Former Labor leader Bill Shorten will not receive a pension when he retires from politics for good, but he will sign a $1 million contract to run the 403rd best university in the world.

On Thursday, Mr Shorten made an emotional announcement that he was leaving politics to become vice-chancellor of the University of Canberra, a position he will hold from February 2025.

Mr Shorten was first elected as the MP for Maribyrnong in Melbourne in 2007, three years after the parliamentary pension scheme (known as the superannuation scheme) was closed to new members.

Under the pre-2004 system, MPs were entitled to a lifetime pension or a lump sum, depending on length of service, with the minimum pension being 50% of the parliamentary allowance if they had served for at least eight years.

Each additional year of service earned them an additional 2.5 per cent, while those who served more than 18 years could expect a 70 per cent increase and those who served as a minister or civil servant could count on additional amounts.

It means Prime Minister Anthony Albanese, first elected in 1996, and Opposition Leader Peter Dutton, first elected in 2001, will be entitled to the large pensions – unlike Mr Shorten.

However, it is unlikely that Mr Shorten will suffer from hunger.

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

Bill Shorten is pictured on Thursday after announcing his retirement from politics. From left to right: his wife Chloe, Mr Shorten, his daughter Clementine and Prime Minister Anthony Albanese

Bill Shorten pictured with students at the University of Canberra in 2014. He now has a job there

Mr Shorten’s predecessor at UCLA, Paddy Nixon, received a package worth $1.8 million in 2023, a significant increase from $1,045,000 in 2022.

A university spokesman told news.com.au that Mr Shorten’s salary was still being negotiated but would be lower than Mr Nixon’s.

Mr Shorten graduated from Monash University with a Bachelor of Fine Arts in 1989, meaning he benefited from a free university program initiated by former Labor prime minister Gough Whitlam.

In 1992, he studied law and unsuccessfully ran for a seat in Parliament, but was appointed national secretary of the Australian Workers’ Union.

Mr Shorten was finally elected to the House of Representatives in 2007. He has no postgraduate qualifications.

The new expectations regarding work and salaries come against the backdrop of questions about the salaries of Australian university heads, who, according to analysis by Canadian consultant Alex Usher, are the highest paid people in the world.

According to Mr. Usher’s data, UC was ranked 421st best university in the world when Mr. Nixon received his $1,045,000 package in 2022.

His salary was the same as Dame Louise Richardson, who ran Oxford, the best university in the world.

Similarly, Flinders University president Colin Stirling earned about $1,345,000 – which was over $100,000 more than Harvard University president Lawrence Bacow.

Bill Shorten will work at the University of Canberra for more than $1 million. Pictured at UC during a visit in 2014.

ANDVictoria’s Universities annual reports revealed in May that six of Victoria’s eight vice-chancellors received significant pay increases for 2023, some worth more than $50,000.

The largest increase in executive pay was recorded at Monash University, from $1,560,000 to $1,569,999 in 2023, compared with $1,370,000 to $1,379,999 in 2022.

This comes despite five universities reporting deficits, mainly due to a fall in international student numbers due to the COVID-19 pandemic.

From next year, the Albanian government intends to reduce tuition fees for foreign students paying full tuition by 30 percent.

The changes were Labour’s response to the housing crisis, which was exacerbated by the steady influx of international students who were increasing demand for housing.

Education is Australia’s second-largest industry and has long subsidised underfunded university research, as well as local students who defer payments under the HECS scheme.

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

Bill Shorten pictured with wife Chloe. On Thursday, he announced he will retire from politics next year

Analysts fear that introducing limits on the number of international students paying full tuition will force some universities to close entire departments and limit the number of domestic students they admit.

There are also concerns that limits on international students, and consequently less funding, could result in fewer enrolments of local students.

In his retirement speech on Thursday, Mr Shorten said: “I have had some extraordinary political highs over the last 17 years.”

“Let’s face it, there have been some truly extraordinary political failures.

There aren’t not one day in the last 17 years that I could give back. Because every day I know how lucky I am to have the privilege of serving the Australian people.’

Mr Shorten was appointed to the position in the governments of Kevin Rudd and Julia Gillard before becoming Opposition Leader.

As opposition leader, Shorten led Labor to a narrow defeat in the 2016 election, but an unexpected defeat in 2019 brought to power then-Liberal leader Scott Morrison, who described his surprise victory as a “miracle”.

Following the defeat, Mr Shorten resigned as ALP leader and was succeeded unopposed by Prime Minister Anthony Albanese.

Most recently, Mr Shorten was appointed Minister for Government Services and the National Disability Insurance Scheme.