Hon Mark McGowan BA LLB MLA

Hon Mark McGowan BA LLB MLA

Premier; Treasurer; Minister for Public Sector Management; Federal-State Relations

    McGowan Government cuts excessive payouts to bureaucrats

    15/08/2018 3:15 PM
    • New laws to reduce excessive compensation payouts for contracts terminated early
    • Compensation payouts now limited to a maximum of 12 months' salary
    • 'Right of return' abolished for Senior Executive Service (SES) roles
    • McGowan Government delivers promised changes as part of public sector reforms 

    Premier Mark McGowan today introduced new laws into State Parliament to deliver on the Government's promise to reduce excessive payouts to senior bureaucrats and provide long-term savings to Western Australian taxpayers.


    The changes to the Public and Health Sector Legislation Amendment (Right of Return) Bill 2018 will abolish the 'right of return' for Senior Executive Service roles and limit compensation payouts for executives upon early termination of their contract.


    These changes are expected to result in multimillion dollar savings for taxpayers, and will also enable the public sector to better prepare for workforce planning and bring about more efficiencies.


    The McGowan Government will also abolish the right of return for existing Senior Executive Service roles, meaning they will not be able to return to a position within the public sector if their Senior Executive Service position is terminated.


    A six-month transition period will be introduced to provide the State's 300 existing SES employees time to exercise their right of return, should they wish to do so.


    Newly appointed SES employees will only have a two-year period to exercise a right of return, from the time they are first appointed.


    The new laws will also tighten the compensation eligibility - limiting compensation payments to a maximum of 12 months' salary only for executives who have their contract terminated early.


    Current laws allow for 12 months' remuneration - which includes salary, motor vehicle allowance and superannuation.


    More than 400 senior executives and health executives will be immediately impacted by the limited compensation payments when the legislation passes.


    Comments attributed to Premier Mark McGowan:


    "These changes will enable better workforce planning and a more efficient public sector.


    "We've always aimed to implement real change across the public service, and these new laws mean Western Australia will be the only jurisdiction to provide a limited right of return period for an executive's first contract.


    "Reducing large compensation payouts for senior bureaucrats is something that should have been done a long time ago.


    "This legislation will protect future governments and help limit payouts in the future.


    "Overall the changes for the State's most senior public servants have delivered a significant ongoing saving for all Western Australians."


    Premier's office - 6552 5000