‘Obscene’: Bill Shorten’s new salary at University of Canberra revealed

Aussies have reacted after Bill Shorten’s staggering new salary – more than double his base salary as a cabinet minister – was revealed.

Bill Shorten will pocket $860,000-a-year in his new role as vice-chancellor of the University of Canberra – more than double his base salary as a cabinet minister of $403,063.

The former Labor opposition leader – who led the party to the 2016 and 2019 elections – announced his retirement from federal politics in September to take up the post.

On Tuesday, University of Canberra (UC) chancellor Lisa Paul shared Mr Shorten’s near-million dollar salary, but stressed it was less than that of his predecessor, Professor Paddy Nixon, whose package in 2023 was $1.8 million.

“When finalising Mr Bill Shorten’s pay conditions we mutually agreed following his initiative that his total remuneration package including superannuation, accommodation and fringe benefits tax will be $860,000, down by approximately 15 per cent of the former vice-chancellor’s pay in 2022,” Ms Paul said.

“The university leadership, including Mr Shorten, cares deeply about bringing the University of Canberra back to financial sustainability and it was our view to line up better with community expectations, and in recognition of what the university is going through.”

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Bill Shorten will pocket $860,000-a-year as vice-chancellor of the University of Canberra. Picture: NCA NewsWire/Martin Ollman

Mr Shorten’s new income outraged some Australians – with social media users questioning how he could earn “much more than that of the Prime Minister” as vice-chancellor of “a middle-sized regional uni”.

“These obscene salaries for uni VCs must be pulled down to earth,” one man wrote on X.

“Our top uni executives must be focused (on) education, not personal profit.”

Australia’s vice-chancellors are famously among the highest-paid in the world.

The Queensland University of Technology’s (QUT) vice-chancellor Margaret Sheil took home $1,234,000 in 2023, the University of Sydney’s Mark Scott $1,184,999, and the Australian National University’s (ANU) Genevieve Bell $1.1 million.

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

“While Bill Shorten’s salary is significantly lower than his predecessor and lower than the average, vice-chancellor salaries across the country are out of step with community expectations,” the National Tertiary Education Union’s ACT division secretary, Lachlan Clohesy, told The Australian.

“Vice-chancellor salaries are generally hundreds of thousands of dollars higher than the prime minister’s salary.

“Running a university is a big job, but few would argue it is a bigger job than running the country.”

Mr Shorten steps into the role at a fraught time for the institution, which has been beset by money woes and internal division. In October, then-vice-chancellor Professor Stephen Parker announced UC would cut at least 200 jobs by mid-2025 as part of an “urgent and significant” cost-saving overhaul. It has so far sacked 141 staff.

Professor Parker said in a statement at the time that the university was on an island of its own making, needed to save about $50 million in recurrent expenditure within the next 12 months.

“The university itself is responsible for this unsustainable position,” he said.

“We cannot expect any external assistance and must take urgent and significant measures to rebalance the institution.

“There is no point blaming others.”

Mr Shorten will take home some $200,000 more than Prime Minister Anthony Albanese. Picture: Instagram/@albomp

The Canberra Timesreported in November Mr Shorten had been the one to request a smaller pay package than his predecessor.

“It was Mr Shorten’s and my view that to line up better with community expectations and in recognition of what the university is going through, there was no way he should take as high a remuneration package as the former vice-chancellor,” Ms Paul said.

Dr Clohesy, who will meet with Mr Shorten on Thursday, said staff were feeling “optimistic” about his appointment.

“However, there are governance concerns that we’ll be looking to address,” he said.

“UC’s staff and students have been let down by poor leadership over an extended period of time, and we need to prevent any recurrence of the mistakes of the past.”

Other social media users have questioned whether Mr Shorten will receive a taxpayer-funded parliamentary pension.

In short, he won’t: because he was elected in 2007, he is not eligible for the lifelong scheme, which provided retiring MPs with payouts – some as great as $200,000 per year – and was closed off to new MPs in 2004 by then-Prime Minister John Howard.

Instead, Mr Shorten is enrolled in a regular superannuation fund. The University of Canberra, as his employer, will now make contributions to his super.

A UC spokesperson confirmed to news.com.au that “for superannuation, the same terms apply to Mr Shorten as with all Australians”.

“Mr Shorten has no plans to retire in the foreseeable future,” they said in a statement.

Mr Shorten, who most recently served as the National Disability Insurance Scheme (NDIS) minister had been expected to remain in parliament until February, but left nine days early – clearing the way for a pre-election cabinet reshuffle to cover his portfolios.

“Education is the modern means of taking someone from disadvantage to advantage in a way that no other method can,” he told reporters in September.

“Universities have a critical role to play. The hopes and dreams of Australians are lifted when they are able to fulfil their own potential and the hopes and dreams of our nation are lifted as well.”

The 57-year-old will relocate from Melbourne to the nation’s capital for the role.

Mr Shorten submitted his bid to lead the university just two days before short-listed candidates were interviewed, The Australian Financial Review revealed earlier this month. A UC spokesperson denied he was the captain’s pick, however, saying that the selection committee’s appointment of Mr Shorten was unanimous.

Originally published as ‘Obscene’: Bill Shorten’s new salary at University of Canberra revealed