The ANAO’s SES Remuneration Policy establishes the principles and procedures that apply to all SES employees and to those staff acting in SES roles. All ANAO SES employees are covered by common law agreements which set out the core conditions and terms of employment, including remuneration.

SES Remuneration Policy

1. Introduction

The objective of the SES Remuneration Policy is to provide a framework for setting remuneration parameters for SES employees that are consistent with broader Australian Public Service (APS) SES remuneration arrangements. The Policy sets out arrangements for the management of executive remuneration, including an approval process for remuneration proposals above a notional amount.

The ANAO’s remuneration and reward principles are to:

  1. maintain appropriate pay relativity of the SES to reflect their respective roles and responsibilities;
  2. ensure remuneration and reward offerings are aimed at a competitive point of the appropriate APS comparator;
  3. be fair and consistent;
  4. ensure gender pay equity; and
  5. be linked to individual performance and conduct, including the contribution of the employee in meeting and improving the performance of the ANAO against agreed deliverables.

    2. Total Remuneration Concept

    The ANAO uses a total remuneration package approach in setting salary and rewards for SES employees.

    The total remuneration package includes a base salary and the aggregate value amount of:

    1. motor vehicle allowance;
    2. employer superannuation contribution; and
    3. performance bonus payment (refer to the SES Performance and Development Framework).

      Other benefits such as personal productivity tools, professional membership fees and travel allowances are not included in the total remuneration calculation.

      3. APS SES Remuneration Comparators

      In setting remuneration markers the ANAO draws on the annual APS Remuneration Report for comparator market information.. The 2016 markers for total remuneration and for base salary are set out in Table 1 (total remuneration) and Table 2 (base salary) in Attachment A. The remuneration markers will be reviewed annually.

      4. ANAO SES Salary Reviews

      SES base salaries are set and adjusted according to the Auditor-General’s or delegate’s assessment of:

      • an individual’s performance;
      • relevant work experience (developing capability, established capability or superior capability); and
      • the complexity and nature of an SES employee’s role.

      The ANAO applies publicly available APS SES remuneration data to set the lower marker and the upper marker for the SES salary bands. Salary bands serve to act as a guide in determining base salary settings.

      SES employees are eligible to be considered for an annual salary review on 1 November each year subject to being in the position for six months or more.

      5. ANAO SES Remuneration Considerations

      The following points are considerations in setting an SES employee’s salary:

      • APS Workplace Bargaining Policy;
      • SES Work Level Standards1;
      • SES Integrated Leadership System;
      • Skills, qualifications and relevant experience of the SES employee;
      • Performance and conduct of the SES employee;
      • SES position, including job size, complexity, responsibility and relativities to internal and other APS SES positons; and
      • ANAO’s capacity to pay.

      It is anticipated that, other than in exceptional circumstances, the remuneration of any SES employees will not exceed the maximum amount set out at Attachment A of this Policy.

      Exceptions will be considered by the Auditor-General or delegate where compelling circumstances apply, based on job weight and/or where market forces are a factor in considering the level of remuneration.

      6. Performance Bonus

      The policy covering the assessment of an SES employee’s performance and development, including the payment of a performance bonus, is set out in the ANAO’s SES Performance and Development Framework. The payment of a performance bonus does not count for superannuation purposes.

      7. Superannuation

      The employer superannuation contribution relates to the payment made by the Commonwealth in respect of the employee to:

      • a Commonwealth defined benefit scheme (including CSS or PSS); or
      • another eligible superannuation fund.

      For the purposes of the defined benefit schemes, a notional value calculated as 15.4% of superannuation salary is used as the value of the employer’s superannuation contribution. Should an employee’s superannuation salary exceed their base salary, this will be taken into account when setting remuneration. For accumulation plan schemes, a notional value calculated as 15.4% of salary normally applies as the value of the employer’s contribution.

      The ANAO may enter into an agreement to adjust base salary if an employee exercises superannuation choice and elects to have an employer contribution matching the superannuation guarantee (currently set at 9.5% of salary), or if the compulsory employer superannuation contributions exceed the superannuation contribution caps.

      8. Motor Vehicle Allowance

      SES employees are eligible for the payment of a motor vehicle allowance. The motor vehicle allowance for SES Band 1 employees is $25,000 and for SES Band 2 employees is $26,000. The payment of the SES motor vehicle allowance incorporates a component for official travel. The payment of the motor vehicle allowance does not count as salary for any other purpose, including superannuation.

      9. Benefits

      The ANAO provides a range of other benefits to SES employees which are consistent with those provided to ANAO staff members and are established in the ANAO’s Enterprise Agreement and/or ANAO policy. These include:

      • Vehicle parking – SES employees have access to a designated parking space at the office premises (an SES employee does not need to participate in the staff car parking ballot). An amount to offset the FBT liability is payable in accordance with ANAO policy.
      • Professional membership fees – SES employees are eligible for annual payment or reimbursement of professional fees as set for non SES employees.
      • Spectacles – SES employees are eligible for reimbursement for spectacles or contact lenses used for computer-based work in accordance with the ANAO’s Screen Based Work Policy.
      • Influenza vaccinations – the ANAO provides annual influenza vaccinations to all staff.

      Benefits also include facilities provided as business support, such as communication tools, information technology, other office facilities and may include airline lounge membership. Incidental private use is included in accordance with ANAO policies.

      10. Annual Performance and Remuneration Reviews

      SES employees will receive annual salary increases in line with, and at the same time as, the percentage salary increases payable under the ANAO Enterprise Agreement 2016-2019.

      Separately, the ANAO’s SES Performance and Development Framework sets out the key milestones for SES performance arrangements, which includes an annual review of SES remuneration arrangements. The Auditor-General or delegate will review arrangements and propose individual adjustments to remuneration and benefits as appropriate.

      11. SES Acting Arrangements

      For periods of acting in an SES position for longer than two weeks (or a lesser period if determined by the Auditor-General or delegate), employee remuneration arrangements will be based generally on 80% of the difference between the employee’s base salary and the base 5th percentile salary (or another salary as determined by the Auditor-General or delegate).

      Example

      Example 1: EL 2 acting SES Band 1

      ($161,000 - $145,430 (EL 2 top of the range)) x.8 = $12,456 (pro rata responsibility loading)

       

      Example 2 - SES Band 1 acting SES Band 2

      ($161,000 (SES Band 1) - $210,334) x.8 = $39,467 (pro rata responsibility loading)

      Motor Vehicle Allowance

      Employees acting at the SES level for longer than four weeks will be eligible to receive payment of the motor vehicle allowance. Employees acting at the SES level for periods of less than four weeks are not eligible to receive payment of the allowance.

      Car Parking

      A car parking space will be provided on the basis that an employee is acting in an SES position for a period of three months or greater. Payment for the car parking space would generally be ceased for the substantive SES officer and deductions commenced for the acting employee. For acting periods of less than three months, the staff member would generally use the car parking space which was made available to the substantive occupant. Financial arrangements for the payment incurred for the use of the space should be discussed and arranged between the relevant parties or, if the acting period is due to an SES vacancy, financial arrangements for any payment incurred during the use of the space should be discussed with Personnel.

      ATTACHMENT A

      ANAO SES SALARY BANDS

      The 2016 markers for total remuneration, based on APS remuneration data, are set out in the Table 1 below.

      Table 1: Total remuneration markers

      Classification

      P5

      Q1

      Median

      Q3

      P95

      SES 1

      $212,628

      $228,132

      $243,083

      $254,348

      $272,895

      SES 2

      $270,789

      $290,186

      $305,066

      $320,031

      $351,493

      SES 3

      $346,003

      $384,662

      $410,874

      $428,400

      $475,575

                 

      The data in Table 1 is drawn from the APS Remuneration Report 2016. Note that the APS total remuneration markers in the above table are defined as base salary plus the value of any benefits, including superannuation and motor vehicle allowance, but do not include bonus payments.

      The 2016 markers for base salary, based on APS remuneration data, are set out in the Table 2 below.

      Table 2: Base salary remuneration markers

      Classification

      P5

      Q1

      Median

      Q3

      P95

      SES 1

      $161,000

      $174,202

      $184,626

      $201,447

      $219,975

      SES 2

      $210,334

      $228,838

      $239,272

      $259,114

      $284,621

      SES 3

      $282,095

      $304,542

      $327,000

      $350,000

      $401,646

                 
      Definitions

      P5

      The 5th percentile is the point where 5% of the values are below and 95% of values are above.

      Q1

      The first quartile is the point for which 25% of values are below and 75% of values are above.

      Median

      The median value is the midpoint of all values. It is the point for which 50% of values are below and 50% of values are above.

      Q3

      The 3rd quartile is the point for which 75% of values are below and 25% of values are above.

      P95

      The 95th percentile is the point where 95% of the values are below and 5% of values are above.