Australian MP will receive a 2% pay rise and a 2% cut to their tax rate from July 1 next week.
The pay rise, ordered by the independent Remuneration Tribunal on Thursday, will take effect on the same day that the extra 2% tax imposed on Australians with a taxable income of more than $180,000, will cease, making the end of the Temporary Budget Repair Levy.
According to the tribunal, politicians were asking for pay raises “based at least in part on private sector remuneration”.
Private sector wage growth is running at around 1.8%, while public sector pay jumped 2.3%. Inflation currently runs at 2.1%.
The changes will see the pay packet of prime minister Malcolm Turnbull’s rise from $517,504 to $527,852.
Deputy prime minister Barnaby Joyce’s pay packet will rise from $408,032 to $416,191 a year.
Here’s a list of what the best paid politicians in Australia as it currently stands before the changes.
The latest data on full-time adult average weekly total earnings sees the average worker take home $1,592.40 a week – around $83,000 a year, an increase of 2.2% over 12 months.
The base salary for an Australian MP currently stands at $199,040.
In a statement on its decision to increase the pay packed of politicians, the tribunal said it: “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”.
It added that: “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 Australian Public Service and non Australian Public Service government agencies.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.