Politicians set for hefty pay rise

News Com Au 07/01/2010

ALL federal MPs would receive thousands of dollars in extra take-home pay and superannuation under sweeping salary changes.

In the biggest shake-up to politicians' salaries for years, the Federal Government is also preparing to wind back or scrap lucrative perks - including the $18,500 overseas study allowance, the Herald Sun reports.

And the controversial lifetime Gold Pass - which gives former long-serving MPs an endless supply of free air travel - is also expected to be tightened or axed.

A high-powered committee, due to report in April, is working on big changes to the $300 million scheme.

Members of the four-person review panel privately support a hefty rise in the $131,040 base salary of MPs.

This will see higher wages flow through to all parliamentarians, including Mr Rudd, who earns $330,000 a year, Cabinet ministers on $200,000-plus, and Opposition Leader Tony Abbott.

But the trade-off will see entitlements worth up to $60,000 tightened or axed.

Sources said the review team, chaired by former senior public servant Barbara Belcher, is aiming for a more transparent system.

The review panel, including Remuneration Tribunal boss John Conde and former competition chief Allan Fels, is still preparing its report.

Its clear direction will be to recommend a hefty rise in base salary in exchange for "cashing out" entitlements.

Special Minister of State Joe Ludwig is said to be determined to clean up the system, particularly millions spent on political study tours, which allow MPs to travel first-class around the world but which may be of dubious value to taxpayers.

In the past year, they have included shopping in Milan, trekking in Thailand and weekends in Las Vegas.

Lifting the base pay of MHRs and senators will also boost superannuation payments; MPs who entered parliament after 2004 receive 15 per cent of their base salary.

Senator Ludwig said it would be "inappropriate" to speculate on likely findings.

The push to clean up entitlements follows a public outcry in Britain over MPs ripping off the public purse.

Australia's Auditor-General last September found widespread rorting of printing entitlements.

The Government will have to consider lifting the salaries of federal MPs during an election year.

And while the proposed changes have strong support from Labor and Coalition MPs, the Greens and some of the independent parliamentarians are likely to be less supportive.