State MPs given generous pay rises as Premier’s salary soars

Victorian MPs have been given a generous payrise, after the state’s politician pay system was previously criticised for lack of transparency. This is how much premier Daniel Andrews will take home.

State MPs have been quietly handed a generous pay boost which will take the average backbencher’s annual salary to more than $163,000.

From July 1, all state parliamentarians will get a 2.92 per cent bump in their pay packets.

It means Premier Daniel Andrews will take home a whopping $394,000 in the next financial year.

The salary of state MPs was automatically increased in line with wage inflation calculated by the Australian Bureau of Statistics.

But the July 1 raise will be the last increase under the system after the Andrews Government pushed through reforms to create an independent remuneration tribunal to set pay levels for all state MPs and executives.

Backbench MPs currently earn a base salary of $158,555 and will now cash in an extra $4630 a year.

As Premier, Mr Andrews is paid double the basic salary plus a generous expenses ­allowance.

With expenses, Opposition Leader Michael O’Brien and Mr Andrews’ ministers will now all be paid at least $306,000.

Victoria’s politician pay system has been heavily criticised for its lack of transparency, particularly as the salaries of federal MPs have long been set by an independent tribunal.

Premier Daniel Andrews at a “Change The Rules” union rally. Picture: Mark Stewart

After former Speaker Telmo Languiller and former deputy Speaker Don Nardella rorted tens of thousands of dollars in allowances meant for regional MPs, the Andrews Government moved to reform the system of pay and entitlements.

But the overhaul was put on hold before last year’s state election after the state Opposition indicated it would oppose the new laws.

The changes passed parliament earlier this year.

The government announced this month that Victoria’s remuneration tribunal would be chaired by Warren McCann, who will be joined by Jennifer Acton and Barbara Belcher.

They are required to carry out a work value test for MPs to decide if wages should be ­increased.

MORE: PAY TRIBUNAL TO COST $8.5 MILLION

BACKROOM BAZ: POLLIES IN THE FAST LANE

Under the laws, state MPs can’t be worse off under the tribunal’s recommendation than under current rules, but potential new salaries are capped at what federal parliamentarians receive — about $203,000.

Special Minister of State Gavin Jennings has hailed the creation of the tribunal and said Victorians could “have every confidence” in its independent members.

“This reform will ensure that politician pay and conditions are in line with community expectations,” he said.

@tminear