Dear Minister
The main task undertaken by the Tribunal in financial year 2024–25 was a comprehensive review of the remuneration bands for executives employed in prescribed public entities.
In making its Determination, the Tribunal observed changes in the role of public entity executives since its first Determination in December 2020, including the increasing complexity of roles and additional public scrutiny of executives. The Tribunal also commissioned a detailed market analysis that pointed to the reduced competitiveness of the previous remuneration bands, which may affect the ability of the Government to attract and retain talented executives.
Although all of the matters the Tribunal is required to consider under its legislation were weighed carefully, the Tribunal was mindful of the broader impact of its decisions. Thus, particular weight was given to the Government’s Wages Policy and current and projected economic conditions and trends, in seeking to find the right balance between wages fairness for the occupational groups within the Tribunal’s jurisdiction and the need for restraint dictated by the prevailing economic circumstances.
Balancing these factors, the Tribunal decided to maintain the existing remuneration band structure for public entity executives and to continue to align them with the relevant bands in the Victorian Public Service (VPS). The effective increase in the value of the remuneration bands, which took effect on 1 July 2024, was between 4.0 and 4.5 per cent, inclusive of changes to statutory superannuation entitlements.
Due to the timing of the comprehensive determinations of the remuneration bands for VPS and public entity executives, the Tribunal did not make annual adjustments for these groups in 2024–25.
In addition to the determination of remuneration bands for public entity executives, the Tribunal also made annual adjustments to the value of salaries and work-related parliamentary allowances for Members of Parliament (MPs) and allowances payable to local government Mayors, Deputy Mayors and Councillors. MP salaries were increased by 3 per cent and allowances were adjusted to more or less reflect movements in the relevant price index. Similarly, allowances for Mayors, Deputy Mayors and Councillors were increased by 3 per cent.
In response to a request from you, the Tribunal provided advice on any adjustments to the executive motor vehicle scheme that may be necessary to accommodate the provision of zero-emissions vehicles. In summary, the Tribunal advised that executives be given a choice between being provided with an electric vehicle charge card or paying reduced contributions, and that the costing methodology and calculator be updated to reflect these changes.
This financial year was the fourth full year of the operation of the payment above the band process. As you know, if an employer proposes to pay an executive above the maximum of the relevant remuneration band, the employer must first seek and consider the advice of the Tribunal. The employer is not bound to accept the advice. In providing advice, the Tribunal strives to protect the integrity of the overall remuneration structure and at the same time recognise that there may be circumstances where prevailing market conditions justify a departure from the standard structure.
Over the course of the year, the Tribunal provided advice in response to requests from public sector employers to pay a total of 72 executives above the maximum of the relevant band. This represented approximately 2.7 per cent of the total number of executives employed in the Victorian public sector and covered by the Tribunal’s determinations. Thus, it is pleasing to be able to again report that the remuneration bands determined by the Tribunal appear to be appropriate for the vast majority of executives.
Reforms were made to improve the Tribunal’s payment above the band processes including the provision of more timely advice and discontinuing the requirement to seek the Tribunal’s advice for payments above the band where such payments were due solely to the application of the Premier’s annual remuneration adjustment guideline rate. During the course of the coming year, the Tribunal will continue to improve its processes with a focus on providing clearer and case‑specific reasons for its advice.
During the year the Tribunal surveyed MPs, local government Mayors and Deputy Mayors, and public sector employers about their level of satisfaction with the Tribunal’s delivery of its outputs. The overall level of satisfaction was 84 per cent against a target of 80 per cent. It is pleasing to record a significant increase in satisfaction responses from local government compared to the previous survey.
During the year, the Tribunal expanded its engagement with the local government sector, including meeting with elected councillors and council chief executive officers, to explain the Tribunal’s statutory responsibilities and how it goes about its decision-making process. As a result of issues raised during these and other consultations, the Tribunal wrote to the Minister for Local Government proposing that the next comprehensive determination for the sector be brought forward from 2029 to 2026.
Finally, I would like to acknowledge the contribution of Nick Voukelatos who left the Tribunal’s Secretariat in January 2025 to take up a new role in the Department of Treasury and Finance after serving as the inaugural Director of the Tribunal’s Secretariat for over five years. Much of the Tribunal’s administrative and analytical processes and ethos were shaped by Nick. The Members wish him well.
On behalf of the Tribunal’s Members, it is my pleasure to submit this report to you.
Yours sincerely
Warren McCann
Chair
Victorian Independent Remuneration Tribunal
7 October 2025
Updated