Tassie public servants’ lowest paid in country according to data analysis

As cost of living pressures take hold, an analysis of pay data shows Tasmanian public servants lag behind their interstate colleagues. How much less are they earning?

Group of Australian dollar bank notes.

The pay of public servants in Tasmania is lower than all other states, with local government employees earning nearly 10 per cent, or $7133 a year, less than their interstate colleagues.

Policy analyst Martyn Goddard has used Australian Bureau of Statistics snapshots of commonwealth, state and local government earnings for the past two years to highlight the “substantial” disparity, which he says many would find shocking.

Health policy analyst Martyn Goddard at Hobart. Picture: Chris Kidd

A Tasmanian Government spokesperson said wages grew in the 12 months to June 2023 and recent wage agreements would see wages rise in the coming year.

The public sector union says the data clearly shows “Tasmania is still well behind the mainland when it comes to wages”.

The figures show last financial year local government employees on average earned $66,477, compared with the national average of $73,610.

Commonwealth public servants in Tasmania earned $91,898 compared to $96,876 nationally, with state servants taking home on average $81,413 compared to the national average of $88,534.

The highest paid local government employees received $78,063 in South Australia, the highest paid commonwealth workers $97,734 in NSW and the highest paid state servants received $100,704 in the Northern Territory.

Mr Goddard said although the local government pay gap decreased, it remains the highest, at 9.69 per cent.

“In addition to Tasmanian public sector per capita wages being (on average) eight per cent behind the national average, cost of living has eroded those wages by a further 11.7 per cent over the past five years,” he said.

“These figures show how far Tasmanian public sector wages, both in state and local government, have fallen behind the rest of Australia.”

A Department of Premier and Cabinet spokesperson said annual growth in the public sector Wage Price Index in Tasmania increased to 3.8 per cent in the 12 months to June 2023 compared with the national annual public sector growth of 3.1 per cent.

“In relation to the competitive wages component, as an example, employees under the public sector union wages agreement will receive an increase in total earnings of between 4.01 per cent and 8.94 per cent in the 12 months to December 2023,” she said.

“Similarly, employees under the recently finalised Nurses and Midwives Agreement will receive an increase in total earnings of between 4.92 per cent and 10.68 per cent over the forthcoming 12 months (to December 2024).”

Community and Public Sector Union secretary Thirza White said the wage data did not include incentives other states were offering to attract and retain public sector workers including cash payments, HEC fee waivers and relocation packages.

CPSU General Secretary Thirza White. Picture: Chris Kidd

“There is an arms race for workers, and it’s not just limited to teachers and nurses, we are seeing difficulties with the recruitment of professionals in allied health, IT and the law,” she said.

“Even areas like parks where historically people have jumped at the opportunity to get a job are struggling to fill roles, the pay isn’t competitive, the work is often insecure, and it requires travel and petrol is expensive.”

Ms White said recruitment and retention was a problem “right across the public sector”.

“We know when times are tough, as they are now, that people rely on public services more,” she said.