Former Labor leader Bill Shorten will not receive a pension when he leaves politics for good, but he will sign a $1 million contract to run the world’s 403rd best university.
On Thursday, Mr Shorten emotionally announced he was retiring from politics to take up the role of Vice-Chancellor of the University of Canberra, effective February 2025.
Mr Shorten was first elected as MP for the Melbourne electorate of Maribyrnong in 2007, three years after the Parliamentary Contributory Superannuation Scheme – known as the pension – was closed to new members.
The pre-2004 scheme meant MPs were entitled to either a life pension or a lump sum depending on their length of service, with the minimum pension being 50 per cent of the parliamentary allowance if they served at least eight years.
Each additional year of service entitles them to an extra 2.5 percent and those who served for more than 18 years were then eligible for a 70 percent increase, with additional amounts on offer if they served as ministers or civil servants.
This means Prime Minister Anthony Albanese, first elected in 1996, and Opposition Leader Peter Dutton, first elected in 2001, will be eligible for higher pensions, unlike Mr Shorten.
But Shorten is unlikely to go hungry.
Although the finer details of his contract are still under negotiation, Shorten’s new job could be worth three times the prime minister’s $607,500 salary.
Bill Shorten is pictured on Thursday after announcing his retirement from politics. From left: his wife Chloe, Mr Shorten, his daughter Clementine and Prime Minister Anthony Albanese
Bill Shorten is pictured with students at the University of Canberra in 2014. He now has a job there.
Shorten’s predecessor at UC, Paddy Nixon, enjoyed a $1.8 million package in 2023, a significant increase from his $1.045 million package in 2022.
A university spokesperson told news.com.au that Shorten’s salary was still being discussed but would be less than Nixon’s.
Mr Shorten graduated from Monash University with a Bachelor of Arts degree in 1989, meaning he benefited from the free university program spearheaded by former Labor Prime Minister Gough Whitlam.
He studied law in 1992 and unsuccessfully attempted to run for a seat in Parliament, before being appointed National Secretary of the Australian Workers’ Union.
Mr Shorten was eventually elected to the House of Representatives in 2007. He has no postgraduate qualifications.
The new job and pay expectations come amid questions surrounding the salaries of Australian university principals, who are the highest paid in the world, according to an analysis by Canadian consultant Alex Usher.
According to Mr. Usher’s data, UC was ranked 421st among the world’s top universities when Nixon received his $1,045,000 package in 2022.
Her salary was the same as that of Dame Louise Richardson, who ran Oxford, the world’s greatest university.
Similarly, Flinders University’s director, Colin Stirling, received around $1,345,000, which is $100,000 more than Harvard University’s director, Lawrence Bacow.
Bill Shorten will work at the University of Canberra for more than a million dollars. He is pictured at the UC during a visit in 2014
TOVictorian universities’ annual reports in May revealed that six of Victoria’s eight vice-chancellors had substantial pay increases in 2023, some worth more than $50,000.
The largest executive salary increase was at Monash University, from $1,560,000 to $1,569,999 in 2023, compared to $1,370,000 to $1,379,999 in 2022.
This is despite five universities reporting deficits, largely due to losses in international student numbers amid the Covid pandemic.
Starting next year, the Albanian government will waive 30 percent of the full tuition fee for international students.
The changes were Labour’s response to the housing crisis, which has been amplified by a steady influx of international students increasing demand for accommodation.
Education is Australia’s second-largest industry and has long subsidised underfunded university research, along with deferred payment admissions of local students under the HECS scheme.
Larger institutions, such as the University of Sydney, make more money from international students than from government funding.
Bill Shorten is pictured with his wife, Chloe. On Thursday he announced his retirement from politics next year
Analysts are concerned that limiting the number of full-tuition paying foreign students will force some universities to close entire faculties and limit the number of domestic students they enroll.
There are also concerns that caps on international students, and therefore lower funding, could result in fewer local students being admitted.
During his retirement speech on Thursday, Mr Shorten said: “I have experienced some extraordinary political moments over the past 17 years.”
‘Let’s face it: we have been through extraordinary political times.
‘There is no There is just one day in the last 17 years that I would like to give back, because every day I know how lucky I have been to have the privilege of serving the Australian people.
Mr Shorten was appointed to the cabinet during the governments of Kevin Rudd and Julia Gillard, before winning the post of Opposition Leader.
As opposition leader, Shorten led Labor to a narrow defeat at the 2016 election, but the surprise loss in 2019 handed the job to then-Liberal leader Scott Morrison, who described his surprise victory as a “miracle”.
Following this defeat, Mr Shorten resigned as ALP leader and now Prime Minister Anthony Albanese was elected unopposed to succeed him.
Mr Shorten was recently appointed Minister for Government Services and the National Disability Insurance Scheme.