Right: The Victorian Parliament in action: MPs do not determinine their own salaries, which are set by the independent Victorian Remuneration Tribunal.
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Background information
Base salary of members of the Australian federal Parliament
Each Senator and Member serving within the Australian federal Parliament receives an annual base salary, which is determined by the Remuneration Tribunal under section 14(2) of the Parliamentary Business Resources Act 2017. As at 1 July 2019, the base salary is $211,250 per annum.
Additional salary for ministers and office holders
In addition to base salary, certain Senators and Members receive additional salary by virtue of being a Minister (including a Parliamentary Secretary) or holding a specified office. The Remuneration Tribunal reports the rates of additional salary for Ministers and determines rates for all other offices holders under section 14(3)(b) of Parliamentary Business Resources Act 2017.
The Prime Minister receives an additional payment which is 160 percent of the base salary. The Deputy Prime Minister receives an additional payment which is 105 percent of the base salary. The Treasurer receives an additional payment which is 87.7 percent of the base salary. The leader of the Government in the Senate receives an additional payment which is 87.5 percent of the base salary. The Leader of the House receives an additional payment which is 75 percent of the base salary. Ministers in Cabinet receive an additional salary which is 72.5 percent of the base salary. Other Ministers receive a base salary which is 57.5 percent of the base salary.
The Leader of the Opposition receives an additional payment which is 85 percent of the base salary. The Deputy Leader of the Opposition receives an additional payment which is 57.5 percent of the base salary. The Leader of the Opposition in the Senate receives an additional payment which is 57.7 percent of the base salary. The Deputy Leader of the Opposition in the Senate receives an additional payment which is 20 percent of the base salary.
Composition of the Remuneration Tribunal
The Remuneration Tribunal is an independent statutory authority established under the Remuneration Tribunal Act 1973 (the Act). The Tribunal consists of three part-time members appointed by the Governor-General.
Role of the Remuneration Tribunal
The Tribunal's role is to determine, report on or provide advice about remuneration, including allowances and entitlements that are within its jurisdiction for the following:
federal Parliamentarians, including Ministers and Parliamentary office holders
judicial and non-judicial offices of federal courts and tribunals
Secretaries of Departments
full-time and part-time holders of various public offices
Principal Executive Offices
The Victorian Independent Remuneration Tribunal
The Victorian tribunal established by the Andrews Government in 2018 functions similarly to the federal body.
At the time it was established, Special Minister of State Gavin Jennings said MPs' pay would be assessed against other professions and the tribunal set-up would 'stop MPs determining their own salaries and ensure that only legitimate work expenses can be claimed'.