26 September 2023

Performance pay to face review

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The Assistant Minister to the Prime Minister and Cabinet, Ben Morton has announced a review of performance bonus arrangements for Commonwealth senior executives.

Announcing the review at the same time as coupling the Australian Public Service (APS) payrises to the private sector, Mr Morton said the review would be conducted by the Secretary of the Department of Prime Minister and Cabinet, Phil Gaetjens; APS Commissioner, Peter Woolcott; and the Secretary of the Department of Finance, Rosemary Huxtable.

He said the review would affect Senior Executive Service and equivalent employees.

“The Government considers it appropriate to carefully consider the payment of bonuses to these employees,” Mr Morton said.

“It is the expectation of the Government that where Agencies have access to bonus arrangements they should exercise restraint to the furthest extent possible in keeping with community expectations,” he said.

Mr Morton said the review would consider existing arrangements and inform the development of a consistent principles-based approach to the payment of bonuses across all Commonwealth Agencies.

The Assistant Minister said the review would provide clear guidance to the Boards and Accountable Authorities of Commonwealth entities and companies to ensure a consistent approach across Agencies.

He said the review was in addition to the freeze on senior executive remuneration, in place in recognition of the current economic circumstances caused by the COVID-19 pandemic.

“The Government is thankful for the contributions made by Commonwealth employees during the COVID-19 pandemic,” Mr Morton said.

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