Proposals to pay a public entity executive above their remuneration band

The Tribunal has developed and approved the following forms for employers to request its advice. The forms require employers and executives to provide certain information to the Tribunal about the proposal to remunerate above the band. Further information is available in the Tribunal’s accompanying Guide.

To request the Tribunal’s advice on a proposal to pay an executive above the maximum of the relevant remuneration band, an employer must complete and submit the appropriate form:

Form A: New executive positions, where the executive is not known.

Form B: New executive appointments, re-appointments and mid-contract adjustments, where the executive is known.

This Guide explains the process for seeking the Tribunal’s advice and how to complete the Request for Advice forms.

The Guide details a set of Guiding Principles and core information against which employers are requested to provide statements and evidence to support the proposal. The Tribunal will assess a proposal against these Guiding Principles. The Tribunal may also consider relevant benchmarking data held by the Tribunal’s Secretariat or seek further information from independent experts.

To support greater transparency, accountability and evidence-based decision-making in relation to remuneration arrangements the Tribunal, where appropriate, the Tribunal publishes the advice provided to employers. Periodic summaries of the advice may also be published elsewhere (such as in the Tribunal’s annual report).

The Tribunal’s approach to the publication of advice in relation to Form A and Form B requests is detailed in the Guide.

General information on the Tribunal’s Privacy Policy is available on the About page.

Employers may be required to increase an executive’s superannuation benefits to comply with the Superannuation Guarantee (Administration) Act 1992 (Cth). The Tribunal considers that the employer is not required to seek the Tribunal’s advice under section 37 of the VIRTIPS Act where that increase to an executive’s superannuation benefits results in:

• an executive, who was not previously paid above the maximum of the relevant remuneration band in the Determination, being paid above the maximum of the remuneration band
• an executive, who is currently paid above the maximum of the relevant remuneration band in the Determination, being paid further above the band.

The Tribunal considers that this does not constitute a “proposal” to pay above the remuneration band given the employer is giving effect to statutory provisions regarding superannuation benefits.

The Tribunal considers that an employer is not required to seek the Tribunal’s advice under section 37 of the VIRTIPS Act where an executive has been reclassified under the Victorian Public Entity Executive Classification Framework during their contractual term, and this results in the executive being paid above the band.

The Tribunal considers that this does not constitute a “proposal” to pay above the remuneration band given contractual arrangements are already in effect.

An employer must seek the Tribunal's advice under section 37 if it proposes to continue paying the executive above the maximum of the relevant band on re-appointment of the executive or as a result of a mid-contract remuneration review or if there is a new appointment.

to be added

TO BE REWRITTEN Please note that the advices published are those requested and provided to employers since the Prescribed Public Entities Determination in December 2020. The Tribunal has not published its advice for executives that were already employed and paid above the band when the Determination was made. This accounts for the discrepancy in the numbering of the advices below. The advice provided by the Tribunal in relation to existing executives paid above the band at the time of the Determination was that remuneration arrangements should continue until the contract expires, is amended, or is renewed. The Tribunal notes that its advice must be sought again for a mid-contract remuneration adjustment, reappointment, or new appointment, if it is proposed to continue paying the executive above the remuneration band.