On 29 June 2023, the Tribunal made the Remuneration bands for executives employed in public service bodies (Victoria) Annual Adjustment Determination 2023. The Determination is effective from 1 July 2023.
The Tribunal determined to adjust the remuneration bands as follows:
- a 4% increase was applied to the notional salary component of the remuneration bands
- a further increase, ranging from $1,762 to $2,107, was also applied, consistent with changes in superannuation entitlements from 1 July 2023.
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.
No submissions were received.
The notice of intention is available to read below.
Notice of Intention
In accordance with section 24(1) of the Victorian Independent Remuneration Tribunal and Improving Parliament 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.
The Determination will provide for an annual adjustment to the values of the remuneration bands for executives employed in public service bodies. The current values of the remuneration bands are available on the Tribunal’s Remuneration bands for executives employed in public service bodies webpage.
The Determination will apply to executives employed in:
- departments
- Administrative Offices
- the Victorian Public Sector Commission.
It will also apply to public service body Heads, who are defined in the Public Administration Act 2004 (Vic) as:
- Secretaries of departments
- heads of Administrative Offices
- the Victorian Public Sector Commissioner.
As set out in the VPSC’s Victorian Public Service Executive Employment Handbook, employers retain the power to set an individual executive’s remuneration within the relevant band.
When will the Determination take effect?
Once made, the Determination will have effect from 1 July 2023.
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 when preparing your submission:
- What adjustment to the values of the remuneration bands should the Tribunal consider, if any?
- Which economic and financial indicators should the Tribunal consider in adjusting the values of the remuneration bands?
- What other matters should the Tribunal consider when making the Determination, if any, in addition to those listed in the VIRTIPS Act?
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 2023. 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 as appropriate on the Tribunal 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 the confidentiality or commercial sensitivity.
The Tribunal may remove identifying information from submissions if published.
Submissions that contain offensive or defamatory comments, or which 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 Deterination?
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.
The Tribunal is also required to consider Victorian Government policies in relation to the remuneration of executives employed in public service bodies. These include the requirement for VPS bodies to bear the cost of any increases to compulsory superannuation contributions for their executives.
The minimum superannuation entitlements of executives will increase on 1 July 2023 as a result of the following changes:
- the superannuation guarantee percentage will increase from 10.5% to 11%
- the maximum superannuation contribution base will be indexed in line with full-time adult average weekly ordinary time earnings.
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