Why has Australian Treasurer & Liberal MP for Kooyong Josh Frydenberg morphed into a frenzied Trump?

“Ultimately, a dollar of tax avoided by high income Australians is an extra dollar of tax paid by all other Australians.” [Australian Labor Party (ALP) policy document Positive plan to help housing affordability]

The Australian Labor Party has put forward a number of policies which limit the degree to which affluent groups in our society can manipulate the tax system.

These tax reform policies will:

* limit negative gearing to investment properties already negatively geared and newly built residential housing. However net income losses on existing negatively geared properties will not be able to be used to offset salary & wage income;

* cease cash refunds for excess dividend imputation credits on which the investor personally paid no tax originally and who has no current tax liability to offset with these credits;

* reduce the discount on capital gains tax from 50 per cent to 25 per cent after the deduction for any capital losses. Some assets and events are exempt from capital gains tax. These include selling your principle home, personal car, personal use assets or selling an asset acquired before capital gains tax was introduced on 20 September 1985. 
According to the Australian Taxation Office if you are an individual rather than a corporation then the Capital Gains Tax Rate is the same as your Income Tax Rate in the applicable year.

These same policies have caused former Deutsche Bank director, current Australian Treasurer and Liberal MP for Kooyong Josh Frydenberg (left) to morph into a frenzied Trump. Pumping out slogans, misrepresentations and sometimes downright political lies on every media platform he can access.

The Australian, 5 December 2018, p.2:

Josh Frydenberg has launched a pre-election assault on Labor’s plan to halve the capital gains tax discount, warning that hundreds of thousands of Australians will be taxed at the “highest rates” in the Western world.

Shifting his focus from Bill Shorten’s proposal to limit negative gearing to new dwellings and the “retiree tax”, the Treasurer yesterday cited government analysis that showed Australians would be taxed up to 36.75 per cent on their capital gains under Labor’s policy, up from 23.5 per cent now….¹

Labor’s 50% increase to capital gains tax will cost jobs, punish those who work hard and save, and give Australia a CGT rate much higher than other advanced economies. pic.twitter.com/W4c3pgcgCt

— Josh Frydenberg (@JoshFrydenberg) January 4, 2019

.@JoshFrydenberg on Labor’s negative gearing: Everybody who owns equity in their home will be worse off under Labor’s policy.

This is a major tax grab by the Labor Party.

MORE: https://t.co/9fyClHfMTo #FirstEdition pic.twitter.com/H0H0WTtFV5

— Sky News Australia (@SkyNewsAust) November 6, 2018

So why is Frydenberg screaming misrepresentations at the top of his lungs, urged on by the Housing Industry Association?²

Could it be because 56.2 per cent of the tax benefits from Negative Gearing go to individuals whose incomes are in the top 20 per cent of Australian incomes and only 5.2 per cent of the tax benefits go to individuals in the lowest 20 per cent of incomes?

Or because est. 75 per cent of tax savings from Capital GainsTax discounts go to the top 10 per cent of high income families?

Perhaps it’s because Self-Managed Super Funds are a major beneficiary of cash refunds for excess dividend imputation credits, with 50 per cent of the benefit to SMSFs accruing to the top 10 per cent of SMSF balances and some funds receiving cash refunds of more than $2.5 million a year?

Likely he’s screaming because all three instances represent how successfully the affluent have gamed the tax system to date and he like most right-wing politicians see such tax manipulation as a right belonging to them and their mates and, therefore have no interest in supporting a fairer distribution of the tax burden.

He also appears to be ignoring the fact that Treasury modelling of these Labor policies shows an increase in federal government revenue by $2 billion over time and, that these same policies have the potential to put downward pressure on property prices in the short-term so that genuine first home buyers might get a foot in the door with more affordable residential housing.

Bottom line is that Labor’s tax reform policies are primarily targeted at investors with a marginal tax rate (including Medicare Levy) of over 45 per cent - which roughly equates with the top 20 per cent of Australian residents with private wealth.

That is, the 'professional' investors/tax avoiders amongst the 1.16 million Australians who according to Credit Suisse in 2017 are millionaires, some many, many times over.

Footnotes

1. KPMG, Demark- Taxation of investment income and capital gains: “Interest and rental income are taxable as investment (or capital) income with a marginal tax of 42 percent (2018).” Denmark's Capital Gains Tax Rate is higher than the worse case scenario of up to 36.75 per cent under Labor which Frydenberg postulates in Para 5 of this post. Therefore Labor would not be imposing "the highest" rates in the Western world'.

2. Australian Government, Treasury, Tax- Negative Gearing/Capital Gains, FOI, 5 January 2018.

    Shadow Treasurer Chris Bowen, A FAIRER TAX SYSTEM: DIVIDEND IMPUTATION REFORM, 13        

                      March 2018.

    Australian Taxation Office,  Individual Income Tax Rates 2018-2019 and CGT assets and exemptions
    National Australia Bank, Calculating and Paying Capital Gains Tax, 
     Domain.com.au, The ‘little known’ tax strategy some millennials use to amass large property portfolios,           23 May 2016.

* Photograph of Josh Frydenberg from msn.com

Assistant Treasurer Stuart Robert follows unofficial Liberal Party guideline: Don't get caught but if you do pay it back

Image: The Sydney Morning Herald 2017

Assistant Treasurer and Liberal MP for Fadden Stuart Rowland Robert (right) is in the news once more.

This time over the excessive costs associated with his taxpayer-funded 4G home Internet connection.

He has been charging taxpayers more than a $1,000 a month for Internet access since 2016 and by 2018 the cost had risen to over $2,000 a month.

In May, taxpayers forked out $2,831 for the Assistant Treasurer's internet bill. The bill came to $2,704 in April, $1,686 in March, $1,813 at the end of February, $186 in January and $1,859 at the end of December 2017.

The reasons being given by Robert for why he didn’t avail himself of cheaper alternatives don’t really stand close scrutiny.

Given this Liberal MP’s history (see below) one immediately wonders if a third party individual/ corporation signed his contact with the Internet Service Provider (ISP) and this increased the cost to taxpayers or whether Robert has a pecuniary interest in that particular ISP.

Prime Minister Scott Morrison has requested that these expense claims be investigated by Special Minister for State Alex Hawke who himself is under a cloud when it comes to parliamentary expense claims.

Once his parliamentary expenses drew media attention Robert was quick to commit to paying back Internet charges reimbursed by the Dept. of Finance. At a quick estimate that would be somewhere in the vicinity of $25,000, although reportedly he puts the estimate as a little over $20,000.

Parliamentary expense claims are not the only issue for the Member for Fadden.

On 6 October 2018 The West Australian reported that:

A company run by a Federal minister who charged taxpayers $2000 a month for internet access lodged documents removing him as its director only after the matter was queried by The Weekend West.

Until late yesterday ASIC records showed Assistant Treasurer Stuart Robert was a director of an alternative health franchise business, despite Mr Robert telling Parliament a month ago he quit the board of Cryo Australia when he returned to the ministry.

In February 2016 Stuart Robert was sent to the backbench in disgrace after just three years as a federal government minister. 

It is barely six weeks since he returned to the ministry on the back of Scott Morrison’s politically bloody ascendancy and it appears that there has been no lesson learned.

A Brief History

10 FEBRUARY 2016 In which then Australian Prime Minister Tony Abbott gives the nod for then Assistant Defence Minister Stuart Robert to help smooth the way for a big Liberal Party donor and Prime Minister Malcolm Turnbull inherits a problem

12 FEBRUARY 2016 Minister for Human Services & Minister for Veterans' Affairs showing his contempt for the Australian electorate

14 FEBRUARY 2016 Liberal MP Stuart Robert's resignation as Australian Minister for Human Services raises more questions than it answers

21 FEBRUARY 2016 The Liberal Member for Fadden - drowning not waving

20 MAY 2016 Federal MP Stuart Robert channelled $70,000 from his Liberal Nationals Party campaign fund to three local government candidates

3 OCTOBER 2016 Stuart Robert MP - the archetypal Liberal Party politician

27 SEPTEMBER 2017 Australian Politics in 2017: Financial Fog Unlimited #2

New Holland Publishers picked a lemon in the MP for New England Barnaby Joyce

The Sydney Morning Herald, 8 September 2018:

Back in the day, estimates of book sales were just that – estimates. These days, courtesy of the Bookscan system, which measures sales from nearly every book store across our brown and pleasant land, you can be very accurate – at least if you have a 'Deepthroat' high up in the publishing world like I do. I can report thus, that after being on sale for four weeks, Barnaby Joyce’s memoir, Weatherboard and Iron, has sold 1570 copies.

Yes, notwithstanding the general publishing rule that – with the notable exception of John Howard’s Lazarus Rising – right-wing memoirs don’t sell well, those numbers are proof positive that whatever hunger there has been for details of Joyce’s personal life has been sated. 

Having gone from being priced at source for $32.99 a copy, it had been reduced to $24.99 by QBD books after only 3 days.

It should be in the $10 bin at local book stores by the beginning of October 2018.

So much for a story of Politics, the bush and me being an additional income source for the egotistical, greedy and 'entitled' Nationals Member for New England, Barnaby Joyce.

Peter Dutton and the French au pair

On 17 June 2015 then Australian Minister for Immigration and Border Protection & Liberal MP for Dickson Peter Dutton overturned a departmental decision to classify the holder of an e-Visa as “an unlawful non-citizen” - allowing Alexandra Deuwel entry into Australia and supplying her with a tourist visa despite her declaration that she intended to work during her stay.

Linkedin entry retrieved 28 August 2018. It has since been removed from public view

The Australian Government has unsuccessfully attempted to hide details of the minister’s decision.

The Guardian, 3 August 2018:

The Australian government spent more than $10,000 in taxpayer cash fighting a legal battle to keep documents secret about the home affairs minister Peter Dutton’s decision to save two foreign au pairs from deportation.

The visa status of the two unknown young women has been in the spotlight since March, when it was revealed that Dutton used his powers of ministerial discretion to grant them visas on public interest grounds.

In the first case, an au pair whose visa was cancelled at Brisbane’s international airport in June 2015 was able to make a phone call and within a couple of hours the minister approved a new visa.

In November the same year, Dutton defied written warnings from his own department that granting a visa to a second au pair was of “high risk” because she had been previously counselled about work restrictions.

Dutton insists he doesn’t know the two individuals involved and that they didn’t work for his family.

The Guardian, 28 August 2018:

The home affairs minister, Peter Dutton, saved an au pair from deportation, intervening after the AFL’s chief executive officer, Gillon McLachlan, raised the young woman’s case.

Guardian Australia understands that a French woman named Alexandra Deuwel was detained at Adelaide’s international airport late on 31 October 2015.

Her tourist visa was cancelled at the border because there were suspicions she intended to work and she had previously been counselled over visa conditions during an earlier stay in Australia.

Deuwel had previously worked for McLachlan’s relatives Callum and Skye MacLachlan in South Australia and was returning to visit them. Callum MacLachlan is joint managing director of the cattle and sheep company Jumbuck Pastoral.

An AFL official, who works for Gillon McLachlan, is understood to have contacted Dutton’s chief of staff, Craig Maclachlan, on behalf of Callum regarding the former au pair’s situation. Although related to Gillon McLachlan, Callum’s side of the family spells its name differently. Craig Maclachlan is not related to either Callum or Gillon.

On the eve of a ministerial visit to Zaatari, a Syrian refugee camp in Jordan, Dutton was alerted to the case, by Craig Maclachlan. He used his discretion powers under the Migration Act to grant the young woman a tourist visa on public interest grounds within 24 hours of her arrival. The visa was granted on the condition she undertake no paid work.

In freedom of information documents released on Tuesday to the ABC, Dutton gives his reason for Deuwel’s visa allowance.

“Having regard to this person’s particular circumstances and personal characteristics, I have decided to exercise my discretionary powers under section 195A of the (migration) act as it would be in the public interest to grant this person a visa.

“In the circumstances, I have decided, that as a discretionary and humanitarian act to an individual, with ongoing needs it is in the interests of Australia as a humane and generous society to grant this person a visitor visa (subclass 600) for a period of three months.”….

A former department official said what horrified frontline airport personnel most about the au pair cases was that their decisions were being “overruled so quickly and at such a senior level for such a trivial matter”….

On 28 August 2018 this article was amended. A previous version said it was not known whether Craig Maclachlan was related to relatives of Gillon McLachlan. Peter Dutton’s office has since said they are not related.

Minister for Home Affairs Peter Dutton issued a somewhat choleric response to media reports on 28 August 2018:

On 23 August 2018, the Senate referred the allegations concerning the inappropriate exercise of ministerial powers, with respect to the visa status of au pairs, and related matters to the Legal and Constitutional Affairs References Committee for inquiry and report by 11 September 2018.

Don't laugh, this Nationals MP was serious

David Arthur Gillespie of Wauchope entered the Australian Parliament in 2013 as a National Party Member of the House of Representatives representing the Lyne electorate, with an annual salary many of his constituents can only dream about.

He is quite literally a man of property – aside from his house and farm he owns four commercial and residential investment properties, which appear to be snugly sitting in one or more family trusts along with a portfolio of shares.

His total parliamentary entitlements expenditure paid by the Department of Finance was $65,512.97 in 2013,  $399,946.31 in 2014, $339,797.06 in 2015 and $381,651 in 2016.

Yet two years ago he caught the greed bug and wanted more, more, more………..

ABC News, 2 December 2017:

The Prime Minister's Department has lost a two-year fight to conceal a minister's bid for thousands of dollars in extra pollie-perks, including charter flights and boat rides.

Former speaker Bronwyn Bishop's taxpayer-funded helicopter ride sparked an inquiry into politicians' entitlements.

Most MPs and senators' submissions were publicly released, but bureaucrats decided to hide Nationals MP David Gillespie's proposal.

After a lengthy freedom of information (FOI) battle, the ABC can reveal Dr Gillespie argued politicians in seats like his should annually be given:

* Nearly $15,000 extra "charter allowance" for charter flights, hire cars, boat rides or taxis

* 14 days more travel allowance for overnight stays within the electorate

* An additional office

* One more full-time employee

Dr Gillespie is the member for Lyne on the New South Wales mid-north coast.

He argued the boost would help meet "the significant logistical challenges that confront all rural MPs in meeting the needs and expectations of their constituents".

"If the additional costs are $10 million, it is a small price to pay to ensure fairness within our democracy is delivered," he wrote in the October 2015 submission.

Dr Gillespie wanted extra expenses for all electorates 10,000 square kilometres or larger.

The Assistant Health Minister's seat is about 16,000 square kilometres in size, and includes towns of Taree and Wauchope.

If implemented today, 24 Coalition MPs would benefit, along with six Labor members and two independents.

Electorates 100,000 square kilometres or larger would have received an even bigger windfall under the blueprint.

But the Government has only partly adopted one of his ideas by funding an extra office in Australia's seven biggest electorates — a group of seats that does not include Lyne.

I’m sure David Gillespie is as pleased with mainstream media outing this attempted cash grab as he was when they reported this……

The Sydney Morning Herald, 1 October 2017:

A Turnbull government minister is facing up to $500,000 in personal legal bills to defend his job against a Labor High Court challenge.

While the government is covering the costs of the seven federal politicians referred to the court over their citizenship status, the eighth MP facing constitutional eligibility questions is not getting the same assistance.

Labor is challenging Assistant Health Minister David Gillespie's right to stay on in Federal Parliament, putting the government's slender majority at risk, because it believes he may have an indirect financial interest in the Commonwealth – grounds for disqualification under section 44(v) of the constitution.

As revealed by Fairfax Media in February, the Nationals MP owns a small suburban shopping complex in Port Macquarie and one of the shops is an outlet of Australia Post – a government-owned corporation.

The Lighthouse Beach Australia Post outlet in Port Macquarie owned by Nationals MP David Gillespie. 

Photo: Peter Daniels

Alley v Gillespie [2017] HCA is scheduled to be heard on Tuesday,12 December 2017 by High Court of Australia.

The problem of dual citizenship for Australian federal politicians is not a new one so why has this current batch made such a hash of the solution?

Australian Electoral Commission nomination form advice re Sec 44 of the Australian Constitution

This is former Liberal MP Alex Somlyay - elected 1990 and retired 2013 - as reported in the Sunshine Coast Daily on 19 July 2017:

Alex Somlyay, who represented Fairfax for 23 years from 1990 to 2013, is the son of Hungarian refugees who arrived in Australia after World War Two as stateless persons.

Mr Somlyay says Ms Waters' predicament in an unintended consequence that needed to be fixed…..

Mr Somlyay is particularly attuned to Mr Waters' forced resignation because of events that played out which could have threatened his own parliamentary career.

His parents became Australian citizens and Mr Somlyay was born in Australia.

But the fall of the Iron Curtin saw Hungary again become an independent country which immediately gave citizenship to the diaspora that fled as refugees and their children.

"I was already in Parliament,” he said. "I went to see the Hungarian ambassador and wrote a letter relinquishing any Hungarian rights.”

With the holding of dual citizenship being a specific bar to nominating as a candidate at a federal general election or by-election the answer for such dual citizens has always been straightforward even in complex situations.

Before nominating check your citizenship status and if by virtue of having a parent, grandparent or great-grandparent who was born overseas you find you either hold foreign citizenship by descent or may be entitled to such citizenship then take the appropriate steps to formally renounce this citizenship.

Even in the late 1800s Australia was a multicultural society with people holding foreign citizenship permanently migrating here from Europe, Asia, Africa, the Americas and Oceania.

The framers of the Australian Constitution were well aware of this fact and set out one simple rule disqualifying any person who is under any acknowledgment of allegiance, obedience, or adherence to a foreign power, or is a subject or a citizen or entitled to the rights or privileges of a subject or a citizen of a foreign power from sitting as a representative of the people in the federal parliament. 

The only exception when the Consitution was enacted was for persons born in the United Kingdom (or in certain cases its colonies) as it was not then considered a foreign power.

The right to nominate as a candidate in an election is now reserved for persons of good character who hold only Australian citizenship - whether by birth, descent or naturalisation - and hold no office of profit under the Crown.

The High Court of Australia so ruled in Sykes v Cleary in 1992, in Free v Kelly & Australian Electoral Commission in 1996 and again in Re Canavan; Re Ludlam; Re Waters; Re Roberts [No 2]; Re Joyce; Re Nash;Re Xenophon in October 2017. 

Only an overweening sense of self-importance and an unswerving belief in their own entitlement can explain why in 2017 there are so many politicians with questions against their names when it comes to a right to be sitting in the Australian Parliament.

And only a steely determination not to be fully held to account sees the Turnbull Government suggesting that a declaration to the Australian Parliament by already elected politicians somehow trumps any false or misleading written declaration they may have made as part of their nomination as candidates.

RECOMMENDED READING

                

8 November 2017, YaThink? Let’s stop pretending. We want this Government to burn at the stake!

STATE OF PLAY

Growing list of federal parliamentarians found to be ineligle to stand:

1. Greens Senator for Western Australia Scott Ludlum – first elected 2007, resigned from parliament admitting dual citizenship 14.7.2017, High Court ruled ineligible due to dual citizenship 27.10.17

2. Greens Senator for Queensland Larissa Joy Waters – first elected 2010, resigned from parliament admitting dual citizenship 18.7.17, High Court ruled ineligible due to dual citizenship 27.10.17

3. Liberal MP for New England Barnaby Thomas Gerard Joyce – first elected 2004, refused to resign from parliament, High Court ruled ineligible due to dual citizenship 27.10.27

4. Liberal Senator for NSW Fiona Joy Nash – first elected 2004, refused to resign from parliament, High Court ruled ineligible due to dual citizenship 27.10.27

5. One Nation Senator Malcolm Ieuen Roberts – first elected 2016, refused to resign from parliament, High Court ruled ineligible due to dual citizenship 27.10.17

6. Liberal Senator for Tasmania Stephen Shane Parry – first elected 2004, resigned from parliament admitting dual citizenship on or about 2.11.17

7. Liberal MP for Bennelong John Gilbert Alexander – first elected 2010, resigned from parliament (refused to publicly confirm dual citizenship) on or about 11.11.2017

8. Jacqui Lambie Network Senator for Tasmania Jacqui Lambie – first elected 2013, resigned from parliament admitting dual citizenship 14.11.17

9. Liberal senator-elect Hollie Hughes – found to be eligibility by the High Court on 15 November 2017 due to the fact that she holda an office of profit under the Crown

Australian Politics 2017: Greed Unlimited #2

Former Liberal MP for Dunkley Bruce Fredrick Billson is to be investigated.

The Sydney Morning Herald, 4 September 2017:

Bruce Billson in Parliament. Photo: Andrew Meares

Former government minister Bruce Billson will be examined by a bipartisan committee to determine whether he acted in contempt of Parliament by taking undeclared payments from a business lobby group.

Mr Billson, who retired from Parliament at the July 2016 election after being dumped from the ministry when Prime Minister Malcolm Turnbull took over as leader, announced in March last year he was taking up a position with the Franchise Council of Australia. However, the income from this new position was not declared on his parliamentary register. 

Since the failure to register the separate income was revealed, Liberal MPs have expressed surprise that the former small business minister began receiving his $75,000 salary from the industry group while serving as an MP and he has faced calls to donate the amount in question to charity.

Manager of opposition business Tony Burke, who sought the inquiry, said the committee would investigate if the dual employment raised "any issues that may constitute a contempt of the House or to any issues concerning the appropriate conduct of a member" regarding his responsibilities to voters.

MPs who fail to properly complete their register can be declared in contempt of Parliament, risking a fine of up to $5000 or imprisonment for up to six months. 

Speaker Tony Smith said the House of Representatives still had jurisdiction over former MPs for their actions while in office, as in the case of disgraced Labor politician Craig Thomson who was formally reprimanded in 2015 after leaving Parliament in 2013.

Permitting the referral, Mr Smith noted two possibly relevant matters of contempt in Parliament's procedural handbook: "corruption in the execution of a member's office" and "lobbying for reward or consideration"

On 7 March Billson informed the Registrar of Members’ Interests that he was now the director and a shareholder in a new private company, added a private vehicle to his list of assets, outlined hospitality received as an MP and ended what was the last registry update of his political career with the memorable line:

By 23 March 2016 while still MP for Dunkley Bruce Billson was announcing to the world (but not to the Registrar) that he was now Executive Chairman of the Franchise Council of Australia – a paid position which commenced on 9 March.

Billson retired from parliament at the July 2016 federal election still not having declared this chairmanship or the $75,000 annual salary that went with it to the Registrar of Members’ Interests.

Seventeen months later he is calling this glaring omission “an administrative failing on my behalf”.

Not the words I would use to describe his actions.

Australian Politics 2017: Greed Unlimited

A wealthy former merchant banker and Australian prime minister conservatively worth an estimated $200 million, whose annual parliamentary salary package is worth more than that of an American president, is caught with his greedy hand in the nation’s till……

Daily Telegraph, 1 September 2017:

PRIME Minister Malcolm Turnbull has been forced to pay back part of his travel expenses nine months after pocketing more than $1000 in allowances when he visited remote indigenous communities in South Australia.

Mr Turnbull will pay for the costs after The Daily Telegraph made inquiries about why the travel allowance had been claimed for accommodation that was provided free.

Finance Department expenditure reports show Mr Turnbull claimed $1130 in accommodation costs for two nights when visiting Umuwa and Scotdesco, in far northern South Australia in October 30 and October 31 last year.

But this newspaper can reveal the Umuwa accommodation was paid for by the South Australian government, not by Mr Turnbull. And the accommodation in Scotdesco costs just $60 per person.

When contacted on Monday, the Department of Prime Minister and Cabinet declined to comment, instead sending a request for an invoice to the South Australian government, despite the trip taking place nine months ago.

A spokesman for the SA State Development Department confirmed Mr Turnbull had “stayed in accommodation owned by the state government of South Australia at Umuwa on the Anangu Pitjantjatjara Yankunytjatjara Lands”.

Caught out Prime Minister Turnbull hurried to cover his cash grab.

“Following a request from Department of the Prime Minister and Cabinet an invoice is being issued for the cost of the accommodation,” he said.

“The request for invoice was on Tuesday 29 August, 2017.”

It is understood that despite the claim of $565 for each night, the cost for accommodating four people in Umuwa, including Mr Turnbull, was $360.

This voter is not impressed by such petty personal greed, Malcolm Bligh Turnbull.

Members of Australian Parliament receive third pay rise in four years raising base salary to $203,020 per annum

The 226 members of the House of Representatives and Senate will receive a base salary which is almost six times higher than the June 2017 full-time minimum wage – commencing on 1 July 2017.

Excerpts from Remuneration Tribunal 2017 Review of Remuneration for Holders of Public Office Statement, 22 June 2017:

The Tribunal has decided to increase remuneration by 2 per cent for public offices in its jurisdiction, with effect from 1 July 2017…….

In conducting its annual review of remuneration, the Tribunal takes account of economic conditions in Australia, past and projected movements in remuneration in the private and public sectors (including the APS), as well as the outcomes of reviews of public offices completed by the Tribunal. In order to inform its conclusions the Tribunal draws upon authoritative external sources such as the published material available from the Government, the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) as well as trends in public and private sector remuneration. It is obliged by its legislation also to consider the Annual Wage Reviews of the Fair Work Commission.

Adjustments arising from the Tribunal’s annual review generally apply to the broad spectrum of offices in the Tribunal’s determinative jurisdiction including the most senior offices in the public service and statutory agencies, certain government-owned businesses, Secretaries, numerous part-time offices and the federal judiciary, as well as parliamentarians. Ordinary annual adjustments in remuneration of this kind recognise the achievement of ongoing objectives and the steady evolution in responsibility that is characteristic of public administration.

The Tribunal considers it important that remuneration for offices in its jurisdiction be maintained at appropriate levels over the longer term to attract and retain people of the calibre required for these important high level offices. The Tribunal is conservative in its approach to annual increases and in this case is conscious of the Government’s policy of wage restraint for the APS and non- APS government agencies. Ideally, the Tribunal is concerned to avoid, in the future, any need for significant one-off increases to restore proper relativities and to recognise fully ongoing changes in work requirements…..

The Tribunal sets remuneration for a range of offices that sit at the forefront of the private/public sector ‘divide’. Heads of agencies, members of boards and technical/professional specialists often straddle roles between both sectors. Many of these office holders do not expect or require that monetary compensation be set at private sector levels.

Rather in the true sense of the phrase ‘public service’, office holders serve for the public good. This means that in setting remuneration the Tribunal has traditionally set rates below those of the private sector.

Nonetheless over the past year there has been a notable increase in submissions to the Tribunal seeking higher remuneration for offices and individual office holders based at least in part on private sector remuneration.

As well as achieving an appropriate balance in the assessment of both private and public sector wage movements, the Tribunal must make its assessment of wages and other economic considerations based not just on past experience but also on predictions of future movements. The Tribunal is also conscious of the Government’s policy of wage restraint applying to APS and non-APS agencies. Ultimately the Tribunal has decided to set its general increase at 2 per cent…..

This wage increase translates into the following figures.

The Australian, 22 June 2017:

The rise will push ordinary members of parliament up by just under $4000 to $203,020 per annum.

The Prime Minister will get a $10,350 pay rise from $517,504 a year to $527,854

Cabinet ministers, currently paid a base salary of $343,344, will get nearly $7000 extra and will now be paid $350,210 a year.

Shadow ministers, on $248,800 per year, will get bumped up to $253,776 a year.

MPs and senators had already been granted additional taxpayer-funded support staff six months ago.

The Australian, 20 December 2016:

Taxpayers will fork out an extra $35.8 million over the next four years for federal politicians to ­employ 33 additional staff, adding to more than 1500 people already employed by MPs.

The allocation will see the extra full-time positions divided ­between the Coalition, Labor, the Greens and crossbench MPs, and also provide for some existing roles to be reclassified, costing $9.1m annually from 2017-18.

The mid-year budget review says $35.8m will “allow parliamentarians to more effectively manage their workload and represent the interest of their constituents”.

The total number of personal staff employed by government MPs is 448, including 401 for the 30 ministers and 25 for the 12 parliamentary secretaries, who are called assistant ministers.

Eight staff work for government whips and a further 14 have other roles.

The opposition employs 101 personal staff; 37 are allocated to the Leader of the Opposition, and six to opposition whips. The Greens have 17 personal staff. Each of the 15 crossbench MPs and senators have been allocated an extra three staff. In addition, there are almost 1000 staffers working in electorate offices, with the 226 MPs and ­senators entitled to four workers each.

Department of Finance documents show the number of staff classified as senior advisers ­jumped from 61 in February last year to 101 last month. In the same ­period, the total staff in lower-paid positions fell by eight.

Government staff are paid ­between $48,000 annually for an entry-level electorate staffer to $245,000 for a senior adviser, plus allowances of up to $30,000 a year.

The staff have just signed a new enterprise bargaining agreement that locks in salary and allowance increases of 2 per cent a year for the next three years.

Readers will recall that Turnbull Government MPS and senators opposed the June 2017 minimum wage rise, actively supported cuts to penalty rates for workers in the retail, fast food, restaurant, hospitality and pharmacy sectors and, continue with planned welfare cuts including a freeze on family tax benefit rates for two years from 1 July 2017, a freeze on "income-free areas" and "means-test thresholds" for certain payments and allowances for three years and extending waiting periods for parental payments and youth allowance for those who are not full-time students or apprentices.