Federal Register of Legislation - Australian Government

Primary content

Rules/Other as made
This instrument amends the Public Governance, Performance and Accountability Rule 2014 in order to require disclosure in annual reports of executive remuneration of key management personel, senior executives and other highly paid staff for Commonwealth entities, and require disclosure of executive remuneration in annual reports of key management personnel for Commonwealth companies.
Administered by: Finance
Registered 04 Apr 2019
Tabling HistoryDate
Tabled HR02-Jul-2019
Tabled Senate02-Jul-2019
Date of repeal 17 Sep 2019
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

Commonwealth Coat of Arms of Australia

 

Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019

I, Mathias Cormann, Minister for Finance and the Public Service, make the following rules.

Dated   4 April 2019

Mathias Cormann

Minister for Finance and the Public Service

 

 

  

  


Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

Schedule 1—Amendments                                                                                                                          2

Public Governance, Performance and Accountability Rule 2014                                               2

 


1  Name

                   This instrument is the Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019.

2  Commencement

             (1)  Each provision of this instrument 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 instrument

The day after this instrument is registered.

5 April 2019

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under the Public Governance, Performance and Accountability Act 2013.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendments

  

Public Governance, Performance and Accountability Rule 2014

1  Section 4

Insert:

key management personnel has the same meaning as in AASB 124 Related Party Disclosures.

other highly paid staff, of a Commonwealth entity for a reporting period, means officials of the entity:

                     (a)  who are neither key management personnel nor senior executives; and

                     (b)  whose total remuneration exceeds the threshold remuneration amount for the reporting period.

senior executives means the following officials of a Commonwealth entity who are not key management personnel:

                     (a)  officials with classifications in Groups 9 to 11 of the table in Schedule 1 to the Public Service Classification Rules 2000;

                     (b)  officials with positions equivalent to officials covered by paragraph (a);

                     (c)  officers of the Australian Defence Force with ranks equivalent to classifications covered by paragraph (a).

threshold remuneration amount, for a reporting period, has the meaning given by subsection 4A(1).

total remuneration:

                     (a)  means the sum of the following (calculated on an accrual basis):

                              (i)  base salary;

                             (ii)  bonuses;

                            (iii)  other benefits and allowances;

                            (iv)  superannuation contributions (made by the employer);

                             (v)  long service leave;

                            (vi)  other long‑term benefits;

                           (vii)  termination benefits; but

                     (b)  does not include any allowance paid because a person is deployed (but not posted) overseas.

total remuneration band:

                     (a)  in relation to senior executives of a Commonwealth entity, has the meaning given by subsection 17CB(3); or

                     (b)  in relation to other highly paid staff of a Commonwealth entity, has the meaning given by subsection 17CC(3).

2  At the end of Division 2 of Part 1‑1

Add:

4A  Meaning of threshold remuneration amount

Guide to this section

The purpose of this section is to define threshold remuneration amount.

             (1)  The threshold remuneration amount for a reporting period is:

                     (a)  for a reporting period that begins on or after 29 June 2018 and ends on or before 30 June 2019—$220,000; or

                     (b)  for a reporting period that begins in a financial year that begins on or after 1 July 2019—the amount worked out using the following formula rounded to the nearest multiple of $5,000:

             (2)  The indexation factor for a financial year is the number worked out using the following formula:

where:

base June quarter means the June quarter ending on 30 June 2018.

index number, for a quarter, means the Wage Price Index (total hourly rates of pay excluding bonuses/public sector/all Australia/original) number published by the Australian Statistician in respect of that quarter.

June quarter means a 3‑month period ending on 30 June.

reference June quarter means the June quarter immediately before the financial year.

             (3)  The indexation factor is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

             (4)  The indexation factor is to be worked out:

                     (a)  using only the index numbers published in terms of the most recently published index reference period for the Wage Price Index; and

                     (b)  disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

3  After paragraph 17AD(d)

Insert:

                   (da)  information about executive remuneration in accordance with Subdivision C;

4  After paragraph 17BE(t)

Insert:

                    (ta)  information about executive remuneration in accordance with Subdivision C;

5  At the end of Division 3A of Part 2‑3

Add:

Subdivision CInformation about executive remuneration

17CA  Information about remuneration for key management personnel

             (1)  For the purposes of paragraphs 17AD(da) and 17BE(ta), this section sets out requirements for information about executive remuneration for key management personnel that is to be included in the annual report for a reporting period.

             (2)  For each of the key management personnel of the entity, the following must be included:

                     (a)  name;

                     (b)  position title;

                     (c)  base salary;

                     (d)  bonuses;

                     (e)  other benefits and allowances;

                      (f)  superannuation contributions (made by the entity);

                     (g)  long service leave;

                     (h)  other long‑term benefits;

                      (i)  termination benefits;

                      (j)  total remuneration, which must be the sum of the amounts included for the purposes of paragraphs (c) to (i).

             (3)  The information must be included in the annual report in the form set out in clause 1 of Schedule 3.

17CB  Information about remuneration for senior executives

             (1)  For the purposes of paragraphs 17AD(da) and 17BE(ta), this section sets out requirements for information about executive remuneration for senior executives that is to be included in the annual report for a reporting period.

             (2)  For the senior executives of the entity, the following must be included:

                     (a)  the total remuneration bands for the senior executives;

                     (b)  for the senior executives within each band, the following:

                              (i)  the number of senior executives;

                             (ii)  average base salary;

                            (iii)  average bonuses;

                            (iv)  average other benefits and allowances;

                             (v)  average superannuation contributions (made by the entity);

                            (vi)  average long service leave;

                           (vii)  average other long‑term benefits;

                          (viii)  average termination benefits;

                            (ix)  average total remuneration, which must be the sum of the amounts included for the purposes of subparagraphs (ii) to (viii).

             (3)  A total remuneration band for the senior executives is:

                     (a)  if the total remuneration for a member of the entity’s senior executives for the reporting period is $220,000 or less—the band $0 to $220,000; or

                     (b)  if the total remuneration for a member of the entity’s senior executives for the reporting period is more than $220,000—the band of one or more increments of $25,000 above $220,000 into which the remuneration falls.

             (4)  The information must be included in the annual report in the form set out in clause 2 of Schedule 3.

17CC  Information about remuneration for other highly paid staff

             (1)  For the purposes of paragraphs 17AD(da) and 17BE(ta), this section sets out requirements for information about executive remuneration for other highly paid staff that is to be included in the annual report for a reporting period.

             (2)  For the other highly paid staff of the entity, the following must be included:

                     (a)  the total remuneration bands for the other highly paid staff;

                     (b)  for the other highly paid staff within each band, the following:

                              (i)  the number of other highly paid staff;

                             (ii)  average base salary;

                            (iii)  average bonuses;

                            (iv)  average other benefits and allowances;

                             (v)  average superannuation contributions (made by the entity);

                            (vi)  average long service leave;

                           (vii)  average other long‑term benefits;

                          (viii)  average termination benefits;

                            (ix)  average total remuneration, which must be the sum of the amounts included for the purposes of subparagraphs (ii) to (viii).

             (3)  A total remuneration band for the other highly paid staff is a band of one or more increments of $25,000 above $220,000 into which the total remuneration for a member of the entity’s other highly paid staff falls.

Note:          Other highly paid staff have total remuneration in excess of the threshold remuneration amount, which is indexed: see the definition of other highly paid staff in section 4 and the definition of threshold remuneration amount in section 4A.

             (4)  The information must be included in the annual report in the form set out in clause 3 of Schedule 3.

17CD  Other information about executive remuneration

             (1)  For the purposes of paragraphs 17AD(da) and 17BE(ta), this section sets out requirements for other information about executive remuneration that is to be included in the annual report for a reporting period.

             (2)  The policies and practices of the entity regarding the remuneration of key management personnel, senior executives and other highly paid staff must be included, setting out:

                     (a)  the governance arrangements under which those policies and practices operate; and

                     (b)  the basis on which the remuneration of the key management personnel, senior executives and other highly paid staff of the entity has been determined.

17CE  General rules for reporting information about executive remuneration

Amounts must be calculated on an accrual basis

             (1)  For the purposes of reporting information about executive remuneration under sections 17CA to 17CD, amounts comprising total remuneration must be calculated on an accrual basis.

Exemptions

             (2)  The Minister may, by legislative instrument, exempt the entity from one or more requirements of sections 17CA to 17CC.

             (3)  The Minister may require the information to which the exemption applies to be given to a person or body specified in the exemption.

             (4)  An exemption, and any requirement to give the information to a person or body specified in the exemption, must be noted in the entity’s annual report.

6  After paragraph 28E(o)

Insert:

                   (oa)  information about executive remuneration in accordance with sections 28EA to 28EC;

7  After section 28E

Insert:

28EA  Information about executive remuneration—key management personnel

             (1)  For the purposes of paragraph 28E(oa), this section sets out requirements for information about executive remuneration for key management personnel that is to be included in the annual report for a reporting period.

             (2)  For each of the key management personnel of the company, the following must be included:

                     (a)  name;

                     (b)  position title;

                     (c)  base salary;

                     (d)  bonuses;

                     (e)  other benefits and allowances;

                      (f)  superannuation contributions (made by the company);

                     (g)  long service leave;

                     (h)  other long‑term benefits;

                      (i)  termination benefits;

                      (j)  total remuneration, which must be the sum of the amounts included for the purposes of paragraphs (c) to (i).

             (3)  The information must be included in the annual report in the form set out in clause 1 of Schedule 3.

28EB  Other information about executive remuneration

             (1)  For the purposes of paragraph 28E(oa), this section sets out requirements for other information about executive remuneration that is to be included in the annual report for a reporting period.

             (2)  The policies and practices of the company regarding the remuneration of key management personnel must be included, setting out:

                     (a)  the governance arrangements under which those policies and practices operate; and

                     (b)  the basis on which the remuneration of the key management personnel of the company has been determined.

28EC  General rules for reporting information about executive remuneration

Amounts must be calculated on an accrual basis

             (1)  For the purposes of reporting information about executive remuneration under sections 28EA and 28EB, amounts comprising total remuneration must be calculated on an accrual basis.

Exemptions

             (2)  The Minister may, by legislative instrument, exempt the company from one or more requirements of section 28EA.

             (3)  The Minister may require the information to which the exemption applies to be given to a person or body specified in the exemption.

             (4)  An exemption, and any requirement to give the information to a person or body specified in the exemption, must be noted in the company’s annual report.

8  At the end of Chapter 4

Add:

30A  Publishing annual reports

Guide to this section

The purpose of this section is to require Commonwealth entities and Commonwealth companies to publish their annual reports on their websites.

                   If an annual report for a Commonwealth entity or Commonwealth company is tabled in a House of the Parliament, the entity or company must publish the report on its website as soon as practicable after the annual report is tabled.

9  In the appropriate position in Chapter 5

Insert:

Part 4Amendments made by the Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019

  

34  Application of amendments made by the Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019

                   The amendments of this rule made by the Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019 apply in relation to any reporting period that begins on or after 29 June 2018.

10  Clause 1 of Schedule 2 (after table item dealing with PGPA Rule Reference 17AD(e))

Insert:

 

 

Executive Remuneration

 

17AD(da)

 

Information about executive remuneration in accordance with Subdivision C of Division 3A of Part 2‑3 of the Rule.

Mandatory

 

11  At the end of the instrument

Add:


Schedule 3Information about executive remuneration

Note:       See subsections 17CA(3), 17CB(4), 17CC(4) and 28EA(3).

  

  

1  Information about remuneration for key management personnel

                   For the purposes of subsections 17CA(3) and 28EA(3), information about remuneration for key management personnel must be included in the annual report in the following form:

 

 

 

Short‑term benefits

Post‑employment benefits

Other long‑term benefits

Termination benefits

Total remuneration

Name

Position title

Base salary

Bonuses

Other benefits and allowances

Superannuation contributions

Long service leave

Other long‑term benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2  Information about remuneration for senior executives

                   For the purposes of subsection 17CB(4), information about remuneration for senior executives must be included in the annual report in the following form:

 

 

 

Short‑term benefits

Post‑employment benefits

Other long‑term benefits

Termination benefits

Total remuneration

Total remuneration bands

Number of senior executives

Average base salary

Average bonuses

Average other benefits and allowances

Average superannuation contributions

Average long service leave

Average other long‑term benefits

Average termination benefits

Average total remuneration

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3  Information about remuneration for other highly paid staff

                   For the purposes of subsection 17CC(4), information about remuneration for other highly paid staff must be included in the annual report in the following form:

 

 

 

Short‑term benefits

Post‑employment benefits

Other long‑term benefits

Termination benefits

Total remuneration

Total remuneration bands

Number of other highly paid staff

Average base salary

Average bonuses

Average other benefits and allowances

Average superannuation contributions

Average long service leave

Average other long‑term benefits

Average termination benefits

Average total remuneration