The base salary of a backbencher in the Australian parliament is $195,130. This is 2.8 times the average annual wage in Australia, making them among the highest paid politicians in the world.
The average annual increase on an MP’s base salary is 6.9%. Additionally MPs receive an electorate allowance between $32,000 and $46,000 (depending on the size of their electorate). This is treated as taxable income with the MP allowed to pocket whatever they don’t spend.
MPs are also entitled to a private vehicle for “official business” or $19,500 for additional travel allowances. They also get an electorate office with a minimum of 4 full-time staff (it is not uncommon for politicians to employ family members in these positions) and separate allowances for printing, communications and publications.
Additionally MPs receive $268 tax free for every night they spend in Canberra and similar rates for nights spent on “official business” elsewhere, even if they own the property they are staying at. Taxpayers also foot the bill for the travel expenses of MP’s families, the MP’s personal home phone use and domestic and overseas travel for “study” purposes.
Excluding expenses cabinet ministers have a base salary of $368,599; the Leader of the Opposition is on $392,991; the Treasurer gets $397,869 and the Deputy PM $432,017. Including his electorate allowance (but not other expenses) Tony Abbott earns $539,338 per annum, more than the US President ($445,000) or British PM ($265,000).
The Constitution allows parliament to determine MPs salaries and expense claims. Records show politicians regularly claim expenses for attending weddings, sporting events and visits to investment properties. As Shadow Attorney-General George Brandis claimed $13,000 over 4 years for a law library which included comic books and novels. In the same period Joe Hockey claimed over $200,000 in travel expenses and Abbott over $15,000 for charity work!
Yesterday the Government froze compulsory superannuation contributions for Australians at 9.5% for the next 7 years. MPs who were elected before 2004 receive a guaranteed pension for life and a life Gold Pass entitling them to free travel anywhere in Australia once they leave parliament. MPs who started after 2004 have to make do with a (not frozen) compulsory superannuation contribution currently at 15.4%.
In 2012 politicians’ salaries were increased by 31.3%. This pay rise was justified on the grounds that it would bring more talent and diversity into the Australian Parliament. I’ll let others decide how much talent has been brought in but here are some stats on diversity:
The median age in Australia is 37, in parliament it is 51. Half of Australian’s population are women; they make up less than 30% of parliament. 3% of Australians are indigenous; less than 1% of MPs are. 1 in 500 Australians are lawyers, 1 in 4 parliamentarians are. 13% of Australians live below the poverty line; no member of parliament does, or ever will.