Coalition plan to cap executive pay at $598,000
Under the coalition plan, base salaries for senior civil servants would be capped at the same level as Victoria’s senior legal officers, curbing the trend of paying executives well above the maximum salary cap.
Opposition Leader Jess Wilson promised on Wednesday that new senior public sector contracts under the Coalition government would have a salary cap of around $598,000, the same as the chief justice of the Supreme Court.
The announcement was made in response to more than 100 decisions over the past five years to pay senior executives well above civil service rules.
State employers are required to seek and consider advice from the Independent Remuneration Tribunal of Victoria when they wish to pay a manager above the appropriate band for their role. They do not have to follow this advice. Executives could be paid more than the court recommended if employers can show they properly considered their findings.
Former Suburban Rail Loop Authority general manager Frankie Carroll had a total pay package of between $900,000 and $909,999 before he left last year. This figure includes retirement, accrued leaves and other benefits.
When Carroll was first hired in 2020, the Independent Remuneration Tribunal recommended a total package of between $680,000 and $700,000, even though his group’s maximum wage at the time was $479,900.
The Wilson government will apply the cap to new, renewed or renegotiated contracts and increase it in proportion to wages each year.
The opposition estimates it could save taxpayers $20 million by 2036, ahead of next week’s state budget when Victoria’s debt levels will be examined.
To support its policy, the Coalition has published a spreadsheet summarizing more than 130 decisions of the Fees Tribunal since 2020; In this decision, it was recommended that a manager be paid above the guidelines. The spreadsheet does not take into account any extra benefits or salaries the government may have decided to provide to these executives beyond the court’s recommendations.
The document shows the Victorian Infrastructure Delivery Authority’s executive program director recommending a package of $830,000 to $260,000 above the band for his role this year.
Under the coalition’s policy, the director’s salary will be capped at $598,000.
“My team’s plan is about ensuring executive compensation meets society’s expectations and that our priority remains fundamentals,” Wilson said.
“While Labor is gifting Big Build executives with a quarter-million-dollar pay rise, I’m a Liberal
The national team is focused on hiring 3,000 more police officers to keep the community safe.
“Under Labor the number of civil service managers has tripled but crime has risen and our roads
It is in disrepair and it takes longer to reach an ambulance. It’s time for a fresh start that prioritizes
basic information.”
A significant proportion of senior public sector roles paid above this band are in transport and infrastructure authorities.
The Allan government has previously defended high salaries for these positions due to a competitive global market requiring specialist talent in areas such as tunneling and the delivery of multi-billion dollar projects.
Those factors were taken into account by the court as part of its decisions, Transport Infrastructure Minister Gabrielle Williams said Tuesday.
“We are effectively competing with global infrastructure projects to secure the best and brightest, as we all want to make sure we have the best possible projects led by the best possible talent,” he said.
“These are salaries determined by an independent tribunal, taking into account what the global market is prepared to pay for these skills.”
The state government announced more than $2 billion in spending measures ahead of the budget on May 5, largely focused on living and transportation costs.
This includes a $750 million commitment to provide 20 per cent refunds on vehicle registrations and a $432 million extension of free public transport until the end of May, introducing half-price fares for the rest of 2026.
Another $100 million has been allocated to improving routes in Melbourne and regional Victoria, with $673.6 million for 25 X’Trapolis 2.0 trains and $77.5 million for extra train services.
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Patrick Hatch is a transport correspondent for The Age and a former business correspondent.Connect with: X or email.
