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2022-2025
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
REMUNERATION TRIBUNAL AMENDMENT
(THERE FOR PUBLIC SERVICE, NOT PROFIT) BILL 2025
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Lambie)
REMUNERATION TRIBUNAL AMENDMENT (THERE FOR PUBLIC
SERVICE, NOT PROFIT) BILL 2025
OUTLINE
The levels of remuneration for Australian Government department secretaries, holders of
public office or principal executive office have been allowed to rise to excessive levels. Most
departmental secretaries are currently paid more than $900,000 per annum, with some
receiving seven figure remuneration packages. All earn much more than the Prime Minister.
Decisions about secretaries' remuneration are taken by the Remuneration Tribunal with little
public scrutiny or accountability.
The Bill will end the excessive remuneration paid to departmental secretaries and other
public office holders by amending the Remuneration Tribunal Act 1973 (the Remuneration
Tribunal Act) to set a statutory limit on remuneration of $430,000. Any variation from that
limit will be a direct political responsibility of the government of the day and will be subject
to parliamentary disallowance.
NOTES ON CLAUSES
Clause 1: Short Title
1. Clause 1 is a formal provision specifying that the short title of the Bill may be cited
as the Remuneration Tribunal Amendment (There For Public Service, Not Profit) Act 2025.
Clause 2: Commencement
2. Clause 2 provides for the commencement of the Bill to be the day after the Act
receives the Royal Assent.
Clause 3 - Schedules
3. Clause 3 provides that the legislation specified in a Schedule to the Bill is amended or
repealed as is set out in the applicable items in the Schedule. Any other item in a Schedule to
the Bill has effect according to its terms.
Schedule 1--Amendments
Remuneration Tribunal Act 1973
Item 1 - After subsection 7(3)
4. Subsection 7(3) of the Remuneration Tribunal Act inter alia empowers the Tribunal to
inquire into, and determine, the remuneration to be paid to the holders of public offices other
than holders of those offices who are members of, or candidates for election to, either House
of the Parliament. A public office is defined by subsection 3(4) of the Act and includes the
Chief of the Defence Force, the Deputy Chief of the Defence Force and the chiefs of the
Australian Army, Royal Australia Navy and the Royal Australian Air Force.
5. Item 1 inserts after subsection 7(3) a new subsection (3AAA) that provides that an
amount of remuneration determined by the Remuneration Tribunal under subsection (3) to be
paid to the holder of a public office for a year must be less than $430,000, unless the Minister
responsible for administration of the Act prescribes a different amount for that year.
6. The specified amount of $430,000 remuneration per annum will place the
remuneration of public office holders below that of the Federal Treasurer. This is a
reasonable and proportionate remuneration benchmark that reflects the responsibilities of
these senior executives in the broader context of the Australian public sector and democratic
governance. The amendments further provide a measure of flexibility in also allowing the
Minister responsible for administration of the Remuneration Tribunal Act to prescribe a
remuneration amount.
Item 2 - Subsection 7(3F)
7. Consistent with item 1, item 2 repeals subsection 7(3F) of the Remuneration Tribunal
Act and substitutes a new subsection which provides that in determining the terms and
conditions as to the remuneration or band of remuneration that is to be applicable to a
classification within a classification structure for holders of a principal executive office, the
Tribunal must have regard to the superannuation entitlements of the holders of principal
executive offices assigned to the classification; determine an amount of remuneration, or
maximum amount in a band of remuneration, for a year that is less than: $430,000, unless the
Minister prescribes a different amount for the year.
Item 3 - After section 7
8. This item inserts after section 7 of the Remuneration Tribunal Act a new section 7A
that provides that the Minister may, by legislative instrument, prescribe a remuneration
amount for a public office holder for a year. Such an instrument that prescribes an amount for
a year is of no effect in relation to that year unless the instrument is made on or before 1 July
in the preceding year. A legislative instrument must be tabled in both Houses of the
Australian Parliament and is subject to disallowance. As a consequence, the Minister will be
politically accountable to Parliament for any variation from the $430,000 per annum limit and
Parliament will retain ultimate authority over the maximum remuneration available to holders
of public office.
Item 4 - Subsection 12C(2)
9. This item amends subsection 12C(2) by removing the power of the Remuneration
Tribunal to give written consent to a Commonwealth employing body determining terms and
conditions in respect of a principal executive office that are inconsistent with terms and
conditions determined by the Tribunal under subsection 7(3D) in respect of the classification
to which the office is assigned together if they are doing similar things. This measure is to
ensure that no 'backdoor' arrangements are made to circumvent the remuneration limit(s) set
by the Bill.
Item 5 - At the end of section 13
10. Section 13 of the Remuneration Tribunal Act requires the Tribunal to
determine a classification structure for offices of departmental secretary and sets out
requirements for that process. Consistent with the purpose of the other amendments in this
Schedule, item 5 inserts three new subsections (6) to (8) at the end of section 13 that provides
that a classification structure must not set an amount of remuneration for a year for a
classification that is more than $430,000 or a different amount the Minister prescribes by
legislative instrument for the year. Such an instrument that prescribes an amount for a year is
of no effect in relation to that year unless the instrument is made on or before 1 July in the
preceding year.
Item 6 - Application
11. Item 6 provides that the amendments to the Remuneration Tribunal Act made by the
Schedule apply to determinations made under that Act on or after the commencement of this
item. This provision ensures there is no retrospective impact on Tribunal determinations.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Remuneration Tribunal Amendment (There for Public Service, Not Profit) Bill 2025
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
This Bill limits remuneration paid to Australian Government department secretaries, holders
of public office or principal executive office. It does this in a transparent way and does not
have any retrospective aspect.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senator Lambie