The Albanese Government has quietly rejected a recommendation that would force public servants to travel in economy class on domestic flights, but the Remuneration Tribunal has intervened and since barred some bureaucrats from business class.
As reported by PASA earlier this month, the Department of Finance’s recent review of travel procurement practices recommended that public servants – including senior executives – travel in economy class for all flights under three hours, in a bid to save up to $4 million per year on domestic flights.
Other recommendations included refraining from booking first-class tickets or accepting complimentary upgrades unless there’s a documented operational need, as well as a ban on accumulating frequent flyer points through government-funded travel.
The Remuneration Tribunal – an independent agency tasked with determining, reporting on and advising on remuneration arrangements – has since announced that “tier-two” office holders will no longer be permitted to travel in business class, despite the Government’s reluctance to give up this perk.
Tier-two office holders include the leaders of some government corporations and agencies or those serving on government boards and councils, which includes leaders of the High-Speed Rail Authority Board, Housing Australia, Northern Territory Aboriginal Investment Corporation, Australian Renewable Energy Agency, Australian Research Council, Great Barrier Reef Marine Park Authority and the Independent Parliamentary Expenses Authority.
These individuals will now be required to fly economy from 7 September – on shorter flights between Canberra, Sydney and Melbourne – despite the Government previously allowing business-class travel under certain conditions.
“Tier one” office holders, such as secretaries of major departments and those in high-profile roles, will still be allowed to travel in business class on domestic flights.
Meanwhile, the Remuneration Tribunal has also moved to eliminate first-class international air travel entitlements for all office holders, including the country’s highest-ranking bureaucrats, top military figures and leading government lawyers.
This development comes amid heightened public scrutiny regarding the cost of bureaucratic travel privileges, particularly following revelations that the Prime Minister and other officials received complimentary Qantas upgrades valued at tens of thousands of dollars.
The Department of Finance’s review – which was conducted in accordance with the Aviation White Paper’s Initiative 17 – found that while only four percent of domestic flights and 25 percent of international trips were booked in business class, those fares accounted for eight percent and 45 percent of total air travel spend, respectively.
This discrepancy has prompted a stricter procurement framework to ensure that taxpayer funds are used responsibly.
