'Real' value of MPs' salary packages

Jo Doolan. Photo / Supplied

Ernst & Young accountant Jo Doolan estimated the "real" value of an average backbench MPs' salary package was $150,454 after allowances of a personal benefit to them were taken into account.

Their base salary was $131,000 but she estimated an average of $6660 of their expenses allowance and $12,855 in travel costs for the MPs and their families were also remuneration rather than work costs.

Ms Doolan has previously said the tax-free status of many MPs' allowances result in a "triple whammy" for taxpayers who pay for the allowances and fringe benefit tax on them, but are deprived of any tax paid by MPs on allowances that amounted to "income".

On average, she calculated the full cost to the taxpayer of providing those allowances and salary - including fringe benefit tax, GST and the total sum of expense and travel allowances - would be $211,685 per MP.

Her calculation of the MPs' salary package included 45 per cent of their expenses allowance and a percentage of the average 2003 domestic and international travel costs for the MPs and their families. It did not include their Wellington accommodation allowance or other accommodation expenses.