The Government says it is taking action to address underperformance in federal departmental leadership.

In the wake of the shortcomings revealed by the robo-debt royal commission, new regulations aimed at investigating and dismissing underperforming federal departmental secretaries are in the pipeline. 

Public Service Minister Katy Gallagher has stated that these rules will facilitate “better handling of sustained underperformance of secretaries, including appropriate consequences”. 

She has also emphasised the importance of “publishing a secretaries' performance framework and process”.

Senator Gallagher, during a recent speech at the ANU Crawford School of Public Policy, additionally announced plans to introduce fresh powers for initiating reviews and investigations into code of conduct breaches by agency heads, current and former, as well as APS employees.

One significant change under these rules will be the requirement for secretarial roles to be based on merit-based appointments, a response to allegations of political influence in previous appointments. 

Notably, recent secretarial appointments have already been merit-based.

These heightened oversight measures come in the aftermath of severe criticism directed at then Human Services secretary Kathryn Campbell by the robo-debt royal commission. 

The commission exposed the lack of a robust performance review process for secretaries and agency heads, leading to concerns about accountability.

Commissioner Holmes found that Ms Campbell had not taken appropriate action to address advice to the cabinet regarding debt collection processes. 

Following the commission's report, Ms Campbell resigned from her role in Defence but continued to receive a secretarial salary.

The Australian Public Service (APS) code of conduct obligates public servants to act honestly and with integrity. 

Employees who commit serious breaches may face dismissal, demotion, or fines. However, these sanctions cannot be applied to former employees.

As of now, reports say sixteen code of conduct reviews are in progress. Yet, several individuals named in the robo-debt report have since left the public service, making it challenging to apply sanctions to them. 

Ms Holmes has advocated for amendments that would allow disciplinary measures against former APS employees and agency heads.

These new rules coincide with a code of conduct review involving Home Affairs secretary Mike Pezzullo. 

This review was prompted by the publication of text messages exchanged between Pezzullo and former Liberal party official Scott Briggs.

Senator Gallagher says the need for reform is more critical than ever in the aftermath of the robo-debt royal commission, as only ten out of 44 reform initiatives recommended by the Thodey review of the public service have been completed.

These completed initiatives include the establishment of a National Anti-Corruption Commission, an audit of employment to identify outsourcing, and the creation of an in-house consulting bureau known as Australian Government Consulting.

The robo-debt commission's findings underscored policy and legal advice deficiencies. 

Delays in recruiting have further hindered efforts to enhance the quality of recruits, particularly for positions in the cyber and digital domains.

To address these issues, Senator Gallagher pledged to develop best-practice recruitment and selection options, promote more consistent hiring practices, and mandate the sharing of merit lists.