act, to clarify certain provisions that have been identified as requiring amendment over time, and better support longstanding administrative practices under legislation.

Transfer of PBR resources

Parliamentarians and their staff have access to a range of resources, which are provided by multiple entities including the parliamentary departments, portfolio departments, as well as the Department of Finance and IPEA, under the PBR Act and other mechanisms. It is unlikely that there will ever be a single provider to administer of all resources that are necessary and appropriate for parliamentarians to undertake their parliamentary business. However, it is clear from the Review that there is room for improvement.

The transfer and consolidation of the administration of most PBR resources within IPEA will result in IPEA becoming the key administrator and point of contact for advice and support, including in relation to parliamentarians' obligations under the PBR framework. This will simplify how services to parliamentarians and their staff are delivered.

The transfer will implement recommendation 23 of the Review and substantially advance the implementation of several recommendations which focus on aligning the administration of parliamentary business resources. This includes a greater focus on joined-up systems, administration, training, guidance and enhanced information sharing to improve the experience of parliamentarians and their staff (recommendations 13 to 17).

The IPEA Act will be amended to provide that IPEA is responsible, by default, for all PBR administration except for resources that are expressly carved out. While some exclusions will be set out within the amended IPEA Act itself, the IPEA Act will be supported by legislative rules that will exclude other PBR resources from IPEA's administrative responsibilities as agreed by the Government. The legislative rules will provide flexibility to allow for efficient changes to the administration of PBR resources that may be required over time.

The scope of IPEA's existing administrative and service delivery functions will be expanded to include office expenses and other transferred resources. This will build on IPEA's existing high standard of service delivery. However, the Bill will not reduce the types of resources provided to parliamentarians under the PBR Act.

IPEA's responsibilities for reporting, compliance and audit for all work expenses will extensively align with existing practice. Currently, IPEA's personal advice function in relation to travel expenses and allowances are afforded exemption under the Freedom of Information Act 1982 and safe-harbour from liability for a debt or penalty loading under the PBR Act. These important protections encourage parliamentarians' use of IPEA's advice function prior to claiming or using public resources, promoting the careful and appropriate use of public resources. The Bill will extend these protections to also cover the PBR resources which IPEA will administer following the transfer of functions.

Implementing Recommendations 8 and 11 of the Review

The Bill will implement recommendations 8 and 11 of the Review. IPEA will have the authority to provide personal advice about staff use of travel resources to their employing parliamentarian. It will also allow IPEA to provide, with the parliamentarian's agreement, personal advice about a parliamentarian's use of resources it administers to that parliamentarian's staff. This will facilitate more effective and efficient communication between IPEA and a parliamentarian's office.

The Bill will implement Review recommendation 11 by allowing IPEA to make a ruling in relation to public resources it provided under the PBR Act when a former member was a member. Currently, the PBR Act does not allow IPEA to make a ruling for, or provide safe-harbour protections to, former parliamentarians. The Bill will allow IPEA to make a ruling in response to a request by a former member. This will provide assurance to current parliamentarians that if IPEA is found to have provided incorrect personal advice, the safe harbour protections that apply while a member, continue to apply after they cease to be a member. Under the amendments, IPEA will have the authority to make a ruling at the request of a former parliamentarian, but not at IPEA's own initiative.

Other changes

The Bill will make a number of other amendments to the PBR Act and IPEA Act. These enhancements do not represent major policy changes, rather they aim to address gaps that have emerged, clarify or better align provisions to original policy intent, and better support longstanding administrative practices.

These measures include clarifying the delegation powers for Presiding Officers and IPEA's reporting function to align with administrative practices. Amendments to the PBR Act will ensure that the Prime Minister's power to determine resources relating to a former Prime Minister aligns with existing decisions of executive government which preceded the PBR Act.

Fortnightly remuneration

The Bill will modernise the payment frequency for parliamentarians' remuneration. The Remuneration Tribunal will continue to determine and report on the annual salary amounts for parliamentarians and other remuneration elements. The Bill will facilitate remuneration being payable on a fortnightly (rather than monthly) basis. The commencement of this measure will be subject to the readiness of IT system updates required to enable this change. Consequential amendments to the relevant superannuation legislation will also be made to reflect this change to fortnightly payments.

Estate allowance

Since 1980, ten members of Parliament have died while in office. Sadly, five of these, former Senators Alex Gallacher, Kimberley Kitching, Jim Molan and Linda White, and the former Member for Dunkley, Peta Murphy, have passed away in the last three years. These recent events have highlighted that allowances relating to a person ceasing to be a parliamentarian under the PBR Act are not payable to persons who pass away while a parliamentarian. This impacts the grieving partner and dependents of each of our former colleagues, as the provision of PBR resources stop with immediate effect upon a person leaving parliament.

The Bill seeks to recognise and redress this inequity by allowing the Remuneration Tribunal to determine allowances which would be payable to the estate of a person who dies while a parliamentarian. The Remuneration Tribunal would have the discretion to consider such factors as it considers relevant when determining what, if any, amount of estate allowance is appropriate.

Territory Senators' Remuneration

The Bill will address an issue impacting retiring Territory Senators' remuneration which was inadvertently introduced with the PBR Act. The amendment will provide that a retiring Territory Senator is remunerated and able to claim PBR Act resources for the duration of their term when the Senate is not dissolved. The amendment will maintain the consistent and equal treatment of all retiring parliamentarians in the circumstances of a double dissolution election, whose remuneration ceases on the day of the double dissolution.

Review timeframe

The Bill will extend the frequency at which the independent statutory review of the PBR Act must occur from every three years to every five years since the Review was tabled. This will allow sufficient time for the proper implementation of review recommendations, and a sensible period in which any new arrangements can be reasonably reviewed. This does not prevent examination of the Act, nor amendment, at other times.

Technical Amendments

The Bill will make a technical amendment to the National Anti-Corruption Commission Act 2022 (NACC Act) to clarify that the standing appropriation under subsection 280(3) of the NACC Act extends to all payments that may be made to, or for the benefit of, current and former parliamentarians under the arrangements prescribed by Part 5 of the National Anti-Corruption Commission Regulations 2023 (NACC Regulations). This would ensure consistent funding of the legal financial assistance scheme for current and former parliamentarians under the NACC Act.

Conclusion

In summary, this Bill will update, realign and reform the provision of parliamentary business resources to facilitate a more efficient, seamless, client-focused delivery of services to parliamentarians and their staff, as well as addressing key recommendations of the Review which require legislative amendments to the PBR Act or the IPEA Act.