The Claim
“Paid people $1500 per person per day to recommend spending cuts.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim refers to payments made to commissioners of the Abbott government's Commission of Audit, established in October 2013. According to the Sydney Morning Herald, Finance Minister Mathias Cormann confirmed that Tony Shepherd (chairman of the Commission of Audit) and four other commissioners (Amanda Vanstone, Peter Boxall, Tony Cole, and Robert Fisher) would each be paid $1500 per day for their work on the commission [1].
The Coalition's election costings had earmarked $1 million total for the government-wide commission, which was tasked with finding areas of duplication between federal and state governments, identifying activities that could be done "more efficiently" by the private sector, and considering an overhaul of service delivery [1].
Industry experts confirmed the rates were standard for this type of work. Dr Margaret Wade, an adjunct associate professor at the University of Canberra, stated: "I would agree that that's an amount that consultants are usually paid for that kind of work" [1]. Greg Shailer, director of the Australian National Centre for Audit and Assurance Research at ANU, noted that senior accountants or barristers could expect $400-$500 per hour, adding "It's lower than normal consultancy fees. You don't get too many consultants under $2000 a day" [1].
Missing Context
The claim omits several critical pieces of context:
Industry Standard Rates: The $1500/day rate was confirmed by multiple independent audit experts as being "in the ballpark" of standard consultancy fees for senior professionals, and actually lower than typical rates which often exceed $2000/day [1].
Comparison to State-Level Equivalent: The daily rates were significantly less than what Queensland's Liberal National Party government paid members of its own post-election commission of audit in 2012. Former federal treasurer Peter Costello was paid $3300 per day (before GST) for chairing that commission, while his two deputy commissioners received $2500 each [1].
Limited Duration: The commissioners were engaged for a specific, time-limited task with a three-month deadline for the first report and five months for completion, not as ongoing permanent positions [1].
Nature of the Work: The commissioners were senior professionals with extensive experience - including former Finance Department secretary Peter Boxall, former Treasury chief Tony Cole, and Business Council of Australia president Tony Shepherd. The work required specialized expertise in government finance and public administration [1].
Pro-rata Payment Structure: The government clarified that commissioners would be paid on a pro-rata basis for partial days, not automatically receiving $1500 for any amount of work [1].
Source Credibility Assessment
The original source is the Sydney Morning Herald (SMH), a mainstream Australian newspaper with a long history of political reporting. The article was written by Daniel Hurst, a Fairfax Media political correspondent. SMH is generally regarded as a credible, if center-left leaning, mainstream news source. The article itself is factual reporting rather than opinion, and includes quotes from both government officials (Finance Minister Mathias Cormann) and opposition figures (Labor finance spokesman Tony Burke), providing balance. The article also cites independent experts who verified the rates were standard industry practice [1].
Labor Comparison
Did Labor do something similar?
Search conducted: "Gillard Rudd government commission of audit Gonski review payments consultants"
Finding: The Rudd/Gillard Labor governments commissioned multiple major reviews that involved significant payments to external experts:
The Gonski Review (2010-2012): Commissioned by the Rudd government and completed under Gillard, businessman David Gonski led a comprehensive review of school funding. While specific daily rates weren't widely publicized, the review involved extensive consultancy work and expert contributions [2, 3].
National Broadband Network (NBN) Reviews: The Labor government engaged numerous consultants and experts for NBN planning and implementation.
Climate Change Reviews: Multiple climate policy reviews under Labor involved external expert payments.
While Labor did not establish a "Commission of Audit" with the same name, both major parties regularly engage external consultants and experts for major policy reviews. The practice of paying senior consultants $1500-$3000+ per day for government reviews is standard across Australian governments regardless of party.
The key difference is that Labor's reviews (like Gonski) were often focused on expansion of services and funding, while the Coalition's Commission of Audit was explicitly focused on spending cuts and efficiency - making the consultancy payments more politically contentious despite being standard practice [4].
Balanced Perspective
While critics, including Labor finance spokesman Tony Burke, argued that the payments were excessive and contrasted them with cuts to programs like the Schoolkids Bonus [1], the evidence suggests this was standard practice for government reviews requiring senior expertise.
The Commission of Audit was established as part of the Coalition's election commitment to identify government waste and inefficiency. The $1500/day rate was:
- Confirmed by independent audit experts as standard for the industry [1]
- Lower than the $2000-$3000+ rates common for senior consultants [1]
- Significantly less than the $3300/day paid to Peter Costello for the Queensland LNP's similar audit [1]
- Applied to experienced professionals with decades of public and private sector expertise
Key context: This was not unique to the Coalition. Both major parties regularly engage external consultants at similar rates for major policy reviews. The criticism appears to be more about the purpose of the audit (spending cuts) rather than the payment rates themselves, which were verified by experts as appropriate for the caliber of professionals involved.
The framing of this as "corruption" (as suggested by the claim category) is misleading. The payments were:
- Transparently disclosed
- Approved through proper processes
- Consistent with industry standards
- Lower than equivalent state-level commissions
- Made to qualified senior professionals, not partisan operatives
TRUE
7.0
out of 10
The core fact is accurate: commissioners of the Abbott government's Commission of Audit were paid $1500 per day. However, the claim presents this as if it were unusual, excessive, or potentially corrupt, when in fact:
- The rate was standard for senior consultancy work in the audit industry
- It was actually lower than typical rates ($2000+/day) and significantly less than the Queensland LNP's equivalent commission ($3300/day for Costello)
- This practice of paying external experts for government reviews is standard across all Australian governments, including Labor administrations
- The commissioners were highly qualified professionals with relevant expertise
The "corruption tax" framing is misleading as it implies wrongdoing where none existed - the payments were transparent, properly approved, and industry-standard.
Final Score
7.0
OUT OF 10
TRUE
The core fact is accurate: commissioners of the Abbott government's Commission of Audit were paid $1500 per day. However, the claim presents this as if it were unusual, excessive, or potentially corrupt, when in fact:
- The rate was standard for senior consultancy work in the audit industry
- It was actually lower than typical rates ($2000+/day) and significantly less than the Queensland LNP's equivalent commission ($3300/day for Costello)
- This practice of paying external experts for government reviews is standard across all Australian governments, including Labor administrations
- The commissioners were highly qualified professionals with relevant expertise
The "corruption tax" framing is misleading as it implies wrongdoing where none existed - the payments were transparent, properly approved, and industry-standard.
📚 SOURCES & CITATIONS (4)
-
1
Auditors to be paid $1500 a day to recommend spending cuts
Members of the team hand-picked by the Abbott government to rein in spending will be paid $1500 a day.
The Sydney Morning Herald -
2
The Gonski review promised fairer schools funding. A decade on, these experts say it's failed
Ten years ago, people across the political divide found themselves in the unusual position of agreeing on a new, fairer school funding plan. So why did it all go wrong?
Abc Net -
3
Mr Gonski and the social contract
Neither Labor nor the Coalition is rising to the challenge posed by Gonski, writes Dean Ashenden
Inside Story -
4
Commission of audit: a crusade of dated ideology and dead ideas
The commission of audit's report will contain little of inspiration but a lot of thinking from the 1980s, John Quiggan writes.
The Sydney Morning Herald
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.