Politicians claimed an average of $8974 in work-related expense deductions in 2019-20, dwarfing the national average of $1446 in claims.
Australia’s politicians, state governors and local councillors claimed six times as much in work-related tax deductions than the national average of every other occupation in the country,But the Albanese government has no plans to wind back generous rules that allow MPs who maintain a Canberra residence to claim the cost on their tax return. In 2016, Labor said the practice did not meet community standards.
The average state or federal MP recorded a $46,817 gap between their average total income and average taxable income in 2019-20, which was the highest among the 1154 specific occupations included in the Tax Office’s annual tax statistics. By contrast, the average fast food cook claimed $245 in work-related expenses while the average cashier claimed $364 in deductions.Federal MPs receive a base salary of $217,060 as well as a $32,000 annual electorate allowance, which is a taxable payment covering incidental expenditure incurred while discharging electorate responsibilities.
. A daily allowance of $415 is paid on a trip to Sydney, $409 in Perth, $392 in Melbourne and $421 in Brisbane. The ATO provides a detailed guide on the deductibility of “commonly encountered” expenses ranging from maintaining a guard dog to the cost of food purchased at a fête.