Big pay rises for politicians

THE Remuneration Tribunal has recommended a pay rise of 31 per cent for Prime Minister Julia Gillard and Opposition Leader Tony Abbott.

The recommendations will see Ms Gillard's pay packet rise from $366,366 to $481,000 while Mr Abbott's salary will rise from $260,684 to $342,250.

The increase will mean Julia Gillard's pay packet is higher than that of US president Barack Obama or British Prime Minister David Cameron.

Backbenchers are set for a $45,000 pay rise, taking their base salary to $185,000. The rise comes in exchange for losing some of their perks such as overseas study tours. The gold pass scheme will be phased out.

Parliament will need to approve the Tribunal's recommendations before it comes into effect.

Tribunal president John Conde said Ms Gillard's new salary was "not unreasonable" and that it was important politicians were paid well enough to attract and retain people.

Shadow ministers will receive pay rises of between 20 and 27.5 per cent.


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