John Pesutto calls for reform to independent remuneration tribunal after pollie pay rise

The Andrews government is being urged to reform the independent remuneration tribunal, after a controversial pay hike amid a cost-of-living crisis will see pollies rake in almost $200,000.

John Pesutto (left) said the government needed to ensure the decisions of the remuneration tribunal “never lead to increases that go well beyond what the community might be going through”. Picture: David Geraghty

Opposition leader John Pesutto has called on the Andrews government to reform the independent remuneration tribunal to better reflect community expectations after Victorian politicians received yet another pay increase.

But Mr Pesutto said he will not be donating his pay rise, which will bring his total take home pay to $383,860.

The Victorian Independent Remuneration Tribunal on Tuesday night ­released its annual determination, ruling that every MPs pay will increase by 3.5 per cent from July 1.

The increase cements Premier Daniel Andrews as the highest paid state leader, with his pay packet rising by $16,272 to $481,190 – including up to $60,000 in expenses.

Deputy Premier Jacinta Allan’s pay will rise above $409,000, while cabinet ministers each receive about $380,000. Backbenchers will now be paid $198,839.

Mr Pesutto on Wednesday said the government needed to look at the criteria of the remuneration tribunal to ensure its decisions “never lead to increases that go well beyond what the community might be going through”.

“We need a better and more sustainable way of dealing with wage determinations for politicians that overshoot the mark,” he said.

“It’s designed to be an independent tribunal but clearly it’s landing decisions that don’t sit well with the expectations of the Victorian people.

“I can understand why Victorians are really concerned about this. We’re going through a cost-of-living crisis in Victoria.”

Mr Pesutto said he will not be donating his pay rise, which will bring his total take home pay to $383,860. Picture: Andrew Henshaw

Mr Andrews said the government supported the current independent process to determine the pay of politicians.

“We do not set our own wages and I think that is far preferable than politicians setting in judgement of themselves and determining how much we get paid,” he said.

Asked if he would donate the latest pay hike to charity, Mr Andrews said: “My family makes contributions to many different causes. That’s a private matter.”

“We don’t seek to publicise the sort of charities that we support but that’s an important part of our family and the way that we live our lives,” he said.

Attorney-General Jaclyn Symes acknowledged many Victorians continue to struggle with cost-of-living pressures.

She said most politicians make a “substantial contribution from their personal pocket” to community groups and charitable organisations.

“I’ll continue that practice,” she said.

The base salary of Victoria’s politicians has risen to $198,839. Picture: Ian Currie

Outside parliament on Wednesday, several other ministers including Gabrielle Williams, Lily D’Ambrosio, Danny Pearson, Colin Brooks and Steve Dimopoulos said they donate to different causes each year.

Greens leader Samantha Ratnam said her MPs were “very generous” with making donations to charity, and was confident they would continue to do so.

Independent MP Moira Deeming, who was dumped from the Liberal Party where she was paid additionally as the opposition whip in the upper house, said she would pocket the pay rise.

“As I have had an unexpected drop in income recently, plus an unexpected increase in bills, coupled with the fact that we are a single income family of six, I’ll be using the pay rise for my family with deep gratitude,” she said.

Animal Justice Party MP Georgie Purcell said she will use the pay rise to donate to a greyhound rescue group.

Independent MP Moira Deeming says she will pocket the pay rise to support her family of six. Picture: Ian Currie

The move by the independent pay-setting tribunal comes at a time when public sector pay rises have been capped at 3 per cent.

Meanwhile across Victoria, households are battling skyrocketing interest rates and huge cost-of-living increases.

Small Business Australia chief executive Bill Lang has labelled the ruling as “unfathomable” and called for MPs to donate their pay bump.

“With almost one in every two Victorian small businesses losing money, to see the debt of Victoria rise further, it’s unfathomable that our political class would increase our debt by accepting any pay rise,” he said.

“The fair thing would be to not accept it. And, should they claim to be making a donation, they should disclose which deserving charities are receiving it.”

Community and Public Sector Union secretary Karen Batt, also blasted the pay rise.

She said the government was “going to need a better wages policy” given politicians were being awarded higher increases than government workers.

Small Business Australia chief executive Bill Lang has labelled the ruling as “unfathomable”. Picture: Arsineh Houspian

Ambulance union boss Danny Hill questioned the pay rise.

“3 per cent is on offer to public sector workers in their EBAs. A further 0.5 per cent for productivity improvements,” he tweeted.

“What improvements have pollies provided to receive 3.5 per cent?

“Whatever it is I’m sure paramedics can roll up their sleeves and add it to a 14-hour nightshift with no meal break.”

It is not the first time politicians have been called upon to give up their pay rise after the tribunal’s ruling failed to meet the public’s expectations.

In 2020, during the pandemic, MPs were awarded an 11.8 per cent increase while many people’s businesses were closing down and people ­unable to work were required to apply for the dole.

In response, the state government mandated that all MPs donate their pay increases to Covid-related charities.

The tribunal – set up in 2019 – is independent, however, its pay-rise rulings can only be knocked back by passing legislation through parliament.

An Andrews Government spokesperson said: “We acted years ago to make sure politicians weren’t deciding their salaries, establishing the independent remuneration tribunal.

Salary adjustments for MPs are decided by the ­independent tribunal.”