The Australian Public Service Commission (APSC) has issued a guide to the payment of performance bonuses to senior personnel across the APS.
In its publication Performance Bonus Guidance, the APSC said principles on the payment of bonuses applied to Non-corporate Commonwealth entities; Corporate Commonwealth entities; Commonwealth Companies; and Government Business Enterprises.
“Commonwealth entities and companies should exercise rigour and restraint in the use of performance bonus payments,” the APSC Guide says.
“Performance bonuses may only be used in limited circumstances, justifiable to the Parliament and the public,” it says.
“As a general principle, most positions should not be eligible to earn a performance bonus.”
The Guide says performance bonuses would not be appropriate in most policy, service delivery, regulatory, or corporate roles.
It sets out examples of positions which may be appropriate for performance bonus eligibility included positions that involve significant, at-risk investment outcomes; positions required to meet significant, public milestones; or positions involved in non-tax revenue raising.
“These principles apply to senior staff considered Key Management Personnel and Senior Executives, except staff where remuneration arrangements are set by the Remuneration Tribunal,” the Guide says.
“These principles apply to performance bonuses related to activities in 2021-22 onwards.”
The APSC said the principles recognised that a limited number of Commonwealth entities and companies operated primarily in commercial markets where it may be more appropriate to use performance bonuses.
The Commission’s three-page Guide can be accessed on the APSC website at this PS News link.
