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Federal MPs To Get Pay Rises On Same Day Penalty Rate Cuts Kick In

Lucky for some

Federal MPs To Get Pay Rises On Same Day Penalty Rate Cuts Kick In

Our federal pollies will be cheering come July 1, with every one of them set to be handed a minimum $4,000 a year pay rise PLUS a cut to their tax rate. 

The 2 per cent rise in wages and 2% cut to taxes was given the green light by the independent Remuneration Tribunal. 

In its ruling, the tribunal says the decision was in response to "a notable increase in submissions" asking for raises "based at least in part on private sector remuneration". 

As for what this means for them? Well, the Prime Minister, for example, will accept a raise from $517,504 to $527,852, while Deputy PM Barnaby Joyce is set to earn $416,191. 

The lift follows another 2% rise in January 2016, and a 2.4% jump in 2013. 

On average, a cabinet minister is paid around $350,000 while opposition counterparts earn about $100,000 less. 

In comparison, the median salary in Australia is about $80,000 per year.

This morning, on Nine, Anthony Albanese and Christopher Pyne (both very tired after a late night passing the new education reform through the Senate) defended the raises: 

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Of course, it all happens on the same day as income tax cuts for high earners. 

It's salt in the wounds of the thousands of Australians who will notice the first penalty rates cut on the same day. The rate cuts in the retail, hospitality, pharmacy and fast food sectors will be phased in over 2-3 years. 

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