How Jacinta Allan can walk away with a $200,000 annual taxpayer-funded pension after quitting as Victorian Premier

By ASHLEY NICKEL, NEWS REPORTER, AUSTRALIA Published: 10:43, 28 July 2026 | Updated: 10:51, 28 July 2026 Jacinta Allan could retire on a pension worth upwards of $200,000 each year because of a now-scrapped benefits scheme, with the bill picked up by taxpayers. Allan on Tuesday morning announced she would be stepping down as Victorian Premier and leader of the state's Labor party, following widespread rumours she had lost majority support within its ranks. Ben Carroll, the former deputy premier, was elected later on Tuesday by the caucus to take over her position. Allan has not confirmed if she will retire from politics or remain the member for Bendigo East, at least until the upcoming election set to be held on November 28. Allan's potential pension earnings, which are based on the roles and portfolios she held while in office, could be between $240,000 to $270,000 per year, an estimate by News24 found. She is one of only two MPs eligible for the legacy 'defined benefit' pensions scheme, which allows a predetermined amount for retiring MPs who served before November 2004. Ms Allan was first elected in 1999 at just 25 years old, the youngest female parliamentarian in Victoria's history. Daniel Andrews, who was Victorian Premier for nine years before Allan, retired on a pension of more than $300,000 per year.  Jacinta Allan (above) stepped down as Victoria Premier and leader of the Victorian Labor Party on Tuesday If Allan retires entirely, she will be eligible for a pension worth more than $200,000 a year (pictured is Allan with new Victorian Premier, Ben Carroll) Victorian MPs also received a 3.5 per cent pay rise from July 1, which pushed the premier's total salary and allowances to over $530,000 a year. That's the highest amount offered to any state or territory leader.   Allan broke down as she announced her resignation on Tuesday and thanked Victorians for '1,036 days in this role'.  'I am making this decision because it's the right thing for the Labor Party and for the Victorian people,' she said. 'I was prepared to put my record and my plan to a ballot of members - I believe I would have won. But doing so this close to an election takes up valuable resources, including the most precious one - time. 'I step down after 1,036 days in this role. Not one of them wasted, not one of them easy. Let's be honest - this gig has been tough. 'But let's be clear - 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. 'They're the people I always put first. I got into politics to fight for them. And whatever I do next, I will still be fighting for them.'