Scott Morrison, former PM and architect of Robodebt, got a large ‘secret handshake’ payout when sacked by Tourism Australia. After a 4-year battle the FOIs finally surface for Jommy Tee.
The political career of Scott Morrison was built on punching down at welfare recipients. Yet, in a bitter twist of irony, the architect of the pernicious Robodebt scheme was himself the beneficiary of a massive, secret overpayment when sacked as managing director of Tourism Australia in 2006.
Newly released documents, finally brought to light after a four-year Freedom of Information (FOI) battle, reveal that Scott Morrison was, according to the Remuneration Tribunal, overpaid by up to $212,000 in a “handshake” severance deal designed to facilitate his swift and quiet exit.
While Morrison later launched his infamous Robodebt “welfare cop” blitz a decade later – fronting the media straight-faced determined to crack down on rorters and those that had been allegedly overpaid – the highly inflated severance payment he himself received was never widely reported.
The FOI documents expose the hypocrisy at the heart of the matter: how the political class take care of their own while the innocent are fair game to be hunted, harassed and bullied. Morrison’s own windfall, paid out to ensure a “certainty and seamless” separation from the public service, was never pursued. No “welfare cop” was sent to his door.
Minister Fran Bailey initiates Scomo’s sacking
The move to sack Scott Morrison from his post as Managing Director of Tourism Australia (TA) began with a single, decisive phone call in the last days of July 2006. It followed the “Where the bloody hell are you” campaign. New documents detailing the crisis – specifically the minutes and papers of Board Meeting No. 18, which spanned three days – reveal the machinations around his highly paid exit.
The sequence of events was swift and brutal. According to the board minutes, then Tourism Minister, Fran Bailey, who had reportedly clashed repeatedly with Morrison during his tenure, rang TA Chair Tim Fischer to deliver the message: she and the government had officially “lost confidence” in Morrison.
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Open in new tab In response, the board sought a political quick fix—a strategy that led directly to the non-compliant severance deal.
Fischer wasted no time. On the morning of Thursday, July 27, he contacted Morrison to relay the Minister’s message.
The documents reveal Fischer made “seven points in relation to the matter” to Morrison. What those seven points entailed are not recorded in the documents. The message, however, was clear: “as a consequence an amicable ‘agreed separation’ should be sought.”
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Fischer informed Morrison that Deputy Chairman Tony Clark and others would meet with him the very next day, Friday, July 28, to begin discussions that would culminate in his rapid departure.
‘Secret Handshake’ deal finalised
Following the Minister’s wish to sack Morrison, the board papers confirm that the trio of Fisher, Clark and Morrison negotiated the over-inflated severance deal that saw Morrison overpaid by up to $212,000.
The lucrative “handshake” agreement required Board approval.
The proposal presented to the full board stated:
- “Following extensive discussions between the Chairman, Deputy Chairman and Managing Director, Mr Scott Morrison, it was agreed that Mr Morrison would depart TA with effect 15 September 2006.”
The minutes then “invite the Board to fully endorse this and to consider and endorse the preparation of a Deed of Release (in accord with the ‘handshakes’ done)” with the following main component:
- The Deed includes the provision in the broad of a 9.5 month contract separation payment and other standard exit arrangements.
- The Deed recognises that the Board seeks certainty, and to the extent possible, seamlessness in arriving at these agreed separation arrangements.
The document trail confirms the speed of the operation, suggesting that by Monday, July 31, just days after the sacking was initiated, “a handshake had been done with Scott Morrison” and he had “commenced packing up.”
MWM has previously tried to access the Deed via FOI, but our requests were denied as TA does not hold an executed separation deed. The Information Commissioner cited TA’s failure to produce evidence of a mutual obligation of confidence, namely the relevant provisions of the executed separation agreement, in ordering TA to release this new slew of documents.
Board in breach in scramble for exemption, Rem Tribunal blindsided
Crucially, the documents confirm the board knew it was operating outside the rules.
The board resolved that the “handshake” severance settlement would require subsequent approval from the Remuneration Tribunal (Tribunal) via a special exemption.
The board minuted:
- To gain compliance of the separation package, an exemption was sought from the Remuneration Tribunal to agreed separation terms.
- The Board resolved that should the Remuneration Tribunal approve the exemption then the Chairman be given authority to execute the Deed, effective from 31 July 2006.
With the severance deal finalised through handshakes Fischer moved quickly to convince the Tribunal to grant an exemption from adhering to the official remuneration determinations.
Did Tourism Australia really get a KPMG report, or was it Scomo’s imagination?
The documents reveal that Fischer executed a gambit after the board meeting on the evening Tuesday, August 1, 2006, to secure the exemption.
At 6:30 PM, Fischer called Tribunal head John Conde to discuss the “agreed separation”. While the content of that conversation is unclear, what followed four hours later was an exemption.
At 10:48 PM, Fischer emailed Conde, delivering a prepared file note: “You can consider the exemption granted, but a Statement of Reasons will be issued… at a later date”.
Fischer used this exemption to push the deal through instantly. He confirmed he had already signed the “Deed of Trust and Release” and that Morrison would sign the same document at 9:30 AM the next morning, “ensuring certainty and separation forthwith”.
By Wednesday, August 2, Fischer emailed his fellow directors confirming the deed was signed by both parties, copying Minister Bailey’s chief of staff, Dan Tehan, into the message. The deal was done.
Tribunal fury: ‘Unacceptable Precedent’ set
However, from the documents, it is apparent the Tribunal was left incensed by TA’s stitch-up. Feeling railroaded into accepting the terms, the Tribunal initiated a meeting with Minister Bailey and Dan Tehan on August 7 to discuss the premature departure.
The very next day, August 8, Conde fired off a blistering letter to Fischer.
While the letter begrudgingly accepted the exemption, it immediately raised serious concerns, noting: “We note that Tourism Australia agreed a termination benefit inconsistent with that fixed by the Tribunal.”
The Remuneration Tribunal’s letter to Fisher didn’t just expose the overpayment to Scott Morrison,
it heavily criticised the Board’s actions.
The Tribunal’s head, John Conde, revealed the massive disparity in Morrison’s severance deal. Based on Fischer’s advice, Conde said the board-approved payment to Morrison was equivalent to one year’s total remuneration, a payout of up to $332,030.
The Tribunal pointing out that official determination should have been based on salary and the remaining term of the appointment. Following the rules, the payment “would have been less than $120,000″—meaning Morrison walked away with up to $212,000 more than he was entitled.
Conde immediately categorised the entire situation as “highly unsatisfactory.”
Tribunal slams Board’s actions
The Tribunal’s letter also exposed how the board secured the deal: by disregarding and ignoring guidelines.
As the board had already given Morrison a “Deed of Release,” meaning he had “left Office on the basis of the deed provided to him.” Fischer had earlier advised the Tribunal the Commonwealth faced “the risk of litigation and additional cost” if they attempted to amend the payment terms.
In short, the board’s actions forced the government’s hand to pay the over-inflated sum.
Conde didn’t mince words, delivering a scathing rebuke that effectively read the riot act to Fischer.
He declared the board’s commitments “set an unacceptable precedent for the federal public sector.”
Conde was particularly incensed by the board’s claim that it was “unaware of the termination provisions” for Principal Executive Offices (PEOs). The Tribunal reminded Fischer of the numerous times it had corresponded with the board, and Fischer’s numerous replies confirming that all terms were to be in accordance with the PEO Determination and that “no consent had been given… for any departure.”
“It will be readily apparent to you… that the Tribunal has considerable difficulty in understanding how these vital aspect of PEO employment arrangements could have been overlooked by your Board,” Conde wrote pointedly.
To conclude, Conde demanded Fischer show cause how the board was implementing its responsibilities, copying Minister Fran Bailey – who initiated Morrison’s sacking – into the letter.
Fischer’s eventual reply on August 23 admitted error but tried to shift the blame, citing a “misunderstanding” between Tourism Australia and Gilbert and Tobin which “encouraged the view, wrong in actuality, that the need for Certainty and Seamlessness could override”.
The documents highlight the board engaged in atrocious governance and maladministration by prioritising a quick, amicable exit for Morrison over due process and fiscal responsibility, a scandal of which the Minister was made fully aware.
Jommy Tee is a long-time career public servant, having worked in the policy development field for 25+ years as well as an independent researcher interested in politics, current affairs, and Nordic noir.