Pay freeze for MPs and top public servants

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Finance Minister Mathias Cormann has indicated that pay rises for federal politicians and senior public services will be put on hold due to the coronavirus pandemic. Judges and ministerial staff are also among the public sector workers whose pay will be frozen. Former Queensland premier Campbell Newman has suggested that public servants on annual salaries of more than $100,000 should take a pay cut of 10 per cent, given that many workers in the private sector have been stood down or laid off:

Finance Minister Mathias Cormann told The Australian on Tuesday the government would ask the Remuneration Tribunal to freeze pay for all positions it oversaw. This included a pay freeze for secretaries of departments (who earn $776,000-$914,000 a year), as well as heads of agencies, including corporate, financial and competition regulators.

“It’s a clear expectation there’ll be no annual salary increase for these positions until after the corona­virus crisis has been resolved­,” Senator Cormann said.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.