FOLLOWING the Victorian Independent Remuneration Tribunal’s decision to grant pay rises to councillors, deputy mayors and mayors across Victoria, Mornington Peninsula Shire mayor Anthony Marsh has released a statement to “set the record straight”.
The mayor stated “the deputy mayor’s allowance has been increased from $34,588 to $59,659. However, this new allowance is not an increase but a correction”.
Cr Marsh said the “correction” was in recognition of how the role of deputy mayor had evolved significantly over recent years.
The article that sparked the response (“Councillors collect healthy pay rise” The Times 23 March 2022) stated the base rate for councillors had increased from $31,444 to $35,972. On top of the $31,444 paid to councillors, the shire has been paying an extra amount as superannuation payments.
Superannuation payments to councillors has been an issue of contention. Councillors were not traditionally recognised as employees of the local governments and therefore not subject to superannuation law. This resulted in a recommendation from the Local Government (Councillor Remuneration Review) Panel in 2008 to pay an additional amount above the determined rate equivalent to superannuation, or for the council to become an Eligible Local Governing Body (ELGB) under the Taxation Administration Act 1953 (Cth) which would effectively render councillors employees.
The Times contacted Mornington Peninsula Shire to clarify if they are an ELGB, but did not receive a response. If the shire are an ELGB, councillors are treated as employees and superannuation is paid at the statutory rate. If they are not, an equivalent sum is paid to councillors and they can choose whether to keep the extra allowance or to “salary sacrifice” the amount into a recognised superannuation fund.
The latest determination rolls the extra allowance paid to councillors in lieu of superannuation into the new base rate.
Cr Marsh said “for too long, standing for council has been restricted to those who are retired or who could afford to work what amounts to a full-time job for less than half of the average full-time wage”.
In a statement sent to The Times, councillor David Gill said “I believe that councillors these days have been well compensated for what I still regard as an honour to be elected to represent our community.”
“I am hearing angry words directed at the media for raising this issue. Surely the main point is to always have transparency about how ratepayers money is spent.”
The value of allowance paid to Mornington Peninsula Shire councillors is set to increase further from the new determined amount to $38,047 per annum from 18 December 2023.
The value of allowance paid to the Mornington Peninsula Shire deputy mayor will increase to $66,286 per annum from 18 December 2025. The allowance paid to the Mornington Peninsula Shire mayor is set to increase to $132,573 per annum from 18 December 2025. The increase represents a 20 per cent increase in mayoral allowance over three and a half years.