Remuneration Tribunal (Departmental Secretaries—Classification Structure and Terms and Conditions) Determination 2025

Total remuneration

• The Determination defines “total remuneration” as the annual amount stated in Table 2A for each pay point and level (s 9(1)), and it requires that total remuneration represent the total cost to the Commonwealth, explicitly including fringe benefits tax (FBT) and the employer superannuation contribution (s 9(2)). The instrument clarifies specific exclusions from total remuneration, for example business support facilities under s 18 and other items the Tribunal may determine (s 9(3)). This means that, for budgeting and reporting, departments must value salary, benefits such as vehicles and parking, and employer superannuation in computing the total cost figure attributed to a Secretary (ss 9(2), 16(1), 17).

Classification and pay points

• Table 2A sets the classification structure and fixed total remuneration for each level and pay point (s 11(1)). Table 2B assigns specific departmental Secretary offices to levels (s 11(2)). Level 1 and Level 2 Secretaries are directly entitled to the stated amounts (s 11(3)). Level 3 and 4 offices are assigned to pay points by a separate pay point assignment instrument made under subsection 14(3) of the Remuneration Tribunal Act 1973; the Determination requires pay point assignments to be consistent with the classification level and provides protections if pay points are lowered or if a Secretary moves between offices (ss 7, 11(4), 12).

Employer superannuation and superannuation salary

• The Determination defines employer superannuation contribution for a Secretary by reference to the scheme to which they belong (s 8). For Secretaries in defined benefit schemes (CSS, PSS, DFRDB, MSBS), the Determination sets out that the Secretary’s superannuation salary equals 70% of total remuneration (definition in s 8) and that the value attributed to the employer superannuation contribution is 15.4% of that superannuation salary (s 15(1)-(4)). For PSSAP members the employer contribution is 15.4% of ordinary time earnings (s 15(5)). For other funds the contribution is the minimum to reduce the SG charge percentage to nil (s 15(6)).

Benefits, packaging and taxation

• Secretaries may elect to receive remuneration as salary or a combination of salary and benefits subject to two conditions: compliance with relevant taxation laws and ATO guidance, and that packaging must not result in a net additional cost to the Commonwealth (s 13(1)(a)-(b)). The Determination also states that superannuation contributions resulting from packaging do not form part of the employer superannuation contribution (s 13(2)). Vehicle benefits are valued at actual Commonwealth cost including FBT (s 16(1)). Vehicle parking accepted at Commonwealth expense is similarly valued including FBT (s 17).

Leave and availability

• Secretaries have standing obligations of availability (s 19). Recreation leave accrues at 20 working days per year with limited cash‑out permitted depending on departmental policy (s 20). Personal leave accrues with a front‑loaded 15 days on appointment and further accruals thereafter (s 21(2)). Prior service sick leave can be recognised if the prior service ceased not more than two months prior to appointment (s 21(3)). Longer or discretionary leave may be granted by the Prime Minister or the Secretary’s Minister depending on duration and purpose (ss 22-24).

Termination and exclusion events

• The instrument sets out formulaic compensation for loss of office where a Secretary is terminated under specified subsections of the Public Service Act 1999 and no exclusion event occurs (s 25(1)). It defines exclusion events, which include certain findings by the APS Commissioner after inquiry into APS Code of Conduct breaches or a National Anti‑Corruption Commission investigation with certain findings and recommendations, and offers of suitable alternative employment by Commonwealth entities (s 25(1A)-(2)). The Determination specifies that a Secretary who is not given three months’ notice of non‑reappointment is entitled to three months’ reference salary unless an exclusion event occurs (s 26).

Relocation, accommodation and reunion entitlements

• Secretaries who relocate to the ACT are entitled to relocation expenses, temporary accommodation allowances (settling out and settling in allowances at specified weekly amounts), ongoing accommodation support ($34,500 per year while maintaining a home locality residence and not buying ACT property) and an annual family‑reunion travel allocation of 12 business class return fares or equivalent value (Part 7, ss 28-32). The travel entitlement is non‑cashable and ceases when the Secretary leaves office (s 32).

Decision‑makers and delegations

• The Remuneration Tribunal makes the Determination (introductory text and s 4). Pay point assignments for many Secretaries are made by the Secretary of the Department of the Prime Minister and Cabinet under the Act (s 7 and definition of pay point assignment). Various discretionary powers are reserved to the Prime Minister, the Secretary’s Minister, or the Prime Minister’s delegate, including the grant of miscellaneous leave, certain training leave, reimbursement of training costs, and delegations to other Ministers (ss 22, 33-34, 35).

Primary beneficiaries

• Departmental Secretaries are the direct subjects of the Determination. All the pay, superannuation, benefits, leave entitlements, relocation assistance and other terms in the instrument apply to persons appointed to the office of Secretary as defined in the Public Service Act 1999 (definition in s 8; classifications in Table 2B; entitlements across Parts 2-8). The Determination explicitly fixes total remuneration for Level 1 (Prime Minister and Cabinet secretary) and Level 2 (Treasury secretary) and sets the framework for pay point assignment for other Secretaries (s 11(1)-(4)).

Who pays

• The Commonwealth bears the costs set out in the Determination. The instrument repeatedly frames benefits, allowances and reimbursements as provided “at Commonwealth expense” and requires total remuneration be calculated at total cost to the Commonwealth including FBT and employer superannuation (s 9(2); ss 16-18; Part 7 provisions such as s 28). Departments will therefore be the operational budget holders and accounting units that incur those payments and benefits.

Decision-makers within government

• Several actors have decision-making roles:
  • The Remuneration Tribunal sets the Determination as the statutory instrument maker (introductory text; s 4).
  • The Secretary of the Department of the Prime Minister and Cabinet makes pay point assignments for Secretaries other than the two fixed offices under subsection 14(3) of the Remuneration Tribunal Act 1973, as described in s 7 and implied by the pay point assignment framework in s 12.
  • The Prime Minister and the Prime Minister’s delegate have discretion to grant certain leaves and must approve long leaves beyond three months under s 24.
  • The Secretary’s Minister has discretion on many matters such as reimbursement of training costs and may delegate functions under the instrument to another Minister (ss 34, 35).
  • The Australian Public Service Commissioner and the President of the Tribunal are to be consulted in certain pay maintenance decisions (s 12(4)-(5)).
• Therefore, while the Tribunal prescribes the structure and amounts, a set of administrative, ministerial and departmental actors effect pay point assignments, grants, approvals and operational delivery.

Other affected parties

• Departments and agencies that recruit, host or administer Secretaries will be affected as expense-bearing entities and in their HR and payroll systems because they must calculate FBT, employer superannuation contributions and total remuneration consistent with the Determination (s 9(2), s 16(1)). The Australian Public Service Commission (APSC) is referenced in definitions and consultative roles (s 8; s 12(4)-(5)).
• Entities identified as “suitable alternative employment” under s 25(2) include a range of Commonwealth-owned or controlled entities. Offers of such employment can affect a Secretary’s entitlement to termination compensation (s 25(1A)(c)-(2)).

Who decides outcomes of exclusion events

• The instrument relies on findings by other statutory actors to trigger or displace termination compensation. For example, an exclusion event under s 25(1A)(a) requires that the APS Commissioner conducted an inquiry under s 41A of the Public Service Act 1999, found that the Secretary breached the APS Code of Conduct, and made a finding set out in s 25(1B). For corruption investigations, a National Anti‑Corruption Commissioner report with certain opinions and recommendations is required (s 25(1A)(b)). Thus, determinations that affect entitlement to compensation depend on the investigative and reporting roles of the APS Commissioner and the National Anti‑Corruption Commission.

Behavioural incentives

• The Determination affects individual bargaining and mobility incentives. Protections in s 12 where remuneration is maintained if a pay point is lowered or where the Secretary transfers between offices can blunt downward reclassification incentives and encourage retention of higher pay after transfers. The remuneration packaging rule in s 13 conditions employer cost impacts, thereby constraining packaging choices to arrangements that do not raise Commonwealth costs. The accommodation support and family‑reunion travel entitlements create incentives for Secretaries to maintain external residences or travel arrangements with fiscal consequences (ss 31-32).

Rights to pay and classification

• Entitlement to total remuneration is set out by level and pay point in Table 2A and assignment to offices is set out in Table 2B (s 11(1)-(2)). Level 1 and Level 2 Secretaries are entitled to the specified amounts directly (s 11(3)). Level 3 and Level 4 Secretaries receive the total remuneration that applies to the pay point assigned to their office (s 11(4)). Special transitional and protective provisions operate if a Secretary transfers to an office with a lower pay point or if their office’s pay point is lowered during their appointment (s 12(2)-(3)). Subsections 12(4)-(5) allow a pay point assignment to maintain a Secretary’s prior remuneration under certain consultative procedures.

Rights relating to benefits and packaging

• Secretaries may elect salary packaging for total remuneration less employer superannuation, subject to compliance with taxation laws and an express proviso that packaging must not result in a cost to the Commonwealth that would not otherwise be incurred (s 13(1)). Superannuation contributions as a result of packaging are excluded from the defined employer superannuation contribution (s 13(2)). Secretaries may elect a Commonwealth‑provided vehicle; the value of that benefit is the actual cost to the Commonwealth including FBT and selection is subject to Executive Vehicle Scheme guidelines (s 16(1)-(2)). Vehicle parking accepted at Commonwealth expense is likewise taken to be a benefit and valued at actual cost including FBT (s 17).

Leave rights and obligations

• Secretaries must be available for duty when required by their Minister and on all normal business days (s 19). Recreation leave accrues at 20 working days per year, with recognition of prior accrued recreation leave if prior public service ceased not more than two months before appointment (s 20(1)-(2)). Secretaries may cash out up to half of annual recreation leave only if departmental policy permits such cashing out for employees generally (ss 20(4)-(5)). Personal leave accrues as an initial 15 days on appointment and a further 15 days at each 12 month anniversary (s 21(2)), with recognition of prior sick leave if service ceased not more than two months prior (s 21(3)). Unused personal leave and prior sick leave are not paid out on cessation (s 21(4)). The Prime Minister or Prime Minister’s delegate may grant other leave of absence in the interests of the Commonwealth (s 22).

Superannuation rights and calculations

• For Secretaries who are members of defined benefit schemes (CSS, PSS, DFRDB, MSBS), the Determination fixes the base for superannuation calculations at the Secretary’s superannuation salary, defined as 70% of total remuneration (s 15(1)-(4); definition of superannuation salary in s 8). For PSSAP members the superannuation salary is ordinary time earnings (s 15(5)). For other funds the employer contribution is the minimum required to reduce the SG charge percentage to nil (s 15(6)). The Determination therefore fixes the salary basis on which contributions and defined benefit calculations are to be made for Secretaries.

Termination and notice rights

• If a Secretary is terminated under specified subsections of the Public Service Act 1999 and an exclusion event does not occur, they are entitled to compensation: 12 months’ reference salary if termination is 12 months or more before the end of the term, or one month per full month of the unserved term subject to a minimum of six months’ reference salary if termination is less than 12 months before the end of the term (s 25(1)). If a Secretary is not given three months’ notice that they will not be reappointed, they are entitled to three months’ reference salary unless an exclusion event occurs (s 26).

Protections and processes around exclusion events

• The instrument defines exclusion events and ties them to findings by the APS Commissioner after inquiry under s 41A of the Public Service Act 1999, or certain outcomes of a National Anti‑Corruption Commission investigation, or an offer of suitable alternative employment by the Commonwealth or related entities (s 25(1A)-(2)). The specific conduct types that can trigger an exclusion under APS Commissioner findings are enumerated and include sexual harassment, bullying as defined in the Fair Work Act 2009, improper use of duties for advantage, and conduct likely to constitute an imprisonable offence (s 25(1B)). The Determination therefore channels the removal of compensation rights through other statutory inquiry and investigative processes.

Relocation and accommodation rights

• Secretaries who are required to move their principal residence to the ACT are entitled to relocation costs including transport and insured removal of furniture and domestic animals both to and from the home locality when ceasing office (s 28). Settling out and settling in allowances are specified (ss 29-30) and accommodation support of $34,500 per year is available where the Secretary maintains a home locality residence and does not purchase property in the ACT (s 31). Family‑reunion travel entitlements are given annually in business class and are non‑cashable (s 32).

Discretionary ministerial rights

• Certain entitlements are explicitly discretionary and require ministerial or Prime Ministerial approval: additional personal leave (s 21(5)), leave of absence for training or development (s 33), reimbursement of training costs (s 34), and delegation of the Secretary’s Minister’s functions (s 35). These grant Ministers control over particular benefits and reimbursements under the Determination.

Statutory force and making authority

• The Determination operates as a statutory instrument made by the Remuneration Tribunal under Division 4 of Part II of the Remuneration Tribunal Act 1973 (s 4). Its terms govern entitlements and conditions of appointment for Secretaries and interact with the Public Service Act 1999, relevant superannuation Acts and other Commonwealth statutes (s 10).

Enforcement mechanisms in the instrument

• The Determination does not create criminal penalties or administrative fines. Its enforcement is largely internal and administrative: departments and Ministers must observe the rights and entitlements set out in the instrument when paying remuneration, providing benefits and managing leave. The instrument relies on other statutory actors and processes to trigger or displace entitlements, for example:
  • entitlement to termination compensation is conditioned on termination in accordance with specific subsections of the Public Service Act 1999 (s 25(1));
  • exclusion events depend on findings or reports by the Australian Public Service Commissioner (after inquiry under s 41A of the Public Service Act) or by the National Anti‑Corruption Commissioner (s 25(1A)(a)-(b)).

Operational accountability and consultation requirements

• Certain pay point maintenance and assignment decisions require consultation. For example, s 12(4)-(5) requires the Secretary of the Department of the Prime Minister and Cabinet to be satisfied after consulting the President of the Tribunal and the Australian Public Service Commissioner before maintaining a higher pay point in specified circumstances. Those consultative steps provide an internal review and accountability path before pay point assignments that maintain prior remuneration can be made.

Interaction with other statutory enforcement regimes

• The Determination is explicitly additional to and subject to a list of specified Acts, including the Public Service Act 1999, the Fair Work Act 2009, and various superannuation and leave statutes (s 10). Where those statutes carry enforcement regimes, the Determination operates alongside them. For example certain leave entitlements are statutory under the Long Service Leave (Commonwealth Employees) Act 1976 and the Maternity Leave (Commonwealth Employees) Act 1973 and are therefore enforceable under those Acts as well as being acknowledged in this Determination (s 23).

Ministerial discretion as an instrument of enforcement and control

• The Determination vests discretionary power in Ministers for certain leave, reimbursements and delegations (ss 22, 33-35). These discretionary powers function as mechanisms by which Ministers can approve, withhold or condition entitlements under the Determination.

No express civil or criminal penalties

• The Determination contains no express criminal sanctions, pecuniary penalties, or administrative fines for non‑compliance. Enforcement therefore depends on statutory processes, departmental compliance, Ministerial oversight and any remedies available under general administrative law or the statutes listed in s 10, rather than on penalties set out inside this instrument.

Hierarchy and statutory continuity

• The Determination is made under the Remuneration Tribunal Act 1973 (s 4) and expressly states that its provisions are additional to and subject to a list of specified Acts (s 10). That list includes the Fair Work Act 2009; Long Service Leave (Commonwealth Employees) Act 1976; Maternity Leave (Commonwealth Employees) Act 1973; the Public Governance, Performance and Accountability Act 2013; the Public Service Act 1999; the Safety, Rehabilitation and Compensation Act 1988; several superannuation Acts; and the Work Health and Safety Act 2011 (s 10). This establishes that where there is any conflict or overlap, the rights and obligations under those Acts remain applicable.

Interaction with the Public Service Act 1999

• Multiple provisions in the Determination rely on the Public Service Act 1999 for operative effect. For example termination compensation is payable if a Secretary is terminated in accordance with specified subsections of that Act (s 25(1) refers to subsections 56(2) and 59(1) of the Public Service Act 1999). The exclusion event definition references the Commissioner’s inquiry under section 41A of the Public Service Act and findings about breaches of the APS Code of Conduct (s 25(1A)(a)). The definition of Secretary in this Determination cross‑references the Public Service Act 1999 (s 8). Pay point assignments are made under subsection 14(3) of the Remuneration Tribunal Act 1973 as noted in s 7.

Superannuation legislation

• The Determination interacts closely with superannuation laws. It defines employer superannuation contribution differently depending on the scheme to which the Secretary belongs and specifies that the superannuation salary for defined benefit schemes is 70% of total remuneration (s 15; definition of superannuation salary in s 8). For PSSAP members the superannuation salary is ordinary time earnings as defined in the Superannuation Guarantee (Administration) Act 1992 (s 15(5)). For other funds the employer contribution is the minimum required under section 23 of the Superannuation Guarantee (Administration) Act 1992 to reduce the charge percentage to nil (s 15(6)). These references show that superannuation contributions are computed in the Determination by direct interplay with existing superannuation statutes.

Tax and fringe benefits

• The Determination requires that total remuneration be calculated at the total cost to the Commonwealth including fringe benefits tax (s 9(2)). The remuneration packaging provision explicitly requires consistency with taxation laws and ATO rulings or guidelines (s 13(1)(a)). Vehicle and parking benefits are to be valued at actual Commonwealth cost including fringe benefits tax (ss 16(1), 17). This links the Determination to the Fringe Benefits Tax Assessment Act 1986 and the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 through the definition of fringe benefits tax (s 8).

Official travel framework

• The Determination designates travel tier 1 for Secretaries for the purposes of the Remuneration Tribunal (Official Travel) Determination 2024 or a successor instrument (s 14). This means the Determination operates in tandem with the separate official travel determination to set travel entitlements and standards.

Administrative law and ministerial discretion

• Several provisions depend on ministerial discretion and administrative decisions by the Prime Minister, the Secretary’s Minister or their delegates (e.g. ss 22, 24, 33-35). The Determination thus sits within the broader administrative framework in which ministerial decisions are made and subject to the statutory limits and obligations in the Acts listed at s 10.

Replacements and repeals

• The instrument explicitly repeals the 2024 Determination in full (Schedule 1). The Determination’s commencement and repeal provision structure reflect standard statutory practice for replacing prior determinations (s 5; Schedule 1).

Immediate replacement of 2024 Determination

• The Determination expressly supersedes the Remuneration Tribunal (Departmental Secretaries,Classification Structure and Terms and Conditions) Determination 2024 (s 5) and Schedule 1 repeals the whole of the 2024 instrument. The effect is that the 2025 Determination replaces the 2024 terms entirely on commencement (Schedule 1).

Commencement timing

• The instrument includes a commencement table and takes effect at the start of 1 July 2025 (ss 2-3). The commencement table notes that the whole instrument commences on that date (s 2(1) and table).

Authority for amendments and future variation

• The Determination is made under Division 4 of Part II of the Remuneration Tribunal Act 1973 (s 4), which supplies the Tribunal’s statutory power to determine classification structures and terms and conditions for offices of Departmental Secretary. The instrument references pay point assignments that are to be made under subsection 14(3) of the Remuneration Tribunal Act 1973 and by the Secretary of the Department of the Prime Minister and Cabinet for Secretaries other than those at Level 1 and Level 2 (s 7). This anticipates future administrative variation in pay point assignments via instruments made under the principal Act.

Specific change mechanics recorded in the Determination

• The Determination provides explicit mechanics where pay points may be maintained above a lower assigned level, subject to satisfaction and consultation requirements involving the Secretary of the Department of the Prime Minister and Cabinet, the President of the Tribunal and the Australian Public Service Commissioner (s 12(4)-(5)). Those mechanics can operate in later assignments where a pay point might otherwise be lowered.

No other textual amendment history recorded

• Beyond the express repeal of the 2024 Determination (Schedule 1) and the commencement provisions (ss 2-3), the text does not record prior amendments, ministerial instruments amending parts of it, or a schedule of incremental changes. Any subsequent amendments would be by further Determination of the Tribunal under the relevant Act. The instrument’s own tables and definitions are self-contained and do not show amendment markings or multiple editions within this text.

Practical implication for tracking changes

• Users tracking remuneration settings for Secretaries must note that pay point assignments for Level 3 and Level 4 offices may change by separate pay point assignment instruments referenced in s 7, and those instruments will be the place where subsequent variations to particular offices’ pay points are recorded. The Determination itself must be read together with any such pay point assignments and with the Remuneration Tribunal’s later Determinations, including any superseding Official Travel Determination referenced in s 14.

No litigation recorded in the instrument

• The Determination itself contains no references to litigation, judicial decisions, or disputes concerning its terms. It does not list any cases or judicial interpretations. The instrument is a statutory determination made by the Remuneration Tribunal under the Remuneration Tribunal Act 1973 (s 4).

Points in the instrument that may generate disputes

• The Determination sets out several decision points and linked external processes that could be the subject of administrative dispute. For example:
  • pay point assignments made by the Secretary of the Department of the Prime Minister and Cabinet for Level 3 and 4 offices and the consultation processes under s 12(4)-(5) may generate disagreement about whether maintaining prior remuneration is “appropriate in the circumstances”;
  • whether an “exclusion event” has occurred for the purposes of ss 25(1A)-(1B) will depend on investigatory and reporting outcomes generated by the APS Commissioner or the National Anti‑Corruption Commissioner and those factual findings could be contested in separate processes;
  • the condition in s 13(1)(b) that remuneration packaging must not result in a cost to the Commonwealth that would not be incurred if the remuneration were salary may require departmental accounting and interpretation, potentially producing disputes between Secretaries and departments about acceptable packaging arrangements.

Procedural interlocks that influence dispute pathways

• The Determination channels key determinations to other statutory authorities. For example, a finding that may displace entitlement to termination compensation under s 25(1A)(a) must follow an APS Commissioner inquiry under section 41A of the Public Service Act 1999 and the Commissioner making a specified finding (s 25(1A)(a) and s 25(1B)). For corruption matters, the Determination requires a National Anti‑Corruption Commissioner investigation report with specific opinions and recommendations before an exclusion event is engaged (s 25(1A)(b)). This could mean that contested factual matters are litigated or resolved within those statutory processes before any remuneration consequences under the Determination follow.

Absence of recorded judicial review or court decisions

• The Determination does not identify any prior litigation challenging these or comparable Determinations. It contains no discussion of court rulings or precedent.

Guidance for practitioners

• Because the Determination relies on other statutory decision-makers and auditors for key triggers and on many ministerial discretions, disputes that arise over application or entitlement are likely to be resolved through the relevant administrative processes or internal reviews of those statutory bodies. The text itself does not prescribe a bespoke dispute resolution mechanism specific to the Determination.

Counting total remuneration and exclusions

• Total remuneration is defined as the total cost to the Commonwealth including FBT and the employer superannuation contribution (s 9(2)). However the Determination specifically excludes the value of business support facilities provided under s 18 from total remuneration (s 9(3)(a)). This means that generous communications, IT and office facilities, and telephone reimbursements provided under s 18 are not counted within the pay cap represented by total remuneration, whereas vehicles and vehicle parking, which are expressly taken as benefits and valued at actual cost including FBT, are counted (ss 16-17). Departments must therefore be precise when accounting for what falls inside and outside the total remuneration figure.

Superannuation salary is not full salary

• For defined benefit schemes, the superannuation salary is 70% of total remuneration (definition in s 8 and s 15). That may produce a lower base for defined benefit accruals and employer superannuation valuation than some readers might expect if they assume superannuation is calculated on total remuneration or on salary alone.

Packaging constrained by Commonwealth cost test

• Salary packaging is permitted only if consistent with taxation rules and the provision of benefits does not create a net additional cost to the Commonwealth (s 13(1)). This is an operational constraint: packaging that increases FBT or other Commonwealth costs will be disallowed. Practically, pay advisers must model Commonwealth cost including FBT and employer superannuation to verify compliance with s 13(1)(b).

Protections against pay reduction have timing complexity

• Subsections 12(2)-(5) provide transitional protections where a Secretary moves to an office with a lower pay point or where an office’s pay point is lowered during an appointment. These protections operate until the instrument of appointment would have expired and can be maintained beyond that time only if the PM&C Secretary is satisfied after consultation that it is appropriate and a pay point assignment is made (ss 12(2), 12(4)-(5)). Practitioners must pay attention to the interplay of appointment terms, pay point assignment instruments, and consultation deadlines to determine actual entitlements.

Termination compensation subject to exclusion events with precise triggers

• The Determination sets a formula for termination compensation but displaces it where an “exclusion event” occurs, which requires specific fact patterns and other statutory investigative or reporting steps (s 25(1A)-(1B)). For example an APS Commissioner finding following an inquiry under s 41A of the Public Service Act 1999 is required to trigger an exclusion under s 25(1A)(a). Similarly, an NICC report with opinions and a recommendation is required under s 25(1A)(b). That sequencing means that entitlement to compensation will depend on the outcome of those external processes and not on a Minister’s or department’s immediate decision.

Suitable alternative employment may cut compensation

• The definition of an offer of suitable alternative employment in s 25(2) is broad and includes Commonwealth entities, public statutory corporations, companies wholly owned by the Commonwealth, and some companies limited by guarantee where members are Commonwealth entities (s 25(2)(a)-(e)). An offer of such employment can constitute an exclusion event and will affect termination compensation under s 25(1A)(c) and s 25(2). Employers and advisers should note the wide scope of potential alternative employers.

Relocation entitlements have conditions

• Accommodation support of $34,500 per year is payable only if the Secretary continues to maintain a residence in the home locality and does not buy a property in the ACT (s 31). The entitlement continues for the duration of the Secretary’s term and any subsequent term. That creates an incentive for Secretaries to maintain external residences and a condition that purchasing ACT property extinguishes entitlement, which advisers should flag when considering housing decisions.

Non‑cashable travel entitlement

• The annual family reunion travel allocation is non‑cashable and must be used while the Secretary occupies the office; unused travel cannot be converted to cash or other uses (s 32(4)-(5)). Practitioners should note this for benefit planning and for family travel logistics.

Leave cash‑out limited by departmental policy

• Cashing out up to half of annual recreation leave is permitted only if the Secretary’s department has a policy that allows employees generally to cash out leave (s 20(4)-(5)). A Secretary’s entitlement to cash out is therefore constrained by the broader departmental policy environment.

FBT and accounting complexity

• Because many benefits are valued at actual Commonwealth cost including FBT (ss 9(2), 16(1), 17), departments must model FBT consequences accurately and include those costs in total remuneration calculations or benefits valuations as required. Misstating FBT could affect whether packaging meets the non‑cost‑increasing test in s 13(1)(b).

Discretionary ministerial powers

• Several entitlements depend on ministerial discretion (ss 21(5), 22, 33-34). Practitioners should document the exercise of such discretion and any conditions imposed by Ministers to avoid disputes.

Establish accurate total remuneration accounting

• Departments must calculate each Secretary’s total remuneration as the figure stated in Table 2A or the pay point assignment, and ensure that when they apply benefits in kind they value them at the total cost to the Commonwealth including FBT and employer superannuation contribution where required (s 9(1)-(2); ss 16-17). Business support facilities provided under s 18 are excluded from total remuneration for the Determination’s purposes (s 9(3)(a)), but must still be documented and costed for departmental accounts where appropriate.

Implement pay point assignment processes

• For Level 3 and Level 4 offices, the Secretary of the Department of the Prime Minister and Cabinet must make pay point assignments under the Act (s 7). Where pay points may be lowered or where a person transfers from one Secretary office to another, departments and the PM&C Secretary must apply s 12(2)-(5) protections and undertake the consultations required by s 12(4)-(5) with the President of the Tribunal and the Australian Public Service Commissioner before maintaining remuneration at a higher level beyond appointment expiry.

Ensure packaging complies with taxation and Commonwealth cost test

• Any remuneration packaging election by a Secretary must be consistent with ATO rulings or guidelines and must not result in costs to the Commonwealth that would not be incurred if remuneration were salary (s 13(1)). Payroll and tax teams should model FBT, employer superannuation, and other Commonwealth cost consequences and document tax advice. Superannuation contributions made as a result of packaging are not to be included in the employer superannuation contribution under the Determination (s 13(2)).

Apply superannuation calculations as prescribed

• For Secretaries in CSS, PSS, DFRDB or MSBS, use the superannuation salary equal to 70% of total remuneration as the salary base for defined benefit calculations and apply 15.4% as the employer contribution (s 15(1)-(4)). For PSSAP members apply 15.4% of ordinary time earnings as the employer contribution (s 15(5)). For other funds calculate the minimum employer contribution that reduces the SG charge percentage to nil under the SG Administration Act (s 15(6)).

Operationalise benefits and business support

• Implement Executive Vehicle Scheme guidelines for vehicle selection and value vehicle benefits at actual Commonwealth cost including FBT (s 16(1)-(2)). If a Secretary accepts Commonwealth‑funded car parking, treat the actual cost including FBT to the department as a benefit (s 17). Provide communications and IT facilities and phone reimbursement in line with s 18 and record that these facilities are excluded from total remuneration under s 9(3)(a).

Document leave policies and application routes

• Ensure that departmental leave policies align with the Determination’s requirements: recreation leave accrual at 20 days per year and personal leave front‑loaded and accruing thereafter (ss 20-21). If the Secretary seeks to cash out recreation leave, confirm that a departmental policy allowing employees generally to cash out exists before approving the cashing out (s 20(4)-(5)). Route applications for leave for 3 months or less to the Secretary’s Minister, and leave for more than 3 months to the Prime Minister or the Prime Minister’s delegate (s 24).

Follow termination and exclusion event procedures carefully

• When considering termination or non‑reappointment, ensure the termination is processed in accordance with the relevant subsections of the Public Service Act 1999 (s 25(1)). Before denying termination compensation on the basis of an exclusion event, ensure the triggering processes have occurred as required by the Determination: APS Commissioner inquiry and certain findings under the Public Service Act, or NICC investigations and report recommendations as specified (s 25(1A)-(1B)). Where suitable alternative employment is offered, check the scope under s 25(2) to determine whether such an offer affects compensation.

Administer relocation and accommodation entitlements

• For Secretaries relocating to the ACT, implement relocation cost coverage including removal and return transport, settling out and settling in allowances at the specified rates, accommodation support where conditions are met, and family reunion travel consistent with the non‑cashable and time‑limited rules (Part 7). Record eligibility criteria such as whether the Secretary maintained a home locality residence immediately before appointment (s 27) and whether the Secretary purchases ACT property, which disqualifies accommodation support (s 31).

Record and publish delegations and consultative outcomes

• Where the Secretary’s Minister delegates functions under the Determination, record the delegation in writing as required by sound administrative practice and follow up any conditions imposed when exercising delegated powers (s 35). When pay point maintenance decisions involve consultation with the President of the Tribunal and the APSC, document those consultations and the reasons for any decision to maintain remuneration above what would otherwise apply (s 12(4)-(5)).

Maintain documentation for audit and Comptroller requirements

• Given the Determination’s requirement that total remuneration represent total cost to the Commonwealth, maintain detailed records of benefits, FBT calculations, employer superannuation contributions, and any packaging arrangements, together with approvals and ministerial decisions that justify payments or non‑standard treatment. This will assist compliance with the Public Governance, Performance and Accountability Act 2013, which governs Commonwealth financial management and is listed in s 10.

Coordinate with tax and superannuation advisors

• Work with tax counsel or in‑house tax specialists to ensure packaging arrangements meet ATO guidelines and the Commonwealth cost test in s 13(1)(b). For superannuation calculations, liaise with fund administrators and the APSC to ensure correct application of the 70% superannuation salary rule for defined benefit schemes (s 15).

Track and publish pay point assignments and any subsequent Determinations

• Because Level 3 and Level 4 pay point assignments are made by PM&C under the Act and may change, keep an up‑to‑date record of any pay point assignment instruments and ensure they are published or otherwise available to affected Secretaries and departmental payroll teams in accordance with transparency and public sector standards (s 7; s 12).

By applying these operational steps and documenting decisions, departments and Ministers can align operations with the Determination and avoid common pitfalls created by the interaction of benefits, FBT, superannuation rules, and ministerial discretion.