Sussan Ley’s resignation from Parliament doesn’t just end a career, it triggers a retirement perk most Australians can only dream about. It’s the kind of old-school Canberra entitlement so generous it was shut off to new MPs two decades ago because it was considered indefensible. The problem is it still exists for those who got in early enough, protected by a cut-off date that slammed the door behind them. Ley entered the House of Representatives in 2001. That means she qualifies for the generous defined benefit arrangements closed to new members from 2004 onwards, to the tune of around $220,000 every year. When Albo retires, he’ll get the same benefits because he entered Parliament back in 1996. Only his payout will be much higher. Anyone elected after 2004 is on something much closer to what everyone else receives, albeit at the still-generous public service contribution rate of 15.4 per cent. That includes the new opposition leader, Angus Taylor. The old scheme rewards staying in Parliament long enough to maximise the perk. Climbing the ministerial ladder helps too. Achieving anything in the roles held is neither here nor there. The rate increases with years of service and tops out at 75 per cent of an MP’s salary once they reach 18 years in Parliament. Ley’s 25 years takes her well past that, and her time in the ministry, as well as serving as deputy opposition leader and opposition leader, helps inflate the package even further.
