Philip Ruddock (Berowra, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Federal Magistrates Amendment (Disability and Death Benefits) Bill 2006 amends the Federal Magistrates Act 1999 to provide disability cover and death benefits for federal magistrates, as current arrangements for federal magistrates provide no specific entitlements in the event of retirement on the grounds of disability or death.

When the Federal Magistrates Court was established in 2000 it was the government’s intention to create a low-cost court. In keeping with this intention, federal magistrates were not covered by the Judges’ Pensions Act 1968.

Instead, federal magistrates are entitled, by a determination made by the Governor-General under the Federal Magistrates Act, to a superannuation contribution by the Commonwealth. This contribution is currently an amount equal to 13.1 per cent of salary and is paid to the magistrate’s choice of either a complying superannuation fund or a retirement savings account.

The current arrangements for federal magistrates are potentially problematic, particularly with regard to the lack of insurance against disability. Federal magistrates hold office until the age of 70 unless they resign or are removed by the parliament on the ground of proven misbehaviour or incapacity. In the absence of adequate protection in the event of serious disability, a federal magistrate whose performance is significantly impaired for medical reasons may nonetheless be unwilling to resign.

The bill amends the Federal Magistrates Act to provide that, where the Attorney-General certifies that the resignation of a federal magistrate is due to permanent disability or infirmity, a pension of 60 per cent of salary would be payable to the federal magistrate until he or she attains the age of 65 or dies, whichever occurs first. 

The Commonwealth would continue to contribute to the federal magistrate’s superannuation while the invalidity pension was being paid. This would ensure that Commonwealth provided superannuation support for an incapacitated magistrate would be the same as if the magistrate had continued to work to age 65, or if the former magistrate dies before the age of 65, until the time of the former magistrate’s death.

The bill also amends the Federal Magistrates Act to provide death benefits for federal magistrates. Where a federal magistrate dies in office, or a former federal magistrate in receipt of an invalidity pension dies before reaching the age of 65, a lump sum covering the period between the date of death and age 65 is payable to the magistrate’s spouse and dependent children.

The lump sum would be equal to the superannuation contributions the Commonwealth would have made, if the federal magistrate or former federal magistrate had not died, during the period between the federal magistrate’s death and the magistrate’s 65th birthday. The lump sum would be based on the salary payable to the magistrate at the time of their death. Where a former magistrate was in receipt of an invalidity pension prior to death, the lump sum would be based on the salary of a serving magistrate at the time of the former magistrate’s death.

The bill provides federal magistrates, their spouses and dependants with income protection and death benefits that have until now been lacking. The government acknowledges the significant contribution that magistrates make to the efficient federal civil justice system and is committed to ensuring that they are provided with fair and adequate remuneration and conditions.

I commend the bill to the House and I table the explanatory memorandum.

Debate (on motion by Ms Roxon) adjourned.