House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Bills Parliamentary Remuneration (Basic Salary) Amendment Bill PARLIAMENTARY REMUNERATION (BASIC SALARY) AMENDMENT BILL Introduction and First Reading Introduction and First Reading The Hon. J.J. SNELLING House of Assembly Playford Minister for Workers Rehabilitation Minister for Defence Industries Minister for Veterans' Affairs The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:37): Obtained leave and introduced a bill for an act to amend the Parliamentary Remuneration Act 1990. Read a first time. Second Reading Second Reading The Hon. J.J. SNELLING House of Assembly Playford Minister for Workers Rehabilitation Minister for Defence Industries Minister for Veterans' Affairs The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (15:37): I move: That this bill be now read a second time. The current provisions of the Parliamentary Remuneration Act 1990 provide that state parliamentarians have a base salary that is automatically linked to the base salary payable to a federal parliamentarian, less $2,000 per annum. Last year, the Commonwealth Remuneration Tribunal undertook a review of the base salary of federal parliamentarians. The tribunal determined on 12 March 2012, that the base salary of federal parliamentarians will increase from $140,910 to $185,000, with some offset to allowances. If there are no amendments to the act, the base salary of state parliamentarians will automatically increase to $183,000 on 1 July, 2012. This would see a benefit in excess of $40,000 flowing to state members of parliament. A salary increase of that magnitude is not acceptable to the state government. The state government, therefore, introduced and passed legislation late last year to freeze the pay of state parliamentarians until 30 June 2012, temporarily pausing the link between the basic salary rate of a federal parliamentarian to that of a state parliamentarian. This bill maintains the link between the base salary of state parliamentarians to that of federal parliamentarians. However, to avoid a significant increase in salaries, it will set the difference between the base salary of state and federal parliamentarians at $42,000 from 1 July 2012. This will mean the base salary of South Australian parliamentarians will be $143,000 per annum from 1 July 2012, an effective increase of 2.9 per cent. I commend the bill to members and I seek leave to have the explanation of clauses inserted into Hansard without my reading. Leave granted. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Amendment provisions These clauses are formal. Part 2—Amendment of Parliamentary Remuneration Act 1990 3—Amendment of section 3—Interpretation This clause provides a new definition of basic salary to apply for the period between commencement of the measure and 30 June 2012 (being the basic salary payable immediately before commencement of the measure). Debate adjourned on motion of Mr Pederick.