Victorian Teachers Just Became the Best-Paid in Australia — Here's What Happened

Victorian public school teachers are set to become the highest-paid in Australia. On 17 August 2026, members of the Australian Education Union (AEU) — the union that represents public school teachers — voted 79% in favour of the state government's pay and conditions offer. The deal gives teachers pay rises of between 28.3% and 32.4% over four years, plus a $2,000 one-off bonus at the start. The AEU confirmed that a teachers' strike planned for the following Wednesday has been called off The Guardian.

The agreement will cost more than $5.4 billion, with the latest version adding an extra $700 million. Early-career teachers will get a $12,343 increase by October 2026, bringing their pay up to the same level as teachers in New South Wales. An experienced teacher's salary will rise from $118,063 to $151,419 by 2029, including a $15,393 increase in 2026 that puts them ahead of NSW teachers The Guardian.

The Victorian government's 17 August press release confirms education workers will receive a minimum pay increase of 29.8 per cent Premier of Victoria. Earlier government releases had framed the offer as at least 28.3 per cent over four years, starting with an increase of 12 per cent by October Premier of Victoria. The finalised union vote updates those figures to the 28.3% to 32.4% range.

The deal is not just about pay. It also includes changes to working conditions: fewer after-school meetings, four professional practice days each year for teachers to develop their skills, and eight student-free days each year from 2027. Caps on teaching hours are locked in — 18.5 hours a week for secondary teachers and 21 hours for primary teachers. These are written into what is called an enterprise bargaining agreement, which is a legally binding contract negotiated between the employer and the union. The agreement still needs to go to a vote of all covered employees before it is finalised The Guardian.

Premier Ben Carroll, who until three weeks before the vote was the education minister in charge of the negotiations, said the pay rise recognised teachers, principals and education support staff. Carroll said the deal makes Victorian teachers the best paid in Australia with the best conditions. He also said the government will increase school funding to meet federal Gonski standards before November 2026. The Gonski standards are a national framework designed to make sure schools receive enough funding to give every student a fair education The Guardian.

Getting to this point was not straightforward. A previous offer was rejected by union members, with 51% voting against it. 9 News Australia reported that teachers would strike again if the new offer was also rejected. The Age reported that the $2,000 bonus was part of the government's effort to stop a third strike before the Victorian election 9 News Australia; The Age.

AEU Victorian branch president Justin Mullaly said the pay outcome was won through the direct efforts of AEU members. A rebellion within the union's own ranks, involving groups such as Socialists in Schools, the Committee for Public Education and Fight the Crisis, helped push the government further than its first offer. The AEU also notes that Australian public school teachers spend more than $175 million of their own money each year to keep classrooms running The Guardian; AEU Federal.

The broader context here is that several pressures — money, politics, and union power — all came together in this one deal. The $5.4 billion price tag arrives as the Victorian government prepares for an election. The deal removes the threat of further strikes and lets Labor MPs attend school events without facing angry teachers. Carroll's promise to meet Gonski funding standards adds a longer-term reform on top of the immediate pay settlement.

The internal dynamics of the union matter too. The organised factions within the AEU applied pressure that helped push the government beyond its opening offer. The narrow rejection of the previous deal, at 51% against, set a bar the government had to clear, and the final 79% approval shows broad support consolidated behind the revised terms.

For the national picture, this deal effectively sets a new standard. By pushing experienced teacher salaries to $151,419 by 2029 and delivering a large increase up front in 2026, Victoria overtakes NSW on top-tier pay. Matching NSW for early-career teachers by October 2026 tackles the problem of new teachers leaving the profession. Other states may now face pressure to raise their own offers, as teacher shortages and out-of-pocket classroom costs remain real problems across the country. The agreement still needs to be approved through a vote by all covered employees, a procedural step that will determine whether the deal becomes official.