The local council rich list:How much is your mayor paid?

Chief executives of Victorian councils are raking in more than half a million dollars a year,while the state’s councillors have received a modest pay rise and may earn as little as $26,368.

Mayors and councillors were given 2.7 per cent and 2.8 per cent pay hikes respectivelylate last year – below the country’s 3.6 per cent inflation rise – meaning mayors can earn $81,641 to $260,782,and councillors between $26,368 to $60,000.

Outgoing Melbourne Lord Mayor Sally Capp earns $260,782 a year.

Outgoing Melbourne Lord Mayor Sally Capp earns $260,782 a year.Luis Ascui

According to the Victorian Independent Remuneration Tribunal’s most recent figures,outgoing Melbourne Lord Mayor Sally Capp is Victoria’s highest-paid mayor,with an annual salary of $260,782,just $9000 less than Sydney’s lord mayor – NSW’s highest-paid mayor – earns.

The highest-paid mayor in Australia is City of Brisbane Lord Mayor Adrian Schrinner,who earns nearly $360,000 a year.

Councillor and mayoral pay is determined by thesize and type of council. The City of Melbourne is classified as a capital city council,affording it the highest payments,while other councils across the state are defined as either small,medium,large or major metropolitan based on population and annual income.

Mayors and councillors in “category one” councils – areas with the smallest populations – have the lowest allowances. These councils include Ararat,Hepburn and Mansfield.

The designations mean the City of Melbourne’s nine councillors are entitled to $59,085,and Deputy Lord Mayor Nicholas Reece is entitled to $130,391. The municipality’s population grew by about 17,000 residents in the past year.

In NSW,the state’s 128 councilsreceived a 3.75 per cent pay rise,meaning the City of Sydney’s councillors could earn between $30,720 and $45,070 a year. Sydney Lord Mayor Clover Moore earns $269,970 a year,according to the City of Sydney. That payment comprises a mayoral fee and a councillor salary.

In Victoria,council CEOs can earn between $200,000 and $540,000 a year,most recent figures from annual council reports show.

Figures compiled by ratepayer group Council Watch analysed local government salaries and allowances across Victoria last year and found the highest-paid council CEO was City of Melbourne’sJustin Hanney. He was earning between $530,000 and $539,999 before his resignation in October.

Current City of Melbourne chief executive Alison Leighton earns $534,000,according to the most recently available figures.By comparison,Prime Minister Anthony Albanese’s salary is just under $587,000.

At larger Melbourne councils,including the City of Monash and the City of Casey,CEOs are earning anywhere between $480,000 and $490,000.

A CEO working at a smaller rural Victorian council,such as the West Wimmera Shire Council,could earn between $220,000 and $230,000,while at larger regional councils,such as the City of Greater Geelong,the remuneration package swells to $460,000.

Council Watch’s Dean Hurlston said more transparency was needed around council CEO salaries.

“We think CEOs on average are paid far too much and ordinary councillors are treated like the poor cousin,despite being responsible and accountable for all their decisions,” Hurlston said.

Hurlston said to justify the “extraordinary” salaries paid to council CEOs,their key performance indicators should be put in the public domain.

“There needs to be far more accountability and transparency,and not just for CEOs,” he said. “We think all councils’ senior executive staff salaries should be made public.”

A City of Melbourne spokeswoman said the council was “the engine room” of the state’s economy.

Melbourne councils are charging residents up to $10 million in dodgy costs,a 9News exclusive has found.

“The CEO’s salary is benchmarked against similar positions to ensure we have the best talent to deliver vital services for our growing community in a financially responsible way,” she said.

Meanwhile,Municipal Association of Victoria president David Clark said councillors and mayors were still underpaid for the time and commitment the roles demand.

“Generally,the payment is 20 to 30 per cent less than what we think it should be,given the hours they put in each week,” he said.

Clark said at a standard metropolitan council,councillors need to allocate about 25 hours per week to do their job properly,and mayors often work 50 to 60 hours per week.

“This can be a challenge for a young professional person,who is doing more than 30 hours at their day job,and 25 hours on top of that as a councillor,” he said.“It’s a seven-day-a-week job.”

Asked about higher pay allowances at the City of Melbourne,Clark said it was warranted given the council’s more complex and diverse responsibilities,such as overseeing planning and economic development.

“Sally[Capp] earns every penny she gets,” he said. “The reality is she is the most visible councillor in our state.”

With Anthony Segaert

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Melissa Cunningham is a city reporter for The Age. She has previously covered health and has also been a reporter for The Sunday Age.

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