Councils are required to review allowance levels by 30 June in the year following a general election. Darebin Council proposed to retain the annual allowances for the Mayor and Councillors at the maximum limit set for a Category 3 Council and sought submissions from the community from 12 April to 10 May.
The Category 3 Council maximum limits are:
- Mayoral Allowance – $100,434
- Councillor Allowance – $31,444
At its meeting on 28 June 2021, Council adopted this proposal.
What are Mayoral and Councillor Allowances?
Mayors and Councillors are entitled to receive an allowance while performing their duty as an elected official under section 39 of the Local Government Act 2020. Councils are divided into three categories based on their income and population and the Minister for Local Government sets the upper and lower levels for allowances paid to Councillors for each of the categories.
What does a Category 3 Council mean?
The three-level structure for allowances is based on Council population and total revenue. Darebin Council is a Category 3 Council in the structure, and the Minister for Local Government has approved Mayoral and Councillor allowances, effective 1 December 2019, of $13,123 - $31,444 for Councillors per annum and up to $100,434 for the Mayor per annum. An amount equivalent to the superannuation guarantee – currently 9.5% is an additional component added to the allowance. This is scheduled to increase to 10% from 1 July 2021.
