A wide disconnect has opened up between the pay rises being received by federal politicians and senior bureaucrats compared with the rest of the population.
This disconnect is shown clearly in the latest wages price data from the ABS, which showed public sector wages growing far more strongly than the private sector:
As well as in the latest wages and salaries data from the ABS, which showed how the ACT (Canberra) – dominated by public servants and bureaucrats – was the only jurisdiction to record strong wages growth while workers in the rest of the nation went backwards:
Now, federal public servants are expected to make out like bandits yet again, with the independent Remuneration Tribunal on Thursday handing down a pay rise to federal politicians. From The SMH:
The 2 per cent pay rise was ordered by the independent Remuneration Tribunal on Thursday and will take effect on the very same day that every MP benefits from a drop in the top marginal tax rate from 49 per cent to 47 per cent when the deficit repair levy ends.
The pay rise also comes at a time of a looming cuts to penalty rates and historically low wages growth.
In its ruling on the pay rise for Australia’s politicians, the tribunal noted that it had received a “notable increase in submissions” asking for pay raises “based at least in part on private sector remuneration” – a sign that at least some of our public servants felt they weren’t being paid enough…
The average cabinet minister will be paid $350,209. Their opposition counterparts will earn $253,775, Greens leader Richard Di Natale will earn $289,303 and backbench MPs will see their incomes rise from $199,040 to $203,020 a year…
“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,” it said in its statement announcing the decision…
The pay rise was announced as the Department of Finance also released the latest batch of MPs’ expenses reports.
The reports show that our five former prime ministers – not including Tony Abbott – had taxpayers shell out for about $440,000 worth of expenses between June and December 2016.
John Howard was the biggest spender, racking up nearly $150,000 worth of travel and office costs.
As well as senior bureaucrats, via The Canberra Times:
Australia’s top public servants have been given annual payrises of up to $17,000 a year, as most of the rank-and-file of the federal bureaucracy still wait for their first general wage increase in four years.
At the top of the pile, Martin Parkinson, boss of the Department of the Prime Minister and Cabinet will be taking home a pay packet worth $878,000 a year after July 1.
Treasury Secretary John Fraser’s remuneration package will soar to $856,000 while further down the food chain, Foreign Affairs boss Frances Adamson and the yet-to-appointed new Defence Secretary will now each be paid $830,000-a-year…
A secretary running a mid-tier department like Human Services, Industry or Attorney-General’s would have been earning a salary package of about about $681,000 in 2013.
After July, that figure will be more like $746,000, an increase of more than 9 per cent, after the series of general and of “catch-up” increases.
Clearly, this is a very poor look. At a time when average employee compensation has fallen for the first time in recorded history (down even further after inflation):
Our politicians and senior bureaucrats should not be receiving increases in their already exorbitant pay.
