Victorian Premier Daniel Andrews will remain the highest-paid state governor in Australia, with a new salary of almost half a million dollars.
The tribunal was required by laws to consider various factors when making remuneration decisions, including the roles and responsibilities of MPs, the government’s wages policy and the financial position of the state.
Under the latest changes, Premier Daniel Andrews’ annual salary and expense allowance will rise to $481,190 (US$327,000) and $60,480, respectively, from July 1, up $16,000 and $1,700 compared to the previous year.
Meanwhile, each MP will receive an increased base salary of $198,839, plus expense allowances and additional remuneration depending on their position.
Following the VIRT’s decision, the Victorian government believed the pay rise was fair.
“An independent body determines all of our pay, terms and conditions,” Andrews told reporters.
Response from other Parties
Despite the positive response from the Victorian government, the Opposition has voiced its objection to the pay rise.Opposition Leader John Pesutto has called for a review of the tribunal as he believed the 3.5 percent did not meet community expectations amid the state’s current finance.
“I don’t think Victorians believe that politicians should never get pay increases,” he said.
“Victorians, like everyone else around the country, believe in fair and reasonable increases, but not ones that overshoot the runway like this.”
The state also incurred a massive debt of $31.5 billion during the COVID-19 pandemic.
While Victorian Greens Leader Samantha Ratnam said her party approved the tribunal framework, she noted that politicians’ pay increases should not surpass the public sector wage cap.
“When you suppress public sector wages, you suppress wages right across the board,” she said.
“There is a massive cost of living issue bearing down on thousands of Victorians.”
Victorian Ambulance Union Secretary Danny Hill questioned why state politicians got a higher pay rise than public sector workers.
“What improvements have pollies provided to receive 3.5 percent?” he wrote on social media.
“Whatever it is, I’m sure paramedics can roll up their sleeves and add it to a 14-hour night shift with no meal break.”
New South Wales Introduces Pay Freeze for Politicians
The VIRT’s decision comes in stark contrast to the newly elected New South Wales (NSW) Labor government’s recent legislation to freeze the remuneration of state MPs and public service senior executives for two years from July 1.As the legislation comes into effect, state politicians will continue to receive a base salary of $172,576 a year in the coming period.
The move was expected to bring about $260 million in budget savings over four years, which would be invested in essential services such as schools and hospitals.
NSW Premier Chris Minns said his government was delivering an election promise with the pay freeze.
“Our priority is rebuilding our essential services and investing in frontline workers.”
