2. Review of operations

In 2025–26, the Tribunal undertook work on the remuneration arrangements for the following occupational groups:

• councillors in local governments
• MPs
• executives employed in VPS bodies and PEs.

2.1 Mayors, deputy mayors and councillors

The Tribunal is responsible for setting the value of the allowances payable to councillors in all 79 local governments in Victoria (VIRTIPS Act, s. 23A).

The comprehensive determination in effect during 2025–26 was the Allowance payable to Mayors, Deputy Mayors and Councillors (Victoria) Determination No. 01/2022. Annual adjustments to the values set in that Determination were made in 2022, 2023, 2024 and 2025.

(note - The term ‘comprehensive determination’ refers to a determination in which the Tribunal is required to comprehensively review the existing remuneration arrangements for the relevant occupational group).

In February 2026, the then-Minister for Local Government wrote to the Tribunal to request that it make a new comprehensive determination. The Tribunal commenced work on the Allowance payable to Mayors, Deputy Mayors and Councillors (Victoria) Determination No. 01/2026.

As of 30 June 2026, the Tribunal had:

• published notice of its intention to make a determination on its website on 4 March 2026, which included details about the proposed determination
• commenced consultation, including by providing any affected person or a class of affected persons a reasonable opportunity to make a submission in relation to the proposed determination.

The notice of intention invited parties to make a submission on:

• the roles of mayors, deputy mayors and councillors, including changes to these roles since 2022
• current allowances, including whether the current values are appropriate and what factors should be considered in setting new values
• allowance categories, including the number of categories and the criteria used to allocate councils to specific categories
• relevant comparator roles, including councillors in other jurisdictions
• matters related to the expenses, resources and facilities provided to councillors
• any other matter that the Tribunal should consider.

Written submissions closed on 2 April 2026, with a total of 24 submissions received. A further four individuals made a verbal submission to the Tribunal.

Councillors were also invited to provide their views via an online questionnaire that was emailed to them. A total of 206 responses were received, which is approximately 32 per cent of the elected councillors covered by the Determination.

The Tribunal met with individuals and groups, including peak bodies and governance agencies, to discuss various issues — and with some submitters to further explore issues raised in their written submissions. The Tribunal also convened several ‘roundtable’ discussions with administrators and municipal monitors appointed to councils (currently, or from time-to-time), and a representative group of council chief executive officers (CEOs).

The Tribunal made the new Determination on 18 August 2026.

2.2 Members of Parliament

The Tribunal is responsible for inquiring into and setting the value of salaries, work‑related parliamentary allowances, and the EO&C Budget provided to MPs (VIRTIPS Act, ss. 6(1)(a)-(c)). It may also make guidelines with respect to the use of certain work-related parliamentary allowances and the EO&C Budget (VIRTIPS Act, s. 36(1)).

2025 guidelines update

The guidelines in force at the start of the financial year were the Members of Parliament (Victoria) Guidelines No. 02/2024.

In 2025–26, the Tribunal undertook a targeted review of the MP Guidelines, to respond to several emerging issues and matters raised by stakeholders.

In July 2025, the Tribunal sent a consultation paper to key stakeholders and invited submissions.

The Tribunal completed its review in October 2025 and published the Members of Parliament (Victoria) Guidelines No. 01/2025, which took effect on 13 October 2025 and replaced the previous guidelines.

The principal changes related to:

• eligibility for the parliamentary accommodation sitting allowance, including revised evidentiary and home base requirements and a transitional arrangement for existing claimants
• the introduction of a new framework enabling reasonable adjustments for Members with disability through waiver or modification of specified guidelines
• allowing MPs to claim the commercial transport allowance after late-night sittings of the Parliament, to avoid them having to drive while fatigued
• requiring communication materials funded using an MP’s EO&C Budget to bear the name of the MP’s electorate.

The Tribunal intends to undertake another review of the MP Guidelines in making the next comprehensive determination of salaries and allowances for MPs in 2027.

2026 annual adjustment determination

The comprehensive determination in effect during 2025–26 was the Members of Parliament (Victoria) Determination No. 01/2023 — the Tribunal’s second comprehensive determination of MP salaries and allowances.

The Tribunal is required to make determinations providing for an annual adjustment to the values set in the comprehensive determination (VIRTIPS Act, s. 18). The Tribunal previously made an annual adjustment determination in June 2025.

On 22 June 2026, the Tribunal made the Members of Parliament (Victoria) Annual Adjustment Determination 2026. This Determination adjusted the values of MP salaries, work-related parliamentary allowances and the EO&C Budget with effect from 1 July 2026.

Consistent with legislative requirements, in March 2026 the Tribunal published a notice of its intention to make the Determination and invited submissions on it.

In making the Determination, the Tribunal was required to consider the Government’s Wages Policy and the Enterprise Bargaining Framework (Wages Policy) in operation at that time, the financial position and fiscal strategy of the State, current and projected economic conditions, and any stakeholder submissions (VIRTIPS Act, s. 24(2)).

The Tribunal gave weight to the current Wages Policy in light of the current fiscal strategy of the State of Victoria. Stakeholders who had expressed a view on the value of salaries and allowances advised that increases should be limited to either the current or previous Wages Policy.

In its decision, the Tribunal noted available data on economic growth as well as movements in wages and prices. The Tribunal also noted the Fair Work Commission’s (FWC) decision to increase the National Minimum Wage (NMW) and minimum pay rates under modern awards. From 1 July 2026, most modern award rates increased by 4.75 per cent (FWC (2026), p. 2.). The Tribunal also considered recent remuneration adjustments for MPs in other Australian jurisdictions.

Ultimately, the Tribunal increased the basic salary for MPs, and the additional salary and expense allowance provided to specified parliamentary office holders, by 3.5 per cent.

From 1 July 2026, the basic salary payable to all MPs is $219,391 per annum, with additional salaries payable to specified parliamentary office holders ranging from $8,776 to $244,803 per annum. The expense allowance payable to eligible specified parliamentary office holders ranges from $3,926 to $66,732 per annum.

In its decision making, the Tribunal used a combination of the annual growth in the Melbourne Consumer Price Index (CPI) and the Melbourne CPI excluding volatile items to adjust values of work-related parliamentary allowances (Table 2.1). The Tribunal continued to link the travel allowance to rates set by the Commonwealth Remuneration Tribunal (Australian Government Remuneration Tribunal (2025), Remuneration Tribunal (Members of Parliament) Determination 2024 Compilation No. 4.). The Tribunal also adjusted the formula for the EO&C Budget in line with the Melbourne CPI to reflect movements in relevant costs, including postal services, with the effective rate per voter increasing by 4.5 per cent.

Table 2.1: Values of work-related parliamentary allowances for MPs from 1 July 2026

Further information about the Determination, including a detailed Statement of Reasons, and the current MP Guidelines, is available on the Tribunal’s website.

2.3 Public sector executives

The Tribunal is responsible for inquiring into and determining the remuneration bands for executives employed in VPS bodies and PEs (VIRTIPS Act, ss. 6(1)(d), 6(1)(g)).

The Tribunal also has the functions of (VIRTIPS Act, ss. 6, 37):

• issuing guidelines with respect to the placement of executives within the remuneration bands
• providing advice to employers proposing to pay an executive above the relevant remuneration band
• providing advice to the Minister on any other matter relating to the remuneration of executives.

In 2025–26, the Tribunal’s work in relation to executives comprised:

• making two sets of annual adjustments to the values of the remuneration bands for executives employed in both VPS bodies and PEs (four annual adjustment determinations in total)
• advice to public sector employers proposing to pay an executive above the relevant remuneration band.

The Tribunal also completed its research project into the Employee Value Proposition (EVP) for executives in the Victorian public sector, with a final report being published in September 2025.

2025 annual adjustment determinations

In July 2024, the Tribunal made the Remuneration bands for executives employed in public service bodies (Victoria) Determination No. 1/2024 and in December 2024 it made the Remuneration bands for executives employed in prescribed public entities (Victoria) Determination No. 1/2024. These comprehensive Determinations were in effect during 2025–26 and set remuneration bands for executives employed in public service bodies and prescribed public entities, respectively.

The Tribunal is required to make determinations providing for an annual adjustment to the values of executive remuneration bands.

The VIRTIPS Act required that the Tribunal could not make an annual adjustment determination with respect to the PE executive remuneration bands prior to September 2025 (The VIRTIPS Act, s. 20(2), states that the Tribunal must not make an annual adjustment determination if a comprehensive determination was made within the preceding period of nine months). The Tribunal decided to also use that timeframe to make the annual adjustment determination with respect to the VPS executive remuneration bands. On 23 September 2025, the Tribunal made the:

• Remuneration bands for executives employed in public service bodies (Victoria) Annual Adjustment Determination 2025
• Remuneration bands for executives employed in prescribed public entities (Victoria) Annual Adjustment Determination 2025.

Both of these Determinations took effect from 1 July 2025.

In its notices of intention to make the Determinations, the Tribunal called for submissions to be made by July 2025. Submissions to the VPS annual adjustment determination argued that the gap between the top of VPS Grade 6 and the bottom of the SES-1 band should be widened to better incentivise employees to move into roles with greater executive responsibility. They also discussed the implications of the gender pay gap for the Tribunal’s determinations.

A submission to the PE annual adjustment determination suggested that the executive remuneration bands should be adjusted in line with the Wages Policy, which would maintain the relativity between the bands and between the remuneration of executives and non-executives.

In addition to statutory requirements, the Tribunal considered:

• recent annual remuneration adjustments for public service executives in other Australian jurisdictions
• the FWC’s decision to increase the NMW and modern award minimum wages by 3.5 per cent from 1 July 2025
• changes to statutory superannuation entitlements effective from 1 July 2025
• the desirability of maintaining consistency between the Public Entity Senior Executive Service (PESES) and Senior Executive Service (SES) remuneration bands.

Consistent with its standard practice, the Tribunal adjusted the notional salary and superannuation components of the remuneration bands separately. The Tribunal increased the notional salary component of the bands by 3 per cent. It adjusted the superannuation component of the bands by between $68 and $1,735, consistent with changes to statutory superannuation entitlements from 1 July 2025 and Victorian Government policies on executive remuneration.

Table 2.2 sets out the remuneration bands for VPS executives effective from 1 July 2025, and Table 2.3 sets out the remuneration bands for PE executives effective from the same date.

Table 2.2: Value of the remuneration bands for VPS executives from 1 July 2025

Table 2.3: Value of the remuneration bands for PE executives from 1 July 2025

2026 annual adjustment determinations

On 22 June 2026, the Tribunal made the:

• Remuneration bands for executives employed in public service bodies (Victoria) Annual Adjustment Determination 2026
• Remuneration bands for executives employed in prescribed public entities (Victoria) Annual Adjustment Determination 2026.

Both of these determinations took effect from 1 July 2026.

Consistent with legislative requirements, in March 2026 the Tribunal published notices of its intention to make the Determinations, and invited submissions.

The Tribunal received no submissions to the VPS annual adjustment determination. It received one submission to the PE annual adjustment determination.

As in 2025, as part of its deliberations the Tribunal took into account a range of matters, including the statutory factors it is required to consider.

The Tribunal decided to increase the notional salary component of each of the bands by 3.5 per cent. It adjusted the superannuation component of the bands by between $610 and $2,500, consistent with changes to statutory superannuation entitlements from 1 July 2026 and Victorian Government policies on executive remuneration.

Table 2.4 sets out the remuneration bands for VPS executives effective from 1 July 2026, and Table 2.5 sets out the remuneration bands for PE executives effective from the same date.

Table 2.4: Value of the remuneration bands for VPS executives from 1 July 2026

Table 2.5: Value of the remuneration bands for PE executives from 1 July 2026

Public sector Employee Value Proposition review

In September 2025, the Tribunal concluded a landmark research project it had launched in 2024 into the EVP of executive roles in the Victorian public sector. This was the Tribunal’s first own-motion report, marking an important step in building a deeper understanding of what attracts and retains executive talent in the sector.

For this project, EVP was defined as the mix of monetary and non-monetary factors that people consider when deciding whether to take up, or remain in, a role.

The Tribunal explored:

• how executives perceive the value of working in the public sector
• how those preferences shape remuneration practices
• how employment conditions — such as flexible work — influence the appeal of a role.

The project drew on both a review of existing research and a survey of current and prospective public sector executives. The Tribunal published the EVP report, including its findings, in September 2025.

The results can be distilled into three key messages:

• respondents showed a clear preference for public sector roles, pointing to a strong public sector EVP
• workload and remuneration were the most influential factors shaping job preferences
• flexible work opportunities were highly valued by employees.

Overall, the findings suggest that the executive remuneration bands — set with reference to the 15th percentile of the Australian General Market — are generally sufficient to attract a strong pool of executive candidates in most circumstances. In some cases, however, offering remuneration above the band may be necessary, and the Victorian public sector executive remuneration framework allows for this where appropriate.

Remuneration Transparency review

In the 2025–26 financial year, the Tribunal decided to conduct an own-motion research project to review and compare public sector executive remuneration transparency arrangements across Australia, and against selected international jurisdictions. The Tribunal expects to complete this project in 2027.

Payment above the band advice

The Tribunal is required to provide advice to public sector employers proposing to pay an executive above the maximum of the relevant remuneration band set by a determination (VIRTIPS Act, s. 37(1)). Where appropriate, this advice is published on the Tribunal’s website to support greater transparency and accountability on executive remuneration.

In 2025–26, the Tribunal provided advice in response to 21 requests from employers to pay a total of 21 executives above the maximum of the relevant remuneration band (Table 2.6). The Tribunal received fewer requests for advice to pay executives above the maximum of the relevant remuneration band than in 2024–25.

Table 2.6: Requests for payment above the band advice, by employer type, 2025-26

Most requests for advice were received from employers across two main sectors — major transport infrastructure and finance — in 2025–26 (Figure 2.1).

Figure 2.1: Requests for payment above the band advice by sector, 2025–26

Eight requests were received from the Victorian Infrastructure Delivery Authority and six from the Victorian Funds Management Corporation. The other requests in 2025–26 were from entities operating in the energy, transport infrastructure, finance and water sectors.

In 2025, the Tribunal reiterated its advice that there is no longer a requirement for public sector employers to seek the Tribunal’s advice each time that they wish to increase the remuneration of an executive paid above the band by up to the Premier’s annual remuneration adjustment guideline rate. This may have reduced the number of requests for payment above the band advice received during the 2025–26 financial year.

2.4 State Budget performance measures

The Victorian Budget 2025–26 specifies one quality performance measure for the Tribunal (Department of Treasury and Finance (2025), Victorian Budget 2025–26 — 2025–26 Department Performance Statement, p. 157).

The quality measure relates to the satisfaction of key stakeholders — including MPs, public sector employers and councillors — with the Tribunal’s processes regarding determinations, reviews and advice.

To measure stakeholder satisfaction, a questionnaire was sent to approximately 480 stakeholders, including MPs, public sector employers and local government mayors and deputy mayors. The questionnaire asked respondents to rate their overall satisfaction with the Tribunal’s delivery of its outputs.

(note: The question asked was ‘Considering consultation methods, consideration of views and issues, communication of outcomes, and timeliness, how satisfied were you overall with the Tribunal's delivery of determinations, reviews and advice in 2025–26?’)

The Tribunal recorded an overall level of stakeholder satisfaction of 90 per cent against a target of 80 per cent, based on 87 responses to the questionnaire. This higher result may have been influenced by earlier publication of annual adjustment determinations in 2026, a higher response rate from local government stakeholders and the Tribunal’s work on the Allowance payable to Mayors, Deputy Mayors and Councillors (Victoria) Determination No. 01/2026.