Members of Parliament salaries and allowances - annual adjustment

The Determination will provide for an annual adjustment to the current values of the following salaries and allowances payable to MPs:

• basic salary
• additional salaries for specified parliamentary office holders
• electorate allowance
• any expense allowance
• motor vehicle allowance
• travel allowance
• parliamentary accommodation sitting allowance
• commercial transport allowance
• international travel allowance
• Electorate Office and Communications Budget.

The current values of these salaries and allowances are available on the Tribunal’s website(opens in a new window).

The Tribunal is required to consider the following factors in making a Determination:

• 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 2024), statements by the Reserve Bank of Australia(opens in a new window), the outcome of the Fair Work Commission’s Annual Wage Review 2023-24(opens in a new window) (expected in June 2024) 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 (ABS), including the following releases:

• Australian National Accounts: National Income, Expenditure and Product(opens in a new window)
• Average Weekly Earnings(opens in a new window)
• Consumer Price Index (CPI)(opens in a new window)
• Labour Force(opens in a new window)
• Wage Price Index (WPI)(opens in a new window).

The table below summarises key ABS data about the Victorian and Australian economies at the time of issuing this notice (March 2024).

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 2024) and the latest Auditor‑General’s Report on the Annual Financial Report of the State of Victoria(opens in a new window) (November 2023).

At the time of issuing this notice, the Tribunal notes the following with respect to Victoria’s financial position and fiscal strategy:

• according to the Victorian Government’s 2023-24 Mid-Year Financial Report(opens in a new window) (March 2024):
  • the general government sector recorded an operating deficit of $4.2 billion for the first half of 2023-24
  • net debt for the general government sector was $126.8 billion at 31 December 2023
• the 2023/24 Budget Update(opens in a new window) (December 2023) forecast operating cash surpluses through to 2026‑27, with 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’s Wages Policy and the Enterprise Bargaining Framework(opens in a new window), which applies to enterprise agreements entered into by departments and agencies in the Victorian public sector.

The current policy provides that employees’ wages and conditions will be allowed to grow at a rate of 3% per annum over the life of an agreement. In addition to annual wage increases, a separate lump sum, cash payment will be available, equivalent to an additional 0.5% of overall agreement costs.

Additional changes to allowances and other conditions – but not ‘general wages’ – may be permitted where the Victorian Government agrees that these will address key agency or wider public sector priorities and where the costs are funded through appropriate cash offsets or an approved funding strategy.

The Tribunal invites submissions from any person or body, including any affected person or class of affected persons, in relation to the proposed Determination.

Consultation questions

You may wish to consider the following questions in your submission:

• What adjustments to the values of MP salaries and allowances should the Tribunal consider, if any?
• Which economic and financial indicators should the Tribunal consider in adjusting the values of MP salaries and allowances?
• What other matters should the Tribunal consider when making the Determination, if any, in addition to those listed in section 24(2) of the VIRTIPS Act?

How to make a submission

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 Wednesday 24 April 2024.

The Tribunal may also accept requests from interested parties to make submissions after 24 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 12 April 2024.

Publication and use of submissions

To promote transparency, submissions will be published on the Tribunal’s website in full or in summary form as appropriate. If the submitter seeks confidentiality or the submission contains information that is identified as commercially sensitive, the Tribunal will work with the submitter to publish the submission in a form which protects the confidentiality or commercial sensitivity.

Submissions that contain offensive or defamatory material, or that are outside the scope of the Determination, will not be published.

The Tribunal may use information provided in submissions in its Determination.

The Tribunal may receive a request under the Freedom of Information Act 1982 (Vic)(opens in a new window). Any such request will be determined in accordance with that Act, which contains provisions designed to protect personal information and information given in confidence. Further information can be found on the website of the Office of the Victorian Information Commissioner(opens in a new window).

The Tribunal proposes to make the 2024 Annual Adjustment Determination in June 2024, ahead of a proposed effective date of 1 July 2024.