Premier nixes 22% pay hike for state MPs

Despite an Industrial Commission determination that they deserve to be paid more. Here’s why.

Deputy Premier Guy Barnett. Question time in the Tasmanian House of Assembly. Picture: Nikki Davis-Jones

Premier Jeremy Rockliff has ruled out a 22 per cent pay rise for politicians — despite the Industrial Commission recommending the big salary hike.

The long-awaited TIC report into politicians’ pay was tabled in state parliament on Tuesday.

It recommended 22 per cent pay rise to catch up on seven years without a rise.

The increase would see the base salary for an MP rise from $140,185 to $171,527 after years without an increase.

But Premier Rockliff scotched the pay hike just hours after it was annouced.

“The recommended increase is out of step with community expectations and we will not be accepting it,” he said.

The Tasmanian Industrial Commission started its inquiry into Salaries, Allowances and other Benefits for Members of the Tasmanian Parliament in November 2019.

State politicians’ pay packets have been frozen since they received a two per cent rise in June 2018.

In its published decision, the Industrial Commission said the recommended pay rise was in line with inflation.

“This determination relates to the period 1 July 2018 to 30 June 2025. As a result, the increases which are recommended may seem large,” the Industrial Commission said.

“However, they are based on the Wage Price Index or the Consumer Price Index, which track inflation and real movements in salary.”

The pay rise would increase the Premier’s base salary from $301,397 to $368,783.

MPs also receive allowances for a motor vehicle, which will rise to $20,124, plus other allowances depending on their electorate and for communications.

Some also receive an entertainment allowance.

The Industrial Commission ruling says the increases reflect other wage agreements in the state over the same period.

“This is comparable with the increases provided by the Public Sector Wages Agreements,” it said.

“It will be apparent that the salary increase from $140,185 to $171,527.50 is 22.36 per cent. “That is because the increases have been compounded from year to year by adding the increased amount to the previous year, which has increases from previous years already added to it.”

Federal MPs receive base pay amounting to $233,650 a year. Prime Minister Anthony Albanese is paid $607,500.

In 1993, Tasmanian MPs voted to link their pay to 90 per cent of the rate of a federal MP, leading to an immediate 40 per cent pay rise.

The move was not popular with the public.

Originally published as Premier nixes 22% pay hike for state MPs