How much should we pay our pollies?

Among the many criticisms of politicians is the accusation that they are only in it for the pay and perks, looking after themselves rather than the country and voters.

Sometimes this arises from dissatisfaction with certain politicians, but it also reflects disdain for them all. Many Australians are convinced politicians are self-serving and paid far more than they are worth.

This prompts the question – how much should politicians be paid? Indeed, should they be paid at all? Should parliamentary service be a career, or a form of public service necessitating an element of sacrifice? And if politicians are to be paid, what is an appropriate amount?

In democracy's ancient home, Athens, eligible citizens all had a civic duty to participate in the governing assembly. There was no salary, although in the 5th century BC an attendance fee was introduced as an incentive.

In the British parliament, on which our parliaments are based, service in the House of Commons was unpaid until 1911. Members of the House of Lords, who are mostly appointed, are still unpaid unless they hold an official position. They can claim an attendance allowance plus limited travel expenses, although many do not bother.

Do we want parliaments sitting for long periods, constantly introducing bills and regulations?

Politicians in several US states receive little or no pay for their service. In New Hampshire, for example, state legislators are paid just US$100 a year plus mileage. In Kentucky, Kansas, Nevada, Wyoming and New Mexico, state politicians are paid less than what Australian local government councillors receive.

Heads of government are mostly better paid. Top of the list is the prime minister of Singapore, at more than two million dollars and over five times the pay of ordinary MPs. Australia is relatively egalitarian; our political leaders are paid roughly double what ordinary politicians receive.

But it is the pay of ordinary politicians that agitates people, and on that Australia is generous. A backbench member of the Federal Parliament receives a package (i.e. salary, allowances and superannuation) of about $300,000. State politicians' salaries are only slightly lower.

This is far more than what most of them earned before they were elected and, more importantly, more than what they could earn if they lost their seat. This has a powerful effect on their behaviour.

When politicians are unpaid, or even if they are paid modestly, different people offer themselves for election. In New Hampshire, for example, a 2007 survey found that nearly half the members of the legislature were retired, with an average age over 60. Those not retired had jobs or businesses from which they derived income.

In Australia we see this with local government councillors – virtually all have another source of income, whether it's a job, a business, welfare or investment income.