Leave of absence has cost ASIC chair James Shipton $200,000

The expenses controversy involving James Shipton has so far cost the ASIC chairman almost $200,000 in salary.

ASIC chair James Shipton. Picture: Gary Ramage

ASIC chairman James Shipton has given up almost $200,000 in salary since he took a leave of absence over an expenses controversy related to his relocation from the US to become the nation’s top corporate cop.

The amount forgone from his $855,364 in total remuneration is almost the same as the $196,000 he claimed from the commonwealth for tax advice from KPMG ($118,000) and fringe benefits tax ($78,000).

However, Mr Shipton said in late October when he stepped aside that he had repaid the relocation expenses, even though he believed that he had “acted properly and appropriately in this matter”.

“I hold myself to the highest possible standard,” he said.

Confirmation that the chairman has not been drawing a salary for the period he has stepped aside came in an Australian Securities & Investments Commission response to a question on notice last October in Senate estimates.

The response, lodged a week ago, says Mr Shipton requested leave of absence and asked Treasury to allow him to “forgo his salary for the period of his leave of absence”.

“The Treasurer agreed to these requests,” it says.

Confirmation that Mr Shipton has not drawn a salary for almost three months explodes a myth propagated by mining billionaire Clive Palmer, who is waging a continuing campaign against ASIC and its chairman.

Mr Palmer, who was charged last year with breaching directors’ duties and fraud after an ASIC investigation, tweeted in November about Mr Shipton’s $850,000 “gardening leave disgrace”.

“It is a disgrace that ASIC chairman James Shipton has stood down on a lavish publicly funded salary whilst being investigated for ripping off Australians to pay for personal tax advice,” he said.

“It was beyond belief that Mr Shipton dipped into the public purse to help him avoid Aust tax, yet he has taken it to a whole new level accepting $855,364 salary as gardening leave while the matter is being investigated.”

The original intention was for Mr Shipton to stand down pending the completion of a report on the expenses row by the former inspector-general of intelligence Vivienne Thom.

Ms Thom completed the report and handed it to the government before the end of last year, as scheduled.

Its findings have not been made public, although it’s thought that there have been no findings of substance against Mr Shipton.

The expenses claims by the chairman became public after an investigation by the Australian National Audit Office.

The ANAO also raised concerns about $70,000 in rental claims by ASIC deputy chair and head of enforcement, Daniel Crennan, after his relocation from Melbourne to Sydney in early 2019.

While Mr Crennan repaid the money and resigned, his expenses claims were also investigated by Ms Thom.

Mr Shipton said at the time that the accommodation payments were ceased at Mr Crennan’s request.

“ASIC acknowledges that action in relation to this matter, first raised in the ANAO’s 2018-19 closing report, should have taken place more promptly,” he said.