A Bill for an Act to link pay for members of the Defence Force to pay for Parliamentarians or to CPI, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Defence Amendment (Fair Pay for Members of the ADF) Act 2017.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this Act | The day after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Defence Act 1903
1 At the end of Part IIIA
Add:
Division 4—Defence Force pay to be linked to the higher of increases in Parliamentary allowance and CPI
58Z Definitions
In this Division:
CPI index number has the meaning given by section 58ZA.
Defence Force pay means salary (within the meaning of Division 2) of members.
Defence Force pay determination means a determination, made by the Minister under Division 1 or by the Defence Force Remuneration Tribunal under Division 2, in relation to Defence Force pay.
Defence Force Remuneration Tribunal means the Defence Force Remuneration Tribunal established by section 58G.
Parliamentary allowance amount has the meaning given by section 58ZB.
total Parliamentary allowance is the total of the allowances (including allowances in accordance with section 48 of the Constitution) determined under subsection 7(1) of the Remuneration Tribunal Act 1973 to be paid to a member of the Parliament by reason of his or her membership of either House of the Parliament.
58ZA Meaning of CPI index number
(1) In this Division, the CPI index number for a quarter is the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician in respect of that quarter (subject to subsections (2) and (3)).
(2) Subject to subsection (3), if, at any time before or after the commencement of this subsection:
(a) the Australian Statistician has published or publishes an index number in respect of a quarter; and
(b) that index number is in substitution for an index number previously published by the Australian Statistician in respect of that quarter;
disregard the publication of the later index number for the purposes of this Division.
(3) If, at any time before or after the commencement of this subsection, the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of applying this Division after the change took place or takes place, have regard only to index numbers published in terms of the new index reference period.
58ZB Meaning of Parliamentary allowance amount
(1) In this Division, the Parliamentary allowance amount for a quarter is the total Parliamentary allowance that applies during that quarter.
(2) If more than one total Parliamentary allowance applies during a quarter, the Parliamentary allowance amount for the quarter is the highest of those total Parliamentary allowances.
58ZC Defence Force pay to be linked to the higher of increases in Parliamentary allowance and CPI
(1) A Defence Force pay determination must, for the first period of 12 months, and each following period of 12 months, for which the determination is force, provide for an increase in the Defence Force pay covered by the determination that:
(a) when expressed as a percentage change, is at least as large as the minimum Defence Force pay increase percentage for that period; and
(b) takes effect at the start of the period.
Note: This section is not to be taken as an appropriation of public money (see section 7).
(2) For the purposes of this section, the minimum Defence Force pay increase percentage for a period is the higher of the following percentages:
(a) the change in the CPI index number between:
(i) the quarter one year before the quarter (the latest quarter) that ended most recently before the start of the period; and
(ii) the latest quarter;
expressed as a percentage of the CPI index number for the quarter one year before the latest quarter;
(b) the change in the Parliamentary allowance amount between the quarter one year before the latest quarter and the latest quarter, expressed as a percentage of the Parliamentary allowance amount for the quarter one year before the latest quarter.
(3) To avoid doubt, a Defence Force pay determination may provide for future increases in Defence Force pay with reference to future changes in Parliamentary allowance amounts and future CPI index numbers that are not known at the time the determination is made.
(4) If the minimum Defence Force pay increase percentage worked out under subsection (2) for a period is less than zero per cent, the minimum Defence Force pay increase percentage for that period is taken to be zero per cent.
58ZD Sunset provision
Subsection 58ZC(1) does not apply in relation to a period of 12 months that begins more than 3 years after the day this Division commences.
2 Application and transitional provisions
(1) The amendments made by this Schedule apply in relation to Defence Force pay determinations made on or after the day this Schedule commences.
(2) As soon as practicable after the commencement of this Schedule, and in any case within 28 days after that commencement, new Defence Force pay determinations must be made, under Part IIIA of the Defence Act 1903 and in accordance with Division 4 of that Part as inserted by this Schedule, determining and providing for the remuneration of all members.
(3) A determination made in accordance with subitem (2) takes effect when it is made.