Government accused of acting too late to stop major bonuses at AusPost, NBN

The government has issued a “please explain” over massive bonuses paid to AusPost and NBN, but one politician has claimed it acted too late.

The federal government has been accused of being too late to question why tens of millions of dollars in taxpayer-funded bonuses were paid to top executives.

Last week, the Australian Financial Review reported that at least 24 public servants and executives at government-owned business, such as Australia Post and NBN co, earned more than $1 million last year.

The scale of payments alarmed Finance Minister Katy Gallagher and Communications Minister Michelle Rowland, who asked for an explanation.

But the pair were too slow to act, Coalition senator Sarah Henderson claimed on Monday during Senate estimates.

During a lively back-and-forth, representing minister Carol Brown claimed it was the Labor government who had “taken measures” to bring down bonuses “unlike under the previous government”.

Sarah Henderson quizzed why the government did not act sooner. Picture: NCA NewsWire /Brendan Beckett

Senator Henderson hit back: “Are you aware that the guidance to curtail bonuses was in fact issued by the former coalition government?”

“As you’ve just said, that was a decision made under the Coalition government,” Senator Brown conceded.

Asked if the Albanese government supported $24m paid in bonuses by Australia Post to executives, Senator Brown said bonuses should be used “sparingly”.

Public fury over executive bonuses prompted a federal review last year into pay entitlements.

As a result, the Australian Public Service Commission updated its guidance and directed against the “broad use of performance bonuses”.

Paul Graham told the committee the bonuses were in line with the new guidance. Picture: NCA NewsWire / David Crosling

Late on Monday evening, Australia Post chief executive Paul Graham was asked to justify if the bonus payments were in compliance with the guidance.

He told the committee the board considered a “range of options” based on the guidance and had continued with “what has been the practice over the last number of years in relation to the payment”.

Mr Graham was paid a $885,022 bonus on top of his base $1.15m base salary.

Appearing before the committee for his own grilling, NBN chief executive Stephen Rue declined to comment on if the letter from the government was sent too late.

But he claimed the government-owned business had operated within the guidance and had cut the number of employees eligible for a bonus down from 3500 to 50.

Mr Rue himself took home a $697,808 bonus as part of his $2.9m salary – including superannuation and long service leave.