Eye-watering extent of pollies’ perks as ‘double-dipping’ scandal emerges

APPARENTLY, the six-figure salary isn’t enough. Our politicians are claiming plenty more extravagant perks at your expense.

Labor MP David Feeney’s failed to declare his negatively geared investment property in his Batman constituency.

FROM multimillion-dollar homes, to charter planes to generous retirement packages, the perks that come with being a politician are extremely generous.

Not only do all MPs receive a base salary of $195,130, many are claiming hundreds of thousands in entitlements on top.

Their casual use of taxpayers’ money was underlined this weekend when the government was questioned over why members are claiming travel allowances of $273 a night while staying in tax-deductible second homes.

Labor MP David Feeney last week admitted he had failed to disclose his ownership of a $2.3 million negatively geared investment property in his Melbourne seat of Batman.

Now, the Australian Taxation Office has announced it will launch a review into MPs’ benefits, after reports that pollies were using the scheme to claim money back on attending electorate functions and even buying raffle tickets.

Tax commissioner Chris Jordan said there were “clear misunderstandings” about what could be claimed.

“The rules are the same for every taxpayer, regardless of their occupation,” Mr Jordan said in a statement last night.

“However, given that there are clear misunderstandings of how the ruling is applied, we will undertake to review the 1999 ruling to give greater clarity for all taxpayers on the treatment of allowances they may receive from their employer to cover the costs of work-related travel.”

It’s a controversy that keeps coming up. Last year, Bronwyn Bishop departed as Speaker after the “Choppergate” revelations about her $5227 taxpayer-funded helicopter ride from Melbourne to Geelong.

Bronwyn Bishop stood down as Speaker after “Choppergate” revelations about her use of a taxpayer-funded helicopter. Picture Kym Smith

Here’s what MPs can claim:

SALARY

The base salary for backbenchers has been a world-leading $195,130 per annum since July 1, 2014. Ministers receive $307,329 and Cabinet Ministers $336,599. The Prime Minister’s salary is $507,338, the Deputy PM gets $400,016 and the Opposition Leader $360,990.

MPs also receive an electorate allowance of at least $32,000 (up to $46,000 for larger electorates) for costs incurred while performing official duties, including school visits, gifts to clubs and community groups, awards and other donations. The unspent amount is treated as taxable income.

NIGHTS AWAY FROM HOME

A travel allowance for official business varies per night from $273 for Canberra to $472 for Perth, and is not regarded as taxable income. The PM can claim up to $564 for each overnight stay in a place other than an official establishment or their home.

The “double-dipping” controversy centres on the ruling that allows ministers to keep tax-deductible second residences near Parliament House in Canberra, and claim a $1000-a-week travel allowance on top while staying there.

A deduction is allowable for all expenses relating to this property, including insurance, electricity and maintenance of the building, plants and grounds.

Mathias Cormann, Peter Dutton, Anthony Albanese, Brownyn Bishop, Julie Bishop, Tanya Plibersek, Warren Truss, Warren Snowden, Cory Bernardi, Eric Abetz, Penny Wong and Nova Peris are among those who own property in Canberra.

Finance Minister Mathias Cormann has a tax deductible property in Canberra and can claim a $273 allowance when he stays there.

TRAVEL

MPs can claim forunlimited business class domestic flights for official business and a car with driver when travelling for official purposes.

They can claim a private-plated vehicle for work and personal use and charter flights if their electorate is larger than 10,000 square km.

Members can also claim overseas fares, transport, accommodation, meals, official hospitality, travel and expense advances, passport, equipment, medical, other related overseas travel costs for themselves and their employees.

This applies to ministerial visits, official visits, delegations and overseas study.

FAMILY TRAVEL

All MPs can claim nine business class return trips to Canberra for a partner and three for each child, and three business class interstate trips for partners and children.

Ministers can also claimunlimited travel for partners for official purposes.

GIFTS

Politicians can keep all gifts worth up to $300 from private or industry sources and $750 from official government sources.

OFFICES

MPs can claim for office facilities in their electorate, including maintenance, refurbishment and staff.

Up to $50,000 is allowed for “office requisites and stationery” per financial year, but many exceed $100,000 in “office administration” costs (on top of facilities and fit-outs).

This includes printing, stationery, software, publications and giving Australian flags to constituents.

Pollies can also claim for photographic services at Parliament House for those Instagrammable moments. All members can claim for two telephone lines, while specified office holders can also claim for mobile phone services.

A further $20,000 will be approved in case of an accident, such as a fire or flood.

SUPERANNUATION

MPs who joined parliament before 2004 receive 11.5 per cent of their salary for up to 18 years and 5.75 per cent after that, plus a lump-sum payment or pension based on years of service.

For those who joined after 2004, the government pays 15.4 per cent of their total salary into a superannuation fund of the MP’s choice.

RETIREMENT PERKS

MPs who joined parliament before July 2012 are entitled to a Life Gold Pass, which covers their travel within Australia for “non-commercial” purposes.

For those who are not eligible, post retirement (formerly called Severance) travel is available, which covers 10 trips.

Former MPs and senators elected before October 9, 2004 receive a “resettlement allowance” of three months’ basic salary if they have to retire involuntarily, plus another three months’ pay if they served more than one full term.

Former prime ministers are typically provided with “a number of facilities at the discretion of the prime minister of the day”, which have included car costs, office establishment and lease costs, fixtures, telecommunications, office stationery and publications.