Government rushes to deny ex-bureaucrats $8b windfall

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Retrospective legislation will shut down a court case that could have handed retired public servants millions of dollars more in pension payments.

The Albanese government is rushing legislation into Parliament to kill off a Federal Court case that if successful could expose taxpayers to a potential payout of up to $8 billion for retired public servants.

Finance Minister Katy Gallagher will introduce the bill on Wednesday, with hopes that it will pass Parliament on Thursday. The Morrison government introduced regulations to stop future claims, but legal advice indicated retrospective laws would not be required because the ex-public servants would fail in their case.

Senator Gallagher said there was a danger that some Commonwealth employees could receive “significant windfall increases in superannuation benefits that are well beyond community standards” totalling millions of dollars only because they have received rent-free housing.

 

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