Remuneration Tribunal (Specified Statutory Offices—Remuneration and Allowances) Determination 2025

The central concept is total remuneration, defined in section 8 as the annual amount in Table 2A, representing the total cost to the employing authority of salary, allowances, lump sums, benefits, and employer superannuation contributions (including FBT). It is a cap: the office holder cannot receive more than this total from the employer, though certain excluded items can be provided on top. Total remuneration is not salary; it is a composite figure from which salary is derived after deducting the cost of benefits and superannuation.

Employer superannuation contribution is defined per scheme. For members of the CSS, PSS, DFRDB, or MSBS, the contribution is 15.4% of the office holder’s superannuation salary. Superannuation salary for those schemes is defined as 70% of the office holder’s total remuneration, rounded up to the nearest $10 (section 7). This 70% figure is significant: it means the defined‑benefit accrual is based on a lower salary than the total remuneration package. For PSSAP members, the contribution is 15.4% of ordinary time earnings. For other funds, it is the minimum Superannuation Guarantee amount to reduce the charge percentage to nil. The contribution cannot be exchanged for cash (section 12(7)), reinforcing its non‑salary nature.

Benefits include non‑monetary items such as a vehicle or car park provided at agency expense, and any benefits obtained through remuneration packaging. If the office holder accepts a vehicle or car park, the actual cost to the agency (including FBT) is taken to be a benefit - meaning it counts as part of total remuneration and reduces the salary component correspondingly.

Remuneration packaging (section 11) allows the office holder to sacrifice salary for benefits, but two conditions apply: (1) the election must be consistent with taxation laws and ATO rulings; and (2) providing the benefit must not result in additional cost to the employing authority beyond what would have been incurred if the remuneration were paid as salary. This second condition effectively prohibits packaging that generates higher FBT or other employer costs that cannot be absorbed within the total remuneration envelope.

Travel tier is a classification used by the separate official travel determination. Tier 1 is the highest tier, entitling the office holder to the top level of travel and accommodation allowances.

The office holder is any person holding one of the four offices listed in Table 2A. The employing authority is the entity exercising employment or remuneration powers - generally the portfolio department or agency. The agency is the body to which the office holder is attached, or the portfolio Department if unattached.

These concepts combine to create a closed system: total remuneration is fixed; the employer’s cost cannot exceed it; the office holder can shift between salary and benefits within that limit but cannot increase the employer’s cost; and superannuation is a mandatory non‑cash component.

The determination directly affects four individuals at any given time: the Chief of the Defence Force, the Commissioner of Taxation, the Auditor‑General for Australia, and the Australian Statistician. These are statutory office holders appointed by the Governor‑General or Minister, not public servants under the Public Service Act 1999. Their remuneration is set by the Remuneration Tribunal, not by enterprise agreement or individual contract. The determination sets the maximum total cost their employing authorities can incur for them.

The employing authorities are respectively: the Department of Defence (for the CDF), the Australian Taxation Office (for the Commissioner), the Australian National Audit Office (for the Auditor‑General), and the Australian Bureau of Statistics (for the Statistician). These agencies must administer the total remuneration cap, calculate superannuation contributions correctly, manage vehicle and parking arrangements, and process any remuneration packaging elections. The determination also binds the Department of Finance and the Australian Public Service Commission to the extent they provide advice or oversight of these offices.

Indirectly, the determination affects taxpayers, who fund these salaries. It also affects the labour market for senior public sector roles: the fixed total remuneration (rather than a negotiable salary) may influence the willingness of candidates to accept these positions, particularly if private‑sector alternatives offer higher cash compensation or more flexible packaging. The figure for the Commissioner of Taxation ($928,980) and the Auditor‑General ($847,410) are public knowledge and may become benchmarks for other statutory offices not covered by this determination.

The determination does not apply to other statutory office holders - for example, the Governor‑General, judges, or members of Parliament - whose remuneration is set under separate instruments. It also does not affect employees of the agencies below the office‑holder level.

The superannuation provisions will affect each office holder differently depending on their scheme membership. Those who are members of the CSS or PSS (defined benefit, mostly closed to new members) will have their superannuation salary set at 70% of total remuneration, which may reduce the pension they accrue compared to an arrangement based on actual salary. Office holders who are members of PSSAP (accumulation) will receive contributions of 15.4% of ordinary time earnings, which may be more or less valuable depending on salary and investment returns.

Office holder’s right to package: Section 11(1) gives each office holder the right to elect to receive total remuneration (excluding the employer superannuation contribution) as salary or as a combination of salary and benefits. This is a right, not a duty - the office holder may choose to take all as salary. The election must be consistent with taxation laws and ATO rulings; it cannot result in additional cost to the employing authority. This imposes practical constraints: for example, packaging a car may generate FBT that must be borne within the total remuneration, so the office holder must accept a lower salary to keep the agency cost constant.

Office holder’s duty to comply with taxation laws: The election must be “consistent with relevant taxation laws and rulings or guidelines applicable to salary packaging schemes issued by the Australian Taxation Office.” This is a legal obligation; an election that violates tax law would be invalid, and the employing authority should not implement it.

Employing authority’s duty not to exceed total remuneration: The employing authority must ensure that the sum of salary, benefits, and employer superannuation contributions does not exceed the amount in Table 2A. However, the instrument does not expressly state a penalty for breach; rather, it defines total remuneration as a cap. If an employing authority inadvertently provides remuneration exceeding the cap, it would likely be in breach of the Remuneration Tribunal Act 1973 (by failing to comply with a determination) and could face administrative consequences (such as a direction from the Minister or adverse audit findings).

Employing authority’s duty to calculate superannuation correctly: Under section 12, the employer must apply the correct scheme‑specific rules: for CSS/PSS/DFRDB/MSBS members, the employer must set superannuation salary at 70% of total remuneration (rounded up to nearest $10) and contribute 15.4% of that amount. For PSSAP members, contributions are 15.4% of ordinary time earnings. For other funds, the minimum guarantee. The employer cannot allow the office holder to cash out the superannuation component.

Employing authority’s right to provide housing assistance: Section 15 allows the employing authority to approve housing assistance for the Chief of the Defence Force “in accordance with agency policy and practices.” This is discretionary and excluded from total remuneration.

Office holder’s right to accept or decline vehicle/car park: The provisions on vehicles (section 13) and vehicle parking (section 14) are triggered only if the office holder accepts an offer. If accepted, the cost becomes a benefit that counts towards total remuneration. If declined, no cost is incurred. This gives the office holder control over whether to take those benefits.

No right to cash out employer superannuation: Section 12(7) expressly provides that the value attributed to the employer superannuation contribution “may not be the subject of an election to take an equivalent amount of salary instead.” This is a prohibition on the office holder and the employer.

The determination itself does not create criminal offences or civil penalties. It is a legislative instrument made under the Remuneration Tribunal Act 1973. The enforcement mechanisms arise from the parent Act and from general administrative law.

Under the Remuneration Tribunal Act 1973, subsection 7(5) provides that a determination has effect according to its terms. An employing authority that pays remuneration inconsistent with the determination is likely acting beyond its power. This could be challenged by the office holder, by the Auditor‑General, or by a parliamentary committee. The Commonwealth Ombudsman or the Australian Public Service Commissioner might also investigate non‑compliance.

For the office holder, if they receive remuneration in excess of the total remuneration cap (for example, through an erroneous benefit valuation), the office holder may have to repay the excess under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), which requires officials to act with propriety and to repay unlawful payments. Section 23 of the PGPA Act also imposes a duty of care and diligence. An office holder who knowingly arranges remuneration in breach of the determination could face suspension or removal from office under their enabling legislation (for example, the Australian Bureau of Statistics Act 1975 or Auditor‑General Act 1997).

The most probable enforcement scenario is administrative: if an audit reveals that an employing authority exceeded the total remuneration cap (e.g., by improperly excluding FBT when calculating benefit costs), the Department of Finance may instruct the agency to adjust the office holder’s salary package or seek recovery. The Remuneration Tribunal itself does not have an investigative or prosecutorial role; it merely makes determinations.

The determination interacts with the Fringe Benefits Tax Assessment Act 1986. If the employing authority fails to correctly account for FBT on a benefit provided as part of packaging, that error could lead to tax penalties from the ATO, separate from any remuneration breach.

In summary, the determination sets a legal limit that is enforceable through the parent Act, general government accountability frameworks, and tax laws. The practical risk is low for honest administration, but agencies should maintain clear records of elections, costings, and FBT calculations to avoid inadvertent breaches.

The determination operates within a legislative framework built on the Remuneration Tribunal Act 1973, which gives the Tribunal power to set remuneration for specified statutory offices. The determination derives its legal force from that Act and must be read consistently with it.

Taxation laws: Remuneration packaging under section 11 must be consistent with taxation laws and ATO rulings. The Fringe Benefits Tax Assessment Act 1986 applies to benefits provided to office holders; the cost of benefits (including FBT) is included in total remuneration under section 8(2). The determination references fringe benefits tax and defines it as under the FBT Assessment Act and the Fringe Benefits Tax (Application to the Commonwealth) Act 1986. The Superannuation Guarantee (Administration) Act 1992 is used to define ordinary time earnings for PSSAP members and the minimum contribution for other funds.

Superannuation legislation: The determination explicitly references the Superannuation Act 1976 (CSS), Superannuation Act 1990 (PSS), Superannuation Act 2005 (PSSAP), Defence Force Retirement and Death Benefits Act 1973 (DFRDB), and Military Superannuation and Benefits Act 1991 (MSBS). For members of those schemes, the determination overrides any default salary definition in the superannuation trust deeds by specifying that superannuation salary equals 70% of total remuneration. This may produce a lower superannuation salary than the office holder’s actual salary, affecting defined benefit accrual.

Official travel determination: Section 10 sets travel tier 1 for all four office holders. The official travel determination (currently the Remuneration Tribunal (Official Travel) Determination 2024) then governs travel allowances, accommodation, and incidental expenses. Those travel expenses are excluded from total remuneration under section 8(3)(c).

Other Remuneration Tribunal determinations: The determination cross‑references the Remuneration Tribunal (Recreation Leave for Holders of Relevant Offices) Determination 2018 and the Remuneration Tribunal (Compensation for Loss of Office for Holders of Certain Public Offices) Determination 2018. Payments under those determinations are excluded from total remuneration. The determination also supersedes the 2024 version and will itself be replaced annually.

Public service and accountability laws: The PGPA Act governs the financial management of Commonwealth agencies. Total remuneration is a cost that must be reported and managed within agency budgets. The Public Service Act 1999 does not directly apply to these statutory office holders, but their employing authorities are subject to its Code of Conduct and values for their employees.

The interactions are largely definitional and exclusionary: the determination carves out certain payments from total remuneration, aligns superannuation definitions with scheme Acts, and relies on tax law for the validity of packaging.

This determination is the 2025 version, superseding the 2024 determination of the same name (repealed by Schedule 1). There is no other amendment history provided in the instrument. The Tribunal makes a new determination annually, typically with updated total remuneration figures and occasionally revised policy settings. The 2024 determination would have contained similar provisions but with different dollar amounts. The 2025 determination increases total remuneration for all four offices compared to 2024, though the source does not provide the 2024 figures for comparison. The Tribunal may adjust figures based on wage indexation, market data, or Government policy.

The definitions, superannuation methodology, travel tier, packaging rules, and vehicle provisions appear largely unchanged from the 2024 instrument, based on the absence of transitional provisions or amendments to specific sections - the whole instrument is replaced. This annual replacement approach avoids piecemeal amendments.

Future amendments may occur if the Tribunal issues a variation later in the year (possible under s 7(4) of the Act) or if the 2026 determination supersedes this one. The instrument itself cannot be amended by this determination beyond the repeal schedule.

The source instrument contains no references to court cases or litigation. There is no pending or concluded litigation cited. In practice, challenges to Remuneration Tribunal determinations are rare. The Remuneration Tribunal Act 1973 allows judicial review of determinations under the Administrative Decisions (Judicial Review) Act 1977 (ADJR Act) or by way of constitutional challenge. Historically, some determination‑related disputes have arisen but not under this specific determination. The 2024 determination was likely not litigated. The absence of litigation history is unsurprising given the narrow scope and high‑level nature of the offices covered.

Superannuation salary at 70%: For defined‑benefit scheme members (CSS, PSS, DFRDB, MSBS), the determination defines superannuation salary as 70% of total remuneration, rounded up to the nearest $10, not the office holder’s actual salary. If an office holder packages heavily into benefits, their salary component could be much lower than total remuneration, but the superannuation salary still remains 70% of total remuneration, not 70% of salary. However, for defined‑benefit members, the benefit accrual (e.g., pension multiple) is based on superannuation salary. This means the office holder does not lose superannuation accrual by sacrificing salary for benefits - the superannuation salary is fixed to total remuneration. But if the office holder takes all salary and no benefits, the salary is still lower than total remuneration because the 15.4% employer superannuation contribution is part of total remuneration. The effect is that the office holder’s cash salary is total remuneration minus the employer superannuation contribution minus any benefit costs. For a defined‑benefit member, the superannuation salary is 70% of total remuneration, not 100%. This may surprise newly appointed office holders who expect superannuation to be based on their full salary.

No cash‑out of employer contributions: Section 12(7) prohibits electing to take an equivalent amount of salary instead of the employer superannuation contribution. This means office holders cannot increase take‑home pay by forgoing superannuation. It is a binding rule that applies regardless of the office holder’s personal preference for cash over superannuation.

Benefit cost includes FBT but must not exceed salary reduction: The packaging condition in section 11(1)(b) says providing a benefit must not result in a cost to the employing authority that would not be incurred if the remuneration were paid as salary. This effectively caps the value of benefits at the amount of salary the office holder forgoes, including any FBT the agency must pay. If an office holder wants a car that costs the agency $30,000 including FBT, they must reduce their salary by at least $30,000 to keep total remuneration constant. The agency cannot subsidise the benefit from outside the total remuneration envelope.

Vehicle and parking benefits are actual cost to agency: Sections 13 and 14 say that if the office holder accepts a vehicle or car park, the benefit is the “actual cost to the agency (including fringe benefits tax).” This is not a market‑value or notional amount; it is the specific cost incurred by the agency. If the agency owns the car and has an imputed cost regime, that still counts. The office holder may not know the exact cost until after the fact, which complicates packaging elections.

Travel tier is fixed at tier 1: All office holders are assigned travel tier 1, the highest tier. This cannot be varied by the employing authority. It means the office holder is entitled to premium travel regardless of their particular role or travel patterns.

Housing assistance for CDF only: Section 15 is limited to the Chief of the Defence Force. The other three office holders cannot receive housing assistance in connection with their office (unless it is a relocation expense excluded under s 8(3)(a) for initial relocation - not recurrent housing). This asymmetry could be a recruitment issue for non‑Defence offices in high‑cost cities.

This determination does not set salary - it sets total remuneration: Agency finance officers must ensure they do not interpret the Table 2A figure as salary. Salary is a residual after deducting benefits and employer superannuation contributions. If an agency inadvertently pays salary equal to total remuneration plus benefits and superannuation, it will exceed the cap.

No automatic indexation: The determination is replaced annually. In the interim, there is no formula for mid‑year adjustments. If the Tribunal delays the next determination, offices will continue on the 2025 figures.

For the employing authority (agency):

• Upon appointment of a new office holder, confirm which superannuation scheme they belong to (CSS, PSS, DFRDB, MSBS, PSSAP, or other).
• Calculate the superannuation salary: for CSS/PSS/DFRDB/MSBS members, take 70% of the total remuneration figure in Table 2A and round up to the nearest $10. For PSSAP members, use ordinary time earnings (generally actual salary). For other funds, determine the minimum SG amount.
• Deduct the employer superannuation contribution from total remuneration to determine the maximum available for salary and benefits.
• Offer the office holder a remuneration packaging election in accordance with section 11. Provide clear information on the cost impact of any proposed benefits, including FBT. Ensure the election is in writing, states the salary reduction or combination, and confirms the benefit cost does not exceed the salary foregone.
• Maintain a record of the election and the cost of any benefits provided. Reconcile total remuneration at least annually to ensure no excess payment.
• If the office holder declines a vehicle or car park, no benefit cost arises.
• For the Chief of the Defence Force, if housing assistance is approved, keep it separate from total remuneration and document it under agency policy.
• Pay travel allowances and recreation leave in accordance with the separate determinations, and do not count them towards total remuneration.
• If the office holder changes scheme membership during the year, adjust contributions from the date of change.

For the office holder:

• Review total remuneration figure in Table 2A for your office.
• Decide whether to take all salary or package a combination including benefits such as a vehicle, car park, or other non‑monetary benefits that are available under agency policy.
• Ensure any packaging election complies with taxation laws. Seek independent tax advice if necessary; the agency may assist but the office holder bears ultimate responsibility for the election’s tax validity.
• Understand that the employer superannuation contribution cannot be cashed out. Your superannuation will be based on the contribution rules in section 12, which may not use your actual salary.
• Be aware that accepting a vehicle or car park reduces your salary by the actual cost to the agency (including FBT). Obtain a cost estimate from the agency before making the election.
• Report any changes in personal circumstances that might affect scheme membership (e.g., transferring from DFRDB to MSBS).
• Keep records of all elections and correspondence with the agency regarding remuneration packaging.

Audit and reporting:

• Agencies should include the total remuneration cost in their financial statements under PGPA requirements.
• The Remuneration Tribunal may request data on how the determination is being applied.
• If an error is discovered, the agency should adjust future payments and, if necessary, seek legal advice on recovery of overpayment under the PGPA Act.

Timing: The determination takes effect on 1 July 2025. All remuneration arrangements for that financial year must comply from that date. The 2024 determination ceases to apply.