Parliamentarians’ Entitlements

Parliamentary allowances, salaries of office and other benefits continue to be a focus of media and public attention. Over many years this focus has been on the alleged misuse of entitlements and the perception that entitlements are overly generous. Since federation there has been debate about what level of parliamentary remuneration is appropriate and about the best method of setting entitlements.

Parliamentarians receive an annual allowance (sometimes called a basic salary); ministers and parliamentary office-holders receive a salary. Parliamentarians also receive an electorate allowance, a communications allowance and are entitled to receive other benefits including travel, car transport, charter aircraft and the provision of a vehicle. A resettlement allowance, retirement travel and superannuation are available to eligible former parliamentarians.

The Parliamentary Library can provide senators and members with general information about entitlements.

Administrative arrangements

Several Acts establish parliamentary entitlements. At the time of writing, the following ministers and their departments appear to have responsibility for the policy, administration and delivery of the range of entitlements described by the legislation listed below:

• The Minister for Education, Employment and Workplace Relations administers the Remuneration and Allowances Act 1990, Remuneration Tribunal Act 1973. Within this portfolio, the Remuneration Tribunal is an independent statutory body established to inquire into, report on or determine some allowances and benefits paid to senators and members.
• The Minister for Finance and Deregulation (Finance) administers the Parliamentary Allowances Act 1952, Parliamentary Contributory Superannuation Act 1948, Parliamentary Superannuation Act 2004, Parliamentary Entitlements Act 1990, Ministers of State Act 1952, Members of Parliament (Life Gold Pass) Act 2002, Members of Parliament (Staff) Act 1984.
• The Special Minister of State has specific responsibility for administering some allowances and benefits under this legislation. Ministerial and Parliamentary Services in Finance provides advice on entitlements, administers the provision of some benefits and pays salaries to ministers.

The Department of the Senate and the Department of the House of Representatives (Chamber Departments) pay the annual allowance and salary to parliamentary office-holders. The Chamber Departments provide advice on, administer, and pay the electorate allowance as well as some benefits including postage.

Annual allowance

Section 48 of the Constitution provides for the payment of members of parliament. Currently, the annual allowance for senators and members is linked by regulation to Reference Salary A under the Principal Executive Office (PEO) Band A Classification determined by the Remuneration Tribunal.

The annual allowance is $127 060 per annum from 1 July 2007.

Parliamentary salaries in Queensland, New South Wales, Victoria, South Australia, Tasmania and the Northern Territory are linked to the annual allowance by legislation. Parliamentary salaries in Western Australian and the Australian Capital Territory are determined by their respective remuneration tribunals.

Superannuation

Parliamentarians elected for the first time prior to the October 2004 federal election are eligible for benefits under the Parliamentary Contributory Superannuation Act 1948. The Act establishes an unfunded defined benefit superannuation scheme (the PCSS). Contributions are paid into the Consolidated Revenue Fund.

Parliamentarians elected for the first time at the 2004 election and subsequent elections are eligible for benefits under ‘accumulation’ arrangements established by the Parliamentary Superannuation Act 2004. Parliamentarians nominate a complying superannuation fund into which contributions of 15.4 per cent are made by the government on their behalf. The new arrangements have the stated aim of bringing parliamentary superannuation in line with current community standards. However, media reports have highlighted the difference between PCSS benefits and the less-generous accumulation benefits available to newer parliamentarians.

Former senators and members who are ineligible for a superannuation benefit described above, may be eligible for a resettlement allowance equal to 12 weeks of the annual allowance. The resettlement allowance is determined by the Remuneration Tribunal.

Library documents
Leanne Manthorpe, ‘Parliamentary allowances, benefits and salaries of office’, Background Note, 2007–08.
Leanne Manthorpe, ‘The annual allowance for senators and members’, Background Note, 2007–08.
Leanne Manthorpe, ‘Superannuation benefits for senators and members’, Background Note, 2007–08.

Documentation
Ministerial and Parliamentary Services, Department of Finance and Administration, Senators and Members Entitlements Handbook 2007 and A Guide to the Entitlements of Senators and Members 2006 [senators and members only].
Department of Finance and Administration, Parliamentary Superannuation.
Remuneration Tribunal, Parliamentarians’ allowances and entitlements.