Six-figure payout for Liberal frontbencher Alan Tudge’s ex-mistress, Rachelle Miller

Former press secretary Rachelle Miller is likely to secure legal costs and a massive cash payout, while her ex-lover has denied ever having sex with her.

The Morrison Government is finalising a six figure financial settlement with the ex-lover of Liberal frontbencher Alan Tudge, despite an investigation into the affair clearing him of breaching any ministerial guidelines.

Government sources have confirmed former press secretary Rachelle Miller is likely to secure legal costs and a massive cash payout after mediation talks with the Department of Finance that are entering the final stages of negotiation.

Despite confirming he was “intimate” with Ms Miller, the Victorian MP has insisted, like Bill Clinton, that he never had sex with her.

Alan Tudge arrives at the 2017 Mid-Winter Ball with former Liberal staffer Rachelle Miller. Picture: ABC/Four Corners.

The Prime Minister commissioned an investigation by Vivienne Thom into complaints Ms Miller was also bullied by her former boss, who stood aside as Education Minister late last year as a result of the investigation.

Mr Tudge has strenuously denied any allegation of bullying Ms Miller.

However, Ms Miller did not participate in the investigation on legal advice, as talks with the Commonwealth over her civil claim continued.

In a statement, the Prime Minister confirmed last month that Mr Tudge was not found to be in breach of any rules but that he would remain on the backbench at his own request.

“Dr Thom found that ‘the evidence considered in this Inquiry does not provide a basis for a finding that Mr Tudge’s conduct breached the Ministerial Standards’,” Mr Morrison said.

“I have accepted her advice.

“Today he has informed me that in the interests of his family and his own wellbeing and in order to focus on his re-election as the Member for Aston he is not seeking to return to the frontbench, and I support his decision.”

The Minister for Education and Youth Alan Tudge has maintained he never had sex with Rachelle Millar. Picture: NCA NewsWire / Gary Ramage

Mr Tudge said in a written statement that the allegations against him had been “dismissed”.

“I deeply regret the consensual affair with Ms Miller in the second half of 2017 when both of us were married with children and in our forties,” he said.

“It should never have happened and it has caused hurt to our respective families. It caused the end of my marriage that year.”

Dr Thom’s report stated that the evidence available to the Inquiry was limited by Ms Miller’s decision not to participate.

“The Ministerial Standards do not specifically address broader integrity and conflict of interest issues that can be a consequence of relationships that do not amount to ongoing or family relationships,’’ she said.

The affair was conducted before former Prime Minister Malcolm Turnbull introduced a so-called bonk ban after Deputy Prime Minister Barnaby Joyce formed a relationship with his press secretary and the couple had a baby together.

Late last year, Ms Miller held a press conference at Parliament House where she claimed he had once kicked her out of bed – a claim Mr Tudge denied.

“I am fully aware that a year ago I said my relationship with Minister Alan Tudge was a consensual relationship, but it’s more complicated than that,’’ she said.

“I was so ashamed, so humiliated, so scared, so exhausted. I told the small part of my story I was able to manage.

“Meanwhile, the PM’s men were out, briefing against me to the media.”

“I was completely under his control. He war-gamed lines with me, telling me to stay silent, telling me that we were in this together, that people were trying to destroy us, his career, my career.

Former Prime Minister Malcolm Turnbull’s bonk ban was bought in after Barnaby Joyce formed a relationship with his press secretary, Vikki Campion. Picture: Channel 7.

Mr Tudge has firmly rebutted Ms Miller’s claims, telling news.com.au: “I completely and utterly reject Ms Miller’s version of events.

“Ms Miller and I had a consensual affair in 2017 as both of us have publicly acknowledged. This is something I deeply regret.”

Mr Tudge told Dr Thom that he had been “intimate” with Ms Miller on four occasions between June and August 2017, and that he “referred to these interactions in my public statements as an ‘affair’” because he wanted to take responsibility for his actions “and not split hairs as to what did or did not occur.”

But he said he did “not consider this to be a ‘relationship’ in the usual sense of the word”.

Previously, an earlier taxpayer-funded workplace investigation into Education Minister Alan Tudge’s extramarital affair and treatment of Ms Miller found there was insufficient evidence to substantiate allegations of inappropriate behaviours.

Rachelle Millar Picture: NCA NewsWire / Martin Ollman.

In a statement to news.com.au on November 9, a spokesman for Mr Tudge said there were “no adverse findings” against him.

“While respecting the confidentiality of the process, I can confirm that the independent assessment by law firm Sparke Helmore and the Department of Finance was completed in early June 2021 and there were no adverse findings against Mr Tudge,” the spokesman said.

“All MPs and senior staff are expected to undertake workplace management training as outlined by Commissioner Kate Jenkins and Mr Tudge has completed this process.”

Despite the Prime Minister’s claims he was willing to hear women’s experiences, Ms Miller said that she had been ostracised and ignored.

“This is not about revenge. It has never been about that. I still sometimes feel sorry for him,’’ she said last year.

“It’s about ensuring that no one else goes through this in this workplace. It’s about changing a system that allowed this to happen.”