Government Miscalculates Governor General's Salary

This Government is spending money recklessly, treating it as if it were mere monopoly money. This is partly because of their reliance on career bureaucrats for advice, individuals who have enjoyed very high incomes within the Canberra bubble for so long that money has lost its value to them.

They are probably surprised by the public’s outraged reaction to their decision to raise the Governor General’s salary from $495,000 to $719,000.

Such a large salary increase in the middle of a cost of living crisis showed a severe lack of awareness. Canberra bureaucrats aren’t experiencing the cost of living pain felt by the broader population, as they are insulated by their excessively hire salaries.

Rather than meeting the public outcry with a mea culpa and reducing the salary, Minister Gallagher huffed and puffed. She failed to grasp simple maths (an increase from $495,000 to $719,000 is a 43.2% rise), conflagrated the situation by raising the previous Governor General’s military pension and then accused me of misleading Parliament.

In truth, the Government and their bureaucrats were just looking after a mate and got called out for it.

Transcript

The Governor-General Amendment (Salary) Bill 2024 is yet another display of poor judgement from Prime Minister Anthony Albanese. To increase the salary of the Governor-General by 43 per cent in a cost-of-living crisis is an insult to everyday Australians who are struggling with the Albanese government’s cost-of-living crisis.

The salary of the Governor-General is fixed for the period of her term, so the rise by $214,000 dollars to a new salary of $709,000 is the only increase in the next five years. A 43 per cent pay rise suggests that the government knows inflation is going to get much worse. Not only will Ms Mostyn be earning $709,000 but the role also includes two homes: Government House in Yarralumla and Admiralty House in Kirribilli, right on Sydney Harbour. The role includes free travel, free food, servants and a pool. The Governor-General receives a pension which is legislated at 60 per cent of salary or $425,000 for life—not a bad pension.

The appointment of Ms Mostyn is a controversial choice. The tradition for 124 years has been to select our Governor-General from the ranks of the judiciary, the military, state governors and senior politicians. This reflects the skill set a governor-general needs to lead the Australian people in a time of civil crisis or war. The Governor-General is, of course, commander of Australia’s armed forces; the Prime Minister is not the commander of Australia’s armed forces. Ms Mostyn comes to the role with a background in activism. It’s an appointment which may serve to politicise the role of the Governor-General, and that’s sad to see.

The Commonwealth of Australia deserves more respect than the Prime Minister has shown with this appointment and with this obscene pay rise. One Nation opposes this bill.

Transcript

My question is to the Minister for Finance, Senator Gallagher. Minister, if a salary rises from $495,000 to $719,000, what percentage increase is that?

Senator Gallagher: I’m not sure under which part of the portfolio this comes, but I think it relates to the Governor-General’s salary and the bill that this Senate passed this morning. The point I was making there was that it is misleading to suggest that a salary is increasing from the figure that you have used, Senator Roberts, to that high figure, because what it does not take into account is the other income streams that were available to former Governors-General. So this is an adjustment, yes, but it’s an adjustment being made because the incoming Governor-General does not have a military pension that will supplement the income stream and because the Governor-General’s salary has been traditionally linked to the salary of the Chief Justice of the High Court. That salary is determined by the Remuneration Tribunal.

I think the point you were making this morning in debate and the point that Senator Waters, surprisingly, was making in debate was this was some significant pay increase in the order of 43 per cent, when that is not correct. Former Governors-Generals have had two income streams, particularly if they’ve been in receipt of a pension. This legislation we passed today was to ensure that a commensurate salary be provided for an incoming Governor-General who only has one income stream. So it is not accurate to say that a position has had an increase of that order. It is simply not correct. It is misleading, it is disingenuous and it’s seeking a popular headline, which I agree is easy to get if people don’t understand the detail that underpins that decision.

The PRESIDENT: Senator Roberts, first supplementary?

Senator ROBERTS: The answer is 43.2 per cent. Governor-General Jeffery’s salary was $365,000. Quentin Bryce, Labor’s last appointment, was paid $394,000, $20,000 less than the then salary of the High Court Chief Justice. General Cosgrove was paid $425,000, and then General Hurley was paid $495,000. Minister, how much was outgoing Governor-General Hurley’s salary reduced for his military pension?

Senator Gallagher: I don’t have those figures at hand, but I do understand that the salary that has been agreed to and passed by this chamber this morning and by the House earlier in the week is in line with the salary that the current Governor-General has been earning with the income streams available to him. It might be slightly adjusted for the fact that it lasts over five years, because, once the Governor-General commences in the role, no further adjustments can be made to salary. But it is in line with what His Excellency Governor-General Hurley is earning at this point in time.

The PRESIDENT: Senator Roberts, second supplementary?

Senator ROBERTS: The incoming Governor-General’s salary is now $70,000 above the High Court Chief Justice’s salary. The Chief Justice gets, as you said, periodic increases to adjust for inflation. The Governor-General does not. Noting that today’s inflation announcement shows inflation increasing again, this huge pay rise seems designed to compensate Sam Mostyn for inflation and has nothing to do with military pensions. Minister, earlier today, did you mislead the Senate to cover up the real reason for this huge pay increase, surging inflation?

Senator Gallagher: I can assure Senator Roberts that, no, I did not mislead the parliament and I have been clear—indeed, I was clear in the last answer that I gave—that there is some adjustment for future increases based on the fact that the Chief Justice has a salary determined annually by the Remuneration Tribunal. The Governor-General’s salary cannot be increased by that, so there is work done, based on some analysis about what that should appropriately be. But, no, it’s not based on today’s inflation forecast, and it’s incorrect to continue to say that it has nothing to do with the fact that His Excellency currently is in receipt of a military pension in addition to the salary that he draws as Governor-General. The simple reality is that the legislation that passed this chamber addresses the fact that there is one income stream, and this allows them to be paid in accordance with what’s currently being paid.

Transcript

I move:

That the Senate take note of the answer given by the Minister for Finance (Senator Gallagher) to a question without notice I asked today regarding the incoming Governor-General’s salary.

Since 1974 the parliament has approved the salary for each incoming Governor-General. The salary level has conventionally been commensurate with that of the Chief Justice of the High Court. The last time a Governor-General was paid less than the Chief Justice was in 2008, when Labor Prime Minister Kevin Rudd appointed Quentin Bryce with a salary $20,000 less than that of the Chief Justice. Precedent does call for consideration to be ‘given to any pension received by the incumbent for previous employment’—for the incumbent, not for the person coming after the incumbent.

The annual salary during Michael Jeffery’s term was $365,000. Quentin Bryce’s salary was $394,000. General Peter Cosgrove was paid $425,000, which included a small reduction because of his military pension. General Hurley was paid $495,000. General Hurley is in receipt of a military pension as a result of his lifetime of military service. Sam Mostyn is not entitled to a military pension for her lifetime of service to the culture wars. The huge increase offered to Sam Mostyn takes her salary to $70,000 above that of the High Court Chief Justice, despite Labor themselves setting a precedent that less can be paid in hard times, such as in 2008, during the global financial crisis.

In 2024 we have the crisis of the Albanese government’s runaway inflation. The inflation rate has increased again to four per cent, announced a few moments ago. This persistent high inflation gives a hint as to why the incoming Governor-General got such a large wage rise. The government knows what bad economic news is coming for everyday Australians in the next five years and sought to insulate its appointment from that ruinous inflation. This Labor government simply doesn’t know the value of money and is clearly confused when the public call the government out for it. Sam Mostyn has got a huge increase in salary. Her pension is now hugely increased, and she will have that pension for every day of every year of her life.

Question agreed to.