A payment scheme could see departing state politicians be paid almost $300,000 as they search for a new job – with taxpayers forking out millions to fund it.
The proposal, which is before the Victorian Remuneration Tribunal, would see Victorian MPs who resign or lose an election receive a generous payout.
They would be eligible for an initial resettlement payment of $96,000 – the equivalent to six months of their annual $192,000 salary, the Herald Sun reported.
State MPs who are successful in finding work within that six month period would be responsible in advising parliament to have their payment cut off.
Those who are unable to land a new job in six months can apply for two more rounds of $96,000 payments provided they are actively looking for work.
Victorians MPs who resign or are voted out could receive up to $300,000 as they search for a new job under a payment proposal (pictured, Victorian Parliament)
There are exemptions in place for MPs who have ‘medical, mental health or caring responsibilities that preclude them from obtaining employment’.
In total, a former MP could gain up to $288,000 under the proposed scheme over 18 months.
The submission was made by Deakin University to the Renumeration Tribunal, which sets the pay for politicians.
The university were commissioned by former MPs and the Victorian parliament to assess the transition out of public life for politicians.
Researchers found that state politicians struggled to get work after they resigned or were voted out.
To support them, the university recommended the payment proposal during the transition period.
Deakin’s modelling suggests that if there were a high number of departing MPs in any given election, the cost to the taxpayer could add up to more than $4 million in ‘separation’ payments.
However, if at least 20 per cent of those waited the full six months to find a new job, it would cost taxpayers up to $4.29 million.
A separation payment system already exists, which is only provided to dependants of an MP who dies in office; an MP who does not seek re-election; or otherwise ceases to be an MP provided there is not corrupt conduct.
In their submission, Deakin researchers used interviews with former MPs to strengthen their argument for the payments.
‘I was unemployed. I was the family’s main income earner. All of a sudden, things that you take for granted…like paying for the mortgage…all becomes a bit shaky, so it was hard,’ one former MP recounted.
The submission also detailed how mentally draining losing a seat could be.
Backbench MPs get about $192,000 per year, while Victorian Premier Daniel Andrews (pictured) is paid about $465,000 – the highest of any state leader in Australia
Departing state MPs would be eligible for a resettlement payment of $96,000. If they don’t secure a job within six months, they can apply for two more rounds of payments (stock image)
‘I was in such a terrible headspace that I probably wasn’t applying as much as I should have been, but I don’t think I was getting interviews for that reason,’ one former MP told the researchers.
‘I’ve had friends that have been in this position before over the years, when you’re depressed and at a low ebb, you kind of don’t get traction with potential employers, because I think there’s a vibe around that,’ one former MP told the researchers.
It comes as the Renumeration Tribunal considers salary increases for state politicians this year.
State MPs received a 2.75 per cent pay rise last year – the equivalent of $5000.
Backbench MPs currently get about $192,000 per year, while Victorian Premier Daniel Andrews is paid about $465,000 – the highest of any state leader in Australia.
The Remuneration Tribunal is accepting submissions until the end of this month, before it makes any decisions regarding MPs pay.
