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Tribunal's considerations

The Tribunal now turns to consider the matters it must determine, being to provide for an annual adjustment to the values of the:

  • basic salary for Members of the Parliament of Victoria (MPs)
  • additional salaries for specified parliamentary office holders
  • any expense allowance
  • electorate allowance
  • motor vehicle allowance
  • travel allowance
  • parliamentary accommodation sitting allowance
  • commercial transport allowance
  • international travel allowance
  • Electorate Office and Communications Budget (EO&C Budget)

3.1 Values of salaries and allowances

The existing basic salary MPs is $182,413 per annum.

Taking into consideration the Victorian Government’s Wages Policy, the submission received by the Tribunal and the challenging economic, financial and fiscal circumstances resulting from the COVID-19 pandemic discussed in chapter 2, the Tribunal has determined that the most appropriate course is to leave the value of the basic salary for MPs unchanged at this time. Those circumstances weigh against the factors supporting an increase. For the financial year ending 30 June 2021, the Tribunal has therefore determined the basic salary for MPs in the Parliament of Victoria will remain at $182,413 per annum.

Similarly, the Tribunal has determined not to make any further changes to the values of other salaries and allowances set in the Members of Parliament (Victoria) Determination 01/2019 (2019 Determination).

The Tribunal’s review of the Members of Parliament (Victoria) Guidelines 02/2019, will provide the Tribunal with a further opportunity to consider the use of the EO&C Budget and work‑related parliamentary allowances. The 2021 annual adjustment Determination may reflect outcomes arising from that review.

3.2 Conclusion

This Statement of Reasons pertains to the Determination for the annual adjustment to the values of the salaries and allowances provided to MPs in the Parliament of Victoria. In this Statement of Reasons, the Tribunal has considered:

  • any statement or policy issued by the Government of Victoria which is in force with respect to its Wages Policy (or equivalent) and the remuneration and allowances of any specified occupational group (s24(2)(a))
  • the financial position and fiscal strategy of the State of Victoria (s24(2)(b))
  • current and projected economic conditions and trends (s24(2)(c))
  • submissions received in relation to the proposed Determination (s24(2)(d))

The Tribunal has determined to make no adjustment to the values of the salaries and allowances set in the Members of Parliament (Victoria) Determination 01/2019. The Determination has balanced the current and projected negative impacts on economic conditions and Victoria’s financial position and fiscal strategy from the outbreak of COVID-19 against factors supporting an increase in the values.

The Tribunal may adjust the values it has set for those salaries and allowances annually. The 2021 annual adjustment Determination may also reflect outcomes arising from the Tribunal’s review of the Members of Parliament (Victoria) Guidelines 02/2019.

The Tribunal has also determined to clarify that clause 7.1 of the Members of Parliament (Victoria) Determination 01/2019 set the value of the basic salary portion for certain superannuation purposes for the financial year ending 30 June 2020. This is because from 1 July 2020 the value of that basic salary portion is automatically indexed under section 10(1) of the Parliamentary Salaries, Allowances and Superannuation Act 1968 (Vic).

This Determination will take effect on 1 July 2020.

Reviewed 29 June 2020

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