Prime Minister Julia Gillard’s salary to overtake US President Barack Obama as politicians in line for huge pay increase
- by:Steve Lewis
- From:The Courier-Mail
Source: The Courier-Mail
PRIME Minister Julia Gillard’s salary will soar by $90,000 to about $470,000, making her more highly paid than US President Barack Obama and British PM David Cameron.
And Liberal turncoat and newly elected Speaker Peter Slipper will earn at least $315,000 after snaring a $70,000 salary hike as part of a generous pay rise for federal MPs to be unveiled as early as next week.
Only days after the Gillard Government announced plans to slash public spending as part of a savage mini-budget to bring government coffers back into surplus, The Courier-Mail can reveal the base salary for even the most junior parliamentarian will jump from $140,000 to at least $180,000.
The benefits will be even more lucrative for shadow ministers such as Joe Hockey, Malcolm Turnbull and Chris Pyne, who will receive a special “loading” for the first time.
POLITICIANS’ SALARY RISE
But the lifetime Gold Pass will be axed for future MPs as part of the overhaul of entitlements aimed at cleaning up a system open to abuse.
Closer to home, Premier Anna Bligh this morning again confirmed pay rises for Queensland’s state MPs will be capped at 2.5 per cent, increasing their base salary to $137,149.
She said that commitment was made in October.
“I confirm that a Labor Government in Queensland has no plans to review or change that position,” she told State Parliament.
“Sorry to disappoint.”
Federally, the overseas study allowance, which allows MPs to travel first class around the world to study wine regions, fashion houses and the like, also will be junked.
After a lengthy review, the independent Remuneration Tribunal has decided on the biggest boost to federal MPs’ salaries in decades, reversing former prime minister Kevin Rudd’s decision to “freeze” their pay during the global financial crisis.
Sources said the tribunal’s decision would increase the current base salary for MPs of $140,910 to at least $180,000 and possibly more.
And this is before the perks of office are added.
As a result the salary of Mr Slipper, who last week ratted on his Coalition colleagues to become the Speaker, will jump from $168,000 as Deputy Speaker, to about $315,000 when the new deal begins.
Treasurer Wayne Swan, also Deputy Prime Minister, will earn about $370,000 compared with his current salary of $287,000.
And while Finance Minister Penny Wong has been busy slashing spending, she will earn a handsome increase of about $70,000, boosting her pay to about $310,000.
The Government is bracing for a public backlash to the pay deal particularly after announcing a series of Budget cuts, including reducing the baby bonus and announcing plans to slash public service spending.
But senior Coalition figures are backing the reforms, arguing that the present pay scales for federal MPs are too low and need cleaning up.
Surprisingly, it is expected that MPs will keep their electorate allowances, which is worth up to $46,000 for some parliamentarians. It was expected this would be “rolled into” the base salaries for MPs but the tribunal has decided to keep it as a discrete entitlement.
The boost in pay will mean the Prime Minister, who is paid a loading of 160 per cent, will garner at least $470,000.
Ms Gillard will earn more than the US President, who is paid about $400,000, and Mr Cameron, whose salary is about $221,000, despite presiding over a world power with a population three times that of Australia.
But the reforms being driven by Special Minister of State Gary Gray also will usher in greater transparency with the axing of the lifetime Gold Pass.
This allowed former MPs to take up to 25 flights a year courtesy of the taxpayer.
It is expected that all current MPs will still be able to qualify for the Gold Pass, although the rewards may be pared back.
The Coalition is expected to give full support to the pay reforms, particularly as the 30 shadow ministers will receive additional pay for the first time.
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