All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Victorian teachers to be best paid in Australia after union rebellion

Created at 17 Aug · 7:26 AM1 source↑ Market-relevant
IN SHORT

Victorian teachers will become Australia's highest-paid after accepting a government offer that includes pay rises of up to 32.4% over four years and improved working conditions. The deal, which cost over $5.4 billion, was accepted after a year-long bargaining process and a rank-and-file rebellion within the Australian Education Union.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

79%AEU members voting in favour of the offer
28.3% to 32.4%total pay rises over four years
$2,000bonus for teachers
$12,343increase for early-career teachers by October 2026
$118,063 to $151,419experienced teacher salary range by 2029
$15,393increase for experienced teachers in 2026
18.5 hoursmaximum weekly teaching hours for secondary teachers
21 hoursmaximum weekly teaching hours for primary teachers
$5.4bntotal cost of the deal
$700madditional cost of the latest offer
8%pay rise in the previous agreement over four years
500schools closed or disrupted by a March strike
35,000
teachers mobilized in Melbourne for a strike

Who's Involved

Australian Education Union
Teachers' union that accepted the pay and conditions offer
Ben Carroll
Premier of Victoria, formerly Education Minister
Jacinta Allan
Victorian Labor politician, previously overseen negotiations
Justin Mullaly
AEU Victorian branch president
Liz Walsh
Teacher from Socialists in Schools group

↳ Why This Matters

This agreement sets a new benchmark for teacher compensation and working conditions in Australia, potentially influencing future negotiations in other states and public sectors. The significant financial commitment and the role of internal union dissent highlight evolving dynamics in public sector labor relations and government fiscal management.

Key facts

  • Victorian teachers will become Australia's highest-paid after accepting a new pay and conditions offer.
  • The deal provides pay rises of 28.3% to 32.4% over four years and a $2,000 bonus.
  • Experienced teachers' salaries will increase to $151,419 by 2029.
  • The agreement includes improved working conditions such as fewer after-school meetings and more student-free days.
  • The cost of the deal exceeds $5.4 billion.
  • A rank-and-file rebellion within the Australian Education Union influenced the final offer.

Victorian teachers are set to become the highest-paid in Australia following the acceptance of the state government's latest pay and conditions offer, concluding a year-long bargaining process. Australian Education Union (AEU) members voted 79% in favour of the deal on Monday, which includes total pay rises of between 28.3% and 32.4% over four years, a $2,000 bonus, and improved working conditions. A planned strike for Wednesday has been cancelled.

Under the new agreement, early-career teachers will see their pay increase by $12,343 by October 2026, matching their New South Wales counterparts. By 2029, an experienced teacher's salary will rise from $118,063 to $151,419, including a $15,393 increase in 2026 that will place them ahead of NSW teachers. The deal also secures existing maximum teaching hour limits and introduces four professional practice days and eight student-free days annually from 2027.

Premier Ben Carroll, who recently took over leadership and previously served as Education Minister, highlighted the agreement as a recognition of the vital work done by teachers, principals, and education support staff. He stated that this makes Victorian teachers the best paid in Australia with the best conditions. The resolution of the dispute is seen as a political win for Carroll, particularly with the Victorian election approaching.

The financial implications of the deal are significant, with the total cost exceeding $5.4 billion, and the latest offer adding an extra $700 million. Some government sources suggest this may impact the state's surplus. Carroll has also committed to increasing school funding to meet federal Gonski standards, which could incur further costs.

Within the AEU, the outcome was shaped by a rank-and-file rebellion, with groups like Socialists in Schools arguing that the union leadership had previously compromised too readily. These groups capitalized on teacher frustration over past agreements, such as the 2022 deal that offered an 8% rise over four years, which led to a significant decrease in real pay. This time, members were less inclined to accept union advice without question, leading to substantial strike action, including a major mobilization on March 24. Despite multiple offers being rejected by the membership, the latest proposal under Premier Carroll secured approval.

AEU Victorian branch president Justin Mullaly emphasized that the gains were won through the direct efforts of union members. Liz Walsh from Socialists in Schools noted that the nurses' successful rejection of an initial offer and subsequent improved deal served as a model, demonstrating that members could achieve better outcomes by pushing back. Walsh stated that her group respects the ballot result and will continue advocating for improvements, including full Gonski funding, and that 13 Victorian Socialists candidates will run in the upcoming election.

Frequently asked questions

Victorian teachers will receive total pay rises between 28.3% and 32.4% over four years, along with a $2,000 bonus.

By 2029, an experienced teacher's salary is projected to rise from $118,063 to $151,419.

The deal includes fewer after-school meetings, four professional practice days annually, and eight student-free days each year from 2027.

The deal is estimated to cost more than $5.4 billion, with the latest offer accounting for an additional $700 million.

What Happens Next

01The agreement still needs to go to a ballot of all covered employees.
02The government plans to increase school funding to meet federal Gonski standards before November.
03Thirteen members from Socialists in Schools are running as Victorian Socialists candidates in the November election.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Australian Education Union members voted 79% in favour of the state government's pay and conditions offer.
The deal includes total pay rises between 28.3% and 32.4% over four years, plus a $2,000 bonus.
Early-career teachers will see a $12,343 increase by October 2026, aligning their pay with New South Wales counterparts.
Experienced teachers' salaries will rise from $118,063 to $151,419 by 2029.
The agreement improves conditions, including fewer after-school meetings and more professional practice and student-free days.
Premier Ben Carroll stated the pay rise recognizes teachers and makes them the best paid in Australia with the best conditions.
The deal will cost more than $5.4 billion, with an additional $700 million from the latest offer.
The government plans to increase school funding to meet federal Gonski standards, potentially costing billions more.

Sources

T1
Victorian teachers are to be the best paid in Australia. A union rebellion helped seal the dealThe Guardian

Related Stories

Australia's teen social media restrictions face mixed results
16 Aug · 6:51 PM
Malaysia's DAP votes to stay in ruling coalition, easing pressure on Anwar
16 Aug · 11:21 AM
Australian health experts fear US vaccine scepticism is catching on
16 Aug · 3:06 PM
Keating Urges Albanese to Rethink China Ties, Distance from U.S.
16 Aug · 6:51 PM
Australian Senate hears report supporting teen social media ban may contain AI hallucinations
17 Aug · 3:06 AM