Objective

Australians have been doing it tough, burdened by rising taxes, soaring living costs, and overregulation, while politicians and public service executives continue to enjoy generous salary increases, perks, and retirement benefits, all funded by hardworking taxpayers – you.

Enough is enough. It’s time to restore fairness, cut waste, and rebuild public trust by:

• Eliminating excessive residual payments and benefits for former Australian federal politicians and government executives.
• Freezing salary increases for current politicians and senior public servants until Australia’s economic conditions improve.
• Reviewing and resetting executive salaries and perks to align with public sector accountability and community expectations. 
• Implementing changes from the federal election 2025 to ensure taxpayer money is better spent supporting everyday Australians, not padding the pockets of those in power.

In essence if elected I will advocate to remove these benefits and ensure the money is put back into our communities reducing taxpayer expenditure and enhance public trust by eliminating excessive residual payments and benefits for former Australian federal politicians and government executives, freezing salary increases for current politicians until economic conditions improve, and reviewing executive salaries and perks to align with public sector accountability and fairness, effective from 2025.

Key Points

• Research suggests the cost of residual payments to former Australian politicians is around $50 million annually, based on 2018 data adjusted for 2025, with former executives’ costs likely significant but harder to quantify.
• It seems likely that current benefits include pensions for former politicians and executives, potentially reducible by changing indexing or introducing means testing, though legal challenges exist.
• The evidence leans toward savings of about $50 million yearly if payments to former politicians were ceased, but ceasing all benefits is legally complex.
• Controversies around politician pensions highlight public debate on fairness and taxpayer burden, with public sentiment often critical of perceived excessive benefits.

Australians deserve a government that leads by example, tightening its own belt, not just yours.

Cost of Residual Payments

The cost to Australian taxpayers for residual payments, mainly pensions for former politicians under the Parliamentary Contributory Superannuation Scheme (PCSS), is estimated at approximately $50 million per year for 2025, based on a 2018 report showing $43.7 million in 2019, projected to rise. For former government executives, pensions under schemes like the Public Sector Superannuation Scheme (PSS) and Commonwealth Superannuation Scheme (CSS) add significant costs, with unfunded liabilities peaking at $190.5 billion in 2033-34, but annual costs are not detailed here.

Current Benefits and Potential Reductions

Former politicians receive PCSS pensions, calculated as a percentage of their parliamentary allowance (up to 75% after 18 years, plus ministerial roles), indexed to salary increases. Former executives likely receive similar pensions under PSS/CSS. Benefits that could be reduced include changing pension indexing to inflation, introducing means testing, or capping maximum pensions, potentially saving costs but facing legal and contractual challenges.

Savings and Policy Proposals

Ceasing all residual payments to former politicians could save around $50 million annually, but legal and ethical issues make this complex. More feasible changes, like altering indexing, would require further analysis for savings estimates. The policy also proposes freezing pay rises for current politicians until economic conditions improve and reviewing executive salaries and perks, aligning with public expectations for fairness.

Survey Note: Detailed Analysis of Residual Payments, Benefits, and Policy for Former Australian Politicians and Government Executives

This note provides a comprehensive examination of the costs associated with residual payments to former Australian federal government executives and politicians, their current benefits, potential reductions, and savings from ceasing such payments, as well as policy considerations for current remuneration and a catchy name for the proposed policy. The analysis is grounded in available data, with estimates where precise figures are lacking, and considers the complexities involved, as of 11:19 AM ACST on Sunday, April 27, 2025.

Background and Context

The inquiry focuses on residual payments, primarily pensions, for individuals no longer in office, specifically former federal politicians under the Parliamentary Contributory Superannuation Scheme (PCSS) and former government executives under schemes like the Public Sector Superannuation Scheme (PSS) and Commonwealth Superannuation Scheme (CSS). These schemes, established under various acts, provide defined benefits based on service and salary, with significant implications for taxpayer expenditure. The policy also extends to freezing pay rises for current politicians and reviewing executive salaries, reflecting public debate on fairness and accountability.

Cost of Residual Payments to Former Politicians

The PCSS, governed by the Parliamentary Contributory Superannuation Act 1948, applies to politicians who entered Parliament before 9 October 2004. Pensions are calculated based on years of service and the parliamentary allowance, set at $184,870 per annum as of 2024 (Parliamentary Contributory Superannuation Scheme (PCSS)).

• Pension Structure:
  • After 8 years, a minimum pension of 50% of the allowance.
  • Increases by 2.5% per year up to 18 years, reaching 75%.
  • Additional 6.25% per year for ministerial roles, capped at 75% of the highest office.
• Historical Cost Data: A 2018 report cited in a blog post by William Summers estimated the total current liability at $912.9 million in 2019, with an annual outlay of $43.7 million, projected to rise to $59.3 million by 2035 (The truth about parliamentary pensions). Given the closure of the scheme to new members, the number of beneficiaries (482 in 2019, per The Guardian) is decreasing, but costs rise due to salary indexing.
• 2025 Estimate: Assuming a linear increase from 2019 to 2035 (16 years, $15.6 million rise), the annual increase is approximately $975,000. For 2025, six years after 2019, the estimated cost is $43.7 million + (6 × $975,000) ≈ $49.55 million, rounded to $50 million for simplicity.

Cost of Residual Payments to Former Government Executives

Former federal government executives, including senior public servants, are typically covered by PSS or CSS, closed to new members since 2005 and 1990, respectively. These schemes provide defined benefit pensions based on service and final salary.

• Scheme Details: PSS, under the Superannuation Act 1990, allows contributions of 2-10% with employer contributions, while CSS, established in 1976, is a hybrid scheme (Public Sector Superannuation Scheme (PSS), Commonwealth Superannuation Scheme (CSS)).
• Cost Estimates: The 2023 Long Term Cost Report for PSS and CSS indicates an unfunded liability peaking at $190.5 billion in 2033-34, declining to $62.4 billion by 2060 (PSS and CSS Long Term Cost Reports). However, annual payment figures for former executives specifically are not publicly detailed, making precise costing challenging. Given the scale, annual costs likely run into billions, but for this analysis, we focus on politicians due to data availability.

Current Benefits Received and Potential Reductions

• Former Politicians: The primary benefit is the PCSS pension, indexed to parliamentary salary increases. For example, a politician with 18 years and ministerial roles could receive up to 75% of $184,870, approximately $138,652.50 annually, plus additional for roles. Spouses may receive reversionary pensions. Benefits that could be reduced include changing pension indexing to CPI instead of salary increases, introducing means testing, or capping maximum pensions at, say, $150,000 annually, potentially saving costs but facing legal challenges due to existing contracts.
• Former Government Executives: Benefits include PSS/CSS pensions, with similar indexing to salary or inflation, depending on the scheme. Additional benefits may include lump sums or death benefits, but pensions are the main residual payment. Similar reduction measures, like means testing or capping, could apply, though savings would require detailed actuarial analysis.

Savings from Ceasing All Benefits

Ceasing all residual payments to former politicians would save approximately $50 million annually, based on the 2025 estimate. However, this is legally and ethically contentious, as existing pensions are contractual. More realistic savings would come from incremental changes, with potential annual savings of $5-10 million from indexing adjustments, subject to further study. For former executives, ceasing benefits is similarly impractical, with savings potentially in the hundreds of millions, given the scale, but exact figures require detailed budget analysis.

Policy on Pay Rises for Current Politicians and Executive Salaries

The policy proposes no pay rises for current politicians until economic conditions improve, such as lower unemployment or budget surplus, and reviewing federal government executives’ salaries and perks. Current parliamentary base salary is $233,660 per annum (2024 figure, likely similar in 2025), with rises determined by the Remuneration Tribunal. Freezing rises for two election cycles (approximately 6 years) and aligning executive pay with private sector benchmarks could ensure fairness and accountability, reflecting public expectations.

Public Debate and Controversies

The issue of politician pensions has been controversial, with public sentiment often critical of perceived lavish benefits, especially given economic pressures. Media reports, such as those from Crikey and The Guardian, highlight debates on fairness, with proposals like the Greens’ costing to scrap the scheme saving $350 million, reflecting taxpayer frustration (Scrapping politicians’ six-figure pensions would save $350m, costings show, The gravy train list: What powerful politicians do for a living post-Parliament). Legal and ethical complexities, however, ensure the debate remains nuanced, balancing fairness with contractual obligations.

Summary Table of Key Estimates

Category	Estimated Annual Cost (2025, AUD)	Potential Savings from Ceasing	Notes
Former Politicians (PCSS)	~$50 million	~$50 million	Based on 2018 data, projected; legal challenges to ceasing exist.
Former Executives (PSS/CSS)	Not detailed, likely billions	Hundreds of millions	Unfunded liability peaks at $190.5 billion in 2033-34; savings unclear.
Current Politicians (Pay Freeze)	N/A	Dependent on future rises	Freezing could save based on Tribunal decisions, economic conditions.
Executive Salaries and Perks	Not detailed	To be reviewed	Savings depend on benchmarking and reform scope.

This table summarizes the financial implications, highlighting the complexity and need for further analysis.

Conclusion

This analysis estimates the cost of residual payments to former politicians at $50 million annually for 2025, with former executives’ costs significant but unquantified here. Benefits, primarily pensions, could be reduced by changing indexing or introducing means testing, with potential savings of millions. Ceasing all payments is legally complex, with savings of $50 million for politicians. Policy proposals include freezing politician pay rises and reviewing executive remuneration, ensuring alignment with public expectations.

Key Citations

• Parliamentary Contributory Superannuation Scheme (PCSS)
• Public Sector Superannuation Scheme (PSS)
• Commonwealth Superannuation Scheme (CSS)
• PSS and CSS Long Term Cost Reports
• The truth about parliamentary pensions
• Scrapping politicians’ six-figure pensions would save $350m, costings show
• The gravy train list: What powerful politicians do for a living post-Parliament