Peter Dutton may have been resoundingly booted from federal politics on Saturday night, but after nearly 24 years in Canberra, he won’t be leaving empty handed.
Thanks to a now-repealed parliamentary pension scheme, the former member for Dickson will receive an estimated annual pension of $258,000 for the rest of his life.
The figure, calculated by Crikey, is derived as a percentage of Mr Dutton’s overall pay as Opposition Leader.
While significantly lower than the $432,280 he took home for three years as Coalition chief, he will continue to out-earn sitting backbenchers on $233,660 a year.
Put differently, the ousted MP will earn the incomes of roughly two-and-a-half Australian salary earners without even lifting a finger.
Alternatively, Mr Dutton may choose to halve his pension in exchange for a $2.58million lump sum payout which, together with his sizeable real estate dealings, would set the Queenslander up nicely for a comfortable retirement.
Of course, he may choose instead to leverage his public profile for an even softer landing in the private sector a la Christopher Pyne or Scott Morrison.
Former prime minister John Howard did away with the pension scheme in 2004 following the lead of then-Labor leader Mark Latham.
Outgoing MP Peter Dutton is pictured at Canberra Airport on Wednesday morning, returning to the nation’s capital for the first time since the federal election on Saturday
Anthony Albanese is among those politicians entitled to a more generous pre-2004 pension
The decision was hotly contested within the party room walls, not least because MPs feared the optics suggested Mr Howard had caved to pressure from Labor.
Federal politicians elected at or since the 2004 election are entitled to superannuation entitlements in line with those available to average Australians – set at 11.5 per cent.
The merits of the decision has been the subject of fierce debate, with critics claiming outgoing MPs have the advantage of the ‘revolving door’ after leaving public service.
With Dutton ousted, only six sitting MPs and senators will have access to the more generous pension entitlements, having been elected pre-2004.
Among them are Prime Minister Anthony Albanese, incumbent Foreign Minister Penny Wong, Senator Bob Katter and Labor frontbencher Tanya Plibersek.
Mr Albanese will expect the most generous post-parliamentary pay package worth somewhere north of $250,000 per year.
According to the Department of Finance, taxpayers continue to support over 400 retired politicians and spouses under the now-defunct pension scheme at an annual cost of roughly $50million.
While the pool of recipients continues to shrink year-on-year, the last of the pension payouts is not expected to come until 2063.
Scott MorrisonPeter Dutton
