Extra-duty pay cuts to save 10pc

PUBLISHED : Thursday, 12 February, 2004, 12:00am
UPDATED : Thursday, 12 February, 2004, 12:00am

Taxpayers are expected to save tens of millions of dollars on the civil service's so-called acting allowances each year under a proposed 10 per cent cut, lawmakers have been told.

The Civil Service Bureau review has upheld the allowance, but has suggested an average 10 per cent reduction. 'We consider there is a case to make some adjustments to the rates to help reduce government expenditure,' it said in a paper submitted to lawmakers.

Eligibility for the allowance was tightened in 2000, cutting payments from $570 million in 1998-99 to $350 million in 2002-03.

The payments cost $220 million between April and December last year. But the bureau said acting allowances remained an important management tool to test if an officer was suitable for promotion by first acting in a higher position.