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Politicians 'double-dipping' on property claims aren't breaking rules – Cormann | Politicians 'double-dipping' on property claims aren't breaking rules – Cormann |
(4 months later) | |
The finance minister, Mathias Cormann, has defended politicians receiving both a $273 a night travel allowance and tax deductions for mortgages and rents for properties in Canberra. | The finance minister, Mathias Cormann, has defended politicians receiving both a $273 a night travel allowance and tax deductions for mortgages and rents for properties in Canberra. |
Speaking on Insiders on Sunday, Cormann said the remuneration tribunal granted the travel allowance and the tax office allowed deductions for politicians’ accommodation expenses. | Speaking on Insiders on Sunday, Cormann said the remuneration tribunal granted the travel allowance and the tax office allowed deductions for politicians’ accommodation expenses. |
Federal politicians receive $273 a night to stay in Canberra, a travel allowance they can claim even when they stay in a property that they or their partner own. | Federal politicians receive $273 a night to stay in Canberra, a travel allowance they can claim even when they stay in a property that they or their partner own. |
Reports have revealed that on top of the allowance, MPs who rent or buy a property to stay in during work-related travel can also claim tax deductions for rent, interest on borrowings used for the acquisition of the property, rates, taxes, insurance and general maintenance. | Reports have revealed that on top of the allowance, MPs who rent or buy a property to stay in during work-related travel can also claim tax deductions for rent, interest on borrowings used for the acquisition of the property, rates, taxes, insurance and general maintenance. |
The Daily Telegraph said that Cormann was a “beneficiary” of the policy and listed a number politicians on both sides of the aisle who owned property in Canberra, including Julie Bishop, Michaelia Cash, Richard Marles, Tanya Plibersek and Penny Wong. | The Daily Telegraph said that Cormann was a “beneficiary” of the policy and listed a number politicians on both sides of the aisle who owned property in Canberra, including Julie Bishop, Michaelia Cash, Richard Marles, Tanya Plibersek and Penny Wong. |
On Insiders, Cormann said the travel allowance was set independently by the remuneration tribunal and tax rules were set independently by the tax office, and applied equally to all members of parliament. | On Insiders, Cormann said the travel allowance was set independently by the remuneration tribunal and tax rules were set independently by the tax office, and applied equally to all members of parliament. |
“I comply with all of the rules. Of course the tax ruling for members of parliament, which is quite comprehensive ... provides what deductions can and cannot be made. I provide all of that information to my accountant,” he said. | “I comply with all of the rules. Of course the tax ruling for members of parliament, which is quite comprehensive ... provides what deductions can and cannot be made. I provide all of that information to my accountant,” he said. |
Cormann rejected host Barrie Cassidy’s characterisation of the practice as double-dipping. “I don’t make the rules. None of us as politicians make the rules, we are expected to comply with them. | Cormann rejected host Barrie Cassidy’s characterisation of the practice as double-dipping. “I don’t make the rules. None of us as politicians make the rules, we are expected to comply with them. |
“None of these are new rules.” | “None of these are new rules.” |
Asked why politicians didn’t change the rules, Cormann replied it was appropriate that allowances and deductions be determined independently. | Asked why politicians didn’t change the rules, Cormann replied it was appropriate that allowances and deductions be determined independently. |
The opposition’s finance spokesman, Tony Burke, who’s been in federal parliament since 2004, said he wasn’t aware of the tax rules. | The opposition’s finance spokesman, Tony Burke, who’s been in federal parliament since 2004, said he wasn’t aware of the tax rules. |
Burke also said it was entirely appropriate for the independent remuneration tribunal and tax office to set the pay and tax rules for MPs. | Burke also said it was entirely appropriate for the independent remuneration tribunal and tax office to set the pay and tax rules for MPs. |
“Politicians are the last people who should be determining what the rules for politicians are,” Burke told the Nine Network. | “Politicians are the last people who should be determining what the rules for politicians are,” Burke told the Nine Network. |
The Labor leader, Bill Shorten, said: “I understand that what has been reported today is within the rules. | The Labor leader, Bill Shorten, said: “I understand that what has been reported today is within the rules. |
“For myself, I was not aware you could do that. For better or for worse, I own one house and I live in it. So I have not made those claims. I understand they are within the existing rules, set by an independent tribunal.” | “For myself, I was not aware you could do that. For better or for worse, I own one house and I live in it. So I have not made those claims. I understand they are within the existing rules, set by an independent tribunal.” |
The prime minister, Malcolm Turnbull, said: “It’s very important that politicians pay and allowances ... [and] tax rules relating to tax deductions are not set by the politicians.” | The prime minister, Malcolm Turnbull, said: “It’s very important that politicians pay and allowances ... [and] tax rules relating to tax deductions are not set by the politicians.” |
He said the rules on tax deductions set by the tax office were “in line with business expense deductibility”. | He said the rules on tax deductions set by the tax office were “in line with business expense deductibility”. |
“So that’s ... how it is and that’s how it should be and how it has been for a very long time.” | “So that’s ... how it is and that’s how it should be and how it has been for a very long time.” |
Asked about her personal use of the $273 overnight allowance, Labor’s deputy leader, Tanya Plibersek, said she claimed the usual entitlements set out in the framework, “same as everybody else”. | Asked about her personal use of the $273 overnight allowance, Labor’s deputy leader, Tanya Plibersek, said she claimed the usual entitlements set out in the framework, “same as everybody else”. |
“If I could spend every night in Sydney with my family and never have to stay overnight in Canberra, I would be delighted,” she said. “But sadly my work takes me away from home quite often and, when I am away from home overnight, I claim [the] travel entitlement to do that.” | “If I could spend every night in Sydney with my family and never have to stay overnight in Canberra, I would be delighted,” she said. “But sadly my work takes me away from home quite often and, when I am away from home overnight, I claim [the] travel entitlement to do that.” |