Councillors are also due to give themselves a pay rise, gaining an extra $1451 per year, up from $16,125 to $17,576.

The move comes just months after Prime Minister Kevin Rudd asked Australians to put pay rises on hold because of the worldwide economic downturn.

The allowances include a nine per cent allowance in lieu of superannuation.

Councillors already receive a free laptop computer, iPhone, landline, stationery and fax machine/copier, along with an expense account for petrol and other incidentals.

Cr McClenaghan also has the use of a fully maintained council car.

Cr McClenaghan said last week that councillors in "small shires like Hepburn'' could earn the maximum of $17,576.90 before tax.

"This is about $338 per week before tax and could be less than $15 per hour for diligent councillors who work long hours. Councillors usually don't do the job for the money," he said.

"The mayor is entitled to three times a councillor's allowance, an office, administrative support, and a vehicle.

"A busy mayoral role is almost a full-time job that prevents mayors from running their businesses or holding down a job.

"It can also cost a mayor considerably to hire replacement staff whilst being mayor and these are all reasons for the recommendation."

Cr Rod May said he believed anyone should be able to stand for the council "not just an elitist few who have the financial resources".

"I think that the remuneration is probably about right to enable this," he said.

Cr Sebastian Klein said that, as a part-time student, "trying to maintain study, part-time work and council duties as well as having some time to actually be a human being", being on the council was purely a labour of love.

"The move to increase the mayor's income was supported by a clear majority of council and reflects both the belief that one cannot do a decent job of mayor and hold down any serious employment, let alone run a business," he said.

Meanwhile Cr Don Henderson said he was against increases of any kind at this time.

"I am very happy to tell you that a full disclosure will show that my costs will be an absolute minimum," he said.

"All I ask for on the food and drink front is tea bags and hot water."

Councillors Tim Hayes, Janine Booth and Jon Barrell did not respond to requests for comment by press time.

The draft budget was due to go before a special meeting of council last night.