No special rules for MPs, says tax commissioner

THE  Australian Taxation Office will review its ruling into tax deductions for politicians who own a second house in Canberra.

Prime Minister Malcolm Turnbull says allowances are set by the independent Remuneration Tribunal. Yesterday Mr Turnbull was in Merimbula, in the Federal seat of Eden-Monaro, where he was confronted about aged care by Diane Lang during a street walk. Picture: Lyndon Mechielsen

THE  Australian Taxation Office will review its ruling into tax deductions for politicians who own a second house in Canberra, after News Corp unearthed the practice.

Commissioner Chris Jordan said reports showed there was a misunderstanding of the 1999 ruling, saying there were no “special rules” for MPs.

And some MPs own houses in Canberra while claiming a travel allowance worth nearly $1000 a week.

Prime Minister Malcolm Turnbull said he, like every politician, had claimed the (now) $273 a night allowance.

“Allowances and arrange­ments for what politicians are paid for travel expenses and so forth, is set by the Independent Remunerations Tribunal,” Mr Turnbull said.

“The remuneration tribunal reviews these allowances regularly and I’m sure they will do so in the future.”

Labor Treasury spokesman Chris Bowen said he would look at restricting the ability of politicians to claim a tax deduction on properties as well as claiming travel allowance.

Five Tasmanian MPs and senators who own property in Canberra claim the allowance when they stay in the ACT.

Liberal Senator Eric Abetz, Senate president Stephen Parry and Bass MP Andrew Nikolic have declared ACT property on their statement of registrable interests.

Senator Abetz has registered a Griffith property jointly with his spouse and Senator Parry a residential/investment property in Kingston.

Mr Nikolic, who lived in the ACT before the 2013 election, has registered a property in Deakin.

Labor Senator Helen Polley declared an investment in Kingston and Senator Catryna Bilyk declared the purpose of a Griffith property as residential. All the above have registered residences in Tasmania.

The latest figures for January to June 2015 disclosed Senator Abetz claimed $14,772 in travel allowance, Senator Parry $14,819, Mr Nikolic $13,418, Senator Polley $15,688 and Senator Bilyk $14,969.

Mr Nikolic claimed $325 travel allowance for electorate business in Hobart on June 12 last year, a night that coincided with a function to celebrate Senator Abetz’s 21st anniversary in politics.

A spokesman for Senator Parry said he not stay at his Canberra investment property: “The property is treated just like any other investment an accountant would advise on.”

Other members did not provide responses.

Originally published as No special rules for MPs, says tax commissioner