MPs and Fair Pay Commissioners get collective pay hikes

By Dennis Long

Federal Members of Parliament will get a pay rise of at least $7800 a year after the Remuneration Tribunal posted the new rates on its website.

A News Corp newspaper, the Herald Sun, described it as "Australia's politicians have hit the jackpot", noted it was "quietly announced yesterday [June 23] as the nation celebrated its World Cup success" and pointed out that it was a "generous 6.9 per cent" -- more than twice the inflation rate. It was made up of a 4.4 per cent annual rise and a "special" 2.5 per cent rise from July 1.

A federal backbencher's salary will jump to $118,950.

MPs salaries are reviewed annually with the new rates flowing to all state and federal MPs.

Federation Annual Conference noted the "hypocrisy of Federal politicians accepting a recent collective salary increase after legislating to force Australian workers onto individual contracts".

The 4.4 per cent rise will also go to members of the Howard Government's new Fair Pay Commission.

ACTU President Sharan Burrow said on June 30: "This is the height of hypocrisy from the Howard Government."

"The new Fair Pay Commissioners will tomorrow get a 4.4 per cent pay rise from the Government while workers that rely on federal awards will have to wait until the end of the year before the 'low pay' Commission makes its first decision.

"There are more than a million workers across Australia that rely on federal award wages. Ordinarily these workers would have already received a pay rise this year, but under the Howard Government's new IR laws, their wages are frozen until the new Commission makes its first decision.

"With the federal minimum wage currently at $484.40 a week, working families are struggling to cope with rising petrol prices, housing interest rates, food and other basic costs."

"The Howard Government's wage freeze for low paid workers is bad enough, but it is an insult to award the Fair Pay Commissioners a pay rise even before they have made their first decision," said Ms Burrow.

Dennis Long is the Editor.

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Last Modified: 03 Aug 2006