Message from the Chair
Dear Minister,
Financial year 2020–21 was the second year of the Tribunal’s operations. It was a year of consolidation, but also a year when many of the important tasks set out in the Tribunal’s enabling legislation were completed, while some new tasks commenced.
It was also a year when Victoria continued its efforts to recover from the bushfires of the 2019-20 summer season and to minimise the impacts on employment and the economy of the COVID-19 pandemic. As it has gone about its work, the Tribunal has been mindful of the burden, including loss of income, felt by many Victorians over this time.
In terms of highlights, among the Tribunal’s work impacting Members of Parliament (MPs) was a review of superannuation arrangements including recommendations about enhanced transitional support for MPs leaving office, a root and branch review of the MP Guidelines to ensure clarity and transparency about the purpose and use of work-related parliamentary allowances and the Electorate Office and Communications Budget, along with an annual adjustment to MPs’ salaries and allowances required under our legislation.
In relation to public sector executives, the introduction of the first comprehensive remuneration bands for public entities meant that entities were no longer required to seek the Tribunal’s approval for individual Chief Executive Officer pay – except where an entity proposes to pay above the band in which case the advice of the Tribunal must be sought. The year also saw the Minister for Government Services request the Tribunal’s advice on executive remuneration in the transport infrastructure and finance sectors. The Tribunal commenced reviews into these sectors to equip it with the capacity to provide informed, evidence-based advice to the Minister based on the latest market intelligence. These reviews will also inform remuneration decisions in these important sectors in the future.
Also, the Tribunal began work on a Determination of the value of allowances payable to local government Mayors, Deputy Mayors and Councillors giving effect to an amendment that was made to its Act in April 2020. The Determination will take effect on 18 December 2021.
As you know, in making its Determinations the Tribunal must consider, amongst other matters, current and projected economic conditions and trends, and the financial position and fiscal strategy of the State including wages policy. The Tribunal’s Act also provides, in relation to MPs – but applying equally across the public sector – as a first statement of principles that an MP should receive fair and reasonable recompense for performing their public duties. As in the previous year the Tribunal has striven to get that balance right.
Finally, I would like to acknowledge the exemplary work of the Tribunal’s Secretariat in every aspect of its work.
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
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