Sizing up Federal MPs Part 1 - Pay Packets
By Jim Beatson
Everyone is interested in the size of pay packets. What’s it like in federal government? Let’s start with the top end, Prime Minister Scott Morrison.
Morrison rates as the fifth highest paid head of a country on our planet. His gross pre-tax salary, is $549,250 per annum or $10,562 per week or $1,505 a day, excluding legal perks. The current global top of the tree is Lee Hsien Loong, Prime Minister of Singapore, on $AUD2,082,583 pa.
Salaries of our Prime Minister, Ministers and all federal members, are a complex mix made up of a base salary, plus loadings as a percentage of their base salary, perks not included.
All our Federal and State pollies are well paid. So I have chosen to look in detail at our local Federal Member for Wide Bay, Llew O’Brien, just because he is ours. Llew was elected at the 2016 Federal Election, and re-elected in May 2019. Before entering Parliament, Llew served as a police officer in the Wide Bay region for 16 years and specialised in criminal intelligence and traffic accident investigation.
As at 1 July 2020, the base salary of all our Federal MPs, like Llew, is $211,250 per annum. But Llew is the Deputy Speaker in the House of Reps, so he gets an additional 20% of his base salary (i.e, $42,250). And as Chair of both the House Petitions Committee and the Joint Select Committee on Road Safety he receives an additional 11% of base for each position (i.e. 2 X $23,237.5 = $46,475). And all MPs receive an annual electoral allowance of $32,000 for memberships of sporting clubs, community groups, essential public duties, etc.
So Mr O’Brien, annual take home pay is $331,975, excluding super and other unreported entitlements. That pre-tax is $6,384 per week.
Perks: Most MPs, who are not residents of Canberra, also receive $294 for each night they are required to stay overnight. In 2017, the last year reported in Parliamentary legislative papers, attendance was for 64 days with the sum paid per Federal Member being $18,816 pa. To save on costs, some Members share accommodation.
All MPs get the cost of up to two fixed telephone services (one of the two lines may be an internet service) plus installation, maintenance, rental, transfers, calls and data costs. If they have a second residence, they may elect one service to be reimbursed for their second residence.
After three years in office, MPs get the equivalent of an around-the-world first class airfare for overseas study tours as well as generous internal work-based flights
MPs get a private plated vehicle (luxury cars excluded), which operates like a salary sacrifice system: the government purchases and the user pays fees. Fuel/servicing costs are covered by taxpayers. MPs not choosing a plated car, receive an electorate allowance of $19,500 per annum for their own car.
When a member leaves politics, former MPs get three return trips to Canberra or the location of their former office per year, plus a complex travel allowance. Former members of Parliament who served more than three years of continuously, who wish to re-train for future employment, may receive six months of their base salary ($105,625).
As an MP Lew’s Super will be 2.3 times the contributions paid by him during his period of service or, if that period exceeds 8 years, during his last 8 years.
And income for the rest of us? According to Living-in-Australia.com “the national average wage is $89,122” pa. SalaryExplorer.com says the spread is from $23,000 pa (lowest average) to $405,000 pa (highest average, although actual maximum salary is higher)”. The Parliamentary web-site sets average Aussie wage at $65,540 with MPs salary 3.2 times greater. And that’s excluding all the perks listed above.
Note - Researching disclaimer:
It's not been easy researching these figures, as each figure appear comes from one of three categories of payments, each appearing in a different, almost incomprehensibly complex Parliamentary websites. Despite a multitude of phone calls to multiple Parliamentary staffers I only found one who could actually answer some of my questions in normal language. My best informant was a well-known Parliamentary journalist, who suggested that they were so flat out, all they could do was to just point you at one of the three websites.
REVEALED: Gifts, houses and assets held by Qld MPs
https://www.couriermail.com.au/news/queensland/qld-politics/politicians-perks-criticised-by-information-commissioner/news-story/5442a89d230df55ea74aea9ec736e11b
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