Independent Remuneration Tribunal for state MPs to cost $8.5m

A NEW tribunal that will decide on pay rises for our state MPs will cost $8.5 million to set up and state MPs are set to get a pay rise worth tens of thousands of dollars once the new system is set up.

A NEW tribunal that will ­decide on pay rises for our state MPs will cost $8.5 million to set up and run.

State Budget papers show that $1.3 million will be spent before June 30 on the independent Remuneration Tribunal, and a further $7.2 million is ­allocated over the following four years.

The Sunday Herald Sun revealed last year that state MPs were set to get a generous pay rise worth tens of thousands of dollars once the new system is set up, because there would be a work-value review likely to result in a favourable boost.

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It was also revealed earlier this year that politicians quietly pocketed a 5.3 per cent pay rise last year, worth $8400 to backbenchers and $19,000 for Premier Daniel Andrews, because their salaries are currently linked to average wage growth.

A backbencher is now paid about $168,526 a year, plus expenses, while the Premier is on $377,624.

Don Nardella claimed he was living in an Ocean Grove caravan park to get an allowance, and was eventually forced to pay back about $98,000. Picture: Jason Edwards

The plan to create a new remuneration tribunal came after rorting by former Speaker Telmo Languiller and deputy speaker Don Nardella was uncovered.

Mr Languiller had claimed he was living in Queenscliff to get an allowance worth almost $40,000 a year — which he later paid back.

Mr Nardella claimed he was living in an Ocean Grove caravan park to get the same allowance, and was eventually forced to pay back about $98,000.

The body will set pay scales as well as investigate misuse of parliamentary entitlements.

At the time, Special Minister of State Gavin Jennings said MP pay would be assessed against other professions and “stop MPs determining their own salaries and ensure only legitimate work expenses can be claimed”.

Greens MP Sam Hibbins fears politicians will get a huge pay increase. Picture: Carmelo Bazzano

Greens MP Sam Hibbins said he feared the tribunal could lead to a massive pay hike for Victorian members. “Our concern is that politicians will get a big pay rise which is what happened when a similar plan was enacted federally.”

In Canberra, MPs saw $45,000 increases when a similar plan was brought in but stripped of controversial perks like gold pass travel.

Mr Hibbins also questioned why the state government had dragged its feet on bringing the new legislation regarding the tribunal to a vote in the Victorian Parliament, but had ­already ploughed money into setting up the new body.

Government spokesman Chris Piper said Victoria was being brought in to line with other Australian jurisdictions.

“The independent ­Remuneration Tribunal will ensure MPs no longer determine their own pay,’’ he said.

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