Photo: Malcolm Roberts says One Nation will investigate whether politicians could reject the pay rise. (AAP: Dan Peled)

Politicians under fire for pay increases while penalty rates cut, One Nation wants to reject rise

By political reporters Caitlyn Gribbin and Henry Belot

23 Jun 2017,

One Nation senator Malcolm Roberts has said he may donate his pay rise to charity, arguing federal politicians should be able to turn down the wage hike.

The pay of a junior federal politician will rise to more than $203,000 a year from July 1, after the Remuneration Tribunal announced the 2 per cent pay rise for federal parliamentarians and senior public servants.

Politicians will also secure a tax cut once the Government's deficit levy on Australia's highest income earners is lifted on July 1, which will lower the marginal tax rate to 47 per cent.

Prime Minister Malcolm Turnbull's pay packet will increase from $517,504 to $527,852, and Deputy Prime Minister Barnaby Joyce will take home $416,191.

This all comes as hundreds of thousands of workers prepare to have their Sunday penalty rates cut, prompting criticism from unions.

Penalties cuts: for and against

Senior public servants will also receive a significant pay increase with the head of the Prime Minister's department, Martin Parkinson, to take home $878,000 a year.

Many public servants have not had a pay increase since 2013 due to protracted enterprise bargaining, with the pay of immigration officers set to be determined by the Fair Work Commission.

Senator Roberts said it was a bad look for politicians to receive a pay rise while some Australians were experiencing financial stress, such as high electricity prices.

"There are several things — we can consider donating it to charity or whatever," Senator Roberts said.

"But then which of the thousands of charities? That will be most likely what I'll do, but I'm going to get the options first because if I can opt out then it saves the taxpayer money."

Top public servants earn '21 times' more than cleaners: union

Some unions have reacted angrily to the pay increase.

United Voice said workers who cleaned Parliament House in Canberra had resorted to asking politicians for donations as they battled for a wage rise.

The union's Lynda Ryan said the cleaners were earning just over $20 an hour and had not received a pay rise for five years.

"When we're talking about top public servants, they're earning 21 times more than what the cleaners in their buildings earn," she said.

"How can that be justified?"

Both Mr Turnbull and Opposition Leader Bill Shorten have dismissed criticism of the pay rise, pointing out the decision was made independently.

"The process for setting the wages of politicians is done at arm's length to try to take the politics out of it," Mr Shorten said.

The Prime Minister said "no-one would want" the alternative to an independent tribunal setting wages: politicians setting them for themselves.

"It's a decision by the Remuneration Tribunal and there is never a good time to increase the pay of politicians," Mr Turnbull told Sydney radio station 2GB.

"But the alternative to having an independent tribunal set the politicians' pay is to have the politicians setting it themselves, and no-one would want that."

Senator Roberts said One Nation would investigate whether politicians could reject a pay rise.

"Maybe we have to get an opt-in or opt-out clause. It saves the taxpayer money and it also shows that we're fair dinkum about being accountable ourselves and responsible," he said.