
Steven Kennedy (right) has a close working relationship with Treasurer Jim Chalmers, and he will now have an even closer one with the Prime Minister. Photo: Jim Chalmers Facebook.
In hindsight, it’s a no-brainer that Steven Kennedy is the new Secretary of the Department of the Prime Minister and Cabinet.
Even though it wasn’t long ago at all that he was re-appointed for a further five years as Treasury Secretary, there’s no one more suited to fill the vacancy left by Glyn Davis in the PM’s own department.
Dr Kennedy was initially appointed Treasury boss for a five-year term in September 2019.
In March last year, Treasurer Jim Chalmers delighted in announcing that the term would be renewed once it expired in September.
But here we are, nine months, a federal budget and a federal election later, and Dr Kennedy has a promotion.
Professor Davis leaves the public service’s top job on Monday, 16 June, and Dr Kennedy steps right in that very day.
Talk about a smooth transition.
It’s seamless on a number of fronts, not least because Dr Kennedy knows how this government works, thinks and plans.
He had a close working relationship with the Treasurer, which will continue to a significant, albeit changed, degree. However, his relationship with Prime Minister Anthony Albanese is about to reach a new level.
Despite all the talk about the public service needing to be apolitical (which, to varying degrees, it is), the role of Secretary of the Department of the Prime Minister and Cabinet is as close to a political appointment as the APS gets.
The Secretary of this department has to have the PM’s back.
A good one can do it without being perceived as too overtly partisan.
The not-so-skilled (and we’ve had a few) struggle to keep their political allegiances contained.
That’s why the person running the PM’s department must have the trust of the Prime Minister and senior Cabinet members, as well as be a highly skilled manager and tactician.
It was a surprise to most when Professor Davis was appointed to the role following Labor’s election win in 2022.
It was a bit of a shock to many that he resigned after just one term.
When that announcement was made immediately following the election in May, speculation was rampant as to who would replace him.
It shouldn’t have been a surprise that Dr Kennedy was that person.
It was a little surprising, though, perhaps because Professor Davis’s appointment was somewhat unconventional and not from the ranks of the public service at that time.
Dr Kennedy, however, is a natural fit. He has had a distinguished career in public service.
Prior to the top job in Treasury, he was Secretary of the Department of Infrastructure, Transport, Cities and Regional Development.
He has also served as Deputy Secretary of the Department of the Prime Minister and Cabinet; Deputy Secretary of the Department of Industry, Innovation and Science; Deputy Secretary of the Department of the Environment; Deputy Secretary of the Department of Climate Change and Energy Efficiency; and the Head of Secretariat of the Garnaut Climate Change Review Update 2011.
He has served on several boards and is a member of the Reserve Bank Board, the Council of Financial Regulators, the Trans-Tasman Council on Banking Supervision, the Board of Taxation, the New Zealand Treasury Board, the Sir Roland Wilson Foundation, and the Centre for Market Design Advisory Board.
He was awarded a Public Service Medal in 2016 for his outstanding public service in the area of climate change policy.

Jenny Wilkinson is the perfect pick to head up Treasury. Photo: Michelle Kroll.
There’s probably not much more to be said.
Dr Kennedy has more than 30 years of experience in the Australian Public Service, and the PM has made a prudent choice.
So too is the choice of Finance Secretary Jenny Wilkinson to take over Dr Kennedy’s role in Treasury.
The highly skilled Ms Wilkinson will be the first female Secretary of the Treasury since the department began 124 years ago.
Under her leadership in Finance, the department’s influence over the federal government’s decisions has significantly increased.
The prowess demonstrated in reining in government spending and controlling outsourcing is more than impressive.
Ms Wilkinson has served as Secretary of the Department of Finance since August 2022 and was previously Deputy Secretary, Fiscal Group, at the Department of the Treasury.
She was the Parliamentary Budget Officer from 2017 to 2020, and held senior positions at the Department of the Prime Minister and Cabinet, the Department of Industry, the Department of Climate Change, and the Reserve Bank of Australia.
Awarded the Public Service Medal in 2021 for outstanding public service in the development of fiscal policy, Ms Wilkinson also starts her new job on Monday.
She is also the natural successor to Dr Kennedy in Treasury.
But who will take her place in Finance?
Original Article published by Chris Johnson on Region Canberra.