Remuneration Tribunal Amendment (There For Public Service, Not Profit) Bill 2025

High-Level Summary
The bill proposes to amend the Remuneration Tribunal Act 1973 to cap the annual remuneration for Australian Government department secretaries and other public office holders at $430,000. This change aims to prevent excessive salaries and ensure accountability for any variations.

Summary
The Remuneration Tribunal Amendment (There For Public Service, Not Profit) Bill 2025 affects the Remuneration Tribunal Act 1973 by introducing a statutory limit on the remuneration of departmental secretaries and other public office holders to $430,000 per annum. The bill allows for variations to this limit, which will be the responsibility of the administering Minister and subject to parliamentary disallowance. Specifically, it inserts a new subsection (3AAA) after subsection 7(3), repeals and substitutes subsection 7(3F), and adds new section 7A, among other changes. These measures ensure that any prescribed remuneration amount is legislatively accountable and subject to parliamentary oversight, thus maintaining transparency and preventing circumvention of the set limits.

Argument For
Normative Bases
  1. Egalitarianism
  2. Pro-Democracy

The bill should be supported because it addresses the issue of excessively high remuneration for public office holders, aligning more closely with the principle of egalitarianism by ensuring fair compensation within the public sector. High salaries for a few individuals can exacerbate income inequality, and this measure seeks to rectify that by setting a reasonable cap. Additionally, by making remuneration variations subject to parliamentary disallowance, the bill promotes democratic accountability and transparency, ensuring that the public and their representatives maintain oversight over public spending.


Argument Against
Normative Bases
  1. Propertarianism
  2. Value-Neutral / Epistemic Objection

The bill should be opposed because it may undermine the ability of the government to attract and retain top talent in public service roles. By capping salaries, the government might struggle to compete with the private sector, which could offer more lucrative compensation packages. This could lead to a talent drain where highly skilled individuals choose private sector positions over public service, potentially hindering the efficiency and effectiveness of government operations. Additionally, the flexibility of the Minister to prescribe a different amount may not suffice to address this competitive disadvantage adequately [Judgment].


Date:

2025-02-05

Chamber:

Senate

Status:

Before Senate

Sponsor:

LAMBIE, Sen Jacqui

Portfolio:

Unspecified

Categories:

Anti-Corruption, Civics, Democratic Institutions

Timeline:
05/02/2025
23/07/2025

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