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Remuneration Tribunal Announces Review of Top Public Servant Salaries

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Tribunal Launches Review of Top Public Servant Salaries

The independent Remuneration Tribunal has announced a comprehensive review of salaries for Australia's highest-paid public servants, known as departmental secretaries. The 14-month review, scheduled for completion by mid-2027, will examine current remuneration arrangements, which have not been comprehensively assessed for nearly 15 years. Public consultation on the review is open until early June.

Review Announcement and Rationale

The Remuneration Tribunal, which sets salaries for federal MPs, judges, and top-level bureaucrats, stated the review is "timely and appropriate." In its announcement, the tribunal noted that remuneration for departmental secretaries has evolved over several decades in response to changes in work value, complexity, and public service-wide remuneration structures.

The tribunal expressed the view that confidence in the pay of public office holders could be lost if remuneration was no longer "credible, consistent and well-understood."

It stated it recognizes the "strong public interest" in the remuneration of senior public officials and is committed to ensuring arrangements remain "fair, transparent and aligned with contemporary expectations."

Current Salary Figures and Benefits

The review will focus on the base salaries of departmental secretaries, which currently range between approximately $828,550 and $1,035,690 per year.

  • Dr. Steven Kennedy, Secretary of the Department of the Prime Minister and Cabinet, receives the highest base salary of $1,035,690.
  • Jenny Wilkinson, Secretary of the Treasury, receives a base salary of $1,009,790.
  • Other departmental secretaries have base salaries ranging from $983,910 to $828,550.

In the 2024-25 financial year, seven secretaries received total remuneration exceeding $1 million. These positions also include additional benefits:

  • A settling-in allowance of up to $24,178.
  • A 12-month severance package if terminated before the end of their term.

Comparative Salary Context

For comparison, salaries for other senior public offices are:

  • Prime Minister: approximately $622,050 annually.
  • Opposition Leader: approximately $432,250 annually.
  • Backbench federal MP: $239,267 annually, following a 2.4% pay rise applied by the tribunal in June 2025.

Background and Previous Review

The last comprehensive review of departmental secretary salaries was conducted in 2012. That review concluded that departmental secretaries were underpaid at that time.

Political Context and Statements

The announcement of the review follows recent political debate on the topic.

  • In February, Tasmanian Senator Jacqui Lambie introduced legislation attempting to cap departmental secretary salaries at $430,000 per year. This legislative proposal was not supported by the Labor Party or the Coalition.

Independent ACT Senator David Pocock stated, "When departmental secretaries are earning close to 10 times the average Australian wage... questions have to be asked."

Senator Pocock said these salaries are "well beyond what counterparts in comparable countries are paid" and welcomed the tribunal's decision to review them.

Review Process and Timeline

  • Consultation Period: Responses to the tribunal's consultation paper are open until early June.
  • Review Duration: The review process is scheduled to take 14 months.
  • Completion: The tribunal aims to complete the review by mid-2027.