Premier Jeremy Rockliff is digging in his heels against a hefty pay rise, rejecting a recommendation to boost MPs’ salaries to $171,527 annually.
The Tasmanian Industrial Commission determined that politicians’ basic pay should jump from $140,185 from July 1, in what it describes as a necessary “catch up” adjustment after years of below-inflation increases.
“Today, the commission that sets politicians’ pay has announced a 22.3% pay increase. This is not on and we will not be accepting it,” Rockliff said.
The commission’s full bench described the substantial increase as overdue compensation for salary freezes dating back to 2018.
The commission calculated year-by-year increases based on Tasmania’s Wage Price Index, arguing the 22.3% figure reflects compound adjustments that should have occurred gradually over seven years.
“The sum of the annual increases over the relevant time (2018 to 2025) is a total of 20.5%. This is comparable with the increases provided by the Public Sector Wages Agreements,” the commission stated.
Even with the proposed increase, Tasmanian MPs would remain Australia’s lowest-paid parliamentarians. The Northern Territory pays politicians $175,000 annually, while federal MPs earn a base salary of $233,660.
The commission noted Tasmania’s parliamentary salaries sit 25.8% below the national average for state and territory politicians, compared to just a 12.4% gap between Tasmania’s average weekly earnings and the national figure.
The determination also recommended increases to allowances, including one fore a vehicle rising to $20,124 and a new 12-week resettlement payment for defeated MPs.
Under Tasmania’s system, the commission’s determination automatically takes effect unless both houses of parliament vote to disallow it within 10 sitting days.
