Retired Prime Minister Salary Australia: What Former PMs Really Receive

What "retired prime minister salary australia" really means

When Australians search for "retired prime minister salary australia", they often expect a neat annual figure like the base salary for current MPs ($239,270). But the reality is different. Former prime ministers do not receive a salary. Instead, they are entitled to a parliamentary pension (a defined benefit superannuation scheme) and a package of ongoing resources to support their public role. These resources include a fully equipped office, personal staff, car transport, and travel expenses. The total cost to taxpayers is significant, but it is not a salary in the ordinary sense.

How former prime ministers are compensated

The legal basis for these entitlements is the Parliamentary Business Resources Act 2017 (PBR Act). Section 16 allows the Prime Minister to determine what goods, services, premises, equipment or facilities are provided to a former prime minister. The most recent determination (March 2024) covers Scott Morrison and sets out three personal staff, an equipped office, and car/air transport. The Independent Parliamentary Expenses Authority (IPEA) reports these expenses quarterly. The same source notes that former prime ministers have received travel entitlements since at least 1941, and Sir Robert Menzies was the first to receive a furnished office and staff.

The cost to taxpayers

According to IPEA data, over the past 12 months former prime ministers claimed over $1.8 million in travel and office expenses. Total claims since July 2008 amount to $21.9 million, of which $18 million (82%) was for office facilities, including rent and renovations. Five of seven former PMs have offices in Sydney, where average office facilities expenses for the most recently reported 12 months are approximately $270,000 per year for those based there. Car costs (private leases and fuel in addition to COMCAR use) are the next largest expense, with each former prime minister claims approximately $18,000 per year on average. These costs have increased since 2008, office administration and communications expenses have reduced due to digital subscriptions replacing postage and newspapers.

Comparison to the national index

The Salary Index uses the national line of 100 = $108,352 (full-time adult ordinary-time earnings). The index is a benchmark for comparing pay. But for retired prime ministers there is no salary to compare. If we treat the annual cost of entitlements as a proxy, the $270,000 for a Sydney-based former PM office would be an index of about 249 (270,000 / 108,352 * 100). However, this is misleading because that money is not personal income; it covers rent, staff salaries, and travel. The index is designed for wages, not expense reimbursements. The how the index works page explains that only gross ordinary-time earnings are used.

Tax and superannuation

Because former prime ministers do not receive a salary, there is no PAYG withholding on the entitlements. The office, staff, and travel are non-cash benefits. Any cash allowances (e.g., private vehicle allowance) would be taxable, but the search results indicate that former PMs are provided with cars rather than cash. The parliamentary pension is a superannuation benefit and is taxed like other superannuation income. The super guarantee rate of 12% does not apply to former PMs because they are not employees. The Remuneration Tribunal sets the portion of base salary that is not parliamentary allowance for superannuation purposes, but that applies to current MPs, not former PMs.

What the search results tell us

The article provides a clear overview. The Remuneration Tribunal Determination shows the base salary for current MPs but does not set a salary for former PMs. The page confirms that parliamentarians are paid base salary plus additional salary for office holders, but again this is for current members.

Key takeaways

• There is no "retired prime minister salary" in Australia. The term is a misnomer.
• Former PMs receive a parliamentary pension and a package of entitlements (office, staff, travel, car).
• The annual cost per former PM for office facilities alone can be $270,000 (Sydney) or $128,000 (elsewhere).
• These costs are not personal income and cannot be compared to the national wage index.
• For more on how salaries compare across Australia, see the states and industries pages. If you're interested in how the index is calculated, visit how the index works.

Final note

If you are researching "retired prime minister salary australia" for a pay comparison, remember that the figure you are looking for does not exist as a salary. The entitlements are a form of ongoing support for a public role, not a wage. For most other jobs, you can find detailed pay guides on our pay guides page.