New Remuneration Tribunal Determination Resets Victorian Council Allowances, Adds Growth-Council Category
The Victorian Independent Remuneration Tribunal has issued a new comprehensive determination setting allowances for Mayors, Deputy Mayors and Councillors across all 79 Victorian councils, restructuring the allowance framework for the first time since 2022.
Have your say before continuing with the story.
Determination No. 01/2026 was made on 18 August 2026 by Tribunal Chair Mr Warren McCann and Members Ms Laurinda Gardner and Ms Meredith Sussex AM, and takes effect from 1 July 2026.
The determination renames the former Category 1–3 structure as Categories A–C and introduces a new Category D for councils experiencing rapid population growth: Casey, Greater Geelong, Hume, Melton, Whittlesea and Wyndham. Melbourne City Council remains separately classified as Category E.
A minimum Councillor base allowance of $35,000 has been set for Category A, with a complexity loading applied progressively above that: 10 per cent for Category B, 30 per cent for Category C and 40 per cent for Category D.
Base allowance values from 1 July 2026 ($ per annum)
| Category | Mayor | Deputy Mayor | Councillor |
|---|---|---|---|
| A | 103,400 | 45,807 | 35,000 |
| B | 124,080 | 50,388 | 38,500 |
| C | 146,640 | 59,549 | 45,500 |
| D | 157,920 | 64,130 | 49,000 |
| E – Melbourne City Council | 302,881 | 151,441 | 65,193 |
A significant structural change affects Deputy Mayors: the Tribunal has de-coupled their allowance from the mayoral rate, setting it instead with reference to the councillor base allowance. The Tribunal acknowledged that the existing allowance was too closely tied to the mayoral allowance and did not reflect the more limited scope of the role. This produces a lower allowance for Deputy Mayors in several categories compared to current settings. Transitional protection applies: Deputy Mayors in Categories B, C or D whose term commenced in, or spans, 1 July to 31 August 2026 will continue on the higher, pre-existing value until their current term expires.
For Melbourne City Council, the Tribunal applied a 3.5 per cent increase to the allowances for the Lord Mayor, Deputy Lord Mayor and Councillors, aligning with recent adjustments for Victorian MPs and public sector executives, after finding the gap between Melbourne and the new Category D had become disproportionate.
The remote area travel allowance has also been restructured into two daily rates — $50.60 for travel of 50 to 100 kilometres, and $101.20 for travel beyond 100 kilometres — capped at $6,325 per council member per financial year.
The Tribunal’s statement of reasons notes the growth-council category responds to evidence that rapid population expansion increases councillor workload, citing pressure from infrastructure delivery, complex planning matters, and servicing larger and more diverse communities.
Sources: Victorian Independent Remuneration Tribunal, Allowances for Mayors, Deputy Mayors and Councillors – 2026 Determination; Determination No. 01/2026 and Statement of Reasons (PDF).