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Advice
As with general employees, SES employees have not received a general increase in remuneration
since July 2013. We have traditionally aligned SES increases to those for non-SES.
On 18 November 2015, in accordance with the Bargaining Policy, the ATO proposed a new pay offer
to all staff as part of the Enterprise Agreement (EA):
• Year 1: 3.0% (on commencement of a new EA)
• Year 2: 1.5% (12 months from commencement)
• Year 3: 1.5% (24 months from commencement)
As confirmed on 17 December 2015, the EA received a majority ‘no’ vote of 85.2%.
All SES
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ATO SES do not have voting rights and their terms and conditions, including remuneration, are set at
your discretion under individual section 24 Determinations.
Despite the ‘no’ vote for the EA, you have the flexibility to apply the proposed pay offer to SES officers
over the next three years, as described in
Attachment A, which applies the Year 1 3% increase and
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uses 1 January 2016 as the date of effect.
If you do decide to pass on the pay offer to SES, we can expect to receive some adverse reactions
from unions and the media, with the potential perception that our top earners are getting pay rises
without any impact to their employment conditions.
We would propose explaining that SES are getting the pay offer passed on now because that is the
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best offer that can be on the table to any ATO employee and that their conditions would change at the
time that non-SES terms and conditions change to ensure they are aligned.
We would propose also framing the pay rises around efficiencies and productivity gains for the SES
cohort, including:
• Consistency and streamlining of local titles and removal of layers, eg abolition of ADC and
SACs
• streamlining of many SES-specific administrative processes, including probation and
performance management
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• rationalisation of SES Band 1 support teams, and
• redistribution of duties across the SES cohort following major reductions to the SES
workforce.
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SES remuneration rates are reviewed annually by the Commissioner, including any increases to the
total remuneration package.
In considering the basis for an increase, reference needs to be made to the
Workplace Bargaining
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Policy 2015 (the Bargaining Policy). This provides that the Commissioner can determine annual
remuneration increases for senior executive employees where this is consistent with Australian
Government policy, including that increases should be offset by genuine productivity gains.
Increases to SES total remuneration must remain within the parameters of the
APS Executive
Remuneration Management Policy. SES remuneration must not exceed the notional amount of
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FOR OFFICIAL USE ONLY
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$441,298 (from 1 January 2016), and this notional amount is the equivalent to 65% of the base
remuneration of the Secretaries’ structure.
SES remuneration arrangements are provided under a section 24 Determination and increases are
determined by the Commissioner, on recommendation from the ATO Remuneration Committee.
Next steps
If the increase to SES remuneration is approved, we will work with Payroll Services and Appointments
to ensure that the increases are applied with effect from 1 January 2016, to be paid on
28 January 2016.
Additionally, we have drafted a communique at
Attachment B to all SES advising them of the
increase to their remuneration with effect from 1 January 2016, for your approval please.
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Jacqui Curtis FAHRI
Deputy Commissioner ATO People
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Attachments
Attachment A: Proposed increases to SES pay ranges
Attachment B: Draft communique to all SES
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INTERNAL
FOR OFFICIAL USE ONLY
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Attachment B
All SES communique
To: All SES
Subject: 2015-16 pay increase
Good morning/afternoon,
I am pleased to advise that I have approved a pay increase of 3% for all ongoing and non-ongoing SES Band 1
and Band 2s with effect from 1 January 2016, and this will be paid on payday Thursday 28 January 2016.
Your pay increase is aligned to the ATO’s pay offer for general employees as outlined in our recent Enterprise
Agreement proposal. Despite the majority ‘no’ vote for the EA, I am satisfied that the ATO has made sufficient
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productivity gains to offset this pay increase for SES and that it is affordable within our current budget constraints.
The SES pay increases over three years are:
• Year 1: 3.0% (from 1 January 2016)
• Year 2: 1.5% (12 months from commencement)
• Year 3: 1.5% (24 months from commencement)
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Other terms and conditions
I have also approved an alignment of SES terms and conditions to the main changes for general employees at the
point when any revised conditions are introduced for all general employees.
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A copy of the approved SES pay ranges are attached for your information.
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Attach SES pay rates
Chris Jordan AO
Commissioner of Taxation
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From:
Ranieri, Lina
To:
Smith, Mandi; Freeman, Brad
Subject:
FW: SES pay increase proposal [DLM=For-Official-Use-Only]
Date:
Thursday, 17 December 2015 3:23:56 PM
For our records please.
Lina
Lina Ranieri
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Assistant Commissioner, ATO People
Australian Taxation Office
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_____________________________________________
From: Jordan, Chris
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Sent: Thursday, 17 December 2015 2:52 PM
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To: Ranieri, Lina
Cc: Leeper, Geoff; Curtis, Jacqui; Ramsey, Steven; Sinclair, Suzanne; Smith, Susie; Hirschhorn,
Jeremy; Mills, Andrew; Bosser, Miriam
Subject: RE: SES pay increase proposal [DLM=For-Official-Use-Only]
Minute approved.
Regards
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Chris
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Chris Jordan AO
Commissioner of Taxation
Australian Taxation Office
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From: Ranieri, Lina
Sent: Thursday, 17 December 2015 2:25 PM
To: Jordan, Chris
Australian
Cc: Leeper, Geoff; Curtis, Jacqui; Ramsey, Steven; Sinclair, Suzanne; Smith, Susie; Hirschhorn,
Jeremy; Mills, Andrew
Subject: FW: SES pay increase proposal [DLM=For-Official-Use-Only]
Importance: High
Good afternoon Commissioner: for your consideration please.
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Attached is a minute seeking approval to increase the SES pay ranges with effect from 1
January 2016 (with some exceptions as described in the minute).
We have also included a draft communique that is proposed to be sent to all SES.
Regards,
Lina
Office minute
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<< File: 20151217 - SES pay increase no vote - FINAL.docx >>
Attachment A: SES pay rates
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<< File: 20151217 - Attachment A SES pay increase.docx >>
Attachment B: SES communique
<< File: 20151217 - Attachment B no communique.docx >>
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