The former secretary of the Department of Workplace Relations, Natalie James, is set to receive a substantial payout of $900,000 after her appointment was terminated early by the Albanese government. This decision follows a highly critical report that rebuked the department for its lack of oversight in automated welfare cancellations, which has sparked significant public and political scrutiny.
Termination Details and Senate Estimates Revelation
During Senate estimates hearings on Monday, Andrew Walter, the assistant secretary of the Department of Prime Minister and Cabinet, disclosed that the Governor-General had terminated Ms James' appointment as secretary. This action was taken on the advice of the prime minister, marking a formal end to her role amid ongoing controversies.
Workplace Relations Minister Amanda Rishworth announced in mid-December that Ms James' five-year term would be cut short by 18 months. This announcement came less than two weeks after a report found that the department's system for remediating unlawful welfare cancellations was not "fair and reasonable," highlighting systemic failures.
Report Findings on Welfare Cancellations
In August, Commonwealth Ombudsman Iain Anderson released a report investigating income support payments cancelled under the targeted compliance framework between April 2022 and July 2024. The report revealed that the department, along with Services Australia, unlawfully cancelled payments for more than 900 individuals.
Furthermore, the department waited nearly a year to intervene in the faulty system, exacerbating the impact on affected welfare recipients. This delay has raised serious questions about accountability and efficiency within the public service.
AI Scandal and International Attention
The department also garnered international attention after a scandal involving a Deloitte report it had commissioned. The report was found to be riddled with errors produced by artificial intelligence, further tarnishing the department's reputation and underscoring issues with oversight and quality control in government contracts.
Under questioning by Greens senator Barbara Pocock, Mr Walter could not provide additional details about Ms James' termination but insisted it was not related to any misbehaviour or misconduct. This clarification aims to address speculation while leaving the exact reasons for the early termination somewhat ambiguous.
Second Early Termination Under Labor Government
Ms James is the second department secretary to be removed early by the Labor government within eight months. Similar to former Agriculture secretary Adam Fennessy, who received almost $900,000 after being fired in September, Ms James was stood aside on her full pay package.
Her annual salary, including superannuation, is approximately $932,000, making the payout a significant financial outcome despite the early termination. This pattern of high payouts for early departures has sparked debate about public service accountability and taxpayer expenditure.
Replacement and Future Leadership
Ms James will be replaced by Simon Duggan, a senior official from the Department of Energy and Climate Change. Mr Duggan is set to commence a five-year term on February 16, bringing new leadership to the Department of Workplace Relations amid ongoing reforms and challenges.
This transition occurs as the department faces pressure to improve its systems and oversight, particularly in light of the recent report findings and the need to restore public trust in welfare administration.
