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Victorian Opposition Proposes Salary Cap for Senior Public Sector Executives

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Victorian Opposition Proposes Executive Salary Cap Tied to Chief Justice Wage

"The plan aims to restore financial discipline and ensure executive pay meets community expectations."
— Opposition Leader Jess Wilson

The Victorian Opposition has announced a policy to cap the base salaries of senior public sector executives at approximately $600,000, aligning them with the salary of the state's Supreme Court chief justice. The proposal is a key platform for the upcoming state election, with the opposition estimating the measure could save over $20 million by 2036.

Policy Details

Under the proposal, the salary cap would be set at approximately $598,000, matching the current salary of the Supreme Court chief justice. This cap would apply to all new hires, as well as renewed or renegotiated contracts for existing executives. The cap is designed to increase annually in line with general wage movements.

Current Salary Benchmarks and Context

The current base salary for a Victorian department head is listed at $620,994. The Victorian Independent Remuneration Tribunal currently recommends a maximum salary of $573,328 for an administrative office head and a maximum of $837,100 for a department head. Government employers are permitted to pay above these recommended bands after seeking the tribunal's advice but are not required to follow its recommendations.

Specific Cases Cited

The Opposition has identified over 130 decisions since 2020 where executives received salaries above public service guidelines. Notable examples include:

  • A Big Build executive approved for a salary of $834,000, which is $260,000 above the maximum salary band
  • Former Suburban Rail Loop Authority CEO Frankie Carroll, who had a total remuneration package of $900,000-$909,999 before departing in 2023. The tribunal had recommended a salary of $680,000-$700,000 for this role in 2020
  • Transport Secretary Jeroen Weimar, whose salary is listed at up to $837,100

Political Responses

"Under the current government, the number of public service executives has tripled while other service metrics have declined."
— Opposition Leader Jess Wilson

Opposition Leader Jess Wilson contrasted these executive salaries with the opposition's pledge to hire 3,000 additional police officers, arguing that the plan will restore financial discipline and ensure executive pay meets community expectations.

In response, Transport Infrastructure Minister Gabrielle Williams defended the high salaries for specialized transport roles, stating that they are necessary to compete in a global market for specialist talent required for tunneling and other major infrastructure projects.

Government Budget Context

Separately, the state government has announced over $2 billion in pre-budget spending on cost-of-living and transport measures, including:

  • A 20% car registration refund
  • An extension of free public transport
  • Investments in train services