Taxpayers face potential $10m payout bill as administrative appeals tribunal scrapped

Taxpayers could be on the hook for up to $10m in payouts to members of the administrative appeals tribunal as the Albanese government moves to scrap the existing body.

The move was widely applauded by advocates for those seeking merits review of government decisions, including on welfare, disability insurance and migration.

Guardian Australia understands that part-time members will not be eligible for compensation but full-time members may be, unless transitional legislation abolishes their right to a payout.

AAT members earn up to $510,000 a year at the deputy president level, $402,700 for a senior member and $256,280 for a member.

According to a Guardian Australia analysis, about 60 of these would be eligible for compensation if not reappointed, after culling part-time members, those who have resigned and those whose terms would expire before the new body was up and running in late 2023.

Based on their level of seniority and duration of their remaining terms, compensation would amount to $9.5m if all 60 applied and were not reappointed.

Among the most expensive potential payouts are those appointed in April ahead of the 2022 election, which included the former WA state minister Michael Mischin to deputy president, and the former NSW minister Pru Goward and Anne Duffield, a former chief of staff to Scott Morrison, as senior members.

Guardian Australia does not suggest that appointees from political backgrounds would fail the new merit selection process, and Dreyfus has said membership of a political party should not disqualify people from service.

The government has already pledged $63.4m over two years to appoint 75 extra members to deal with a case backlog, and another $11.7m for a new case management system.