Senior MPs claim $1.5 million to stay in second homes

Business Secretary Don Farrell has been criticized for spending more on family travel than any other Labor MP since the 2022 election – $116,000.

This masthead’s analysis of Independent Parliamentary Expenditure Authority data from May 2022 to September reveals that Farrell claimed a further $71,861 under his Canberra travel allowance in that period, while owning a home in Canberra. As a special secretary of state, Farrell oversees MPs’ travel rights legislation.

More recent travel requests are not included as they have not yet been tabled.

‘ [allowance] rate for MPs… is a set number regardless of whether they stay in a garage, a Hyatt or an apartment.’

National Senator Bridget McKenzie

In this article, the claims of 20 prominent people in the government and opposition were calculated. The analysis does not include the Greens – although no one in the party’s leadership group has declared they own a home in Canberra – nor do they crossbench or backbench.

The claims, worth $1,508,911 since May 2022, are a snapshot of the number of politicians exercising this right. Ministers are not the only ones demanding the allowance; About a quarter of the 226 elected representatives in the federal parliament have a home in the capital. It is also common for MPs to share accommodation during their stay in Canberra to keep costs down. The total figure will be much higher over the years.

Parliamentary guidelines say MPs are entitled to the allowance – rising steadily from $291 in 2022 – to cover “accommodation, meals and other expenses not in their base for each night’s stay”, but the rules fail to take into account those paying mortgages instead of out-of-pocket accommodation costs.

Lawmakers do not need to provide a receipt as proof of spending to receive payment.

Politicians are required to travel to the capital for 16 to 18 sitting weeks a year, with ministers and their opposition shadows often required to spend more time in Canberra. Jim Chalmers, for example, has extra responsibilities as deputy chairman of the cabinet’s spending review committee.

All frontbenchers surveyed by this imprint who have second homes in Canberra are claiming this allowance. This imprint contacted 10 Labor Ministers and 10 Coalition leaders and none disputed these figures.

Alongside McKenzie, opposition spokesman for skills and training Scott Buchholz also responded, saying he was paying for his Canberra property with his salary. Others declined to comment or answer a detailed list of questions, including whether their travel allowance was used to pay off their mortgages.

Two days before Christmas, Albanese proposed changes to MPs’ taxpayer-funded family trips in the wake of the Wells saga, and announced he was asking the Pay Tribunal to consider limiting MPs’ taxpayer-funded family trips to economy class flights and restricting it to Canberra or his electorate.

“I’m certainly hopeful that the changes that are put forward to the court will be about restoring confidence in the system. I understand that there is a real community and legitimate concerns about these issues,” he said.

Opposition shadow private secretary James McGrath said the changes would not go far enough in tackling the “rotten culture of entitlement and arrogance”.

“Amending the rules does not remove the need for a full and appropriate investigation by the Department of the Prime Minister and Cabinet into whether there have been breaches of the ministerial code of conduct.” [by Wells and Rowland]said McGrath.

Ministers are the highest-paid MPs, earning around $400,000 depending on their role. Shadow frontbenchers earn about $300,000. MPs’ transportation expenses, including flights and private vehicles, are covered as business expenses.

Foreign Affairs Minister Penny Wong claimed $68,006 to stay at her Canberra home ahead of the 2022 election, and Home Affairs Minister Tony Burke, who owns six properties, including one in the capital, recouped $43,494 with claims under the allowance.

National Championship leader David Littleproud demanded $88,437 and his deputy Kevin Hogan demanded $80,105 for those who will stay in their Canberra home.

Independent MP Andrew Wilkie, who does not own a home in Canberra and has been pushing for family travel rights to be reduced, called for a full investigation.

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“[I] “We call on the government to launch a truly independent investigation that will examine all aspects of the parliament’s travel, to conclude this investigation within three months, and to implement the recommendations from this investigation no later than three months from now,” he said.

The full MPs’ travel allowance can be claimed for travel outside Canberra if politicians stay on business accommodation. They can only claim half if they are staying with family or friends, but this rule does not apply to travel to Canberra.

Independent MP David Pocock said this was just one example of the rules not being fit for purpose. The ACT senator is not eligible for the Canberra travel allowance because he lives permanently in the capital.

“I think people will be pretty surprised to find out. [$1.5 million figure]” said Pocock.

“All of these rights need to be looked at really broadly. It doesn’t make sense to me that you can charge $300 a night to sleep in your own flat or house in Canberra.”

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