Introduction
This paper sets out the remuneration system for Commonwealth
departmental secretaries, which came into effect in 2012. The paper also
outlines arrangements for parliamentary department secretaries, including the
Clerk of the Senate and the Clerk of the House of Representatives. Remuneration
arrangements for other agency heads (e.g. statutory authorities) are not
covered by this paper.
For the previous arrangements see the 2013 version of this
paper, The
remuneration of Commonwealth departmental secretaries.
Current arrangements
On 25 June 2024 the Remuneration Tribunal issued Remuneration
Tribunal (Departmental Secretaries—Classification Structure and Terms and
Conditions) Determination 2024.
The Secretary
of the Department of the Prime Minister and Cabinet (DPMC) issued a new instrument of assignment on 3 July 2024. The changes
related solely to the names of portfolio departments.
Table 1: Current remuneration of departmental
secretaries
| Level |
Pay
point |
1
July 2024
| Department |
| Level 1 – |
$1,011,410 |
Prime Minister
and Cabinet |
| Level 2 – |
$986,120 |
Treasury |
| Level 3 |
1 |
$ 960,840 |
Defence;
Foreign Affairs and Trade; Home Affairs; Infrastructure, Transport, Regional
Development, Communications and the Arts |
| 2 |
$ 910,270 |
Agriculture,
Fisheries and Forestry; Attorney-General’s; Climate Change, Energy, the
Environment and Water; Education; Employment and Workplace Relations;
Finance; Health and Aged Care; Social Services |
| Level 4 |
1 |
$ 859,700 |
Industry,
Science and Resources |
| 2 |
$ 809,130 |
Veterans’
Affairs |
Source: Remuneration Tribunal Determination
2024 and Secretary,
Department of the Prime Minister and Cabinet, Remuneration Tribunal Act 1973 Instrument
of Assignment under section 14(3), 3
July 2024.
Background—Remuneration Tribunal review of the
office of secretary
In 2010–11, the Remuneration Tribunal (the Tribunal) conducted
a review of the office of departmental secretary, which included surveys of the
work value
and remuneration of the office. In its two reports
the Tribunal considered various aspects of secretaries’ roles including
classification, remuneration, and work value, and advanced a number of reforms.
The Tribunal noted that the proposed remuneration increases were ‘substantial’,
but also stated
that:
… Secretaries' remuneration has been
well below where it should have been for many years. The Tribunal considers it
necessary that the remuneration of Secretaries should now be ‘rebased’ to correct
this.
Legal framework for secretaries’ remuneration
The Remuneration
and Other Legislation Amendment Act 2011 (ROLA Act) commenced from
July 2011. The ROLA Act amended a number of Acts including the Public Service
Act 1999 (PS Act) and the Remuneration
Tribunal Act 1973 (RT Act) and introduced a new framework for
secretaries’ remuneration. The Act also made changes to the remuneration
arrangements for other Australian Public Service (APS) offices and for parliamentarians.
Part 7,
specifically section 61, of the PS Act refers to the provisions for
remuneration and other terms and conditions for secretaries which are set out
in Division 4 of Part II of the RT Act (sections 13–16).
Notable features include a requirement for the Remuneration
Tribunal to determine a classification structure and individual classifications
of secretaries (Secretaries Determination), and a division of responsibility
between the Tribunal and the Secretary of DPMC regarding determining
remuneration amounts for secretaries.
Section 25 of
the Secretaries Determination was recently reformed to insert ‘exclusion events’,
which removes the eligibility for compensation for loss of office in certain
circumstances, such as breaching the APS Code of Conduct.
Initial determination and instrument of assignment
In March 2012, the Tribunal issued Determination 2012/06 Departmental
secretaries–classification structure and terms and conditions. The
determination established a new classification structure for departmental
secretaries, classified secretaries within the two tiers, set total
remuneration amounts for the secretaries of DPMC and the Treasury, and set
other overarching terms and conditions of employment for all secretaries.
The Secretary of DPMC’s instrument
of assignment (June 2013) set out several factors taken into account
relating to ‘the size and scope of each of the Offices of Secretary’ including:
- the diversity
and complexity of the functions and policy responsibilities in the portfolio
- the scale of the Department’s activities including its human,
financial and material
resources, and
-
the geographic spread of the Department and whether the
Department has responsibility for issues which impact across government.
The Secretary of DPMC stated that remuneration amounts were
‘not based on the performance of individual Secretaries’. The factors listed
above have been used for the setting of subsequent instruments of assignments.
Appendix A sets out the Determinations and Instruments of
assignments from 2013 to 2023.
Parliamentary departmental secretaries
Part 7 of the Parliamentary Service Act 1999 (the Act)
sets out the appointment and terms and conditions for the Clerk of the Senate,
the Clerk of the House of Representatives, the Secretary of the Department of
Parliamentary Services and the Parliamentary Budget Officer. The Presiding
Officers set the terms and conditions of employment of a secretary (other than
the Parliamentary Budget Officer).
Under section 64X of the Act, the Parliamentary Budget
Officer is appointed by the Presiding Officers, with the appointment approved
by the Joint Standing Committee on Public Accounts and Audit (section 64XA) and
remuneration determined by the Remuneration Tribunal (section 64XB).
Under the Act the Tribunal advises the Presiding Officers regarding
the terms and conditions of the heads of the parliamentary departments.
Table 2:
Current remuneration of parliamentary departmental secretaries
Source:
compiled by the Parliamentary Library; at the time of writing the Determination
for the Clerk of the House of Representatives for 2024 was not available on the
Federal Register of Legislation.
Appendix A: Determinations and Instruments
of assignments from 2013 to 2023