Politicians told to cut their own super perks first

There are fresh calls for politicians to do something about their own tax breaks and pension schemes after new analysis

There are fresh calls for politicians to do something about their own tax breaks and pension schemes after new analysis revealed just how much they’re costing every day Aussies.

Financial strategists Marinis Financial Group estimates that more than $1.5 billion a year could be saved if pollies removed their own “obscene” tax break.

Hundreds of thousands of public servants and politicians with defined benefit superannuation schemes were given a 10 per cent tax offset on their retirement pension income a decade ago even though they paid no tax on their super contributions or fund earnings during their working years.

“They’re among the most generous schemes in Australia, and probably the world, and they don’t need an extra free kick,” Marinis Financial Group managing director Theo Marinis told News Corp.

“The pensions they are getting have never, ever been taxed, anywhere, but politicians want to start clobbering people who have been taxed the whole way.”

In case you’re wondering, a defined benefit pension typically pays a percentage of a person’s previous salary for the rest of their life, unlike most Australians’ super which is a lump sum that steadily decreases as it gets spent in retirement.

Only politicians and some public servants are lucky enough to get a defined benefit pension.

“Politicians and public servants in untaxed schemes receiving defined benefit pensions cannot double dip. They automatically receive their pension each fortnight, usually automatically indexed to CPI, with no exposure to market volatility,” said Mr Marinis, a former Treasury official.

On top of that, the analysis found that the cost of the scheme is actually rising ever year.

“The cost of those defined benefit pensions is rising by $6 billion a year and there is a $400bn to $600bn shortfall. That increase in costs is conveniently buried and not included in budget figures but it’s a real cost,” said Finance commentator Robert Gottliebsen.

So why all the talk about changing taxpayers super, but no mention of the politicians own pension benefit?

Mr Marinis said pollies are avoiding the topic “because it affects them”.

He says the tax concessions could be stopped by a simple change to the Tax Act.

“You are not supposed to give tax concessions to somebody who hasn’t already paid tax on their super.

How does this make you feel?

Are you fed up with politicians getting these kinds of benefits? Or do they deserve special treatment because of their contribution to society?

  1. Their only in politics to feather their own nests they don’t give a damn about anyone else. I personally don’t trust any of them they certainly do not deserve any special treatment nor respect.

  2. lurch  

    all the usual BS, one rule for them and another rule for the public

  3. This has been known for ages. It’s like their wage increases, we fight to get 3% and they pass an 11% pay increase for themselves with no one in Government blocking or questioning it. I have no respect for either major party at the moment and I think the last election reflected that the majority of voters feel the same.

  4. Bruce Ellison  

    It’s about time all the perks these people get are bought to the publics attention and the public are allowed to pass judgment on them. How many times do we have to listen to them bleat “but it’s within the guidelines” every time one of them gets caught doing something the rest of us would class as dishonest?

  5. No they get enough .I for one am sick and tired of battling have done it all my life .When do ordinary people get a go.?

    • Lynne  

      I’m with you on that comment!! Always got their noses in the trough, and don’t even sit in Parliament many days a year, always seem to be on a break!!

  6. and they wonder why the voters have become dis infranchised with them a lot of money for little work listen to the worrkers out there and the retirees who have worked all their life wish we could get the same pension we have supported the contry

  7. David Charlton  

    Don’t we as employers have a right to reduce their wages and perks on economic and productivity grounds….

  8. Start at 60 should use change org to start a petition that all politician perks be reduced. I mean their family travel as well.

  9. Roy Bridges  

    How can you have trust, respect for any off them . If they were fair and honest they would put them selfs on same as everyone else . Them maybe they would get respect.

  10. Disgusting the lot of them.

    Productivity what have they done to deserve a 11% pay risE NOTHING.
    Just cut their perks and super thdn Sack them all

  11. Greg Hills  

    It really is time for them to play by everyone else’s rules, instead of making up their own.
    It is time to bring their super into line with the rest of ours.
    Also, once super contributions are taxed once at entry, there should be no further need to tax it.
    The initial tax rate of 15% is ample. We need to encourage people to invest more in super, so that they fund their own retirement, and will not need the pension.
    Retired politicians need to be means tested too, so that they can’t draw their pension while earning any other income. Most of them get outside jobs when they leave politics.

  12. Yes it’s about time they too became a tax payer like us instead of getting everything handed out for virtually doing not a hard days work.

Leave a Reply

Your email address will not be published. Required fields are marked *