On 30 June 2023, the Tribunal made the Allowance payable to Mayors, Deputy Mayors and Councillors (Victoria) Annual Adjustment Determination 2023.
The Tribunal determined a 2% increase to the values of the base allowances payable to Mayors, Deputy Mayors and Councillors, effective from 1 July 2023. A 2% increase has also been applied to the base allowance values which take effect on:
- 18 December 2023
- 18 December 2024 (Mayors and Deputy Mayors only)
- 18 December 2025 (Mayors and Deputy Mayors only).
The Determination also adjusted the value of the remote area travel allowance by 2%.
The Determination, including the Statement of Reasons, is available here:
Before making the Determination, the Tribunal published notice of its intention to make a Determination, including details about the proposed Determination, and invited submissions.
Submissions
Submissions do not necessarily reflect the views of the Tribunal and assertions made in them have not been fact-checked.
Submissions have been published in de-identified form.
For an accessible version of these submissions, please email enquiries@remunerationtribunal.vic.gov.au
Notice of Intention
In accordance with section 24(1) of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 (Vic) (VIRTIPS Act), the Tribunal hereby publishes notice of its intention to make a Determination.
Details about the proposed Determination and how to make a submission are set out below.
What will the Determination cover?
The Determination will provide for an annual adjustment to the values of the allowances set in the Tribunal’s Allowance payable to Mayors, Deputy Mayors and Councillors (Victoria) Determination No. 1/2022 (Comprehensive Determination).
The Comprehensive Determination set a base allowance for every Council member in Victoria, the value of which varies depending on their role and the allowance category to which their Council has been assigned. The current values are available on the Tribunal’s Allowances for Mayors, Deputy Mayors and Councillors webpage.
The Comprehensive Determination provided for scheduled increases to base allowances until 2025 for Mayors and Deputy Mayors, and until 2023 for Councillors. The next increase is scheduled for 18 December 2023. If any adjustments to base allowances are made by the Tribunal in the proposed Determination, these will apply in addition to the scheduled increases under the Comprehensive Determination.
The Comprehensive Determination also provided for a remote area travel allowance, currently equal to $45 per day (subject to eligibility requirements and an annual cap of $5,625). The Tribunal will also consider an annual adjustment to this value.
The Tribunal does not propose to make any changes to allowance categories in this Determination.
When will the Determination take effect?
The Tribunal proposes to make the 2023 Annual Adjustment Determination take effect on 1 July 2023, in line with the annual adjustment Determinations for executives employed in public service bodies and prescribed public entities.
The Tribunal is seeking feedback on whether this would be appropriate, or if the Determination should take effect on another date (see ‘Submissions’).
Submissions
The Tribunal invites submissions from any person or body, including any affected person or class of affected persons, in relation to the proposed Determination.
You may wish to consider the following questions in your submission:
- What adjustment to the values of allowances should the Tribunal consider, if any?
- Which economic and financial indicators should the Tribunal consider in adjusting the values of allowances?
- What other matters should the Tribunal consider when making the Determination, if any, in addition to those listed in the VIRTIPS Act?
- Should the 2023 Annual Adjustment Determination take effect on 1 July 2023, or on some other date?
Written submissions (and requests for assistance to make a submission) should be emailed to the Tribunal Secretariat at enquiries@remunerationtribunal.vic.gov.au.
Written submissions must be received by the Tribunal by 5pm on Friday 28 April 2023.
The Tribunal may also accept requests from interested parties to make submissions after 28 April. Please contact the Tribunal Secretariat at enquiries@remunerationtribunal.vic.gov.au to request to make a late submission.
Those wishing to make an oral submission must advise the Tribunal Secretariat via email by 5pm on Friday 14 April 2023.
Publication of submissions
The Tribunal may use information provided in submissions in its Determination.
All submissions will be published in full or in summary form on the Tribunal’s website, unless the person making the submission seeks confidentiality or the submission contains information that is identified as commercially sensitive. In this instance, the submission will be published in a form which protects confidentiality or commercially sensitive information.
The Tribunal may remove identifying information from submissions if published.
Submissions that contain offensive or defamatory comments, or that are outside the scope of the Determination, will not be published.
The Tribunal may receive a request under the Freedom of Information Act 1982 (Vic). Any such request will be determined in accordance with the Freedom of Information Act 1982 (Vic) which contains provisions designed to protect personal information and information given in confidence. Further information can be found at the Office of the Victorian Information Commissioner.
How will the Tribunal make its Determination?
In making its Determination, section 24(2) of the VIRTIPS Act requires the Tribunal to consider:
- current and projected economic conditions and trends
- the financial position and fiscal strategy of the State of Victoria
- any statement or policy issued by the Government in respect of its wages policy (or equivalent) and the remuneration and allowances of any specified occupational group as defined in the VIRTIPS Act
- submissions received in relation to the Determination.
Current and projected economic conditions and trends
The Tribunal’s understanding of current and projected economic conditions and trends will be informed by the Victorian and federal budgets (both expected in May 2023), statements by the Reserve Bank of Australia, the outcome of the Fair Work Commission’s Annual Wage Review 2022‑23 (expected in mid-June 2023) and other relevant information.
The Tribunal will also have regard to the latest data on key economic indicators published by the Australian Bureau of Statistics, including the following releases:
- Australian National Accounts: National Income, Expenditure and Product
- Average Weekly Earnings
- Consumer Price Index (CPI)
- Labour Force
- Wage Price Index (WPI).
At the time of issuing this notice, the Tribunal notes the following with respect to the Australian and Victorian economies:
- the annual change in Australia’s real Gross Domestic Product to the December quarter 2022 was 2.7%
- Victoria’s unemployment rate (in trend terms) in February 2023 was 3.8%
- Victoria’s labour force participation rate (in trend terms) in February 2023 was 66.9%
- the annual change in the Victorian WPI to the December quarter 2022 was 3.4%
- the annual change in the Melbourne CPI to the December 2022 quarter was 8%
- the annual change in the trimmed mean (a measure of underlying inflation in Australia) to the December 2022 quarter was 6.9%.
Financial position and fiscal strategy of the State of Victoria
The Tribunal’s understanding of the financial position and fiscal strategy of the State of Victoria will be informed by the Victorian Budget (expected in May 2023) and the latest Auditor‑General’s Report on the Annual Financial Report of the State of Victoria (October 2022).
At the time of issuing this notice, the Tribunal notes the following with respect to Victoria’s financial position and fiscal strategy:
- according to Victoria’s Mid-Year Financial Report (March 2023):
- the general government sector recorded an operating deficit of $4.2 billion for the first half of 2022-23
- net debt for the general government sector was $104.2 billion at 31 December 2022
- the 2022 Victorian Pre-Election Budget Update (November 2022) forecast a return to an operating cash surplus in 2022‑23, followed by an expected return to an operating surplus in 2025-26.
Relevant Victorian Government remuneration policies
The Tribunal is required to take into account the Victorian Government Wages Policy, which applies to enterprise agreements entered into by departments and agencies in the Victorian public sector.
The current Wages Policy caps increases in wages and conditions at 1.5% per annum over the life of an agreement. Additional changes to allowances and other conditions are capped at 0.5% per annum of the salary base, provided that the changes address key operational or strategic priorities for the agency, and/or one or more of the Public Sector Priorities.
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