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Local councillors get 72 per cent pay rise under radical municipal allowances review

A review of local government allowances has seen some Victorian councillors land 72 per cent pay rises. Here’s why.

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Some local councillors have received pay rises of up to 72 per cent under a radical review of municipal allowances that has been described as setting “a dangerous precedent”.

Mayors have got an immediate increase of eight per cent, with a further 12 per cent pay hike phased in by the end of 2025.

The annual package of Victoria’s highest paid councillor, Lord Mayor Sally Capp, has gone up by $17,677 to $238,634, thanks to a decision by the Victorian Independent Remuneration Tribunal.

Lord Mayor Sally Capp is Victoria’s highest paid councillor. Picture: Mark Stewart.
Lord Mayor Sally Capp is Victoria’s highest paid councillor. Picture: Mark Stewart.

Mayors of top-tier or category three councils like Boroondara, Greater Dandenong and Wyndham will see their pay packets swell by almost $9000 to $119,316 now, and to $132,573 by December 2025.

The tribunal has created a new deputy mayor allowance set at half of the pay of mayors after receiving submissions.

This means a category three councillor now in that role will see their allowance jump from $34,588 to $59,658 — a 72 per cent hike.

The tribunal said the deputy mayor allowance was fair due to the increasing importance, added responsibilities and workloads of the role.

But Ratepayers Victoria president Dean Hurlston said it wasn’t justified.

“Deputy mayors should not get half the mayors allowance as they only fill in from time to time,” he said.

Mr Hurlston also slammed the broader allowance rises for being well above inflation, and said councillors must focus on serving their communities and not lining their pockets.

“This is a dangerous precedent because we know the increases have only just begun,” he said.

Under the changes, ordinary councillors have got an immediate four per cent allowance rise, with a further six per cent by December 2023.

Back-dated from last December, lowest-paid category one councillors now get $24,080, while category three councillors fetch $35,972.

Councillors’ work is generally part-time, with most fitting in their responsibilities with normal jobs.

Melbourne City Deputy Lord Mayor Nicholas Reece. Picture: Jason Edwards.
Melbourne City Deputy Lord Mayor Nicholas Reece. Picture: Jason Edwards.

The City of Melbourne, which has higher allowances, has seen its councillors’ pay go up by $2075 to $53,957.

Deputy Lord Mayor Nicholas Reece has received an $8840 increase to $119,317.

Evan Mulholland, from free market think tank the Institute of Public Affairs, said the increases were a blow for businesses stung by pandemic restrictions and ratepayers hit with higher bills.

“This move does not represent value for money for ratepayers who are sick and tired of incompetent and inept local councils,” he said.

City of Monash councillor Theo Zographos said the new allowances were fair because councillor work was similar to backbench MPs, who were paid six times more.

A state government spokesman said: “The Victorian Independent Remuneration Tribunal determines allowances for Mayors, Deputy Mayors and Councillors through a comprehensive review process.

This independent process examines the roles of all councillors and their responsibilities to local communities.”

Original URL: https://www.heraldsun.com.au/news/victoria/local-councillors-get-72-per-cent-pay-rise-under-radical-municipal-allowances-review/news-story/e0f9da40d78c1c2eb9a2352ee9b41aeb