SA councillors would receive ratepayer-funded superannuation under Mitcham council plan

A push for local councillors to receive ratepayer-funded 12.5 per cent super contributions could attract better council candidates, but the idea has divided ratepayers and elected members.

Mitcham Mayor Heather Holmes-Ross. Picture: Naomi Jellicoe

A council in Adelaide’s southern foothills is pushing for new laws to allow councillors to receive superannuation contributions funded by ratepayers.

Council representatives from across the state will vote in May on the proposal, put forward by Mitcham Council, at the Local Government Association’s ordinary general meeting.

If successful, the LGA would ask the state government to change the law to allow councillors to receive 12.5 per cent super contributions – if councils opt in through a unanimous vote of councillors.

Mitcham Council Mayor Heather Holmes-Ross, who is also the South Australian LGA’s president, said the change would encourage more women and young people to run for council.

Mitcham Mayor Heather Holmes-Ross. Picture: Naomi Jellicoe

“The reason is to increase diversity,” she said. “(Not receiving super) discourages younger people and women, in particular, from standing for council because there’s a big gap in their super contributions while they’re at council.

“If we want to encourage younger people to become mayors, then we have to pay super, because when you’re young is the worst time to miss out on your super.”

Ms Holmes-Ross said Mitcham Council calculated the change would result in only a 0.07 per cent increase to Mitcham’s rates, but the increase would differ for every council.

She said her push for the change was appropriate because it would come into effect only after her term as mayor expired.

Local government lawyer Michael Kelledy said the push to give councillors super was part of a “growing trend across the country”.

He said laws have been changed allowing councillors to receive super in New South Wales, Queensland and Western Australia.

“Councils have traditionally not paid it because there was no legal obligation to do so,” Mr Kelledy said.

“We’ve got this dichotomy between the rest of the workforce, and elected members … because what (elected members) receive is considered to be an ‘allowance’, but nevertheless it’s taxable income.”

Mitcham Council ratepayer Les Elekes said he believed being an elected member should be a civic responsibility, not a money-making venture.

“I still hold the value that it’s a community contribution and civic duty,” he said.

“We’re in a cost-of-living crisis currently and for them to be receiving 12.5 per cent extra is a bit of a rich call.”

Ms Holmes-Ross used her casting vote as mayor to carry Mitcham Council’s motion putting forward the proposal, after five councillors voted in favour and five voted against.

Originally published as SA councillors would receive ratepayer-funded superannuation under Mitcham council plan