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MPs drop $30m on expenses in three months

Michael Read
Michael ReadEconomics correspondent

Australia’s federal politicians spent $30.7 million in the first full quarter of the new parliamentary term, as newly minted Labor frontbenchers travelled abroad to meet their international counterparts.

Prime Minister Anthony Albanese led the pack, spending $684,665 between July and September 2022, newly released data from the Independent Parliamentary Expenses Authority (IPEA) show.

About three-quarters of Mr Albanese’s expenses were for spending on employee travel, which was largely domestic. IPEA said travel was undertaken by 61 of Mr Albanese’s employees.

Mr Albanese spent $82,730 on international travel over this period, which included a trip to Paris in July to meet French President Emmanuel Macron and a surprise visit to Ukraine following an invitation from Ukrainian president Volodymyr Zelensky.

Mr Albanese also attended the 51st Pacific Islands Forum in Fiji later that month, as well as the funerals of Queen Elizabeth II in London and former Japanese prime minister Shinzo Abe in September.

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While the Coalition has sought to brand Mr Albanese “Airbus Albo” due to the frequency of his international trips, he has travelled no more than his recent predecessors.

Deputy Prime Minister and Defence Minister Richard Marles was the second-biggest spender on international travel, incurring $30,477 in expenses between July and September 2022.

The only non-government MP in the top 10 for international travel expenditure was the Nationals’ Darren Chester, who was selected to represent the federal parliament at the United Nations General Assembly in New York between late September and early December. The cost of the multimonth trip was $26,458.

Opposition Leader Peter Dutton spent $363,003 in the three months to September 2022, including $195,876 on employee travel.

Data overdue

The release of the spending data was delayed due to a bungled attempt by the public service to upgrade the expenses’ system.

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Special Minister of State Don Farrell repeatedly raised questions about the system, which is run by the Department of Finance when Labor was in opposition. After Labor came to power, Senator Farrell took the unusual step in November of asking the auditor-general to look into issues with the expenses’ system upgrade.

While politicians’ international travel spending garners significant public attention, it was just 1 per cent of the $30.7 million in spending undertaken by serving parliamentarians between July and September 2022.

Office facilities was the largest single expense, representing about $11.3 million in spending. This includes the cost of leasing electorate offices, furniture, and security.

MPs based in Sydney spent the most on their offices due to the relatively higher cost of leasing. Tanya Plibersek, whose electorate office is in the inner-Sydney suburb of Redfern, spent $161,884 on office facilities between July and September, which was the most of any parliamentarian.

The next most costly line item was office administration at $7.1 million. The figure includes spending on items like stationery and printing.

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MPs and senators spent $2 million on scheduled commercial transport and received $1.5 million in travel allowances.

Federal MPs receive travel allowances when they are on the road. The payment is tax-exempt provided the MP does not double-dip by claiming their travel-related expenses in their tax return.

A backbencher receives $310 per day when they are travelling to Canberra, according to the remuneration tribunal. A daily allowance of $469 is paid on a trip to Sydney, Perth or Melbourne, $450 for Brisbane, and $461 in Adelaide.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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