Former Labor leader Bill Shorten could earn over $1 million after leaving politics

After abruptly quitting politics, former Labor leader Bill Shorten could earn far more than the Prime Minister in his highly lucrative new role.

Bill Shorten is set to score big bucks as one of the nation’s highest-paid vice-chancellors in his new role, which currently pays three times the salary of the PM.

The University of Canberra’s annual report reveals that predecessor Paddy Nixon’s package was $1.8 million in 2023, compared with just over $1 million in 2022.

Mr Shorten’s salary is being negotiated but is expected to be closer to the $1 million mark, still a hefty bump from his current salary. 

It comes amid increasing debate over the high salaries of university bosses.

In comparison, Prime Minister Anthony Albanese receives a base salary of roughly $607,500 and Opposition Leader Peter Dutton $432,000.

Bill Shorten will leave politics to take the role at the university.

The University of Canberra said Mr Shorten’s remuneration was still being considered.

“His remuneration is being considered in the context of the current state of the Higher Education settings and the University’s operating context,” a spokesman said.

“The Chancellor and the incoming Vice Chancellor have agreed the package will be less (than the predecessor’s $1.8 million payout).”

Mr Shorten said he was proud of what he had achieved during his political career and looked forward to making a new contribution to Australian public life.

“Ladies and gentlemen, I have decided not to seek a seventh term in Parliament,” he said.

“Over 30 years ago, when I joined the Australian Workers Union, I was driven by the belief that everyone, regardless of circumstance, deserves an equal opportunity.

“The opportunity to fulfil their potential. Fair wages, safe workplaces, decent conditions, that is what they are all about.

“A determination to always stand up for the underdog. For all the people that don’t start out with the same set of advantages in life.

“We are all just passing through. What matters is whether we leave the place better than we found it. That is a challenge I have always been up for.”

NDIS and Government Services Minister Bill Shorten during Question Time at Parliament House in Canberra. Picture: NewsWire / Martin Ollman

Mr Shorten said: “[I] genuinely consider myself to be one of the luckiest people in politics.”

“I have been the member for Maribyrnong, it is a community that I love so much. I’ve had the privilege to serve in portfolios that I care about. The bushfire reconstruction, industrial relations, superannuation..”

He paid tribute to his wife Chloe and his family.

“None of this would have been possible without the tremendous love, patience, support from Chloe, Rupert, Georgette and Clementine,” he said.

“The sacrifices they have made. Chloe has been a tower of love and strength and I think she has shown more courage than I’d dream could exist.

“I will thank others later because today is not valedictory. There’s plenty more work to be done.”

Mr Shorten said he would take up his new role in February.

“One caveat about the University. I start in February so while I will answer questions today, I go back to my day job this afternoon,” he said.

“But for clarity, the Council of the University of Canberra approved me unanimously yesterday at 4pm.

“And yes, I will be moving to Canberra next year.”

Former Opposition Leader Bill Shorten with his wife Chloe Picture: Alex Coppel.

Mr Shorten, who was once touted as a Labor prime minister, entered politics in 2007.

While his departure had been widely speculated about, it is a surprise that he is quitting so soon after the recent cabinet reshuffle.

It ends a long leadership rivalry with the Prime Minister Anthony Albanese who replaced him as leader after the 2019 election loss.

Mr Albanese paid tribute to Mr Shorten’s contribution to public life and said he would remain in cabinet until February. He would depart politics at the next election in 2025.

“It is a big decision for him, Chloe and their family,” he said.

“Bill and I had a number of conversations about this over a period of time.

“I think it is a credit to Bill that this news will come as a surprise because at no point in the past two and a bit years would any observer of Australian politics think that Bill Shorten was taking it easy or slowing down.

“In this term and right throughout, his 17 years in Parliament and before that, as an official, a proud official of the trade union movement, Bill has given it everything, every single day.

“On that note I want to make it clear that I have asked Bill to remain in cabinet until he departs in February because he and I agreed there is important work still to be done to put the National Disability Insurance Scheme on a sustainable footing.”

Bill Shorten has announced he will retire from politics. Picture: ABC

News.com.au reported in June that Mr Shorten was considering his political future with Mr Albanese sounding him out about a plumb diplomatic posting in Europe.

But at the time Mr Shorten brushed off the reports.

He recently told the ABC’s Insiders program that he was planning on contesting the next election “at this stage” an equivocal answer that reignited speculation about his future.

The speculation in June centred around Mr Shorten being offered the job of Ambassador to France or another posting.

In 1983, the Hawke government appointed former Prime Minister Gough Whitlam as Australian Ambassador to UNESCO in Paris, a post since amalgamated with the ambassador to France.

Labor sources suggest Mr Albanese had been “regularly” sounding him out about overseas posting and Mr Shorten did not rule out a diplomatic posting.

The Prime Minister is understood to have previously offered Mr Shorten the job of High Commissioner to London shortly after the 2022 election.