State MPs chastised over using taxpayer allowances to funnel money to political parties

State MPs have been told to pay annual political party levies out of their own pocket and not their taxpayer-funded allowances in a bombshell ruling by the Independent salaries body.

In a draft determination for the next parliamentary term, the Salaries and Allowances Tribunal has proposed banning the use of the $88,000 annual members allowances to pay for political party levies.

The levies, which since July have raised more than $250,000 from State MPs for the Labor Party, are payable from members elected under the party banner.

Labor Party rules dictate the contributions from MPs, which constitute their annual party membership fee. The caucus can also decide on additional levies to be “held exclusively for campaign activities”.

Lower House Labor MPs must pay 4 per cent of their salary — more than $6600 for backbenchers — while Upper House colleagues must pay the party 7 per cent — more than $11,600.

New expenditure reports released this week for last financial year show that 59 State MPs from across the Parliament used their member’s allowance to pay for political party levies — a legal move.

The West Australian understands the Liberal Party has used a similar model of 4 per cent previously, while Nationals MPs can make a pledge.

But the tribunal said the allowance was not an “appropriate funding source for what was a personal expense”.

“The Members’ Allowance is provided so that the member may undertake their duties for the specific benefit of the community for which they are elected to represent,” the draft determination reads.

“The premise of the levies and union fees is that they are a percentage of salary paid to a political organisation, and it is therefore appropriate that they are a personal expense and not to be paid from the Members’ Allowance.

“The tribunal is reluctant to entrench a system that further increases political party funding when more appropriate avenues for political party funding are already in place, such as the reimbursement of electoral expenditure for candidates.”

The determination also rules on the new Upper House which, after the abolition of regions will result in 37 MPs elected to one Statewide electorate.

Under the new rules, allowances to MPs — which are more generous for members from regional WA — would be calculated based on where they live.

The rules are understood to have caused concerns among MPs who have electorate offices in regional WA but reside in Perth, giving them less money to travel to the bush.

If elected in March, just two Labor MPs — Agriculture Minister Jackie Jarvis and Geraldton-based MP Sandra Carr — would be eligible for additional resources.

While making no changes to MPs pay, the tribunal also awarded members an extra $3000 for travel and study, bringing the total payable to $30,000 for a four-year term.