The surprising reason Bill Shorten desperately NEEDS a new job after a lifetime in Labor politics – as he lands a bumper $1m-plus pay packet

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 lead the world’s 403rd best university.

On Thursday, Mr Shorten made an emotional announcement that he is retiring from politics to become Vice-Chancellor of the University of Canberra from February 2025.

Mr Shorten was first elected as the Member of Parliament for the Melbourne constituency of Maribyrnong in 2007, three years after the Parliamentary Contributory Superannuation Scheme (also known as the superannuation scheme) closed to new members.

The pre-2004 arrangement meant that MPs were entitled to a lifelong pension or a lump sum, depending on their tenure. The minimum pension was 50 percent of the parliamentary allowance if they had served for at least eight years.

For each additional year of service, they received 2.5 percent extra salary. Those who served longer than 18 years received a 70 percent salary increase. Additional amounts were offered if they were ministers or other officials.

That means Prime Minister Anthony Albanese, first elected in 1996, and Opposition Leader Peter Dutton, first elected in 2001, are eligible for hefty pensions – unlike Mr Shorten.

But it is unlikely that Mr Shorten will go hungry.

While details of his contract are still under negotiation, Mr Shorten’s new job could be worth three times the prime minister’s salary of $607,500.

Shorten’s predecessor at UC, Paddy Nixon, enjoyed a $1.8 million package in 2023 – a significant increase from his $1,045,000 package in 2022.

A university spokesperson told Daily Mail Australia that Shorten’s salary was still under negotiation, but would be lower than Nixon’s.

“This matter is yet to be decided and finalised by the Council,” a university spokesperson said.

‘His remuneration is viewed in the context of the current situation in higher education and the university’s working environment.

‘The Chancellor and the new Vice Chancellor have agreed that the remuneration package will be lower than that of the previous VCs.’

Mr Shorten graduated from Monash University in 1989 with a Bachelor of Arts, meaning he was able to take advantage of the free university scheme set up by former Labor Prime Minister Gough Whitlam.

In 1992 he studied law and unsuccessfully attempted to stand for a seat in Parliament, after which he was 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 salary expectations come as questions are raised about the salaries of Australian university principals, who are among 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 best universities in the world when Mr. Nixon received his $1,045,000 package in 2022.

His salary was the same as that of Dame Louise Richardson, the principal of Oxford, the best university in the world.

Similarly, Colin Stirling, president of Flinders University, was paid approximately $1,345,000, which was more than $100,000 more than Harvard University president Lawrence Bacow.

AAnnual reports from universities in Victoria revealed in May that six of Victoria’s eight vice-chancellors received significant pay increases in 2023, some of which were more than $50,000.

The highest 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.

That’s despite five universities reporting shortages, largely due to the loss of international student numbers as a result of the COVID pandemic.

Starting next year, the Albanian government will cut 30 percent of full tuition fees for international students.

The changes are the Labour Party’s response to the housing crisis, which has been exacerbated by the constant influx of international students, increasing demand for accommodation.

Education is the second largest sector in Australia and has long subsidised underfunded university research, with local students receiving deferred payments through the HECS scheme.

Larger institutions, such as the University of Sydney, receive more money from international students than from government funding.

Analysts fear that a cap on the number of foreign students paying full tuition fees will lead to some universities having to close entire departments and limit the number of home-grown students they enrol.

There are also concerns that the cap on international students, and therefore lower funding, could lead to a smaller influx of local students.

In his farewell speech on Thursday, Mr Shorten said: “I have experienced some extraordinary political highlights over the past 17 years.”

Let’s be honest: there were some extraordinary political lows.

There is not one day in the last 17 years that I would give back. Because every day I know how fortunate I have been to have the privilege of serving the Australian people.’

Mr Shorten was appointed as a minister during the Kevin Rudd and Julia Gillard governments, before taking on the role of Opposition Leader.

As opposition leader, Shorten led the Labor Party to a narrow defeat at the 2016 election, but the surprise defeat in 2019 saw then-Liberal Party leader Scott Morrison form a new party. Morrison called his surprise victory a “miracle.”

Following this loss, Mr Shorten stepped down as leader of the ALP and Premier Anthony Albanese was elected unopposed as his successor.

Mr Shorten was recently appointed Minister for Public Services and National Disability Insurance.