Former Labor leader Bill Shorten will not receive a pension when he leaves politics for good but will sign a $1million contract to run the 403rd best university in the world.
On Thursday, Mr Shorten emotionally announced he was retiring from politics to take up a position as Vice Chancellor of the University of Canberra, starting in February 2025.
Mr Shorten was first elected as the 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 that MPs were entitled to a lifetime pension or a lump sum, depending on their length of service, with the minimum pension set at 50 per cent of the parliamentary allowance if they served at least eight years.
Each additional year of service gave them an extra 2.5 per cent and those who served more than 18 years were then eligible for a 70 per cent boost, with additional amounts on offer if they served as a minister or officeholder.
That means Prime Minister Anthony Albanese, first elected in 1996, and Opposition Leader Peter Dutton, first elected in 2001, will be eligible for hefty pensions – unlike Mr Shorten.
But Mr Shorten is unlikely to go hungry.
While the finer details of his contract are still under negotiation, Mr Shorten’s new gig could be worth three times the PM’s $607,500 salary.
Mr Shorten’s predecessor at UC, Paddy Nixon, enjoyed a $1.8 million package in 2023 – a significant boost from his $1,045,000 package in 2022.
A university spokesperson told Daily Mail that Mr Shorten’s salary was still being discussed, but it would be less than Mr Nixon’s.
‘This matter is still to be determined and finalised by Council,’ said a university spokesman.
‘His remuneration is being considered in the context of the current higher education settings and the University’s operating environment.
‘The Chancellor and the incoming Vice-Chancellor have agreed the remuneration package will be less than the previous VC’s.’
Mr Shorten graduated from Monash University with a Bachelor of Arts in 1989, which means he benefited from the fee-free university scheme spearheaded by former Labor PM Gough Whitlam.
He studied law in 1992 and tried unsuccessfully to run for a seat in Parliament, before he was appointed National Secretary of the n Workers Union.
Mr Shorten was eventually elected to the House of Representatives in 2007. He has no post-graduate qualifications.
The new job and salary expectations come amid questions surrounding the salaries of n university bosses – 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 421 best university in the world when Mr Nixon was getting his $1,045,000 package in 2022.
His salary was the same as that of Dame Louise Richardson, who ran Oxford – the best university in the world.
Similarly, Flinders University boss Colin Stirling was paid about $1,345,000 – which was $100,000-plus more than the head of Harvard University, Lawrence Bacow.
Annual reports of Victorian universities revealed in May that six of Victoria’s eight vice-chancellors had substantial pay rises in 2023, some worth more than $50,000.
The highest executive salary increase was for Monash University, from $1,560,000 to $1,569,999 in 2023, compared with $1,370,000 to $1,379,999 in 2022.
That’s despite five universities reporting deficits, largely due to losses in international student numbers amid the covid pandemic.
As of next year, the Albanese government will axe full-fee paying international students by 30 per cent.
The changes were Labor’s response to the housing crisis, which has been amplified by a constant influx of international students who increase the demand for accommodation.
Education is ‘s second-largest industry and has long-subsidised underfunded university research, along with local student intakes who defer payment under the HECS scheme.
Larger institutions, like the University of Sydney, get more money through international students than through government funding.
Analysts are concerned that capping full-fee-paying student numbers from overseas will force some universities to shut down entire faculties and limit the number of domestic student they enrol.
There are also concerns that international student caps, and therefore less funding, could result in smaller local student intakes.
During his retirement speech on Thursday, Mr Shorten said: ‘I have experienced some extraordinary political highs in the last 17 years.’
‘Let’s face it, some extraordinary political lows.
‘There is not a single day in the last 17 years that I would hand back. Because every day, I know how lucky I have been to have the privilege to serve the n people.’
Mr Shorten was appointed to the ministry during Kevin Rudd and Julia Gillard’s government, before winning the role of opposition leader.
As Opposition leader, Mr Shorten led Labor to a narrow loss at the 2016 election but the unexpected defeat in 2019 delivered office to then Liberal leader Scott Morrison who described his surprise victory as a ‘miracle’.
After this loss, Mr Shorten resigned as ALP leader and now Prime Minister Anthony Albanese was elected unopposed to succeed him.
Mr Shorten was most recently appointed as the Minister for Government Services and the National Disability Insurance Scheme.