Public service bosses on pay deals of more than $1 million a year show the salary scheme for department secretaries is "not fit for purpose", the main public sector union says.
The Remuneration Tribunal is reviewing remuneration for secretaries after it acknowledged strong public interest in annual pay packets that have risen far beyond what was originally intended.
The Community and Public Sector Union told the review it was concerned pay for Commonwealth secretaries far outpaces that of their state and territory counterparts.
"The CPSU is concerned that the tribunal has historically emphasised the uniqueness of APS secretary roles, contributing to remuneration outcomes that are out of step with public expectations and comparable roles," national secretary Melissa Donnelly wrote, in the submission seen by The Canberra Times.
"While APS secretaries hold significant responsibilities, the Tribunal's reluctance to treat state and territory departmental heads as valid comparators is perplexing, especially as APS secretaries in recent times had experience as departmental heads at a state level."
The most senior NSW public servant currently earns roughly $648,000, compared to Prime Minister and Cabinet secretary Steven Kennedy's annual total remuneration of $1,011,000.
In Victoria, the top pay packet is about $658,000, while Queensland's uppermost pay point is closer to the Commonwealth, at about $878,000.
The tribunal last week declared it would not offer a pay increase this year, while its review is under way.
While the Prime Minister and Cabinet and Treasury secretaries already earn more than $1 million, four more secretaries could join them if the tribunal approves just a 2 per cent pay rise.
The review of pay was set in motion after former Public Service Commissioner Gordon de Brouwer and Mr Kennedy wrote to the independent body, requesting they review pay.
While both Prime Minister Anthony Albanese and Finance Minister Katy Gallagher have acknowledged the large sums paid to Canberra's most senior bureaucrats, they have not made submissions to the tribunal.
Mr Kennedy's pay packet far outpaces that of the Prime Minister's $622,000 annual earnings.
The union has also called for the Remuneration Tribunal to expand the scope of its review to the pay of all Senior Executive Service members.
Their pay is set by secretaries and capped at 65 per cent of the lowest secretary pay point - currently $538,558.
"The growing gap between the wages and conditions of APS employees and the Senior Executive Service (SES) is unacceptable," Ms Donnelly wrote.
"This review should make recommendations to address this growing problem."
The tribunal plans to complete its review before mid-2027, when its next pay decision is due.
It will also begin a second consultation process for reviewing the pay of other full-time public office holders, such as the Chief of the Defence Force, National Anti-Corruption Commissioner and Director-General of the Australian Security Intelligence Organisation.
It will consider "work value, statutory responsibilities, relevant comparator offices, historical remuneration settings and APS structural developments".
