Cabinet approved a number of reforms to NSW Government boards and committees on 2 October 2012. These reforms include the introduction of a new framework to guide decisions about the remuneration of individual boards and committees.

The new framework and guidelines are contained in the Classification and Remuneration Framework for NSW Government Boards and Committees (the Framework). The Framework is part of the Government's wider reforms to governance arrangements for NSW Government entities.

The Framework aims to ensure a consistent, equitable and fiscally responsible approach to determining fees payable to part time board chairs and members. It includes a classification structure (principles, criteria and levels by which to categorise different types of boards and committees) and a remuneration structure (fee levels for the different classifications).

Summary of reforms

The reforms include the following staged set of changes to board and committee remuneration arrangements:

• an immediate freeze on fees – daily and annual – for existing boards and committees until 1 July 2014

• classification of all new and existing boards and committees according to the approved classification and remuneration structures i.e. the Classification and Remuneration Framework for NSW Boards and Committees

• adjustment of fees for existing board and committee chairs and members from 1 July 2014 to reflect rates in the new remuneration structure, subject to the outcomes of consultation with Ministers

• an increase of 2.5 per cent to fees, to take effect on 1 July 2014, with subsequent annual increases between zero and 2.5 per cent subject to Cabinet approval.

Guidelines to assist agencies implement the classification and remuneration framework are provided in the Public Service Commission Directive - Classification and Remuneration Framework for NSW Government Boards and Committees.

Coverage

All boards and committees, where appointments require Ministerial approval, are covered by the Classification and Remuneration Framework for NSW Government Boards and Committees, except for Crown Lands Trusts.

A list of existing boards and committees to which The Framework applies, with current fees, is available on the Public Service Commission website at NSW Government Boards and Committees.

Transition arrangements

For existing boards and committees, there is an immediate freeze on fees until 1 July 2014, when the new structure will come into effect. In the meantime, the Public Service Commissioner will consult with Ministers to finalise the initial allocation of entities into the Framework. This will be completed by 30 June 2013 allowing 12 months notice to board and committee members of any fee changes.

New boards and committees must be classified and remunerated in accordance with the Classification and Remuneration Framework for NSW Government Boards and Committees as part of the establishment process for the proposed entity.

Barry O'Farrell MP
Premier