Public servants to retain status credits under new APS travel policy

A Department of Finance spokesperson confirmed the requirement was included in an approach to market for a new airline panel, which is expected to be in place by July 1.

"Government travellers may accrue status credits for official travel, but airlines must not provide government travellers with access to any additional status credits as part of any promotional, marketing or incentive activity," the approach to market states.

Public servants' eligibility for status credits was placed under review following concerns they may incentivise officials to divert from a requirement to book the "lowest practical fare" on taxpayer-funded flights.

Since 2010, public servants have been banned from accepting frequent flyer points but can still earn status credits, which count towards highly prized status tiers that enable airline lounge access and other perks.

The government launched an overhaul of public servants' travel arrangements after a review into airline travel called for public servants to be barred from accepting flight upgrades except in exceptional circumstances.

The government agreed to incorporate these principles into the draft travel policy, which is expected to be published on the Finance department's website soon. The policy will not apply to federal parliamentarians and their staff as their travel comes under different legislation.

Qantas banned government employees from taking part in status credit promotions last August after this masthead revealed a surge in public servant travel bookings during one of the airline's week-long promotions.

In a submission to the aviation white paper, Virgin Australia called to revoke the accrual of airline status credits by public servants after suggesting it was linked to Qantas' market dominance of government travel.

A Virgin Australia spokesperson was unable to provide a response before deadline.

Independent ACT Senator David Pocock, who has previously called public servants' eligibility for status credits into question, said the updated rules won't be strong enough to halt preference for more expensive flights at a cost to taxpayers.

"This change will not resolve the issue with status credits incentivising government travelers not to book the cheapest available fare and will see no, or very little, change to the status quo," he said.

"This is important for people in the ACT given the volume of government travel in and out of Canberra and the outsized impact a lack of genuine and fair market competition has on the prices of airfares."

Details of the new travel arrangements come as the Albanese government moves to crack down on travel spending by departments, with flights and hospitality spending part of $6.4 billion in savings announced prior to the last election.

In 2024-25, the government spent $953 million on domestic and overseas travel.

Senior Albanese government MPs were forced to defend their use of family travel rules at the end of last year after it emerged some had spent tens of thousands of taxpayer dollars to bring their partners and children to major sporting events.

The expenses scandal was triggered after Communications Minister Anika Wells expensed $120,000 on a trip to New York last year to promote the government's social media ban for under-16s.

In a statement published earlier this week, the Remuneration Tribunal handed down highly anticipated recommendations to restrict MPs family travel entitlements to economy class flights only.