Australia's former agriculture department chief was "terminated" and paid out nearly $900,000, though the government insists he left the top job on amicable terms.

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Agriculture Minister Julie Collins announced department secretary Adam Fennessy would leave his role in September, two years into a five-year term.

"I wish Mr Fennessy all the best with his future endeavours," Ms Collins said on September 4, crediting him for stabilising the department during a transitional period.

During a Senate estimates hearing in Canberra on Wednesday, acting secretary Justine Saunders said Mr Fennessy was paid out $899,620, or one year's salary minus supe

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