Council Pay Rise Kicks In

August 5, 2014

Councillors serving with the South Burnett, Toowoomba and Gympie councils received a 4.5 per cent pay rise on July 1 – the amount fixed by the independent Local Government Remuneration and Discipline Tribunal back in December.

The increase is the first that councillors have received since a 2.5 per cent rise was handed down 18 months ago.

The 4.5 per cent rise – which when adjusted for the timing of the December announcement equates to a 3 per cent annual rise –  pales when compared to the rises that some western Queensland councillors have received.

The Tribunal effectively abolished Category 1 and Category 2 levels in Queensland by shifting all councils in these groups – such as Barcaldine and Bulloo – into Category 3.

The Tribunal ruled that councillors in these former Level 1 and Level 2 councils should receive substantial rises, partly to encourage quality candidates to run for local government, and partly to recognise the workload and responsibilities that councillors face.

The re-classification means the maximum pay rate for Mayors formerly in Level 1 councils moved from $73,803 to $95,488 (a 29 per cent increase).  Level 1 councillors’ salaries jumped from $22,492 to $47,444 (110 per cent).

Back closer to home, the South Burnett and Gympie Regional Council are graded as Level 4 and from July 1 their Mayors are receiving $117,523, Deputy Mayors $73,452 and councillors $62,434.

In Toowoomba – a Level 6 council – the Mayor will be paid $161,594, the Deputy Mayor $110,178; and councillors $95,488.

The salaries of Queensland councillors were formerly linked to the salaries of State MPs, but that link was broken in August last year when Premier Campbell Newman established new remuneration tribunals to set their salaries separately.

In March, all State MPs were awarded a 20 per cent pay rise, backdated to July 2013.

In making its determination, the Tribunal said it had taken into account the following facts and circumstances:

• the CPI increase over the previous 12 months (2.4 per cent)

• the general wages policy of the Queensland Government (2.2 per cent per annum)

• the 8 per cent increase granted to State MLAs and Brisbane City Councillors from 1 July 2013

• the Wage Price Index for 2012-13 of 3.3 per cent for all industries and 3.1 per cent for the public sector

• increases in Average Weekly Ordinary Time Earnings (AWOTE) of 5.3 per cent for all industries and
  4.5 per cent for the public sector

• anecdotal reports about the financial pressures being experienced by many Councils, especially those affected by flood recovery and, now, drought issues

• community expectations, as represented in submissions made to the Tribunal.

South Burnett Mayor Wayne Kratzmann said today councillors had no control over the Tribunal’s determinations.

“But councillors aren’t allowed to be paid any more than the amount prescribed, either,” he said.

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Footnote: How do councillors’ wages compare with other senior management in the local area? southburnett.com.au took a quick look at the 2013 annual report of a local agribusiness. This document shows the CEO at this company took home more than $398,000 in 2013.

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External links:

• Councillor Remuneration (Queensland Department of Local Government)
• Local Government Remuneration and Discipline Tribunal Report 2013

  Council