Explanatory memorandum
This memorandum is not part of the determination, but is intended to indicate its general effect.
This determination, which is deemed to have come into force on 1 January 2009, sets the rate at which the Governor-General's salary is payable. From 1 January 2009, the salary is payable at the rate of $188,462 a year. From 1 April 2009, the salary is payable at the rate of $191,645 a year.
The determination strikes a balance between the Remuneration Authority's statutory obligation to be fair to the person whose remuneration is being determined and the Governor-General's expressed wish not to receive a salary increase this year.
The Authority must determine the Governor-General's salary on the basis that it is exempt from income tax. In reaching a determination, the Authority first establishes a notional gross salary. This enables comparisons to be made with remuneration market information (including information on the remuneration of other comparable positions for which the Authority has salary-setting responsibility). The gross salary thus derived is then converted into a tax-free salary by applying the current personal income tax rates and threshold levels.
In making this determination, the Authority has applied, to the Governor-General's notional gross salary for 2008, the changes in the personal income tax rates and thresholds which came into effect on 1 October 2008, and which will come into effect on 1 April 2009. The effect is that the Governor-General's remuneration is being adjusted to place it on the same basis as that of any salaried person who receives no increase in his or her taxable remuneration from 2008 to 2009, but who does benefit from the 1 October 2008 and 1 April 2009 adjustments in taxation rates and thresholds.
This determination expires on 31 March 2010.