MPs' allowances scrutinised as job perks abuses are investigated

As Peter McGauran walked down a Melbourne street one day last week, distinctive with his shock of flame-red hair, a passer-by…

As Peter McGauran walked down a Melbourne street one day last week, distinctive with his shock of flame-red hair, a passer-by turned and loudly hissed. The uncharacteristic response to Australia's former science minister is a sign of growing community anger and frustration at daily revelations of parliamentarians abusing their lucrative benefits, or perks. Australians have for years quietly tolerated a bit of fiddling by their elected representatives as a kind of unofficial compensation for their low salaries and long hours. However, the travel allowance scandal which last week claimed the scalps of McGauran, two ministerial colleagues and two senior advisers of the Prime Minister, Mr John Howard, has focused the spotlight on the extent of MPs' privileges and the lack of accountability, sparking calls for a dramatic overhaul.

Fresh revelations yesterday show another 140 national members of parliament, including more ministers, have been ordered to explain discrepancies in their travel claims, in the biggest perks investigation in Australian political history.

"The message from a week that has seen those in public life treat our money with such disdain is overwhelming: the days of trust are over," said the Sun-Herald newspaper. "John Howard, who came to power on a promise to improve the probity of public life, has done nothing of the sort."

Australia's national MPs are paid a base salary of almost Aus$82,000 (about £36,000), roughly the same as a middle-ranking business executive. That salary is topped up with "no-questions-asked" travel allowances of up to Aus$320 a night, the best pension scheme in the country, free domestic air travel, electorate allowances up to Aus$38,000 a year, some free travel for spouses, and a first-class around-the-world airfare every three years.

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In Canberra, the 224 members of the national parliament are ensconced in a billion-dollar building, pampered with a private gymnasium, spa and sauna, subsidised bars and restaurants and room service provided by chefs from the nearby Hyatt hotel. Travel allowances - free of the 48.7 per cent income tax MPs pay on their salary - can significantly boost annual earnings. Some MPs claim more than Aus$50,000 a year.

Currently there is no need to prove that the night away from home actually cost the MP anything. One politician used to stay in a Canberra caravan park for a few dollars a night while claiming the Aus$145 a night paid for stays in the capital. McGauran, a millionaire landowner from country Victoria, used to claim Aus$320 a night for staying at his wife's Melbourne apartment when he was in the state capital for ministerial business.