Jacinta Allan announced her resignation as premier and leader of the Victorian Labor Party on Tuesday, making her eligible for a taxpayer-funded pension potentially reaching $200,000 annually. The pension amount, estimated by News24 to be between $240,000 and $270,000 per year, is attributed to a legacy "defined benefit" scheme that allowed predetermined retirement payments for MPs who served before November 2004.
Allan, who was first elected to parliament in 1999 at age 25, is one of only two current Members of Parliament eligible for this specific pension plan. Her departure from the premier role follows reports of a loss of support within the Labor party ranks. Ben Carroll was subsequently elected by the caucus to succeed her as leader.
Allan has not yet confirmed whether she will retire from politics entirely or continue as the member for Bendigo East until the upcoming election on November 28. During her resignation announcement, Allan expressed gratitude to Victorians for her 1,036 days in office, stating her decision was made because it was the right move for the Labor Party and the people of Victoria.
She acknowledged the challenges of the role, stating, "This gig has been tough," but emphasized her commitment to prioritizing the needs of working families facing economic pressures. "The average working family has it tougher. They're the ones managing interest rate rises. They're the ones living in a housing crisis and facing economic change that no-one can predict," Allan said.
Victoria's MPs received a 3.5 percent pay increase on July 1, bringing the premier's total salary and allowances to over $530,000 annually, the highest for any state or territory leader. For comparison, former Victorian Premier Daniel Andrews retired on a pension exceeding $300,000 per year.
