Australian PM Earns More than the US President

[Legend]

After a recent pay rise, Julia Gillard earns an annual $AUD450,000 which trumps Obama's $US400,000 salary, slightly compounded by the Aussie dollar. Other politicians in government have also been given respective pay rises, but this happens at the sacrifice of travel privileges and job perks that usually complement their salary.

Generally, I've always found politicians to be very underpaid for the dense work they have to do (don't hit me). I think this is a pretty fair move, and I'm guessing the difference in salaries could be explained by some of the luxuries that Obama receives for his work.

 

[bit_pattern]

She earn 11% more, it hardly "dwarfs" the presidents salary. And, as the article, the PM has given up a lot of perks for the pay rise, I'm sure the president still enjoys perks of considerably higher value than $50,000 p/a.

 

[Legend]

I worded that quickly, so I'll change it, but keep your socks on.

 

[psionl0]

Generally, I've always found politicians to be very underpaid for the dense work they have to do (don't hit me).

 

[gumboot]

Does the PM of Australia get all their living costs covered? House, staff, food, etc?

 

[bit_pattern]

Does the PM of Australia get all their living costs covered? House, staff, food, etc?

Yes but they are not able to command $3000 p/h speaking fees upon retirement either

 

[Guybrush Threepwood]

Meh, the Taoiseach earned more than the US President back in 2007.

I think the guarantee of becoming a millionaire many times over when you leave office makes up for the poor pay when you're in the job.

 

[Childlike Empress]

Angela Merkel gets around €250,000 which trumps both. Well, soon.

 

[akama1]

Don't forget, a dollar goes a lot further in the US than Australia
Obama can buy 982800 Big Macs on his salary at home, vs Julia's 971660 in Australia.
Thats a 11140 Big Mac Lead to Obama, leaving him the best paid still

<edit to add>
11140 Big Macs = $55000 AU, hefty difference

 

[lionking]

Don't forget, a dollar goes a lot further in the US than Australia
Obama can buy 982800 Big Macs on his salary at home, vs Julia's 971660 in Australia.
Thats a 11140 Big Mac Lead to Obama, leaving him the best paid still

<edit to add>
11140 Big Macs = $55000 AU, hefty difference

Not quite. The $A is over parity again, as it has been for most of the last year.

 

[atecom]

Not quite. The $A is over parity again, as it has been for most of the last year.

Most things are still generally cheaper in the US. The US dollar still has more buying power in the US than the Australian dollar does in Australia.

 

[lionking]

Most things are still generally cheaper in the US. The US dollar still has more buying power in the US than the Australian dollar does in Australia.

Ah, fair enough. The Big mac index. http://en.wikipedia.org/wiki/Big_Mac_Index

I did notice some things relatively cheaper when I last visited the US, but not everything.

 

[Childlike Empress]

Ah, the good old Big Mac-Index.

Merkel buys Döner Kebab. A quality Döner (only available in Berlin) costs on par with a Big Mac but is healthier and far more yummy, so her 72674 (the guy above has to cut a digit) win.

 

[akama1]

Ah, fair enough. The Big mac index. http://en.wikipedia.org/wiki/Big_Mac_Index

I did notice some things relatively cheaper when I last visited the US, but not everything.

Sorry, forgot to add the link in my post above, I used the 2011, Big Mac to calculate the difference

 

[Robrob]

Good for Gillard.

 

[Legend]

I wonder what the general opinion is, do people think pollies are underpaid or overpaid or somewhere in the middle? Does the pay-rise make sense to you? As an indicator, backbenchers had their salaries increased to $50,000 if I remember correctly, for more information check out the OP links.

 

[lionking]

It's still a ridiculously low wage in my opinion, but talk back radio (which I listen to for the laughs) has been full of fulminating idiots today.

 

[geni]

I wonder what the general opinion is, do people think pollies are underpaid or overpaid or somewhere in the middle? Does the pay-rise make sense to you? As an indicator, backbenchers had their salaries increased to $50,000 if I remember correctly, for more information check out the OP links.

The general public tends to percive politicians as overpaid.

It's a bit hard to measure though. While for senior positions you can to an extent compare them to high level private sector pay (which is higher) that doesn't work so well for back benchers.

Comparision to pay before entering the house doesn't help much either since that just tells you the MPs background. Tories tend to take a pay cut while old style union labour tend to get a pay rise.

 

[gumboot]

I wonder what the general opinion is, do people think pollies are underpaid or overpaid or somewhere in the middle? Does the pay-rise make sense to you? As an indicator, backbenchers had their salaries increased to $50,000 if I remember correctly, for more information check out the OP links.

This is based solely on my own observations, but it's not so much the salary that upsets people, but the range of other benefits politicians get, and how often, despite their comfortable salaries, they exploit those benefits.

An example would be an out-of-town living allowance paid to our MPs who don't live in Wellington. We have politicians who own houses in Wellington and elsewhere, but because they assign their non-Wellington house as their "primary residence" they qualify for an out-of-town allowance, while living in their own Wellington home.

I think we've seen a trend in recent years to remove some of these extra benefits. What has happened in Australia is one example, and last December in New Zealand MPs got a payrise that included compensation for the scrapping of international air fare reimbursement allowances.

I think politicians probably get paid about right. I don't think they should be paid well compared to the private sector because I don't want people in government for the money, but at the same time they are the leaders of our country and their salary should reflect the importance of their office.

Our MPs get paid considerably less than their fellows in Australia and the US. In New Zealand the base MP salary is NZ$135,000, ministers get NZ$200,000-250,000 and the PM gets NZ$400,500 (78,500 Big Macs).

 

[gumboot]

Don't forget, a dollar goes a lot further in the US than Australia
Obama can buy 982800 Big Macs on his salary at home, vs Julia's 971660 in Australia.
Thats a 11140 Big Mac Lead to Obama, leaving him the best paid still

<edit to add>
11140 Big Macs = $55000 AU, hefty difference

You've got an extra 0 on those figures. It's actually a 1114 Big Mac difference which is AU$5,080. They're pretty close.

The NZ PM is well behind on 78,500 Big Macs.