What it does
This Act creates a statutory entitlement to a lump-sum payment, commonly described as a long leave payment, for certain federal judicial officers on retirement or on death. The Act specifies who counts as a Judge for the purpose of the entitlement (see s 3), the base unit of pay (the judicial salary defined as 1/52 of the annual salary immediately before retirement or death, s 3), the method of calculating the amount payable (s 4(2), (2A)-(2C)), who receives the payment on death or on retirement (s 5), the source of funds (s 6) and an exclusion where the Judge is removed under constitutional or similar provisions unless the Governor‑General directs otherwise (s 7).
Mechanically, the principal rule is in s 4. For a Judge who retires after at least 10 years’ service, the payable amount equals the Judge’s weekly judicial salary multiplied by a period that is the lesser of: 52 weeks; or 5.2 weeks for each completed year of qualifying service (s 4(1)-(2)). Death triggers the same calculation but without the 10 year minimum: an amount is payable on death whether or not the deceased had completed 10 years’ service (s 4(1)(b)). Two special categories create entitlements where the standard 10 year rule does not apply. First, where a Judge ceases to hold office on attaining a particular age and has at least 6 years’ service at that point, the payment is calculated at 5.2 weeks per completed year of qualifying service (s 4(2A), (2C)). Second, where a non-10-year Judge retires for permanent disability or infirmity and the Attorney‑General certifies the retirement under the Judges’ Pensions Act 1968 s 6, the payment is again calculated at 5.2 weeks per completed year of qualifying service (s 4(2B), (2C)). The Act also clarifies that qualifying service excludes periods for which a Judge has taken long leave or has been paid in lieu of such leave (s 4(3)).