Bills Digest No. 67, Bills Digests alphabetical index 2023-24

Parliamentary Business Resources Legislation Amendment (Review Implementation and Other Measures) Bill 2024

Finance

Author

Cathy Madden

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Key points

The Parliamentary Business Resources Legislation Amendment (Review Implementation and Other Measures) Bill 2024:

  • Streamlines the administration of parliamentary business resources with the transfer of certain responsibilities from the Department of Finance to the Independent Parliamentary Expenses Authority (IPEA). IPEA will be the main administrator for public business resources for members of parliament (MPs) as well as providing personal advice, giving rulings, monitoring, auditing and reporting on resources.
  • Clarifies the period of payment of remuneration to Territory senators who are not seeking re-election.
  • Authorises the Remuneration Tribunal to determine allowances to be paid to the estate of a member who dies while in office.
  • Facilitates certain components of MPs’ remuneration to be paid fortnightly, rather than monthly.
  • Introduces further potential restrictions on the inclusion of information in public reports by IPEA where disclosure may reasonably be expected to put at risk the safety of an individual.
  • The Bill includes responses to three recommendations of the Independent Review of the Parliamentary Business Resources Act 2017 and the Independent Parliamentary Expenses Authority Act 2017.
  • At the time of writing, the Bill had not been referred to a parliamentary committee for inquiry. The Senate Scrutiny of Bills Committee had not yet reported on the Bill. The Parliamentary Joint Committee on Human Rights had no comment on the Bill.
  • At the time of writing, no comment on the Bill by non-government parliamentarians or other stakeholders was identified.
Introductory Info

 

Date introduced: 27 March 2024
House: House of Representatives
Portfolio: Special Minister of State
Commencement: Schedules 2 and 3 commence on the day after the Act receives Royal Assent.
Schedules 1 and 4 commence as set out in the body of this Bills Digest.

Purpose of the Bill

The purpose of the Parliamentary Resources Legislation Amendment (Review Implementation and Other Measures) Bill 2024 (the Bill) is to amend the Parliamentary Business Resources Act 2017 (PBR Act) and the Independent Parliamentary Expenses Authority Act 2017 (IPEA Act) to implement recommendations of the Independent Review of the Parliamentary Business Resources Act 2017 and the Independent Parliamentary Expenses Authority Act 2017 (Review) as well as other matters.

Key recommendations of the Review included transferring the administration of certain parliamentary resources such as office expenses from the Department of Finance to the Independent Parliamentary Expenses Authority (IPEA) and extending IPEA’s personal advice and rulings functions. Other measures include addressing some gaps in the legislation such as clarifying the delegation powers of the Presiding Officers; and aligning the determination of resources for former Prime Ministers with preexisting determinations made by preceding executive governments.[1]

Structure of the Bill

The Bill has 4 schedules.

Schedule 1 has 3 parts:

  • Part 1: the main amendments to the PBR Act and the IPEA Act which includes transferring the administration of certain resources under the PBR Act, from the Department of Finance to IPEA and extending the application of rulings and legislative protections. Part 1 also clarifies the delegation powers for Presiding Officers and IPEA's reporting function. Amendments to the PBRAct will ensure that the Prime Minister's power to determine resources relating to former prime ministers aligns with existing decisions of executive government that preceded the PBRAct and allow the Remuneration Tribunal to determine allowances which would be payable to the estate of a person who dies while a member
  • Part 2: consequential amendments
  • Part 3: application, transitional and savings amendments.

Schedule 2 relates to travel, particularly the use of Special Purpose Aircraft (SPA) and concerns relating to security.

Schedule 3 provides a technical amendment to the National Anti-Corruption Commission Act 2022 (NACC Act) relating to payment of legal fees for current and former parliamentarians for NACC-related matters.

Schedule 4 provides for the timing of the payment of certain components of MPs’ remuneration to change from monthly to fortnightly.

Background

On 13 January 2017, in response to controversy over parliamentarians’ travel entitlements, then Prime Minister Malcolm Turnbull announced the establishment of an Independent Parliamentary Entitlements Authority.[2]

The Independent Parliamentary Expenses Authority (IPEA) commenced operations as an executive agency on 3 April 2017, and was established as a statutory authority on 1 July 2017.[3] The Authority has functions relating to: (a) the work expenses, travel expenses and travel allowances of senators and members off the House of Representatives (referred to in this Digest collectively as MPs); and (b) certain travel expenses of former MPs; and (c) the travel expenses and travel allowances of persons employed under the Members of Parliament (Staff) Act 1984 (MOPS Act).[4]

The IPEA Act restricts the personal advice, monitoring, processing and rulings given by the IPEA to MPs (and to staff employed under the MOPS Act) to travel expenses and allowances. The provision of personal advice to MPs and Members of Parliament staff (MOPs) staff in relation to travel expenditure matters as outlined in section 12(1)(a) of the IPEA Act is exempt from the Freedom of Information Act 1982 (FOI Act).[5]

IPEA’s audit and assurance and reporting functions under the IPEA Act apply to all work resources claimed by parliamentarians under the PBR Act and the travel resources claimed by their staff. The administration and reporting functions had been undertaken by the Ministerial and Parliamentary Services (MaPS) Division of the Department of Finance (Finance). Finance continued the administration of work expenses other than travel such as the Office Expenses budget.

The PBR Act established a new framework for remuneration, business resources and travel resources for current and former members of the federal Parliament.

The PBR Act divides remuneration (Part 2) from the public resources that are provided to support a parliamentarian’s work (Part 3), and establishes a compliance framework including debt recovery, penalty and voluntary repayment provisions (Part 4) that apply to public resources provided under Part 3.

Other public resources (such as the Parliamentary Injury Compensation Scheme and legal assistance for Ministers and former Ministers) are provided under Part 5 of the PBR Act.

The PBR Act implements a principles-based framework, introduces a ‘dominant purpose test’ as a purpose-based eligibility criteria for all work expenses, allowances and other public resources, which means that members can only use public resources for the dominant purpose of conducting parliamentary business. MPs also must ensure value for money in incurring expenses or claiming allowances or other public resources. The scheme introduced new obligations on MPs to use public resources appropriately, in good faith, ethically and be accountable for their use. Financial penalties can be imposed for contravention of these legislative requirements.[6]

These new arrangements did reduce the amount of complexity and confusion surrounding MPs entitlements framework, but some have remained. One key challenge is the split of functions and service delivery between different administering agencies, resulting from their different legislative powers.[7]

The Review

Section 56 of the PBR Act and section 62 of the IPEA Act require a review after 3 years of operation of the respective Acts. In September 2021 the Morrison Government established the independent review of the PBR Act and legislative instruments, and IPEA Act and the legislative rules (together, the ‘PBR Framework’).[8] The report of the Review was tabled in August 2022 with the Government agreeing with all 30 recommendations in principle.[9]

The Review found that the legislative framework is broadly meeting its objectives, but that there are areas for improvement including reporting and certification processes, improving service delivery and training, and supporting a modern, diverse parliament.[10]

The Review and the Bill have to be read in the context of the recent reviews of the parliamentary workplace culture, in particular the Set the Standard report, the review of the MOPS Act and subsequent legislative action resulting in the establishment of the Parliamentary Workplace Support Service and the continuing work of the Parliamentary Leadership Taskforce.[11]

Committee consideration

Senate Standing Committee on the Selection of Bills

On 27 March 2024, the Senate Selection of Bills Committee deferred consideration of the Bill until its next meeting.[12]

Senate Standing Committee for the Scrutiny of Bills

At the time of writing, the Senate Standing Committee for the Scrutiny of Bills had not considered the Bill.

Policy position of non-government parties/independents

The positions of other parties and independents could not be identified at the time of writing.

Position of major interest groups

As at the time of publication, no commentary on the Bill has been identified.

Financial implications

The Explanatory Memorandum states that the Schedule 3 ‘would have an unquantifiable financial impact, as it makes a technical amendment to the standing appropriation established by section 280 of the NACC Act’ which relates to arrangements to provide legal assistance to parliamentarians and former politicians in relation to the NACC. The Government considers that ‘the financial impact of other measures is anticipated to be negligible’.[13]

Statement of Compatibility with Human Rights

As required under Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the Bill’s compatibility with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of that Act. The Government considers that the Bill is compatible.[14]

Parliamentary Joint Committee on Human Rights

The Parliamentary Joint Committee on Human Rights had no comment on the Bill.[15]

Key issues and provisions

Schedule 1 Main amendments

The Schedule commences on the earlier of Proclamation or the first day of the first calendar month to start after the end of the period of 6 months after Royal Assent.[16]

Streamlined administration

The Bill implements Recommendation 23 of the Review that ‘[t]he Government should consider moving the office expenses administration function to IPEA’.[17]

This recommendation is implemented through definitional changes and changes to the functions of the IPEA in section 12 of the IPEA Act.[18] The Bill enables the transfer of the administration of all resources currently provided by Finance under the PBR Act to IPEA, except for resources that are expressly excluded.[19] As set out in the Explanatory Memorandum to the Bill, the following functions would remain with Finance:

  • property management and support (relating to the provision of electorate offices, Ministerial offices, office holder offices, Commonwealth Parliament Offices and offices for former Prime Ministers)
  • the car-with-driver Commonwealth transport service (known as COMCAR), including vehicles, drivers and depots (noting that IPEA is already responsible for the administration of transport costs for travel by COMCAR, including provision of advice on the use of COMCAR)
  • private plated vehicles and residential internet and telephone services for members and former Prime Ministers
  • certain specialised functions, such as procurement of commercial insurance policies for members.[20]

IPEA’s current functions under subsection 12(1) are:

  1. to give personal advice:
  1. to members and former members of parliament about matters relating to MP travel resources; and

(ii)   to MOPS staff members about matters relating to MOPS travel resources;

  1. to issue general advisory documents about matters relating to:

(i)   MP travel resources; and

(ii)   MOPS travel resources;

  1. if the Authority considers that a particular general advisory document should be published—publish that general advisory document on the Authority’s website; 
  2. to monitor matters relating to:

(i)   MP travel resources; and

(ii)   MOPS travel resources;

  1. to prepare regular reports about matters relating to:

(i)   MP work resources; and

(ii)   MOPS travel resources;

  1. to publish reports prepared under paragraph (e) on the Authority’s website;
  2. to prepare other such reports as the Authority considers appropriate about matters relating to:

(i)   MP work resources; and

(ii)   MOPS travel resources;

  1. if the Authority considers that a particular report prepared under paragraph (g) should be published—publish that report on the Authority’s website;
  2. to conduct, or arrange for the conduct of, such audits as the Authority considers appropriate of matters relating to:

(i)   MP work resources; and

(ii)   MOPS travel resources;

  1. to process claims, on behalf of the Commonwealth, for:
  1. MP travel resources; and
  2. MOPS travel resources;
  1. on behalf of the Commonwealth, to incur expenses relating to, to pay or to provide MP travel resources;
  2. on behalf of the Commonwealth, to incur expenses relating to MOPS travel resources;
  3. to give rulings relating to MP travel resources under section 37 of the Parliamentary Business Resources Act 2017;
  4. if a law of the Commonwealth authorises the Authority to give rulings relating to MOPS travel resources—to give those rulings;
  5. on behalf of the Commonwealth, to recover (whether by way of set‑off or otherwise) overpayments, repayments and cost recovery payments relating to:

(i)   MP travel resources; and

(ii)   MOPS travel resources;

  1. such functions (if any) as are conferred on the Authority by any other law of the Commonwealth;
  2. such other functions (if any) as are prescribed by the legislative rules;
  3. to do anything incidental to or conducive to the performance of any of the above functions.

As set out above, the current IPEA functions include those relating to MP travel resources and MP work resources. These definitions are deleted by item 4 of Schedule 1 and replaced at item 15 with the broader terms Authority-administered MP resource and designated MP resource, respectively.[21] As a result of the replacement of these terms in the functions at subsection 12(1), IPEA will be responsible for the administration, reporting and audit of all resources provided under the PBR Act except for resources that are expressly carved out.[22] In addition to these changes, IPEA’s functions are also amended as follows:

  • item 9 amends subparagraph 12(i)(i) to permit IPEA to conduct or arrange for audits relating to designated MP resources, other than resources prescribed by a non-disallowable legislative rule (see proposed paragraph 12(5)(a) at item 20).[23] The Explanatory Memorandum explains this approach as follows:

Authorising a legislative rule to prescribe resources that will not be subject to IPEA’s audit function under subparagraph 12(1)(i)(i) would allow for IPEA’s audit function to have a narrower scope (in relation to the resources IPEA would audit) as compared with IPEA’s reporting functions (to which the term designated MP resources principally applies). It is intended that the legislative rule made for the purpose of this subparagraph would prescribe those resources on which IPEA currently reports but which it does not audit, with the effect that the scope of IPEA’s existing audit function is replicated (emphasis added).[24]

  • item 12 gives IPEA a new function of managing and disposal of Authority-administered MP resources (proposed paragraph 12(1)(la))
  • item 13 amends paragraph 12(1)(m) to permit IPEA to give rulings under section 37 of the PBRAct (as amended by items 36 to 43 of Schedule 1 to the Bill) in relation to Authority-administered MP resources, which are public resources (that is, resources provided for or paid under Part 3 of the PBR Act), other than resources prescribed by the PBR Regulations under proposed subsection 37(1A) of the PBR Act, at item 38 of Schedule 1 to the Bill. Together with amendments to section 37 of the PBR Act by items 36 to 43, these provisions will expand IPEA’s rule-making function to cover all resources that IPEA would administer under the Bill that are public resources. Currently IPEA is only permitted to give rulings relating to MP’s travel.

Recommendation 8 of the Review was that the Government consider amending the IPEA Act to expressly facilitate IPEA providing personal advice about staff use of travel resources to their employing parliamentarian and advice about the parliamentarian’s use of travel resources to their staff.[25]This recommendation is implemented by items 6 and 15 of Schedule 1 to the Bill.

Item 6 (amending subparagraph 12(1)(a)(i)) would allow the IPEA to provide personal advice to a member regarding their staff’s use of MOPS travel resource. Item 15 inserts proposed subsections 12(1C) to (1G), which allow a member or former member to appoint a person to request and be given personal advice on their behalf. For current members the appointed person must be a MOPS staff member employed by the member or a person in a class of people prescribed by a legislative rule (proposed paragraph 12(1D)(a)). A former member may appoint anyone, other than a person in a class of people prescribed by a legislative rule (proposed paragraph 12(1D)(b)). Advice provided by IPEA on request by an appointed person is taken to have been requested by, and provided to, the member or former member (proposed subsection 12(1E)). The form in which an appointment must be made must be published on the IPEA website (proposed subsections 12(1F) and (1G)).

Members who die while in office

The Assistant Minister’s second reading speech on the Bill advises that since 1980, ten members of Parliament have died while in office, with five members passing away in the last three years.[26] Currently, allowances that are payable under the PBR Act when a person ceases to be a parliamentarian are not payable to people who pass away while a member.

The Bill provides measures to allow the Remuneration Tribunal to determine an allowance to be paid to the estate of a person who has died in office (items 25, 27, 29 to 31 and 47).

Former members

Several provisions of the Bill relate to services for former members. In particular, the Bill implements Recommendation 11 of the Review, that ‘the Government should consider amending the PBR Act to clarify that a former parliamentarian can apply for a ruling and IPEA can make such a ruling.[27] As referred to above, section 37 of the PBR Act, as amended by items 37 to 41, will allow IPEA to provide rulings in relation to all resources that IPEA would administer under the amendments that are also public resources. Currently, IPEA can only provide rulings on travel expenses and allowances. Item 43 inserts proposed subsection 37(9) into the PBR Act to provide that after a person ceases to be a member, section 37 applies in relation to conduct engaged in while the person was a member as if a reference to a member included a reference to a former member. The Explanatory Memorandum provides that:

This would have the effect of extending IPEA’s authority to make a ruling under the PBR Act, whether on application by a former member or at IPEA’s own initiative, in relation to conduct engaged in while the person was a member.[28]

The ‘safe harbour’ arrangements, which protect parliamentarians from any debts that would otherwise be recoverable under section 57 of the PBR Act relating to the provision of travel expenses and allowances, if the parliamentarian relied on IPEA advice and the advice is incorrect (section 58 of the PBR Act) is extended to former members by item 59.

As discussed above, proposed subsection 12(1C) of the IPEA Act (item 15) allows an MP or former MP to appoint a person to request and receive personal advice on their behalf.

Section 16 of the PBR Act provides for the Prime Minister to determine that the Commonwealth will provide goods, services, premises, equipment or any other facility to former Prime Ministers and that the determination may impose one or more limits or other conditions relating to the provision of the resources. Item 32 repeals and remakes section 16 to:

  •  clarify that resources available to former Prime Ministers include payment of expenses or allowances in lieu of resources (proposed subsection 16(1))
  • provide that resources may be provided to spouses, dependent children and staff employed by former Prime Ministers under the MOPS Act for a purpose relating to the former Prime Minister (proposed paragraph 16(1)(b))
  • allow the determination to relate to a particular former Prime Minister (or particular spouse etc); a class of former Prime Ministers (or class of spouses etc); or to all former Prime Ministers (or all spouses etc) (proposed paragraph 16(2)(b)) and
  • clarify that the provision of a specified resource could be dependent on a decision of a specified person (proposed paragraph 16(2)(a)). The Explanatory Memorandum provides that ‘this might include, for example, an office for a former Prime Minister being dependent on a decision by the Minister, or the provision of office ICT equipment and services being dependent on a decision by the Presiding Officers’.[29]

The Explanatory Memorandum indicates it is ‘appropriate’ these determinations continue to be exempt from the disallowance process for legislative instruments under section 42 of the Legislation Act 2003, noting that ‘the power to provide resources to former Prime Ministers has by long-standing practice been a matter under executive control, rather than being subject to parliamentary processes’.[30]

Privacy

The IPEA has the power to collect information from the Secretary under section 34 of the IPEA Act and to require a person to provide information and documents relevant to its reporting and auditing functions (Part 5). IPEA also may share and publish information including providing information to the Secretary (section 33) and publish reports about work expenses and MOPS travel expenditure (paragraphs 12(1)(e), (f), (g) and (h)).

The Bill expands the potential to share personal information. As discussed above, proposed subsection 12(1C) of the IPEA Act (at item 15) allows for the appointment of a person to seek and receive advice on behalf of a member or former member. The amendments made by item 6 allow the IPEA to give advice to a member regarding their staff’s use of MOPS travel resources. The Explanatory Memorandum states that these occurrences are non-arbitrary interferences with privacy as in the first instance it occurs at the direction of the member and can be withdrawn by the member and in the second instance it is related to the performance of the employee’s work duties.[31]

Each of the reporting functions specified in section 12 of the IPEA Act is an authorisation for the purposes of the Privacy Act 1988.[32] The IPEA’s ability to publish personal information as part of its reporting functions is limited by section 60 of the IPEA Act, which provides that sensitive information is not to be included in public reports. Currently paragraph 60(1)(c) provides that information must not be included if IPEA considers that disclosure of that information would be ‘likely to result in serious harm’ to the individual, or individuals, to whom the information relates. Item 22 expands this limitation to include ‘or would be likely to put at risk the safety of’ an individual or any individuals covered by the information. This may lead to less personal information being disclosed due to safety and security concerns.

Freedom of information and transparency

Elements of the Bill potentially raise concerns relating to transparency of data relating to MPs’ expenditure. The current exemption for the IPEA from being required to provide information is dealt with in Division 1 of Part II of Schedule 2 of the Freedom of Information Act 1982:

(a) documents requesting that the Authority give personal advice under paragraph 12(1)(a) of the Independent Parliamentary Expenses Authority Act 2017; and

(b) any other documents that concern the performance of a function conferred on the Authority by paragraph 12(1)(a) of that Act.

As the scope of personal advice covered by subsection 12(1)(a) will be expanded under the Bill from advice on travel resources to advice on all PBR Act resources that IPEA would administer under the new arrangements, this exemption in the FOI Act (which will not be amended by the Bill) will apply to advice on a wider range of matters.

The Statement of Compatibility with Human Rights finds that this potential limitation on freedom of information is offset by the requirement for IPEA to regularly publicly report and to audit resources provided under the PBR Act.[33]

The expenses reports released by IPEA and the schedules of Special purpose flights released by the Defence Department promote political integrity, transparency and accountability. Recently questions have been asked about the lack of transparency of the reporting of MPs’ business resources and travel as both the IPEA and SPA had paused reporting on expenses.[34]

IPEA’s transparency and accountability functions include reporting and auditing resources and giving rulings relating to public resources IPEA administers under the PBR Act have been impacted by delays in the implementation of the Parliamentary expenses management system (PEMS).[35]

Under its legislation IPEA is required to prepare and publish regular reports on office and travel expenses, which it does on its website and data.gov.au. A core requirement of PEMS was functionality to facilitate this expenditure reporting, including moving to monthly public reporting. Since 1 July 2022 IPEA was unable to publish expenditure figures, until December 2023 where it published its first reports using PEMS expenditure reporting functionality for the period July–September 2022: the most recent reporting covers the period 1 April–30 June 2023. IPEA has advised it uses the data from PEMS to conduct its audit functions off system.[36]

The Australian National Audit Office (ANAO) audit into PEMS found administration of PEMS had been partially effective. The ANAO found the functionality of the system relied on manual workarounds, and end users were not appropriately consulted on its design.[37]

This potential lessening of information follows on from the Department of Defence stopping the publication of the schedule of Special Purpose Flights in 2021 while a review was conducted of security concerns.[38] Defence has recommenced tabling the schedules but provides less information (see below).

SPA is one of the means of Commonwealth transport governed by the PBR framework. In particular, the Parliamentary Business Resources Regulations 2017 and Parliamentary Business Resources (Commonwealth Transport) Determination 2017 set out parameters for use of SPA by Members of Parliament and cost recovery for the use of SPA.

Decisions on who can use SPA and for what purposes, or when access is provided on a cost recovery basis are made in the Prime Minister’s Office and the Office of the Minister for Defence.

The primary document used by Defence in relation to the governance, use and reporting requirements for SPA is the Guidelines for the use of the Special Purpose Aircraft 2013.[39] The Guidelines detail the information associated with each Special Purpose flight to be included in the Schedule of Special Purpose Flights, tabled in Parliament every six months.[40]

Recent documents produced under freedom of information show the Security Coordination Group (SCG) agreed that ‘… special purpose aircraft [SPA] guidelines are not currently fit-for-purpose in regard to protecting security sensitivities, including demonstrating a protection of pattern of life data for passengers’. The SCG agreed to amend the 2013 guidelines to remove references to: date and time of flights; departure and arrival location; names of those aboard below executive level 2; media, family members of officials.[41] This reduction in the information provided has been implemented from the January–March 2021 Schedule however at the Defence portfolio estimates hearing in February 2024 the Defence Department indicated ‘work is underway to revise the guidelines, but they have not been finalised’.[42]

This change in reporting by Defence has had some flow-on effects for the IPEA in cost recovery for travel on SPA by employees subject to the Electorate Support Budget and family members subject to Family Reunion Travel based on flight manifests.[43]

Other provisions

Territory senators not seeking re-election

Section 42 of the Commonwealth Electoral Act 1918 provides that the term of service of a Territory senator ‘… commences on the day of his or her election and expires at the close of the day immediately before the polling day for the next general election’. However, paragraph 49(5)(c) of the PBR Act provides that when Territory senators are not seeking re-election, remuneration ceases the day that the House of Representatives expires or is dissolved. In order to align the remuneration of Territory senators with the term of their service, proposed subsection 49(4A) of the PBR Act at item 51 of Schedule 1 to the Bill provides that, except in the occurrence of a double dissolution election, for Territory senators not seeking re-election payment will cease when their term ceases (the day before polling day). In the circumstances where the Senate is dissolved (such as a double dissolution election), proposed subsection 49(4B) would provide that when a Territory senator is not recontesting their seat remuneration payable to them will cease at the end of the day of the dissolution.

Five-year periodic reviews

Item 55 will amend subsection 56(1) of the PBR Act to extend the frequency at which the Minister must cause an independent statutory review of the PBR Act to be conducted from every three years to ‘… [a]s soon as practicable after each fifth anniversary of 2 August 2022’. The Government advises that this is necessary in order ‘to allow sufficient time for the proper implementation of previous review recommendations and the reasonable settling in and maturing of any new arrangements, prior to a subsequent review being conducted’.[44]

Delegation powers of the presiding officers

Item 61 will extend the delegation powers of the President of the Senate and the Speaker of the House of Representatives in section 60 of the PBR Act. Currently the Presiding Officers can only delegate their powers, functions or duties under the PBR Act to a Deputy Secretary or SES employee (or acting SES employee) in their Chamber department. Under proposed subsection 60(3) and (4), the Presiding Officer will be able to delegate to:

  • the Clerk of the relevant Chamber
  • the Secretary of the Department of Parliamentary Services (DPS)
  • a Senior Executive Service (or acting) employee in DPS or the relevant parliamentary Chamber department.

The Explanatory Memorandum notes:

... [T]he absence of an express power for the Presiding Officers to delegate any of their powers, functions or duties under the PBR Act to DPS SES employees hinders the efficient administration of resources provided to members and for which DPS is responsible under the PBR Act (for example, the provision of ICT equipment and services to members). Item 61 extends the delegation powers of the Presiding Officers to DPS SES to address this matter, as well as including the Clerks of the relevant Chamber departments to address an oversight when the PBR Act was first developed.[45]

NACC Act consequential amendment

Section 46 of the NACC Act limits the NACC from commencing a corruption investigation into a corruption issue involving certain conduct within the IPEA’s responsibilities with respect to its audit, reporting and ruling functions. Item 62 makes amendments to omit references to ‘work resources or travel resources’ from paragraph 46(1)(a) and ‘travel expenses and allowances’ in paragraph 46(1)(b) to reflect the amendments made by the Bill to expand IPEA’s authority to all ‘public resources’ under the PBR Act other than those expressly excluded. The Explanatory Memorandum advises that the amendments proposed by item 62 ‘would not have a practical impact on the NACC’s jurisdiction’.[46]

Schedule 2 Travel amendments

Recommendation 5 of the Review called for the administration of SPA to be reviewed to ensure arrangements are working in a joined-up way to fulfil the PBR framework's objectives of efficiency, transparency, accountability and value for money. It called for changes necessary to achieve this objective to be reflected in the guidelines for the use of the SPA and the Parliamentary Business Resources (Commonwealth Transport) Determination 2017 (Transport Determination).[47]

Schedule 2, Part 1 relates to travel amendments mainly focused on SPA flights. Item 3 inserts a new definition of ‘special purpose aircraft’ into section 5 of the PBR Act that means ‘the air passenger transport service operated by the Commonwealth through the Department of State that deals with defence and that is administered by the Defence Minister’.

Section 59 of the PBR Act provides a standing appropriation from the Consolidated Revenue Fund for the purposes of making payments under the Act. Item 7 inserts proposed subsections 59(2) and 59(3). These provide that this appropriation from the Consolidated Revenue Fund does not apply to payments for the purpose of providing SPA or payments determined by the Minister (through legislative instrument) relating to SPA.

Items 8–10 remove references to SPA from the Transport Determination, in particular by repealing Part 3 which details the use of the SPA. The Transport Determination will continue to cover the use of COMCAR.[48]

Items 12 to 16 amend the part of the Parliamentary Business Resources Regulations 2017 which deals with the use of Commonwealth transport for security purposes. They clarify the following arrangements for approval of Commonwealth transport to ensure the personal safety of a member (other than the Prime Minister):

  • travel by COMCAR would be approved by the Minister who administers the PBR Act (currently the Minister for Finance)
  • SPA travel within Australia would be approved by the Defence Minister and
  • SPA international travel would be approved by the Prime Minister (proposed subsection 94A(5)).

Schedule 3 Technical amendments to the NACC Act

Section 280 of the NACC Act provides for regulations to be made including regarding arrangements for the Commonwealth to provide financial assistance in relation to legal matters arising under the NACC Act. Currently, the NACC Regulations provide for both current and former parliamentarians to apply for financial assistance in relation to ‘eligible matters’, which are matters arising from the NACC Act (other than a prosecution for an offence against the Act) or applications for judicial review of matters arising under the NACC Act.[49]

Subsection 280(3) provides that 'the Consolidated Revenue Fund is appropriated for the purposes of making payments to, or for the benefit of, parliamentarians’ under the regulations to provide financial assistance. When the NACC Act was passed in 2022 this standing appropriation was considered necessary for ‘constitutional reasons’.[50] Schedule 3, item 1 will amend subsection 280(3) of the NACC Act to include ‘former parliamentarians’.

The extension of the standing appropriation to ‘former parliamentarians’ is described by the Explanatory Memorandum as a ‘technical amendment’:

As Part 5 of the NACC Regulations provides a statutory entitlement to financial assistance to both current and former parliamentarians, it is appropriate that the standing appropriation be extended to support all payments that may be made to parliamentarians, consistent with statutory entitlements.[51]

Schedule 4 Fortnightly payments

Schedule 4 will commence on the earlier of Proclamation or 18 months after Royal Assent.

Currently certain components of MPs’ remuneration are paid monthly in arrears by the relevant parliamentary department. The People Strategies Office in the Department of the House of Representatives and the Human Resource Management Section of the Department of the Senate administer payment of parliamentary allowance (salary), office holder’s allowance, electorate allowance and private plated vehicle allowance (where applicable) to MPs in twelve equal monthly instalments, less a deduction for income tax. Payments are made on the last business day of each month.[52] The salary is subject to ‘Pay as You Go’ (PAYG) tax withholding (see section 12-45 of Schedule 1 to the Taxation Administration Act 1953). 

Section 17 of the PBR Act ensures that a person may salary sacrifice from their first pay period. Items 4–19 amend various sections of the PBR Act that relate to commencement, variation and ceasing salary sacrifice to omit reference to ‘monthly’ and substitute ‘fortnightly’.

Item 21 inserts a new division into Part 7 of the PBR Act, proposed Division 2A–Fortnightly payments to senators and members. In particular, proposed subsection 52A(1) sets out the components of remuneration that are to be paid fortnightly. These are:

  • base salary
  • electorate allowance
  • office holder’s salary (if any)
  • vehicle allowance (if any).

The method for working out the amount to be paid to a member will be prescribed by regulations by proposed subsection 52A(2).

Schedule 4, Part 2 relates to subsequent changes to superannuation. Consequential amendments to the relevant superannuation legislation, that is the Parliamentary Contributory Superannuation Act 1948 and the Parliamentary Superannuation Act 2004, are made to reflect the change to fortnightly payments.[53]

A number of the provisions relate to the timing for the commencement of the new fortnightly payments and subsequent impact on the election date for salary sacrifice (item 24) and payments for superannuation purposes (items 38 and 51). The Bill provides for an intended start date of 1 July 2024 but recognises that the mechanisms may not be in place for the fortnightly payments to commence. If the 1 July 2024 deadline is not met than a date will be determined by the Minister by way of a notifiable instrument (item 23(5)).