Updated 16 February 2022
PDF version [350KB]
Dr Nicholas
Horne and Cathy Madden
Politics and Public
Administration Section
Contents
Introduction
Background—Remuneration Tribunal
review of the office of secretary
Legal framework for secretaries’
remuneration
Initial determination and instrument
of assignment—March 2012
Determination and instrument of
assignment—June 2013
Determination and instrument of
assignment—2014
Determination—March 2015
Determination and instrument of
assignment—December 2015
Determination—December 2016
Determination—June 2017
Determination—June 2019
Current determination
Parliamentary departmental secretaries
Conclusion
Introduction
In 2012 new arrangements regarding the
remuneration of Commonwealth departmental secretaries came into effect. This
paper sets out the revised system. The paper also outlines the separate
arrangements for the secretaries of the parliamentary departments, including
the Clerk of the Senate and the Clerk of the House of Representatives.
Remuneration arrangements for other agency heads (for example heads of
statutory authorities) are not covered by this paper.
For the previous arrangements for
setting the remuneration of departmental secretaries see an earlier version of
this paper, The remuneration of Commonwealth departmental secretaries.[1]
Background—Remuneration Tribunal
review of the office of secretary
In 2010–11, the Remuneration Tribunal
conducted a review of the office of departmental secretary, which included
commissioning a consultant to undertake surveys of the work value and
remuneration of the office.[2] In
its two reports the Tribunal considered various aspects of secretaries’ roles
including classification, remuneration, and work value, and advanced a number
of proposals including:
- preservation of
the two-tier remuneration structure for secretaries, with a revised
classification of secretary positions between the two tiers and featuring
separate, higher levels of remuneration within tier 1 for the Secretary of
Department of the Prime Minister and Cabinet (DPMC) (proposed tier 1A) and the
Secretary of the Department of the Treasury (Treasury) (proposed tier 1B)
- three remuneration pay points
within the main stratum of tier 1 and within
tier 2
- remuneration of
the secretaries of DPMC and Treasury to be determined by the Remuneration
Tribunal and remuneration of other secretaries to be determined by the
Secretary of DPMC, and
- the phasing-in of the full remuneration
structure by 2014 via staged pay increases.[3]
The
Tribunal expressed the view (and had done so previously) that secretaries’
remuneration was inadequate, and identified increased remuneration amounts,
both initially and over time, as part of its proposals.[4] The Tribunal noted
that the proposed remuneration increases were ‘substantial’, but also stated
that:[5]
…
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.[6]
Legal framework for secretaries’
remuneration
In June
2011 the Remuneration and Other Legislation Amendment Act 2011 (ROLA
Act) was passed by the Parliament (commenced July 2011).[7] 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.[8] The Act also made changes to the
remuneration arrangements for other Australian Public Service offices and for parliamentarians.
The current version of section
61 of the PS Act, as amended by the ROLA Act, provides that:
- The remuneration of a Secretary is as provided by Division 4 of
Part II of the RT Act.
- The
other terms and conditions applying to the appointment of a Secretary are as
determined by the Remuneration Tribunal under Division 4 of Part II of the RT Act.
The provisions of
Division 4 of Part II of the RT Act (sections 13–16), as inserted by the ROLA
Act, set out the current arrangements for secretaries’ remuneration. Notable
features include a requirement for the Remuneration Tribunal to determine a
classification structure for secretaries and individual classifications of
secretaries, and a division of responsibility between the Tribunal and the
Secretary of DPMC in regard to determining remuneration amounts for
secretaries. The requirements under Division 4 of Part II are summarised below.
Table 1: Current framework for departmental secretaries’
remuneration under Division 4 of Part II of the Remuneration Tribunal Act
1973
| Decision-maker |
Classification of secretaries |
Remuneration and related matters |
|
Remuneration Tribunal
|
- must
determine a classification structure for secretaries and periodically
determine secretaries’ classifications within the structure (section 13)
-
may
determine any matters that are, or are considered by the Tribunal to be,
significantly related to the classification structure (section 13)
- may
hold inquiries for the purpose of performing its functions relating to the classification structure (section 13)
|
- must
periodically determine remuneration amounts for the secretaries of DPMC and
Treasury consistent with the classification structure (section 14)
-
must
periodically inquire into and determine the employment terms and conditions
(other than remuneration) for secretaries (section 15)
|
|
Secretary of DPMC
|
- may,
after the Remuneration Tribunal first determines secretaries’
classifications, periodically make recommendations to the Tribunal in
relation to the classifications of particular secretaries (section 13)
|
- must,
in consultation with the President of the Remuneration Tribunal and the
Australian Public Service Commissioner, periodically assign all departmental
secretaries (other than him/herself and the Treasury Secretary) an amount of
remuneration consistent with the Remuneration Tribunal classification
structure (section 14)
|
Source:
compiled by the Parliamentary Library.
Under section 16 of the RT Act,
determinations made by the Tribunal must: be in writing; come into effect on
the date specified; and must be gazetted and published on the Tribunal’s
website within 14 days after being made. Under section 14, assignments of remuneration
to secretaries by the Secretary of DPMC must also be in writing and also come
into effect on the date specified.
Initial determination and
instrument of assignment—March 2012
In March 2012, the Remuneration
Tribunal issued its first determination under the revised framework. 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
terms and conditions of employment for all secretaries.[9] Also in March
2012, the remuneration of secretaries other than the secretaries of DPMC and
Treasury was determined by the Secretary of DPMC in a separate instrument of
assignment.
As foreshadowed in the
Remuneration Tribunal’s review, the new classification structure comprised two
tiers of remuneration for secretaries including three pay points within tiers 1
and 2 and separate classifications at the top of tier 1 for the Secretary of
DPMC (tier 1A) and the Secretary of Treasury (tier 1B) with higher levels of
remuneration than in the main stratum of tier 1. This constituted a change to
the previous arrangements.
Whereas
previously the secretaries of DPMC, Treasury and the Department of Defence (Defence)
had all received the same level of remuneration, now remuneration for the
secretaries of DPMC and Treasury was set on an individual basis and the
Secretary of Defence was no longer classed with either of these secretaries but
was classified to the broader stratum of tier 1.
In relation to the classification of the
Secretary of Defence, the Remuneration Tribunal had previously expressed the
view that, given the shared accountability between the Secretary of Defence and
the Chief of the Defence Force (CDF), aligning the remuneration of the Defence
Secretary and the CDF was appropriate.[10] The
Tribunal determines the remuneration of the CDF, which is in line with the
remuneration structure of the Secretary of Defence.[11]
Determination and instrument of assignment—June 2013
In June 2013, the Remuneration Tribunal
issued a second determination and the Secretary of DPMC issued a second
instrument of assignment; both took effect on 1 July 2013 and superseded the
March 2012 determination and instrument. The new determination did not alter
the classification structure or the classification of individual secretaries
that had been set out in the March 2012 determination.
Under the Remuneration Tribunal
determination, the base salary is 70 per cent of total remuneration.[12]
The Secretary of DPMC’s instrument of
assignment stated that, in setting the remuneration amounts for secretaries in
tiers 1 and 2, several factors relating to ‘the size and scope of each of the
Offices of Secretary’ were taken into account 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’.[13]
The Secretary of DPMC stated that the setting of
remuneration amounts was ‘not based on the performance of individual
Secretaries’.[14] The factors listed
above have been used for the setting of subsequent instruments of assignments.
Determination
and instrument of assignment—2014
The Tribunal decided to determine no
annual adjustment to remuneration for offices in its jurisdiction from 1 July
2014. In addition, it decided to defer the final remuneration increases for a
number of offices that had been subject to comprehensive and detailed review by
the Tribunal, resulting in significant overall increases, that had been phased
in over the preceding years. This impacted secretaries, the Specified Statutory
Offices (SSOs), and a number of full time offices
that were granted remuneration increases as a result of the Tribunal’s major
reviews, completed in 2011 and 2012.[15]
In 2014 the Tribunal issued a
consolidated determination on Departmental Secretaries–classification
structure and terms and conditions.[16]
The Secretary of the DPMC issued
an instrument of assignment on 1 July 2014.
Determination—March
2015
On 31 March 2015 the Tribunal issued a
statement deferring its decision on any increases to annual adjustment to
offices in its jurisdiction until the latter half of 2015.[17] A
Determination was issued to give effect to the Tribunal’s decision that made no
annual adjustment to the remuneration for offices in its jurisdiction.[18] As
a result, remuneration levels remained at the 1 July 2014 level. The Appendix
indicates the classifications, pay points, and actual total remuneration
amounts; the pay points and remuneration amounts include specified six-monthly
increases through to December 2015.
Determination
and instrument of assignment—December 2015
In December 2015 the Tribunal issued
Determination 2015/16: Departmental Secretaries–classification structure and
terms and conditions, which provided for an increase in remuneration of two
per cent for departmental secretaries effective from 1 January 2016.[19] Part
of the reasoning for the Determination was that the Tribunal was concerned that
remuneration for secretaries, SSOs and a number of full time offices did not
once again decline relative to other public and private sector office holders.[20]
The Secretary of DPMC issued an
instrument of assignment on 23 December 2015, based on the same factors as
previous instruments, with effect from 1 January 2016.[21]
Determination—December
2016
On 7
December 2016 the Remuneration Tribunal issued Determination 2016/13: Departmental
secretaries–classification structure and terms and conditions.[22] The Determination took effect from 8 December 2016. The
Tribunal did not change the salary levels from the 2015 determination.
Determination—June
2017
On 22 June 2017 the Remuneration
Tribunal issued Determination 2017/06: Departmental
secretaries–classification structure and terms and conditions, which
provided for a two per cent increase in remuneration for departmental
secretaries.[23] The
Determination took effect from 1 July 2017.
The Secretary of DPMC issued an
instrument of assignment on 20 February 2018, with effect from 1 March 2018.[24]
Determination—June
2019
On 21 June 2019 the Tribunal issued Remuneration Tribunal
(Departmental Secretaries—Classification Structure and Terms and Conditions)
Determination 2019, with effect from 1 July 2019.[25] The Determination provided
for a two per cent increase in the remuneration of departmental secretaries.
Current
determination
The Tribunal
issued an amending Determination in January 2020 updating the
classification of offices of secretaries, with effect from 1 February 2020.[26]
The Secretary of the DPMC issued a new Instrument of Assignment on 29 January 2020, with effect from 1
February 2020.[27] The changes related
solely to the names of portfolio departments.
Consistent with its remuneration
review statement of 10 June 2021, the Remuneration Tribunal decided to make
no increases in remuneration for departmental secretaries from 1 July 2021.[28]
The Tribunal issued Remuneration
Tribunal (Departmental Secretaries–Classification Structure and Terms and
Conditions) Determination 2021 to implement this decision.[29]
Table
2: Current classification structure and total remuneration for specified pay
points
| Level |
Pay point |
1 July 2019 |
Department |
| Level 1A |
– |
$914,460 |
Prime Minister and Cabinet |
| Level 1B |
– |
$892,290 |
Treasury |
| Level 1 |
1 |
$864,580 |
Defence; Foreign Affairs and
Trade |
| 2 |
$820,240 |
Agriculture, Water and the
Environment; Education, Skills and Employment; Finance; Home Affairs; Health |
| 3 |
$775,910 |
Industry, Science,
Energy and Resources; Social Services |
| Level 2 |
1 |
$775,910 |
Attorney-General’s; Infrastructure,
Transport, Regional Development and Communications |
| 2 |
$720,480 |
Veterans’ Affairs |
Source: Remuneration Tribunal
Determination 2019 and Secretary, Department of the Prime Minister and Cabinet,
Remuneration Tribunal Act 1973 Instrument of Assignment under section 14(3),
29 January 2020.
Parliamentary
departmental secretaries
Part 7 of the Parliamentary
Services Act 1999 (the Act) sets out the appointment and terms and
conditions for the secretaries of the four parliamentary departments: 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
terms and conditions of employment of a secretary (other than the Parliamentary
Budget Officer) as set by the Presiding Officers are provided under section 63
of the Act:
63 Terms and conditions of appointment
- The terms and conditions of appointment of the Secretary of a Department are as determined by the Presiding Officers.
- For each determination, the Presiding Officers must seek the
advice of the Remuneration Tribunal and take that advice into account.
- Each
determination must be:
- published in
the Gazette within 14 days; and
- laid before
the appropriate House
of the Parliament as soon as practicable; after the determination is made.
- In this
section, appropriate House means:
- in relation to a determination relating to the Clerk of the Senate—the Senate; or
-
in relation to a determination relating to the Clerk of the House
of Representatives—the House of Representatives; or
- in relation
to a determination relating to any other
Secretary—the Senate and the House of Representatives.
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 provides
advice to the Presiding Officers in relation to the terms and conditions of the
Parliamentary Librarian and the heads of the parliamentary departments.[30]
In October 2012 the Presiding Officers
agreed with the President of the Remuneration Tribunal that the responsibility
they presently have for determining the remuneration of parliamentary service
statutory office holders should move to the Remuneration Tribunal.[31] This
followed the 2012 arrangements for the setting of remuneration and terms and
conditions for certain APS secretaries as discussed earlier in the paper. A
similar move for the parliamentary service office holders would require
legislative change. However this legislative change has not been acted upon.
Table
3: Current remuneration of parliamentary departmental secretaries
|
Secretary
|
Total annual remuneration
|
Date of Effect
|
|
Department of the House of Representatives
Department of Senate
Department of
Parliamentary Services
|
$443,390[32]
$443,390[33]
$443,370[34]
|
1 July 2019
1 July 2019
14 December 2020
|
|
Parliamentary
Budget Officer
|
$443,390[35]
|
1 July
2021
|
Source:
compiled by the Parliamentary Library
Conclusion
The 2011 amendments to the Remuneration
Tribunal Act changed longstanding arrangements for the setting of secretaries’ remuneration
and other conditions of employment. Under the amendments the Remuneration
Tribunal and the Secretary of the Department of Prime Minister and Cabinet have
joint responsibility for determining secretaries’ remuneration, and the
Tribunal also determines a classification structure for secretaries and other
conditions of employment. The Tribunal took the opportunity to recast the
classification of secretaries for remuneration purposes and to significantly
increase secretaries’ remuneration profile. The setting of remuneration and
conditions for the secretaries of the parliamentary departments remains
separate from that framework.
Appendix: Classification structure and total remuneration
amounts for all departmental secretaries (effective 1 July 2013 until 31
December 2015)
|
|
Total remuneration
|
|
Tier
|
Departmental secretary
|
Pay point
|
1 July 2013
|
1 Jan 2014
|
1 July 2014
|
|
1A
|
Prime Minister and Cabinet
|
—
|
$760,840
|
$802,820
|
$844,800
|
|
1B
|
Treasury
|
—
|
$746,500
|
$785,410
|
$824,320
|
|
1
|
Defence
|
1
|
$730,120
|
$764,420
|
$798,720
|
|
Education, Employment and Workplace Relations
Finance
and Deregulation Foreign Affairs and Trade Health and Ageing
|
2
|
$709,640
|
$737,800
|
$757,760
|
|
Families, Housing, Community Services and Indigenous
Affairs
Human Services
|
3
|
$680,960
|
$698,880
|
$716,800
|
|
2
|
Attorney-General’s
Immigration and Citizenship
Industry, Innovation, Climate Change, Science,
Research and Tertiary Education
|
1
|
$665,600
|
$691,200
|
$716,800
|
|
Agriculture, Fisheries and Forestry
Broadband, Communications and the Digital Economy
Sustainability, Environment, Water, Population and
Communities
|
2
|
$649,220
|
$670,210
|
$691,200
|
|
Infrastructure and Transport
Regional Australia, Local Government, Arts and Sport
Resources, Energy and
Tourism Veterans’ Affairs
|
3
|
$632,840
|
$649,220
|
$665,600
|
Sources:
Remuneration Tribunal, Determination 2013/14: departmental
secretaries—classification structure and terms and conditions,
Remuneration Tribunal, Canberra, 2013, p. 3; DPMC, Remuneration Tribunal Act 1973: instrument of
assignment under
section 14(3),
DPMC, Canberra, 2013, pp. 1–2.
[1]. N Horne, The remuneration of Commonwealth departmental secretaries, Research paper, 2013–14, Parliamentary Library, Canberra, 2013.
[2]. The review documentation can be accessed
on the Remuneration Tribunal website
‘Tribunal Statements’.
[3]. Remuneration Tribunal, Review of the office of
secretary: report—part I, op. cit., pp. ii–iii; Remuneration Tribunal, Review of the office of secretary: report—part II, Remuneration Tribunal,
Canberra, December 2011, pp. i–iii,
25–26.
[4]. Remuneration Tribunal, Review of the office of secretary: Report—Part II, ibid., pp. 18–28.
[5]. Ibid., preface p. 1.
[6]. Ibid.
[7]. See Remuneration and Other Legislation Amendment Act 2011 (ROLA Act).
[8]. Upon introduction of the ROLA Bill in Parliament the
Government indicated that the new remuneration framework for secretaries and
other APS offices was in fulfilment of a 2007 Australian Labor Party (ALP)
election commitment. See G Gray (Special Minister of State and Special Minister
of State for the Public Service and Integrity), ‘Second reading speech: Remuneration and Other
Legislation Amendment Bill 2011’,
House of Representatives, Debates, 24 March 2011, pp. 3156–59. See also
ALP, National platform and constitution 2007, ALP, Canberra, 2007, p. 185.
[9]. Remuneration Tribunal, Determination 2012/06: departmental secretaries—classification structure and terms and conditions, Remuneration Tribunal, Canberra, 2012.
[10]. Remuneration Tribunal, Review of the office of secretary: report—part II, op. cit., p. 26.
[11]. See Remuneration Tribunal, Determination 2013/08: specified statutory
offices—remuneration and allowances,
Remuneration Tribunal, Canberra, 2013, p. 5.
[12]. Remuneration Tribunal, Determination 2013/14: departmental secretaries—classification structure and terms and conditions, Remuneration Tribunal, Canberra, 2013, p. 2.
[13]. Department of the Prime Minister and Cabinet (DPMC), Remuneration
Tribunal Act 1973: instrument of assignment under section 14(3), DPMC,
Canberra, 2013, p. 1.
[14]. Ibid.
[15]. Remuneration Tribunal, 2014 Review of remuneration for holders of public
office, Statement, 12 May 2014,
Remuneration Tribunal, Canberra, 2014.
[16]. Remuneration Tribunal, Determination 2014/11: Departmental
secretaries–classification structure and terms and conditions, Remuneration
Tribunal, Canberra, 2014.
[17]. Remuneration Tribunal, 2015 Review of remuneration for holders of public
office, Statement, 31 March 2015,
Remuneration Tribunal, Canberra, 2015.
[18]. Remuneration Tribunal, Determination 2015/04 Departmental
secretaries–classification structure and terms and conditions, Remuneration Tribunal, Canberra, 2015.
[19]. Remuneration Tribunal, Determination 2015/16 Departmental
Secretaries–Classification Structure and Terms and Conditions, Remuneration Tribunal, Canberra, 9 December 2015.
[20]. Remuneration Tribunal, 2015 Review of Remuneration for Holders of Public
Office Second Statement, Remuneration
Tribunal, Canberra, 9 December 2015.
[21]. Department of the Prime Minister and Cabinet, Remuneration Tribunal Act 1973 Instrument of Assignment
under section 14(3), DPMC, 23 December 2015.
[22]. Remuneration Tribunal, Determination 2016/13: Departmental
secretaries–classification structure and terms and conditions, Remuneration
Tribunal, Canberra, 7 December 2016.
[23]. Remuneration Tribunal, Determination 2017/06: Departmental
secretaries–classification structure and terms and conditions, Remuneration
Tribunal, Canberra, 28 June 2017.
[24]. Department of the Prime Minister and Cabinet, Remuneration Tribunal Act 1973 Instrument of Assignment
under section 14(3), DPMC, 20 February 2018.
[25]. Remuneration Tribunal, Remuneration Tribunal (Departmental
Secretaries—Classification Structure and Terms and Conditions) Determination
2019, Remuneration Tribunal, 21 June
2019.
[26]. Remuneration Tribunal, Remuneration Tribunal (Departmental Secretaries—Classification Structure and Terms and
Conditions) Amendment Determination 2020, Remuneration Tribunal, 24 January 2020.
[27]. Secretary, Department of the Prime Minister and
Cabinet, Remuneration Tribunal Act 1973 Instrument of
Assignment under section 14(3), DPMC,
29 January 2020.
[28]. Remuneration
Tribunal, 2021
Remuneration review statement, 10 June 2021.
[29]. Remuneration
Tribunal, Remuneration
Tribunal (Departmental Secretaries–Classification Structure and Terms and
Conditions) Determination 2021, Remuneration
Tribunal, 15 June 2021.
[30]. Parliamentary Service Act 1999, ss. 38E(2), 63(2).
[31]. Parliamentary Service Commissioner, Annual report 2013–14, The Australian Public Service Commission, Canberra, 2014.
[32]. T Smith (Speaker
of the House of Representatives), Parliamentary Service (Remuneration) Amendment (Clerk
of the House of Representatives) Determination 2019, 3 July
2019. See also Determination 1 of 2019 Clerk of the House of
Representatives, Remuneration and other conditions of employment, 1 August 2019.
[33]. S Ryan (President of the Senate), Parliamentary Service (Remuneration) Amendment (Clerk
of the Senate) Determination 2019, 3
July 2019.
[34]. S Ryan and T Smith, Determination 1 of 2020, Secretary, Department of
Parliamentary Services Remuneration and Other Conditions of appointment, 10 December 2020. The base salary for the Secretary, Department of Parliamentary Services is $310,370
per annum.
[35]. Remuneration Tribunal, Remuneration Tribunal (Remuneration and Allowances for
Holders of Full-time Public Office) Determination 2021, The Tribunal, 21 December 2021.
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