Secretary payout changes ahead of Pezzullo investigation findings

The top bureaucrat was asked to stand aside while the Australian Public Service Commission investigates allegations he sent messages to a Liberal Party powerbroker Scott Briggs over five years, seeking to influence political matters.

Mr Pezzullo has been on his full pay package of almost $915,000, while associate secretary Stephanie Foster is acting in his position.

Late last week, the independent Remuneration Tribunal published a determination that revokes compensation obligations owed to secretaries if they have been found to be part of an "exclusion event", including if they are sacked for breaching duties.

The new determination from the body responsible for reporting on and determining the remuneration, allowances and entitlements of key office-holders appears to apply retrospectively.

It is a general determination, so it is unclear how it may apply in an individual circumstance.

The determination creates the definition for an "exclusion event" through a list of reasons that would remove a departmental secretary's eligibility for compensation for loss of office.

They include: being found by the APS commissioner to have breached the APS code of conduct; being found by the National Anti-Corruption Commissioner to have engaged in "corrupt conduct of a serious or systemic nature"; and having been recommended for termination.

There is also scope to stop compensation for loss of office if there is a finding by the APS commissioner of conduct constituting "improper use of the secretary's duties, status, power or authority to gain a benefit or advantage (whether financial or otherwise) for themselves or any other person".

Sexual harassment, bullying, or conduct "likely to constitute an offence against a law of the Commonwealth, a state or a territory that is punishable by imprisonment" is also included in the determination.

In explanatory notes, the tribunal explained it "normally" receives submissions on remuneration from a portfolio minister, or a secretary, program manager or employing body. It also said will "normally" seek the views of the relevant portfolio minister prior to determining remuneration for an office.

It said it started reviewing loss of office arrangements for departmental secretaries in October and had sought advice from the Australian Government Solicitor and the Office of Parliamentary Counsel.

It said it wrote to all secretaries on November 17 seeking comment, but only three responded. It wrote again to all on November 22, addressing feedback and clarifying the intent of the proposed amendments.

The decisions to revoke entitlements after an exclusion event was made a day later, on Thursday, and published on Friday.

In September, Home Affairs Minister Clare O'Neil directed the Public Service Commissioner Lynelle Briggs to investigate whether Mr Pezzullo breached the APS code of conduct over his dealings with Mr Briggs. Ms and Mr Briggs are not related.

The Pezzullo inquiry is one of about two dozen probes being conducted by the Public Service Commission, some of which relate to referrals from the robodebt royal commission report.