To view or download this policy as a PDF click Employee and Employment Related Policies Documents

Purpose

1. To clarify the provision of allowances, benefits, and gifts to the CEO.
2. To inform the CEO of their entitlements.

Scope

This policy is to define and clarify allowances, benefits, and gifts the CEO is entitled to receive and how to decline gifts outside of the policy limits.

Definition and Terms

Allowance: The sum of money permitted to be paid to the CEO to meet the needs of specific expense, for example relocation allowance.

Benefit: An entitlement which is believed to or perceived to be of value to the person receiving, for example, the use of a computer for personal use.

Fringe Benefit: An extra benefit supplementing an employee's money, wage, or salary, for example a company car.

Gift: An item of value given to the CEO by a supplier, elected member of Council, or other persons, for example, event tickets, clothes, vouchers, and alcohol.

Legislation and Reference

Local Government Act Northern Territory 2019, Section 174 (1) & (2)
Local Government (General) Regulations Northern Territory 2021 regulation 6(1)(g)
Annual Leave Act Northern Territory 1981
Local Government Guidelines Northern Territory
CDRC Code of Conduct (CEO) Policy
CDRP Professional Development & Vehicle Policies

Policy Statement

Allowances and Benefits

The position of CEO allows for specific allowances and benefits to improve or individualise the total remuneration package.

1. The CEO salary will be paid fortnightly, in arrears, by electronic funds transfer to an account nominated by the CEO.
2. A Council owned vehicle may be used for private use by the CEO for periods including travel to and from work locations, annual leave, long service leave, and all other paid and approved unpaid leave.
   Private use of the vehicle during unapproved, unpaid leave is not permitted.
   1. CDRC will pay for fuel costs, registration, insurance, maintenance, and repairs for all approved business and personal use for the Council owned vehicle. The CEO must keep the Council owned vehicle clean.
   2. The Council owned vehicle assigned to the CEO may be driven by the CEO’s partner or other nominated person approved by Council.
   3. All drivers of Council owned vehicles shall be fully licensed drivers who must follow all applicable laws of vehicle operation.
3. Superannuation will be deposited into the fund, nominated by the CEO, fortnightly. Council will contribute funds in accordance with the terms and conditions of the CEO Contract and Council policy, the Local Government Act, and any other written law. The CEO may contribute funds from their normal salary to increase the amount deposited into their Super fund as part of a salary sacrificing arrangement
4. Travel accommodation and expenses associated with professional development can be reimbursed upon approval by Council.
5. The full cost of a mobile phone for out of office business use only.
6. A computer and other Council approved equipment and devices can be made available for out of office business use.
7. A professional development allowance, of $3,000 to $5,000 per annum, to cover reasonable fees and subscriptions related to professional associations or bodies and memberships required by law that directly assist the CEO fulfil the functions of their duties and responsibilities can be covered at Council’s discretion.
8. The valuation of annual leave loading will be in accordance with the Annual Leave Act or other relevant legislation, whichever is higher.
9. CDRC will pay fringe benefit tax that may apply as a result of a payment of any component of the remuneration package, a payment of any additional benefits, or a payment or reimbursement of expenses incurred by the CEO performing the functions of their role.
10. Relocation expenses can be reimbursed, up to the maximum cost of $10,000, if the CEO supplies supporting documentary evidence for reasonable costs associated with the relocation of furniture, household goods, personal effects, the transport of vehicles, and travel costs of the CEO, partner, and immediate family.
    1. Relocation expenses must be repaid to Council if the CEO’s employment ends within the first 12 months due to resignation or termination.
11. The CEO’s Total Remuneration Package shall be reviewed annually by a Reviewer nominated by Council and the Reviewer will consider performance, changes in responsibilities, the average hours worked by the CEO, the market conditions, and the capacity of the Council to pay an increase.
    Council is not obligated to increase the Remuneration Package but they are not able to reduce the package.
12. Additional expenses must be approved by Council when presented with proper evidence documenting a necessary business expense.

Gifts

The CEO may accept gifts from time to time as long as the gift is of nominal value and the circumstances of offering and receiving the gift align to this policy and all relevant legislation.

1. The CEO, must at all times, discharge the official duties, responsibilities, and obligations impartially and with integrity in relation to receiving, accepting, and disclosing gifts and benefits.
2. The CEO must not accept a gift or benefit from any person or organisation, which may be perceived by a reasonable person to influence the CEO’s performance in an official capacity.
3. The nominal value for a gift is set at $150 from one donor or an associate of the same donor per financial year.
4. A register of all gifts will be kept by CDRC to include a description of gift, value, and the donor name/organisation. The gifts registry will be presented to the Finance Manager quarterly. The Finance Manager would bring any irregularities to Council’s attention and Council will investigate and act accordingly.
5. Any gift above the nominal value within the financial year must be returned to the donor with an explanation.
   1. The explanation will be recorded on the gifts register.

Review History