Members' additional entitlements are separate from the Members’ basic salary, and other salaries and expense allowances paid to ministers and certain other office holders.  

In 2015–16, the Tribunal increased Members’ annual basic salary by 2.5 per cent to $153,280. It also increased some allowances such as the Electoral Allowance, Sydney Allowance, Logistic Support Allocation and Electorate Charter Transport Allocation by 2.5 per cent in line with the Members’ basic salary increase.  

The Logistic Support Allocation and Electorate Charter Transport Allocation for the electorate of Barwon was also increased by an additional $20,000. This reflected additional workload from the increased size and number of constituents after the 2015 State election.

Members’ Additional Entitlements Expenditure

Members claimed 3.5 per cent less expenditure in 2015–16 compared to 2014–15

Members’ additional entitlements expenditure was $21.4 million in 2015–16, 3.5 per cent lower than the previous year of $22.2 million.

For the year ended 30 June 2016, Logistic Support Allocation expenditure decreased by 25.4 per cent. The Department advises last year's expenditure was significantly higher than usual due to additional spending by Members prior to the March 2015 State election. Unexpended Logistic Support Allocation is forfeited at the end of each parliamentary term.  

The 2015–16 Sydney Allowance and Committee Allowance increased by 13.3 per cent and 12.3 per cent respectively, due to fewer sitting days and Committee activities in the prior year because of the State election.  

The Electorate Charter Transport Allocation almost doubled in 2015–16 due to the full year impact of electorate boundary re-distributions in 2015 and the $20,000 increase for the Barwon electorate.

Detailed findings

Sydney Allowance

One Member failed to return their unspent Sydney Allowance by the due date

For the year ended 30 June 2016, 16 Members spent less than the Sydney Allowance they received as an annual fixed amount and had to return around $93,100 by 30 September 2016 (18 Members and around $99,400 for the year ended 30 June 2015). One Member returned their unspent Sydney Allowance ($4,200) in the month following the 30 September 2016 deadline.

Some Members submitted their allowance reconciliations late

Members receiving the annual Sydney Allowance are required to submit reconciliations twice a year to the Department. Two Members submitted their mid-year reconciliations for Sydney Allowance in the month following the 31 January 2016 deadline and two Members submitted their year-end reconciliations in the month following the 31 July 2016 deadline.  

The Sydney Allowance is provided to Members if their principal place of residence is at least seventy kilometres by road from Parliament House or they reside in an outer non-metropolitan electorate. It compensates Members for additional costs associated with staying in Sydney to attend sessions of Parliament, meetings of Parliamentary committees or other Parliamentary business. At the start of each financial year, a Member can choose to receive the Sydney Allowance as either an annual fixed amount or a daily rate when an overnight stay is needed.

The significant increase in Electorate Communication Allowances paid in January and February 2015 was just before the 2015 State election. The Department received a significant number of requests before the communication blackout period took effect from 26 January 2015. It advised that due to the high volume, not all claims could be paid before the blackout period took effect.  

Members are not permitted to use their Electorate Communication Allowance for the production and distribution of publications (excluding general office correspondence) during the period from 26 January in a State election year to the election date – known as the 'blackout period'.  

The Electorate Communication Allowance provides Legislative Assembly Members with annual funding to meet the cost of preparing and distributing two newsletters per enrolled voter in their electorate. Members may issue additional newsletters subject to available funds in the Electorate Communication Allowance. The Department offers an appraisal service for draft newsletters to assist Members in complying with the Tribunal’s Determination and Parliament’s publication guidelines.  

The maximum Electorate Communication Allowance entitlement for the year ended 30 June 2016 was $82,630.

Logistic Support Allocation

Significantly higher use of Logistic Support Allocation before the 2015 State election

Members are not permitted to use their Logistic Support Allocation for the production and distribution of publications during the period from 26 January in a State election year to the election date.

There was a significant increase in Logistic Support Allocations paid in January and February 2015 prior to the 2015 State election. Members spent over $1.9 million from their Logistic Support Allocations in this two-month period. The Department advises that some of this expenditure was a flow over from Christmas related publications while the rest was generated by other publications produced and distributed before the blackout period prior to the 2015 election. Expenditure recorded in January, February and March will generally relate to expenditure incurred in November, December and/or January.  

The graph below compares Logistic Support Allocation expenditure by month over the last three years.  

The Logistic Support Allocation covers Members’ operational costs associated with their Parliamentary duties, which include transport, communication, printing and stationery costs. Members can use the Logistic Support Allocation to fund the cost of newsletters if they have no Electoral Communication Allowance funds left. Members can also carry forward unspent monies from one year to future years within their four-year term. At the end of their four-year term, unused Logistic Support Allocations are forfeited.

Legislative Assembly and Legislative Council Members and Recognised Office Holders are entitled to a Logistic Support Allocation as follows:

Pay TV Subscription Claims

One Member claimed their Pay TV subscription, which included children's channels

The 2015 Auditor-General's Report to Parliament recommended the Department document its policy on reimbursing 'Pay TV' subscription expenses as a result of identifying claims which included entertainment channels. Members should only claim costs associated with their Parliamentary duties. In October 2015, the Department issued a policy clarifying that claims are restricted to news, documentary or other channels related to a Member's parliamentary duties.  

The review for the year ended 30 June 2016 identified one Member claimed their Pay TV subscription, which included children’s entertainment channels. The claim identified was made before the Department issued its new policy.

Electoral Allowance

The Electoral Allowance is provided to Members to help meet the cost of performing parliamentary duties, including leasing or purchasing motor vehicles. This is paid to Members in equal monthly instalments and Members are not required to demonstrate to Parliament how, or if, they have spent this allowance. Members are, however, required to keep appropriate records for taxation purposes. This information was requested from Members when required for the purposes of the Auditor-General's review.

The Electoral Allowance payable to Legislative Assembly Members varies depending on the Members’ electorate.  

Loyalty and incentive schemes

Some Members completed their loyalty/incentive scheme declarations late

The review for the year ended 30 June 2016 found two Members that resigned in May 2016 did not submit their declarations until October 2016. The Tribunal's Determination requires former Members complete a declaration within 30 days of leaving Parliament. One Member did not complete their annual declaration, which was due by 30 June 2016, until November 2016.

Over the past few years there has been improvement in the completion of annual declarations.

The Tribunal’s Determination requires Members complete an annual declaration, stating benefits accrued by way of loyalty/incentive schemes, as a consequence of using their allowances and entitlements, were used for parliamentary duties and not for private purposes.

Internal Audit of Members’ Additional Entitlements

NSW Parliament has in place an internal audit program focusing on the administration and management of Members’ additional entitlements claims. Each year, NSW Parliament’s internal auditors select a sample of Members and test compliance with the Tribunal’s Determination. The 2015–16 internal audit report is not yet finalised. Once finalised, the Department has a process to share key learnings from annual internal audits with all Members.

Public reporting of Members' expenditure claims

Enhanced reporting of Members' expenditure claims is expected

Last year's Auditor-General's Report to Parliament recommended the Tribunal consider, as a part of the next Determination review process, requiring the Department to regularly publish full details of Members' expenditure claims on its website in an accessible and searchable format.  

It is expected that the Tribunal will address this recommendation when it issues its 2017 Determination. The Department advises it has examined the current reporting arrangements in other Parliaments within Australasia and some international jurisdictions and is preparing briefing material for the Parliament's Presiding Officers.

Details of Members' expenditure claims are not published and accessible by the general public. Members' allowances and expenditure are published once a year in the annual reports of the Legislative Assembly and Legislative Council. Amounts are only disclosed in aggregate for each Member by entitlement type.  

The Role of the Parliamentary Remuneration Tribunal

The Tribunal’s principal function is to determine Members’ and Recognised Office Holders’ additional entitlements. These additional entitlements fall into two categories:

• those in the nature of allowances
  • Electoral Allowance
  • Sydney Allowance
  • Committee Allowance.
     
• those in the nature of fixed allocations:
  • Electorate to Sydney Travel
  • Logistic Support Allocation
  • Electorate Communication Allowance for Legislative Assembly Members
  • Electorate Charter Transport for Legislative Assembly Members  
  • Travelling Allowance for Recognised Office Holders
                 - Equipment, Services and Facilities.

The additional entitlements determined by the Tribunal are separate from:

• Members’ annual basic salaries, set by the Tribunal
• additional salaries and expense allowances paid to ministers and certain other office holders, set out in Schedule One of the Parliamentary Remuneration Act 1989 as varying percentages of their basic salaries.