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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Public Governance, Performance and
Accountability Amendment (Executive
Remuneration) Bill 2017
No. , 2017
(Senator Whish-Wilson)
A Bill for an Act to amend the Public Governance,
Performance and Accountability Act 2013, and for
related purposes
No. , 2017
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
3
Public Governance, Performance and Accountability Act 2013
3
No. , 2017
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
1
A Bill for an Act to amend the Public Governance,
1
Performance and Accountability Act 2013, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the Public Governance, Performance and
6
Accountability Amendment (Executive Remuneration) Act 2017.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
No. , 2017
1
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
1 July 2018.
1 July 2018
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Schedules
8
Legislation that is specified in a Schedule to this Act is amended or
9
repealed as set out in the applicable items in the Schedule
10
concerned, and any other item in a Schedule to this Act has effect
11
according to its terms.
12
Amendments Schedule 1
No. , 2017
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
3
Schedule 1--Amendments
1
2
Public Governance, Performance and Accountability Act
3
2013
4
1 Section 6
5
Omit:
6
•
waivers, set-offs and act of grace payments by the
7
Commonwealth.
8
substitute:
9
•
waivers, set-offs and act of grace payments by the
10
Commonwealth; and
11
•
remuneration of senior executives of Commonwealth entities.
12
2 Section 6
13
Omit:
14
It also has some requirements that apply to the directors of
15
wholly-owned Commonwealth companies.
16
substitute:
17
It also has some requirements that apply in relation to
18
wholly-owned Commonwealth companies.
19
3 Section 8
20
Insert:
21
annualised average weekly earnings: see subsection 72A(2).
22
remuneration cap: see subsection 72A(1).
23
senior executive:
24
Schedule 1 Amendments
4
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
No. , 2017
(a) of a Commonwealth entity: see subsection 72B(2); and
1
(b) of a wholly-owned Commonwealth company: see
2
subsection 93A(2).
3
4 At the end of section 50
4
Add:
5
Division 10 has requirements relating to remuneration of senior
6
executives of Commonwealth entities.
7
5 At the end of Part 2-4
8
Add:
9
Division 10--Executive remuneration
10
72A Definitions
11
(1) The remuneration cap for a senior executive of a Commonwealth
12
entity or a Commonwealth company for a period starting in a
13
reporting period for the entity or company is the amount worked
14
out using the formula:
15
๐๐ข๐๐๐๐ ๐๐ ๐๐๐ฆ๐ ๐๐ ๐กโ๐ ๐๐๐๐๐๐
๐๐ข๐๐๐๐ ๐๐ ๐๐๐ฆ๐ ๐๐ ๐กโ๐ ๐๐๐๐๐๐ก๐๐๐ ๐๐๐๐๐๐
๐ฅ 5 ๐ฅ ๐ด๐ด๐๐ธ
where:
16
AAWE means the annualised average weekly earnings for the
17
reporting period for the entity or company.
18
(2) The annualised average weekly earnings for a reporting period for
19
a Commonwealth entity or a Commonwealth company is the
20
amount worked out using the formula:
21
๐๐ข๐๐๐๐ ๐๐ ๐ค๐๐๐๐ ๐๐ ๐กโ๐ ๐๐๐๐๐๐ก๐๐๐ ๐๐๐๐๐๐
๐ฅ
๐ด๐๐ธ
where:
22
AWE (short for average weekly earnings) means the amount
23
published by the Australian Statistician in a document titled
24
"Average Weekly Earnings" under the headings "Average Weekly
25
Earnings, Australia--Original--Full-time adult average weekly
26
Amendments Schedule 1
No. , 2017
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
5
total earnings" (or, if any of those change, in a replacement
1
document or under replacement headings) for the most recent
2
index reference period before the start of the reporting period.
3
72B Remuneration of senior executives
4
(1) Despite any other Act, a Commonwealth entity must not pay a
5
senior executive of a Commonwealth entity remuneration for a
6
period (the pay period) that would result in the total remuneration
7
of the senior executive for the pay period from all Commonwealth
8
entities exceeding the remuneration cap for the pay period.
9
(2) A person is a senior executive of a Commonwealth entity if the
10
person is the holder of, or is appointed to:
11
(a) a principal executive office (within the meaning of the
12
Remuneration Tribunal Act 1973) of that entity; or
13
(b) the office of a Secretary of a Department of State or a
14
Parliamentary Department.
15
(3) However, to avoid doubt, the Governor-General or a judge is not a
16
senior executive of a Commonwealth entity.
17
Note:
The High Court and the Future Fund Board of Guardians are not
18
Commonwealth entities--see subsection 10(2) of the Act.
19
72C Reporting on remuneration
20
The annual report prepared by the accountable authority of a
21
Commonwealth entity and given to the entity's responsible
22
Minister under section 46 for a reporting period for the entity must
23
include a statement setting out, for each senior executive of the
24
entity:
25
(a) the total remuneration for the reporting period; and
26
(b) the ratio of the total remuneration for the reporting period to
27
the annualised average weekly earnings for the reporting
28
period; and
29
(c) the ratio of the total weekly remuneration at the end of the
30
reporting period to the national minimum weekly wage set by
31
a national minimum wage order (within the meaning of the
32
Fair Work Act 2009) that is in operation at the end of the
33
reporting period.
34
Schedule 1 Amendments
6
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
No. , 2017
6 At the end of section 88
1
Add ", and requirements in relation to remuneration of senior
2
executives of wholly-owned Commonwealth companies".
3
7 At the end of Division 3 of Part 3-1
4
Add:
5
93A Remuneration of senior executives
6
(1) Despite any other Act, a wholly-owned Commonwealth company
7
must not pay a senior executive of a wholly-owned
8
Commonwealth company remuneration for a period (the pay
9
period) that would result in the total remuneration of the senior
10
executive for the pay period from all wholly-owned
11
Commonwealth companies exceeding the remuneration cap for the
12
pay period.
13
(2) A person is a senior executive of a wholly-owned Commonwealth
14
company if the person is:
15
(a) a director or secretary of the company; or
16
(b) a person (other than a director or secretary of the company, a
17
Minister, or an APS employee engaged as an employee for
18
the purposes of a Commonwealth entity or Commonwealth
19
company other than the company) who:
20
(i) makes, or participates in making, decisions that affect
21
the whole, or a substantial part, of the operations of the
22
company; or
23
(ii) has the capacity to affect significantly the company's
24
financial standing.
25
93B Reporting on remuneration
26
When the directors of a wholly-owned Commonwealth company
27
give the responsible Minister the reports required by section 97 for
28
a reporting period for the company, the directors must give the
29
responsible Minister a statement setting out, for each senior
30
executive of the company:
31
(a) the total remuneration for the reporting period; and
32
Amendments Schedule 1
No. , 2017
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
7
(b) the ratio of the total remuneration for the reporting period to
1
the annualised average weekly earnings for the reporting
2
period; and
3
(c) the ratio of the total weekly remuneration at the end of the
4
reporting period to the national minimum weekly wage set by
5
a national minimum wage order (within the meaning of the
6
Fair Work Act 2009) that is in operation at the end of the
7
reporting period.
8
8 Application
9
(1)
In this item:
10
amended PGPA Act means the Public Governance, Performance and
11
Accountability Act 2013 as amended by this Act.
12
commencement time means the time at which this Schedule
13
commences.
14
(2)
If an arrangement in relation to remuneration between a Commonwealth
15
entity and a senior executive of a Commonwealth entity is in force
16
immediately before the commencement time, section 72B of the
17
amended PGPA Act does not apply in relation to the senior executive
18
until the arrangement expires or is terminated.
19
(3)
If an arrangement in relation to remuneration between a wholly-owned
20
Commonwealth company and a senior executive of a wholly-owned
21
Commonwealth company is in force immediately before the
22
commencement time, section 93A of the amended PGPA Act does not
23
apply in relation to the senior executive until the arrangement expires or
24
is terminated.
25
(4)
If:
26
(a) immediately before the commencement time, a senior
27
executive of a Commonwealth entity has a statutory
28
entitlement to remuneration from a Commonwealth entity;
29
and
30
(b) after the commencement time, a Commonwealth entity
31
would, apart from this subitem, contravene section 72B of the
32
amended PGPA Act by paying the remuneration in
33
accordance with the entitlement;
34
Schedule 1 Amendments
8
Public Governance, Performance and Accountability Amendment
(Executive Remuneration) Bill 2017
No. , 2017
that section does not apply in relation to the senior executive until the
1
senior executive ceases to have the entitlement.
2
(5)
If:
3
(a) immediately before the commencement time, a senior
4
executive of a wholly-owned Commonwealth company has a
5
statutory entitlement to remuneration from a wholly-owned
6
Commonwealth company; and
7
(b) after the commencement time, a wholly-owned
8
Commonwealth company would, apart from this subitem,
9
contravene section 93A of the amended PGPA Act by paying
10
the remuneration in accordance with the entitlement;
11
that section does not apply in relation to the senior executive until the
12
senior executive ceases to have the entitlement.
13