It is believed the costs of having metropolitan offices on top of flights and chauffeur driven cars costs about $300,000 a year each for Mr Howard, Ms Gillard and Mr Rudd. ", Nathan Rees, another former Labor Premier whose fall from the job Obeid was key to orchestrating, said Obeid was "the most odious politician most Australians have ever seen.". Eddie Obeid and Ian Macdonald to be stripped of NSW parliamentary pensions. Eddie Obeid will be stripped of his annual $120,000 parliamentary pension following his sentencing for misconduct in public office as a former NSW Premier declared it "a great day for NSW". Fairfax Media understands Macdonald opted to convert a portion of his pension entitlement to a lump sum upon quitting politics in 2010. The announcement means Obeid – who was charged after he left Parliament in 2011 - will stripped of his lifetime annual pension worth more than $120,000 a year. Changes to superannuation will have an impact on them. Don't have an account? Mr Rees said Obeid also damaged the standing of NSW parliament and its politicians. NSW Premier Mike Baird has announced MPs convicted serious offences during their time in office will lose their parliamentary pension. Add articles to your saved list and come back to them any time. The government has not ruled out taking superannuation reform to the next election. A sentencing hearing is set down for Friday. “Whether it is a Liberal government or a Labor government, whoever it is, we’re going to have the same problems, we’re going to have the same challenges. The legislation, unveiled on Tuesday, also threatens corrupt former minister Eddie Obeid with loss of his parliamentary pension under which he has been paid more than $120,000 a year since he quit politics in 2011. The former prime ministers are allowed to have up to four staff, a swanky city office and have business class travel covered. Each house is directly elected by the people of New South Wales at elections held approximately every four years. “What Labor wants to see is not the few already well-off getting a disproportionate benefit from the tax concessions but the vast bulk of people who don’t have enough being encouraged to save more for their retirement.”. Ms Milne will receive a generous parliamentary pension when she retires thanks to her nine years as a state MP in the Tasmanian parliament. Presently MPs convicted of a serious offence - punishable by at least five years' imprisonment - can keep their pensions if they are not charged while in office. This is also known as Online Behavioural Advertising. Former prime ministers John Howard, Julia Gillard and Kevin Rudd are enjoying more than $200,000 a year in pensions and perks. Eddie Obeid was jailed for misconduct in public office.Credit:Daniel Munoz. But the good news today is that justice has been served.". There are 24,000 people who have more than $2 million in their self-managed super accounts receiving about $216,000 in tax-free income stream payments each, or $5.2 billion in total. It didn’t stop Mr Latham from walking away with one, though. Even disgraced speaker Peter Slipper enjoys a lazy $157,000-a-year pension. Prime Minister Tony Abbott will earn at least $200,000 a year plus a city office, car and travel perks. The Finance Department has revealed taxpayers fund the $44.6 million needed to pay for the Parliamentary Contributory Superannuation Act for those who have served in parliament. Invalid postcode. Obeid – who was charged after he left Parliament in 2011 - faces being stripped of his lifetime annual pension worth more than $120,000 a year. Beyond that, the government needed to ensure multi-millionaires did not get the same degree of support as other taxpayers. "The corrupt actions of former Labor politicians Eddie Obeid and Ian Macdonald constitute a complete betrayal of public trust," Ms Berejiklian said. Register, Join the conversation, you are commenting as Logout. “Existing superannuation tax breaks are heavily skewed in favour of high income earners,” Greens leader Christine Milne said. Corrupt former Labor minister Ian Macdonald faces repaying a debt to NSW taxpayers potentially worth hundreds of thousands of dollars under a move to strip him of his parliamentary pension via legislation announced by Premier Gladys Berejiklian. PARLIAMENTARY SALARIES AND ALLOWANCES AS FROM 1 JULY 2019 FOLLOWING APPLICATION OF PARLIAMENTARY REMUNERATION TRIBUNAL dated 21 June 2019. Treasurer Joe Hockey is heading towards a golden handshake of $180,000 a year while Deputy Labor Leader Tanya Plibersek will retire with at least $140,000 a year. Recipients of veterans’ pensions, such as the Service Pension, and/or defined benefit income streams paid from military superannuation schemes will be exempt from the measure. To join the conversation, please log in. The change will require an amendment to legislation to be put to Parliament early next year. Figures from the Association of Superannuation Funds of Australia show the nation’s 76,000 wealthiest retirees are receiving just over $10 billion in super tax concessions a year. Potential changes to superannuation won’t have a great deal of impact for a significant portion of frontbenchers from both sides. The Obeid's legal bills for a variety of cases are believed to be more than $5 million. The revelations come as Shadow Treasurer Chris Bowen prepares to chair a meeting which will consider changes to tax concessions received by people who put more income into their super funds. The Baird government will also claw back more than $280,000 in legal assistance Obeid was given for representation at the Independent Commission Against Corruption inquiry that unearthed his misdeeds. Sorry we couldn't find a match for that, please try again, Join the conversation, you are commenting as, - - - - - - - - - - - - - - - - - - - - - - - -, Riches to rags: Aussie star who became a window cleaner, The two pacemen Thommo rates even higher than Lillee, Australian Olympic legend suffers heart attack, ‘Pissed off’: Smith’s massive behind the scenes war with 9, ‘Missed forever’: Sam Armytage farewells mum. Former treasurer Peter Costello isn’t doing too bad, either, pocketing $178,000 a year as a pensioner. Credit:Kate Geraghty. THEY’VE been gone for years, some even decades, but taxpayers continue to fund the high-flying lifestyles of our former politicians. By Sean Nicholls. Macdonald was entitled to an annual, indexed pension of $135,545 at the time, meaning he would have been able to claim up to $1.3 million as a lump sum. "I paid a heavy price personally but today is a day of satisfaction in that he's got his just deserts". Even the Greens have a plan to raise $10 billion over the forward estimates by escalating tax on multi-million superannuation funds. Mr Baird declared it a "sad day" but one on which "justice has been done". The [jail] term can't be long enough. NSW Premier Mike Baird has announced MPs convicted serious offences during their time in office will lose their parliamentary pension.Credit:James Alcock. Politicans enjoying generous lifetime pensions agree other Australians should have their superannuation taxed more . Only those who entered parliament after 2004 will be subjected to a standard superannuation scheme. Former Labor Premier Morris Iemma – who resigned in 2008 after Obeid and his factional supporters blocked Mr Iemma from reshaping his cabinet - declared it "a great day for NSW". A jury found Macdonald guilty of two counts of wilful misconduct in public office. He said he had no guilt about the money after orchestrating the cuts. However, the government will not be able to move against Obeid and Macdonald's pension for up to 12 months after their convictions - the period within which the legislation says they can head off the action with a successful appeal. The tap was turned off for those elected in 2004 and beyond, after Mr Howard bowed to pressure from then Labor leader Mark Latham to reduce pollie pensions. Former treasurer Peter Costello introduced tax free super withdrawals from July 1, 2007, for those over 60 and has warned of the dangers of further tampering with the system. He pockets $70,000 a year for the rest of his life. Sean Nicholls is the State Political Editor of The Sydney Morning Herald. Presently MPs convicted of a serious offence - punishable by at least five years' imprisonment - can keep their pensions if they are not charged while in office. “If there’s a bipartisan approach to fixing it then we can actually have some long-term stability, which I’m really keen for.”. Kate McClymont is an investigative journalist at The Sydney Morning Herald. In March, Macdonald was found guilty of criminal misconduct over his decision to award a lucrative coal licence to a union mate, former Construction, Forestry, Mining and Energy Union boss John Maitland. Obeid, a former Labor powerbroker and cabinet minister, was on Thursday sentenced to a maximum of five years in jail with a non-parole period of three years following his conviction in relation to lobbying over commercial leases at Circular Quay in which his family held an interest. Ian Macdonald leaves a Sydney court in March. The NSW Government is under pressure to explain why it has not changed the law to stop disgraced former Labor minister Eddie Obeid from receiving his parliamentary pension. Updated May 23, 2017 — 7.46pm first published at 1.50pm. "It's vindication that when I stood up to him I was right," he said. Eddie Obeid was jailed for misconduct in public office. "Everyone across NSW is incredibly angry. "These changes provide a strong reminder that politicians are here to serve the people of NSW, not to serve themselves.". Paul Keating is believed to be pocketing about $140,000. The legislation means that MPs convicted of a serious offence during their time in office will lose their parliamentary pension - except for personal contributions - even if they quit before charges are laid. "It's confirmation that no-one is above the law. Add articles to your saved list and come back to them any time. He said Labor wanted to restore the low-income support and put the rate rise back on track. See M Klapdor, ‘Changed indexation of pensions and tightened eligibility for all benefits’ , Budget review 2014–15 , Research paper series, 2013–14, Parliamentary Library, Canberra, 2014. Most politicians have 15.4 per cent of their gross salary placed into super funds of their choice. The pensions remain for life. The move comes just over five months after Obeid was sentenced to a maximum of five years in jail for misconduct in public office and days before Macdonald faces a sentencing hearing on Friday after being convicted of the same offence in March. Eddie Obeid and Ian Macdonald to be stripped of NSW parliamentary pensions. Credit:Daniel Munoz. Mr Baird also said Mr Obeid would be forced to repay more than $280,000 in legal assistance he was given for representation at the Independent Commission Against Corruption inquiry that preceded his conviction.