Victorian Premier’s Salary to Rise to Almost $500,000

Premier of Victoria Jacinta Allan speaks during the Victoria State Memorial Service Held For Ron Barassi AM at Melbourne Cricket Ground in Melbourne, Australia on Nov. 10, 2023. (Asanka Ratnayake/Getty Images)

Victorian Premier Jacinta Allan’s annual remuneration will increase to almost half a million dollars following the latest pay rise decision for all politicians in the Australian state.

On July 1, the Victorian Independent Remuneration Tribunal handed down a decision (pdf) to award a 3.5 percent increase to MPs’ salaries and expense allowances from the new financial year.

The new pay rise mirrored the ruling the Tribunal made in 2023.

Under the change, Ms. Allan will take home up to $498,031 (US$332,000) in the 2024-25 financial year, up from $481,190 in the previous year—the highest of all state premiers..

Ms. Allan’s new salary package included an MP’s basic salary of $205,798, an additional salary for the premier position of $229,636 and an expense allowance of $62,597.

Meanwhile, Deputy Premier Ben Carroll and Opposition Leader John Pesutto will see their salaries climb to $423,944 and $397,192, respectively.

In making its decision, the Tribunal said it had considered Victoria’s wage policy for government departments and agencies against the state’s current fiscal circumstances and its strategies for dealing with net debt.

“The Tribunal noted recent economic data that showed subdued economic growth rates, although nominal wages growth has picked up in response to tight labour market conditions and high inflation,” it said in the ruling.

“Despite a mixed economic outlook, several indicators suggest an improved outlook for economic growth and growth in real wages,”

At present, Victoria has a serious debt problem due to the long term consequences of its COVID-19 lockdown policies, and the massive spending on infrastructure projects and the public service.

According to the state’s most recent budget paper, actual net debt soared from $40 billion in 2019-20, to just under $120 billion in 2022-2023.

It was forecasted that Victoria’s net debt would grow to $156.2 billion by June 2025 before reaching $187.8 billion by June 2028, reflecting an average growth rate of 6.3 percent per year.

While some stakeholders proposed reducing, freezing or increasing MPs’ salaries and allowances by 3 percent, the Tribunal said it also took into account the national minimum wage increase of 3.75 percent for 2024 and the recent remuneration adjustments for MPs in other states.

The new pay rise for Victorian MPs comes just two weeks after the independent Remuneration Tribunal announced a 3.5 percent salary increase for federal public officers.

The change resulted in Prime Minister Anthony Albanese being paid an annual salary of $607,500 from July 1, which is higher than that of U.S. President Joe Biden.