Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The objects of this Bill are to amend the Parliamentary Remuneration Act 1989, the
Parliamentary Contributory Superannuation Act 1971 and the Constitution Act 1902
as follows:

(a) to enable employment benefits to be provided to members of Parliament by
way of salary sacrifice, on the same basis as those benefits are provided to
members of the Government Service,

(b) to enable members of the Parliamentary Contributory Superannuation Scheme
to make contributions by way of salary sacrifice to that Scheme and to make
additional salary sacrifice superannuation contributions to other funds,

(c) to confer powers on the Parliamentary Remuneration Tribunal (the Tribunal)
to determine matters relating to employment benefits for members of
Parliament,

(d) to make it clear that the provision of employment benefits and the making of
salary sacrifice superannuation contributions do not constitute a ground for
disqualification from Parliament on the ground of entering a contract or
agreement for or on account of the Public Service of New South Wales,

---

Explanatory note page 2

Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Explanatory note

(e) to make other minor and consequential amendments,

(f) to enable regulations containing savings and transitional provisions to be made
consequential on the proposed Act.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent
to the proposed Act.

Schedule 1 Amendment of Parliamentary
Remuneration Act 1989 No 160
Employment benefits and superannuation contributions
Schedule 1 [3] inserts proposed Part 2A (proposed sections 6A–6C) into the
Parliamentary Remuneration Act 1989 (the Remuneration Act). Proposed
section 6A confers on a member of Parliament an entitlement to be provided with
employment benefits, if the member elects to have those benefits and the election is
approved by the designated employer. An employment benefit is a benefit of a kind
approved by the Tribunal and is to be paid for by reducing the member’s potential
remuneration by the cost of the benefit.

Proposed section 6B confers on the Tribunal functions with regard to employment
benefits, including power to fix the type of benefits to be provided and to make
provision for their costing. However, they must be benefits of a kind available to
members of the Government Service.

Proposed section 6C enables the Minister to direct the Tribunal to make a special
determination as regards employment benefits.

Schedule 1 [1] amends section 2A of the Remuneration Act to include a reference to
employment benefits in the objects of that Act.

Schedule 1 [2] amends section 3 of the Remuneration Act to insert definitions as a
consequence of the amendments made by Schedule 1 [3] and [13].

Schedule 1 [10] amends section 14C of the Remuneration Act to amend the
definition of the salary of a member of Parliament for superannuation purposes to
include the cost of employment benefits and salary sacrifice amounts paid for
superannuation on behalf of the member.

Schedule 1 [11] amends Part 3A of the Remuneration Act to insert a Division
heading. Schedule 1 [9] makes a consequential amendment.

Schedule 1 [12] inserts proposed section 14EA into the Remuneration Act to extend
the provisions enabling members of Parliament to make additional superannuation
contributions by way of salary sacrifice to members who are continuing members of
the Parliamentary Contributory Superannuation Scheme.

---

Explanatory note page 3

Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Explanatory note
Schedule 1 [13] and [16] amend section 14F of the Remuneration Act to recognise
the role of the designated employer (rather than the Treasurer) in approving salary
sacrifice contributions for superannuation by members of Parliament.

Schedule 1 [13] also amends that section to bring it into line with the provisions of
other public sector superannuation legislation that define salary sacrifice
contributions for superannuation.

Schedule 1 [14] amends section 14F of the Remuneration Act to remove the
limitation of 50% on the amount of salary that may be sacrificed by members of
Parliament for superannuation.

Schedule 1 [15] amends section 14F of the Remuneration Act to require members of
the Parliamentary Contributory Superannuation Scheme to nominate the
superannuation fund or account into which additional salary sacrifice contributions
are to be paid. Schedule 1 [17] makes a consequential amendment.

Schedule 1 [20] amends section 15 of the Remuneration Act to make it clear that
employment benefits are subject to the provisions of any relevant determination of
the Tribunal.

Schedule 1 [21] amends section 15 of the Remuneration Act to make it clear that the
costs of employment benefits and salary sacrifice contributions are payable in the
same way as salaries of members of Parliament.

Machinery and consequential amendments
As a consequence of the conferral of additional powers on the Tribunal by the
proposed Act, provisions of the Remuneration Act have been rearranged so that the
general provisions relating to the Tribunal have been removed from Part 3 (which
currently relates to additional entitlements) and collected in a new Part 3B.

Schedule 1 [4] amends section 8 of the Remuneration Act to insert the general
provisions relating to the Tribunal functions. This section is renumbered and
removed to the new Part 3B by Schedule 1 [19].

Schedule 1 [5] substitutes section 9 of the Remuneration Act to limit the operation
of that provision to the conferral of functions on the Tribunal relating to additional
entitlements.

Schedule 1 [6] and [7] make amendments to sections 10 and 12A of the
Remuneration Act consequential on the extension of the Tribunal’s powers.

Schedule 1 [18] inserts a heading for the new Part 3B of the Remuneration Act.

Schedule 1 [19] renumbers provisions relating to the general functions of the
Tribunal so that they will be located in the new Part 3B. Schedule 1 [8] and [22]
make consequential amendments.

Schedule 1 [23] amends Schedule 3 to the Remuneration Act to enable regulations
containing savings and transitional provisions to be made consequentially on the
enactment of the proposed Act.

---

Explanatory note page 4

Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Explanatory note
Schedule 1 [24] amends Schedule 3 to the Remuneration Act to preserve existing
elections to make additional superannuation contributions.

Schedule 2 Amendment of other Acts
Schedule 2.1 Constitution Act 1902 No 32
Schedule 2.1 amends the Constitution Act 1902 to make it clear that a member of
Parliament who elects or agrees to be provided with, or receives, employment
benefits (including salary sacrifice contributions for superannuation) is not affected
by the prohibition in section 13 of that Act, which disqualifies members who benefit
from public contracts.

Schedule 2.2 Parliamentary Contributory Superannuation Act 1971
No 53
Schedule 2.2 [4] inserts proposed section 18AA into Parliamentary Contributory
Superannuation Act 1971 (the Superannuation Act). The proposed section enables
the contributions that are required to be made from a member of Parliament’s salary
for superannuation under that Act to be paid instead as salary sacrifice contributions.

The amount of the superannuation contributions, together with the amount necessary
to meet any tax payable by the trustees of the Parliamentary Contributory
Superannuation Scheme for the salary sacrifice contributions, is to be foregone as
remuneration by the member. A member who wishes to have salary sacrifice
contributions made must make an election to, and have it approved by, the designated
employer and the trustees.

Schedule 2.2 [1] amends section 3 of the Superannuation Act to insert definitions of
designated employer and salary sacrifice contribution.

Schedule 2.2 [2] amends section 3 of the Superannuation Act to include as salary for
the purposes of the Superannuation Act (and as part of the basis of determining the
benefits of a member) the cost of any employment benefits and the amount of any
salary sacrifice contributions.

Schedule 2.2 [3] amends section 6 of the Superannuation Act to provide that salary
sacrifice contributions are to be paid into the Parliamentary Contributory
Superannuation Fund.

Schedule 2.2 [5] amends Schedule 1 to the Superannuation Act to enable regulations
containing savings and transitional provisions to be made consequentially on the
enactment of the proposed Act.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

---

[Index] [Search] [Download] [Bill] [Help]