Million dollar payday for public servants

Australia’s richest public servants are now earning close to $1 million a year in salary and benefits – double what the PM takes home.

Australia’s richest public servants are now earning close to $1 million a year in salary and benefits – double the take-home pay of Prime Minister Anthony Albanese.

As the nation grapples with a cost of living crisis, senior public servants are enjoying CEO-style salaries, generous 15 per cent super rates and other perks including cars, free Qantas club membership and office facilities at home.

One of the best paid public servants in the country is the new Prime Minister and Cabinet secretary Glyn Davis AC, who is earning $939,610 in salary and benefits to run the department.

However, that’s a serious pay cut for Professor Davis, who previously enjoyed a $1,589,999 package as the vice-chancellor of Melbourne University.

It’s also slightly less than the take-home pay of the Chief of Defence Force Angus Campbell, who earns over $1 million a year.

Prof Davis has been referred to by colleagues as “a unicorn” because he is someone who understands the theoretical basis of how governments should work, has practised as a state bureaucrat in Queensland and gone on to run a multimillion-dollar institution at the University of Melbourne.

Australia’s richest public servants are now earning close to $1 million a year.

Chief of the Defence Force General Angus Campbell. Picture: Evan Morgan

He previously worked as the CEO for the Paul Ramsay Foundation, the nation’s largest philanthropic body, working out “what to do with the $4 billion” left behind for good works.

In comparison, Prime Minister Anthony Albanese has a take-home pay of $564,356 a year, the Deputy Prime Minister Richard Marles – $444,973, and the Treasurer Jim Chalmers – $406,988.

While some leaders including the RBA’s Philip Lowe, who earns a base salary of $911,728, has called for civil servants to be paid more, there’s no doubt that Australian public servants are well remunerated by international standards.

For example, Department of Home Affairs departmental secretary Mike Pezzullo is paid $892,630, reportedly double that of his British counterpart.

The huge pay packets come as the Albanese Government grapples with potential changes to legislated tax cuts for high-income earners.

Speaking today in Canberra, Dr Chalmers insisted that the Government’s position on stage three tax cuts had not changed but he stressed any government needed to practise responsible economic management.

“No responsible government can ignore a high and rising inflation, a deteriorating global situation, or the fact that we have got these persistent structural pressures on the budget,’’ he said.

Mike Pezzullo earns double that of his UK counterpart. Picture: NCA NewsWire/Gary Ramage

“My job, as the Treasurer of this country, is to make sure that the budget is on as sustainable footing as it can be to deal with the challenges that we anticipate,”

“If there’s going to be one defining feature in the budget that I hand down in less than three weeks from now, it’s going to be responsible economic management,” Dr Chalmers said.

The Government is believed to be examining options to cap the tax cuts for high-income workers, but not scrapping them.

Meanwhile, some CEO’s running publicly owned corporations of the Australian Government are enjoying even higher salaries than the $1 million payday for the top public servants.

For example, National Broadband Network Co chief executive Stephen Rue has earned $2,647,974 in some years to run the organisation.

Snowy Hydro chief executive Paul Broad has earned $2,249,978

Australia Post’s Paul Graham, a former Woolworths executive, has the potential to earn up to $3 million a year.

Former Australia Post CEO Christine Holgate was paid $1.5 million.

Who earns what?

• Chief of the Defence Force Angus Campbell: $1,034,315

• Prime Minister and Cabinet secretary Glyn Davis: $939,610

• Treasury secretary Steven Kennedy: $916,120

• Home Affairs secretary Mike Pezzullo: $892,630

• Defence secretary Greg Moriarty: $963,428

• Department of Foreign Affairs and Trade secretary Jan Adams: $892,630

• Reserve Bank of Australia governor Philip Lowe: $1,076,029

• Prime Minister Anthony Albanese: $564,356

• Deputy Prime Minister Richard Marles: $444,973

• Treasurer Jim Chalmers: $406,988

• Foreign Minister Penny Wong: $406,988

• Finance Minister Katy Gallagher: $379,855

Sources: Remuneration Tribunal, annual reports