House debates

Thursday, 9 August 2007

Federal Magistrates Amendment (Disability and Death Benefits) Bill 2006

Consideration in Detail

Bill—by leave—taken as a whole.

11:01 am

Photo of Philip RuddockPhilip Ruddock (Berowra, Liberal Party, Attorney-General) Share this | | Hansard source

I present a supplementary explanatory memorandum to the bill and—by leave—I move amendments (1) to (7):

(1)    Schedule 1, item 2, page 3 (line 13), after “retired”, insert “disabled”.

(2)    Schedule 1, item 13, page 5 (line 22), omit “65 years”, substitute “70 years”.

(3)    Schedule 1, item 13, page 6 (line 6), omit “65 years”, substitute “70 years”.

(4)    Schedule 1, item 13, page 6 (lines 23 to 25), omit subclause 9B(4) of Schedule 1, substitute:

        (4)    For the purposes of subclause (2), the annual rate of salary is the annual rate of remuneration determined under clause 5:

             (a)    excluding any allowances that are paid in lieu of any other entitlement; and

             (b)    if any arrangements have been entered into for any amount of the annual rate of remuneration (other than an allowance covered by paragraph (a)) to be provided in the form of another benefit—including that amount.

(5)    Schedule 1, item 13, page 7 (line 6), after “retired disabled Federal Magistrate”, insert “who has not attained the age of 65 years”.

(6)    Schedule 1, item 13, page 9 (line 24), after “retired”, insert “disabled”.

(7)    Schedule 1, item 13, page 11 (line 17), after “retired”, insert “disabled”.

I have acknowledged the very significant contribution of federal magistrates to an efficient federal civil justice system and our commitment to ensuring that they are provided with fair and adequate conditions. The bill was the subject of some committee consideration and, as a result of the committee’s deliberations, certain amendments were suggested. These amendments are those proposed by the government to deal with the issues raised in the report by the Senate Legal and Constitutional Legislation Committee. The government amendments give effect, so far as is consistent with government policy, to the recommendation made that the age limit specified in the bill, limiting eligibility for disability cover and death benefits, be raised from 65 to 70 years. The government amendments implement the committee’s recommendation to pay a pension to retired and disabled federal magistrates to the age of 70. This amendment is in line with the government’s view that the public interest is served by ensuring that federal magistrates with disabilities which prevent them from performing their duties may retire with adequate financial provision.

The age limit specified in the bill limiting eligibility for superannuation contributions for retired and disabled federal magistrates to age 65 would, however, remain. This is because the superannuation industry supervision legislation generally precludes superannuation funds from accepting contributions made in respect of members who have attained the age of 65 and who are no longer working. As the death benefits are equivalent to the amount of superannuation contributions that federal magistrates, or retired disabled federal magistrates, would have received from the date of death to age 65, for similar reasons it would be inappropriate to make a benefit payable beyond age 65.

The committee also recommended that benefits payable to an eligible spouse or children under the bill, when a federal magistrate dies in office or a retired disabled federal magistrate dies, be reviewed to provide more adequate compensation payments. The government considers the bill provides satisfactory compensation payments. If a magistrate who is not disabled chooses to retire before age 65 and then dies, no additional benefits are payable to the former magistrate’s dependants. It would be anomalous to provide additional benefits where a magistrate dies in office or a retired disabled federal magistrate dies.

Question agreed to.

Bill, as amended, agreed to.

Ordered that this bill be reported to the House with amendments.