Prime Minister Julia Gillard’s salary will rise to $481,000 and backbenchers will get a base rate of $185,000 from 2012, under a plan released on December 15, 2011.
The Remuneration Tribunal has released its final determination of politicians’ and public servant pay, which needs the parliament’s approval before it comes into effect. Tribunal president John Conde told reporters in Sydney the prime minister’s new salary would be $481,000—up from $367,000.
“In our view that is not an unreasonable salary for the prime minister of Australia, whoever he or she may be,” Mr Conde said. It was important that Australia paid its politicians well enough to attract and retain people from all walks of life in the parliament.
Asked whether it was the right time in the economic cycle to be thinking about pay rises, Mr Conde said: “There is never a right time for this. “It’s been a long time coming. We’ve concluded our work and this is our conclusion.”
The annual salary for a backbencher will rise from $141,000 to $185,000.
Mr Conde said he did not believe it was excessive, considering the workload of a Minister of Parliament.
Salary of US President
Comparatively, the annual salary of US President Barack Obama is $400,000 and is subject to tax, unlike many of the corporate executives from Wall Street, NewYork whose annual salary runs into millions. In addition to his taxable income of USD 400,000, the US President also receives additional allowance of USD 50,000 which is not taxable and is used for official purposes only.