Taxpayers to foot $2m resettlement allowance for MPs who lost in federal election

In a little-known perk of the job, MPs who were booted from their seat may be eligible for a $100,000 silver lining … on the taxpayer’s dime.

Samantha Maiden

@samanthamaiden

3 min read

May 24, 2022 - 5:51PM

Exclusive

Taxpayers are set to fork out over $2 million in golden handshakes to MPs and senators who were unceremoniously dumped by voters at the May 21 election.

The MPs are eligible for a little-known perk of office – a resettlement allowance that will see taxpayers payout over $100,000 to help each MP or senator.

The redundancy payout, capped at six months pay, is available to any MP who loses preselection for the election or any sitting MP who loses their seat.

As long as they have served a term in office it’s available and is designed to pay their bills and allow them to find employment after losing their $200,000 a year jobs on election night.

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The little-known perk gives outgoing MPs and senators a $100,000 silver lining to losing. Picture: Supplied.

At least 20 federal politicians are entitled to the farewell perk, which in many cases is all the MPs will get because anyone who arrived in Parliament after 2004 is no longer eligible for the pension-for-life scheme that was once offered to retiring MPs.

The MPs eligible include Treasurer Josh Frydenberg, who previously earned $400,000 a year as Treasurer before being unceremoniously dumped on Saturday by the voters of Kooyong.

However, it’s not clear if former Labor Senator Kristina Keneally is eligible because she needed to resign from the Senate to contest the electorate of Fowler.

Josh Frydenberg conceded his loss to incoming independent Dr Monique Ryan. Picture: Andrew Henshaw.

Other MPs who can receive the $100,000 payout include Queensland MP Terri Butler, who shocked Labor supporters by losing her Brisbane-based electorate after a strong campaign by the Greens.

Queensland Senator Amanda Stoker and Zed Seselja from the ACT, who also looks set to lose his seat, could claim the cash.

In WA, former ministers Ben Morton and Ken Wyatt will be eligible for the payout as they ponder the election disaster.

The resettlement allowance was introduced in 2006 and applies to MPs and senators who lost their seats at an election or failed to win preselection.

Ken Wyatt has been booted from the WA seat of Hasluck, an electorate he has held since 2010. Picture: Colin Murty.

The former Prime Minister Scott Morrison is not eligible for the $100,000 payout because he has indicated that he is staying in Parliament – for now.

But Mr Morrison previously backed the resettlement allowances in 2019 as fair and in line with redundancy payouts offered in the private sector.

“These are arrangements that were put in place some time ago and I’m sure when anyone leaves a job not of their own choosing, there are arrangements in place for people to do that,” he said.

“If you were to be let go, made redundant today by your news organisation, then I’m sure there would be a contractual arrangement for you to have some support when you left that job not by your own hand.

“All I’m saying, is these arrangements exist in the private sector and public sector and they don’t discriminate whether you’re a politician or you’re a journalist.”

Former Prime Minister Scott Morrison will not be eligible for the payout as he will remain the MP for Cook. Picture: Mark Kolbe/Getty Images.

To be eligible for the scheme, senators need to demonstrate they have been in Parliament for three years.

For MPs they need to serve more than a full term to receive the equivalent of six months’ base salary, worth more than $103,000.

Other MPs and senators who lost their seats at the election but did not qualify on length of service are entitled to three months’ pay, valued at more than $51,000.

Seats changing hands

NSW

1. Kooyong – Josh Frydenberg (LIB) to Monique Ryan (IND)

2. Higgins – Katie Allen (LIB)

3. Fowler – Kristina Keneally (ALP)

4. Hughes – Craig Kelly (UAP)

5. Gilmore – Fiona Phillips (ALP) is trailing Andrew Constance (LIB)