Massive pay packets of South Australian Government CEOs revealed

SOUTH Australia’s 18 government department bosses are raking in a combined $7.68 million and salary sacrificing almost a $1 million towards superannuation — as details of our most senior bureaucrats are made publicly available for the first time.

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• READ BELOW:

• The high-flying boss who dodges short airport walks at $90 a pop

• Footy, theatre are just the ticket

SOUTH Australia’s 18 government department bosses are raking in a combined $7.68 million, as details of our most senior bureaucrats are made publicly available online for the first time.

The new details show the bosses of two of the state’s most crucial departments are salary-sacrificing more than $245,000 into their superannuation accounts.

The boost for transparency comes as Human Services chief Tony Harrison’s office defends him for repeatedly charging taxpayers $90.89 for valet services at Adelaide Airport, $35 more than it would cost to take a taxi or park in the long-term carpark.

Twelve departmental chief executives — including Police Commissioner Grant Stevens, Renewal SA chief John Hanlon and Commissioner for Public Sector Employment Erma Ranieri — are paid more than Premier Steven Marshall’s $390,000 salary.

Department of Premier and Cabinet chief Jim McDowell ($602,500) and Health SA boss Chris McGowan ($550,000) have the two biggest pay cheques.

Mr McDowell salary-sacrifices $247,750 into his super to minimise his tax bill, while Dr McGowan tips $252,283 into his super, on top of his employer’s contribution. Both chief executives have been appointed since the salaries of our highest-ranking public servants were last revealed.

The 18 department bosses — all paid between $345,000 and $602,500 — net a combined $7.68 million, at an average rate of $426,000 a year.

Treasurer Rob Lucas has delivered on a state election commitment to publish chief executive salaries online, saying the old system was “designed to minimise the number of people who would ferret out this information”.

“SA taxpayers have the right to know how much the chief executives of State Government departments are being paid,” Mr Lucas said.

Department of Premier and Cabinet chief Jim McDowell earns $602,500.

“There is no justification for the level of secrecy that the previous Labor government built into the process of finding out how much chief executives get paid.

“Disclosing how much the state’s top bureaucrats are paid is a simple, effective accountability measure that enhances our democratic institutions.”

The Sunday Mail was initially required to book an appointment with the Office of the Public Sector this week to view the contracts of chief executives. A staff member watched while the salaries were taken down, and no photographs were allowed.

Information about how much chief executives salary-sacrificed and the value of cars built into their contracts was redacted in the contracts the Sunday Mail viewed — but now that information is available online.

Tourism, Trade and Investment Department boss Mike Hnyda is the only chief executive to receive additional perks on top of their annual salary package, netting two return business-class airfares to Wales, 457 visa costs, up to $5000 for private health insurance and up to $5000 in tax assistance.

Mr Hnyda and Department of Energy and Mining chief executives Paul Heithersay ($391,444) both head departments that started operation in July this year, as part of Mr Marshall’s machinery of government changes.

Other new chief executives who have not previously had their salaries made public include new appointments Mr McDowell, Dr McGowan, Attorney-General’s Department chief Caroline Mealor and Environment and Water boss John Schutz. All replaced chief executives sacked by Mr Marshall in the wake of March’s state election.

The only unknown chief executive salary is that of Department of Planning, Transport and Infrastructure boss Tony Braxton-Smith, who is set to start his new job this coming week.

Mr Braxton-Smith, a former NSW transport department bureaucrat, replaces acting chief executive Julienne TePohe, who has been paid an annual salary of $420,000 in the role.

WHAT EVERY SA POLITICIAN HAS DECLARED

Business SA chief executive Nigel McBride said it was important that chief executives were being paid competitive salaries to attract qualified candidates.

“If you want to hire people who run massive parts of our budget, you should pay them properly and attract the best people you can find,” he said.

“If you had a publicly-listed company of the same size, they’d be paid a lot more.

“If you pay peanuts, you get monkeys.”

Labor treasury spokesman Stephen Mullighan welcomed the salaries being made publicly available online but said the former government always released the details of chief executive remuneration when it was requested.

“This should just be the start of the Liberal Government meeting their election commitment to boosting transparency,” he said.

Meanwhile, SA’s top bureaucrats spent taxpayers’ money on everything from valet services to extra leg room on Regional Express planes. They also accepted gifts ranging from corporate tickets to the Adelaide 500 to theatre performances.

Education chief executive Rick Persse had the biggest 2017-18 travel bill, racking up $49,719, including a $27,000 trip to Boston’s Harvard University last September.

Treasury and Finance chief executive David Reynolds accepted $9600 worth of gifts in the 2017-18 financial year, including theatre shows, bottles of wine, golf and Tour Down Under tickets.

Human Services Department chief Tony Harrison had the biggest phone bill, just over $1000 in 10 months.

The high-flying boss who dodges short airport walks at $90 a pop

By Adam Langenberg

A STATE Government department boss is regularly using taxpayers’ money to pay for valet parking so he can avoid a short walk from the Adelaide Airport carpark, the Sunday Mail can reveal.

Human Services Department chief executive Tony Harrison regularly uses Qantas valet services when he flies interstate from Adelaide, at a cost to taxpayers of $90.89 for overnight parking.

Human Services Department chief executive Tony Harrison

The Adelaide Airport website says it costs $53 to park in the long-term carpark — less than a 10-minute walk from the terminal — for two days.

Mr Harrison’s expense records also show it costs about $55 for him to catch taxis from his CBD office to the airport, and from the airport to his home.

Taxpayers paid $90.89 for the valet service eight times between August 2017 and April 2018, and paid $50.50 once in November 2017.

It costs $34 to park in the short-term carpark for the 8½ hours he left it at the valet services while he went to Sydney for a disability heads-of-agency forum.

All up, Mr Harrison has charged taxpayers $319.62 to avoid walking across the airport carpark.

A Department of Human Services spokeswoman said valet parking for business travel “provides the most efficient use of the chief executive’s time and costs only $10 more per night than the equivalent short-term terminal parking”.

Mr Harrison, a former Education Department boss and assistant police commissioner, has an annual total salary package of $450,000.

A promotional video for the Qantas valet service says it offers “kerbside drop-off and direct terminal access”.

“Just check in, drop your bags and breeze through the terminal to your flight,” the video spruiks. “On your return, your car is waiting for you — no queues, no hassles.”

SA Best MP Frank Pangallo said charging taxpayers for valet parking was “outrageous”.

“Chief executives earn a lot of money,” he said. “It’s outrageous to charge taxpayers for expensive carparking when you should be looking at the cheapest (option).

“I would park it in the long-term carpark and walk or catch the courtesy transfer bus, or look at a lower-cost alternative outside the airport.

“This should send a message to other chief executives that they need to be more frugal in the way they spend taxpayers’ money.”

Footy, theatre are just the ticket

TICKETS to the AFL, theatre productions, formal dinners with the Reserve Bank and presents from Chinese delegations are among a wide array of gifts received by our most senior public servants.

David Reynolds

Under Treasurer David Reynolds is the departmental chief executive to receive the biggest gift haul, netting $9619 worth of gifts in the 2017-18 financial year.

He declared tickets to the Royal Adelaide Show, which he passed on to staff, tickets to the Rocky Horror Show performance beset by allegations of sexual assault against star Craig McLachlan, and the World Tennis Challenge’s legends lunch.

He also accepted two $450 tickets to the Tour Down Under, the Women’s Australian Open Golf at Grange, Tasting Australia’s Glasshouse Kitchen — curated by Orana’s chef Jock Zonfrillo — two bottles of wine and VIP tickets to the Adelaide Cabaret Festival’s variety gala.

Industry and Skills chief executive Mike Duffy declared a $100 Chinese print on rice paper received from Shandong county mayors, a formal dinner with the Reserve Bank of Australia’s board and a $120 ticket to the Adelaide Festival performance of Hamlet.

Most departments only list gifts received by chief executives but the Department of Premier and Cabinet and SA Health detail all gifts received by staff.

State Government department websites also disclose a range of rejected gifts to public servants, including a $2500 trip to a Malaysian smart procurement summit and a ticket to the 2017 AFL Grand Final.

Chiefs stow away almost $1 million towards super

By Adam Langenberg

SOUTH Australia’s 18 public service chiefs are salary-sacrificing almost $1 million combined into superannuation to minimise their income-tax bills.

SA Health chief executive Chris McGowan is the biggest salary-sacrificer — sending $252,283 of his $550,000 pay packet into superannuation.

Department of Premier and Cabinet boss Jim McDowell also salary-sacrificed more than $200,000, redirecting $247,750 from his pay packet.

It means both men receive $300,000 in their superannuation account each year when their employer contribution is taken into account.

Money salary-sacrificed into superannuation is taxed at 15 per cent, well below the income tax rate of 45 per cent that would otherwise be paid by the 18 public sector bosses — who all earn between $345,000 and $602,500.

The contributions and a $3,744 carpark space more than halve Mr McDowell’s taxable income, reducing it to $298,506.

Dr McGowan’s taxable income drops to $231,211.

Commissioner for Public Sector Employment Erma Ranieri

Commissioner for Public Sector Employment Erma Ranieri salary-sacrificed $100,000, while Environment and Water chief executive John Schutz redirected $120,000 into his super, as part of a total $926,910 sacrificed by the state’s top 18 public servants.

The Sunday Mail revealed in 2016 that former Health SA chief executive David Swan had salary-sacrificed $413,000 in one year, but since then information on such arrangements has been made unavailable.

Details of salary-sacrifice contributions had since been redacted from the publicly available chief executive contracts, which were only available by appointment at the Office of the Public Sector.

The information was not available when the Sunday Mail viewed the contracts this week, or in its visit in 2017. But all details of chief executives’ salary package, including the value and make of any car included, whether it includes a carpark and superannuation contributions are now all available online.

Details of how much MPs salary-sacrifice is not available, though their total salary can be calculated using a number of publicly available documents.

The public service super scheme encourages members, for a fee of $44, to pay their salary into the fund to minimise their tax bills.

Ordinary public servants can also salary-sacrifice all of their income into superannuation — many earn less than $100,000.

Meanwhile, the now publicly available documents also show six Holdens are among 10 cars built into the contracts of the most senior public servants.

Correctional Services chief executive David Brown has a Subaru Forester equipped with a 1800kg towing kit as part of his contract —.

Two chief executives come out of contract next year — Tourism, Trade and Investment boss Mike Hnyda’s three-year deal expires in April and Defence SA head Richard Price’s two-year-term lapses in October.

— Adam Langenberg