Taxpayer funded MP travel allowances lift over rising costs in Canberra

The independent Commonwealth Remuneration Tribunal on Tuesday moved to increase travel allowances for MPs and senators to reflect expense amounts set by the Tax Office.

The tax-free daily travel allowance for Canberra during sitting weeks will increase slightly to $310, up from $299. Federal MPs are allowed to keep the allowance for staying in the capital even if they stay in their own Canberra property.

There are higher allowances for other locations including other capital cities and slightly more for MPs and senators with extra roles such as whips, chairs of committees and leaders of minority parties. Darwin is set at $480 a night, with a slightly higher rate of $497 for higher office holders.

The tribunal noted the base annual salary for a senator or member remains at $217,060, while the base "electorate allowance" remains at $32,000 a year.

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The independent body has also increased the rate of travel allowance for each night in commercial accommodation in Australia that is away from the home base of the prime minister or acting prime minister to $612. This is up from $598 at the last update earlier this year. The leader or acting leader gets a third of the $204 if it is non-commercial accommodation.

A minister's travel allowance has increased to a maximum of $204 a night. The last update had the ministerial rate at $199.

The tribunal has also increased the rate of the allowance for an MP or senator's private vehicle for travel between a member's home base and Canberra. The private vehicle allowance is now set at 85 cents per kilometre. This is up from 78 cents per kilometre at the last update.

The determination on allowances comes into effect on August 27, just ahead of the next sitting fortnight of Federal Parliament on September 4.

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