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Budget savings for Chalmers – fix the bloated pay system at the top of the public service

36 0
25.03.2026

As the government looks for budget savings, the biggest opportunity lies at the top. Senior public service pay and structures have become costly, inconsistent and hard to justify.

In grubbing around for budget savings the federal government will be looking to save on personnel whose costs can take up 30-90 per cent of agencies’ running expenses. Usually junior staff bear the burden of such foraging, although it would be nicer if a start could be made at the top for a change. There’s lots of scope, and sacrifices in the senior levels look good – setting the example and all that. The much touted Charter of Leadership Behaviours would rarely glow so brightly.

So Treasurer Jim, kick off with the salaries of Secretaries of departments.

At the moment all earn around a million dollars a year, almost twice the salary of the Prime Minister. This is the fault of the Remuneration Tribunal which around 15 years ago upped Secretary pay by around 75 per cent for no valid reasons and created a pay gap with the generality of their subordinates of around $600,000. It’s crazy.

The redoubtable Senator Lambie has recently tried by legislation to get things back on a sensible footing. Her bill has been considered by a Senate Committee but as that process is unlikely to restore rationality, Jim should step in and get Secretaries to volunteer a 30 per cent pay cut with the blow softened by laws providing that heads of departments could only be dismissed for reasons and by a reasonable process, just like all other public servants.

That would have the bonus (pun intended) of minimising the reluctance of officials to provide frank and clear advice which was the black heart the Robodebt........

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