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Federal MPs and judges receive 2 per cent pay rise at same time as end to high-income earner tax

UPDATE: The PM has defended a pay rise that will see him pocket more than $300 a week extra from next month, saying it was set by an independent tribunal.

How to ask for a pay rise

PRIME Minister Malcolm Turnbull will pocket more than $300 a week extra from next month after being handed a pay rise at the same time at the same time a tax on high-income earners is abolished.

The Renumeration Tribunal on Thursday gave all federal MPs, fat cat bureaucrats and judges a 2 per cent pay increase after receiving complaints that private sector workers were being paid more.

But the Australian Bureau of Statistics shows the average private sector wage grew just 1.7 per cent over the past year.

Our millionaire PM’s taxpayer-funded salary will rise $10,350 — from $517,504 to $527,584 — and he’ll have to pay about $6750 less tax on it.

Mr Turnbull this morning defended the pay rise.

“It’s a decision by the Remuneration Tribunal,” he told Sydney radio station 2GB.

“And you know there’s never a good time to increase the pay of politicians but the alternative to having an independent tribunal set the politicians pay is to have the politicians setting it themselves — and no one would want that.

“It is I believe a 2 per cent increase over 18 months.”

The base pay for federal MPs will top $200,000 for the first time, rising to $203,020.

The head of his department, Martin Parkinson, will move even closer to seven figures with a $17,234 increase taking his pay packet to $878,934.

Chief Justice Susan Kiefel’s salary will climb to $584,506 after being handed a pay rise.
Chief Justice Susan Kiefel’s salary will climb to $584,506 after being handed a pay rise.

Australia’s first female High Court chief justice Susan Kiefel receives an $11,460 pay rise after taking her salary to $584,506.

It has been a bumper year for federal judges after they received a plump 4.8 per cent increase on January 1 after arguing they had increased workloads and job stress.

Since July 2013, the Tribunal has granted only one general pay increase — 2 per cent from January 1 last year.

The temporary budget repair levy was introduced in 2014 as a tax hit of 2 per cent for people in the top tax bracket on income over $180,000.

Despite the Budget still being in the red, the Government followed through with scrapping the measure which Labor has characterised as a tax cut for the rich.

It takes effect on the same day some of the country’s lowest-paid workers face a cut to their penalty rates.

The pay rise was announced within hours of the Finance Department releasing details of MPs expenses for the last six months of 2016.

Globe-trotting Foreign Minister Julie Bishop racked up a $293,639 travel bill, visiting 16 countries during this time.

Prime Minister Malcolm Turnbull will pocket more than $300 a week extra from next month
Prime Minister Malcolm Turnbull will pocket more than $300 a week extra from next month

Her bill was dwarfed by Mr Turnbull’s overseas travel expenses, which topped $500,000 for just three trips.

New Speaker Tony Smith — who took over from Bronwyn Bishop after the “Choppergate” saga — spent more than $32,000 on a 10-day parliamentary delegation to Switzerland and the UK.

Opposition Leader Bill Shorten slugged taxpayers more than $35,000 for a six-day trip to Canada and the US, when he skipped Parliament to meet popular Canadian Prime Minister Justin Trudeau.

Australia’s five living former prime ministers spent a collective $380,000 on domestic flights.

Adelaide-based former prime minister Julia Gillard billed taxpayers $14,700 for domestic airfares, $6700 for car costs and $1900 for family travel.

Former SA senator and Labor minister Nick Bolkus used his Gold Card entitlement to bill taxpayers $14,000 for flights. Former SA Liberal senator Grant Chapman spent $3203 on flights, including $863 for family travel.

WHAT THEY GET PAID

(Current pay — pay as of July 1 — $ increase)

Federal MPs (base salary)

■ Backbench MPs and senators: $199,040 — $203,020 — $3980

■ PM Malcolm Turnbull $517,504 — $527,584 — $10,350

■ Deputy PM Barnaby Joyce $408,032 — $416,192 — $8160

■ Treasurer Scott Morrison $372,200 — $379,644 — $7444

■ Leader of the House Christopher Pyne $348,320 — $355,286 — $6966

■ Cabinet Ministers $343,344 — $350,210 — $6866

■ Junior Ministers $313,488 — $319,757 — $6269

■ Parliamentary Secretaries (Assistant Ministers) $248,000 — $252,960 — $4960

Turnbull and Morrison defend the government's submission into a pay rise for workers on the minimum wage

■ Leader of the Opposition Bill Shorten $368,224 — $375,588 — $7364

■ Deputy Opposition Leader Tanya Plibersek $313,488 — $319,757 — $6269

■ Opposition Senate Leader Penny Wong $313,488 — $319,757 — $6269

■ Shadow Ministers $238,848 — $243,624 — $4776

■ House of Representatives Speaker Tony Smith $348,320 — $355,286 — $6966

■ Senate President Stephen Parry $348,320 — $355,286 — $6966

Top Public servants (total remuneration package)

■ Department of Prime Minister and Cabinet Secretary Martin Parkinson $861,700

■ Treasury Secretary John Fraser $840,810

■ Chief of the Defence Force Air Chief Marshal Mark Binskin $814,700 — $831,934 — $17,234

■ Taxation Commissioner Chris Jordan $772,920 — $788,378 — $15,458

■ Australian Federal Police Commissioner Andrew Colvin $678,920 — $692,498 — $13,578

High Court chief justice Susan Kiefel $573,046 — $584,506 — $11,460

Other High Court judges $520,028 — $530,428 — $10,400

Federal Court judges $402,880 — $410,937 — $8057

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Original URL: https://www.adelaidenow.com.au/news/south-australia/federal-mps-and-judges-receive-2-per-cent-pay-rise-at-same-time-as-end-to-highincome-earner-tax/news-story/2cbae55553e0d116910dd3d6b021f031