Prime Minister Scott Morrison has been forced to explain the future of Liberal MP Alan Tudge in his cabinet as he faced questions about a payout of more than $500,000 to Mr Tudge's former staffer.
Mr Tudge stepped aside from the frontbench last December, following allegations of bullying and harassment .
He has denied the allegations connected to an extramarital affair between them, and an investigation found insufficient evidence Mr Tudge breached ministerial standards.
The Department of Finance has confirmed to SBS News it has been engaging with Ms Miller as part of a separate settlement process.
A source close to the case says the Department of Finance has offered a settlement, over $500,000, to Ms Miller, but the matter has not totally been finalised.
Mr Morrison was questioned about his knowledge of the six-figure payout, after he revealed Mr Tudge was still "technically" a member of his cabinet.
“I have no knowledge of that,” he told Channel Nine’s Today Show.
“That’s a private matter between her and the department and so that is not a matter I have any involvement in or oversight or visibility on.”
“Nothing has changed,” he later told reporters.
“Mr Tudge elected to stand aside - he is still a minister. He has not resigned his commission and nor has he been dismissed.”
The settlement with Ms Miller is understood to be in relation to civil action over allegations of bullying, sexual harassment and discrimination in the workplace.
It’s understood to relate to her time working in Parliament House, including when she worked as a staffer for Mr Tudge.
The action is against the Finance Department because that is essentially the employer of staff in the building under the Members of Parliament (Staff) (MOPS) Act.
Labor Leader Anthony Albanese described the prime minister’s explanation of Mr Tudge’s future as “astonishing”.
“We had a situation whereby he stood down but apparently he’ll still get his job in the cabinet, and I just find it remarkable,” he told reporters.
Asked whether the amount of money included in Ms Miller’s settlement should be disclosed he responded: “it’s taxpayers' money.”
In a statement, a spokesperson for the Department of Finance said: "it has been engaging with Ms Miller's legal representatives on behalf of the Commonwealth."
"The Department does not comment on the details of any individual claim," they said.
Former public servant Dr Vivienne Thom in December conducted an inquiry into the allegations against Mr Tudge and found he did not breach ministerial standards.
The inquiry had investigated allegations that the relationship with Mr Tudge had been “emotionally abusive”, but said there was "insufficient evidence to support a finding on the balance of probabilities".
Mr Tudge has been on leave since stepping aside as education minister in December.
In a statement on 4 March, he said "despite Dr Thom’s findings, given the impact of the allegations on my family and myself, requested not to be returned to the front bench before the election".
“I deeply regret the consensual affair with Ms Miller in the second half of 2017 when both of us were married with children and in our forties,” he said.
“It should never have happened and it has caused hurt to our respective families.”
Cabinet minister Stuart Robert has taken over the duties of the role as acting education minister.
