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Your salary is paid monthly in arrears.
The Department of the Senate is responsible for paying salaries to Senators while the Department of the House of Representatives is responsible for paying salaries to Members.
Your salary is subject to ‘Pay as You Go’ (PAYG) tax withholding (12-45 of Schedule 1 to the Taxation Administration Act 1953). The amount of PAYG withheld may vary depending on individual circumstances.
For members of the Parliamentary Contributory Superannuation Scheme (PCSS), personal contributions are deducted from your salary. The Remuneration Tribunal sets the portion of base salary (currently $42,380), office holder salary (currently 20 per cent) and Ministerial salary (currently 20 per cent) which is not parliamentary allowance for the purposes of the Parliamentary Contributory Superannuation Act 1948.
All parliamentarians may salary-sacrifice to superannuation (Division 3, Part 2, Parliamentary Business Resources Act 2017).
Benefits provided to Senators and Members in the form of fringe benefits are subject to Fringe Benefits Tax (FBT) which is payable by Ministerial and Parliamentary Services. 'Office-holders’ are ‘employees’ for the purposes of FBT legislation and the responsible Department is treated as if it were a legal person (the employer) for these purposes (section 66 of the Fringe Benefits Tax Assessment Act 1986 and section 4 of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986).
The FBT year ends on 31 March with the FBT rate set at 47 per cent of the grossed up value of benefits provided (section 136(1) of the Fringe Benefits Tax Assessment Act 1986 and section 6 of the Fringe Benefits Tax Act 1986). A benefit that is a fringe benefit is exempt from income tax (section 23L of the Income Tax Assessment Act 1936).
Examples of fringe benefits include:
- the provision of car transport where the car is used or made available for private purposes (section 7 of the Fringe Benefits Tax Assessment Act 1986)
- the provision of free telephone services where there is a percentage of private use (section 20 of the Fringe Benefits Tax Assessment Act 1986)
- the provision of spouse and dependant travel (sections 45 and 148 of the Fringe Benefits Tax Assessment Act 1986)
- the provision of post retirement travel and parliamentary retirement travel for retired former Prime Ministers (section 45 of the Fringe Benefits Tax Assessment Act 1986).
Ministerial and Parliamentary Services provides the House Departments with the grossed-up value of fringe benefits provided to you during the FBT year (1 April to 31 March). If the total taxable value of fringe benefits received exceeds the $3,000 threshold, the amount will appear on payment summaries (sections 135M - 135Q of the Fringe Benefits Tax Assessment Act 1986). The House Departments are responsible for issuing payment summaries.
You pay no income tax on reportable fringe benefits. However, the reportable fringe benefit amount is added to assessable income and used to calculate your liability or eligibility to various surcharges, income tax deductions and other obligations.
More information on FBT and reportable fringe benefits is available from the Australian Taxation Office.
Last updated: 12 November 2019