Comments on: MPs expense allowances

By: MajorBob

MajorBob — Wed, 24 Jun 2009 05:40:16 +0000

Workingman, its called “troughing”

By: workingman

workingman — Tue, 23 Jun 2009 12:05:04 +0000

DPF says that some companies pay per diems. My company used to do this, $65 a day. It was then stopped as they were advised that the IRD considered this as taxable pay, so we had to go over to collecting receipts. A plus side for a company also is that they can reclaim the GST on receipted expenses, where per diems lost this. Of course for an MP that would mean we were simply moving GST from one department of government to another.

If this is correct then why are MPs not taxed on this amount as well.

By: PaulL

PaulL — Tue, 23 Jun 2009 08:36:14 +0000

If taxis come out of that allowance (I suspect they don’t) then who cares how they use it – it isn’t an incremental cost to the taxpayer.

I suggest that making it a standard allowance means that there is suddenly an incentive to manage the cost. When you just claim all your receipts, it makes no difference how much you spend so long as you keep the receipt. So overall it is probably a saving to the long suffering taxpayer doing things this way.

By: Glutaemus Maximus

Glutaemus Maximus — Tue, 23 Jun 2009 07:17:31 +0000

Does it include getting lost on your way from AKL CBD on your way to Manakau airport, and ending up helping the cause in Mt Albert?

By: backster

backster — Tue, 23 Jun 2009 04:50:47 +0000

It would be informative if you could publish a comparison table showing the salary and expenses (including travel) for other similar countries.

By: MajorBob

MajorBob — Tue, 23 Jun 2009 04:28:12 +0000

Nice that they don’t have to pay tax. Last time I was on a per diem, it was taxed and I had to got through the hassle of claiming all the expenses back at the end of the year. One rule them, a different rule for every one else!

By: David in Chch

David in Chch — Tue, 23 Jun 2009 03:40:29 +0000

I agree with GPT1. I have also worked away from home for extended periods, and depending on the location, the per diem can range from $50 (that’s at the lower end of the scale) to well over $100. And of course, the administrative simplicity does save on costs.

By: GPT1

GPT1 — Tue, 23 Jun 2009 03:27:48 +0000

When I have been away for extended periods of time with work I have been paid a per diem out of pocket allowance of around $50 to cover all the random bits and bobs (taxis, out of hotel food, internet, increased phone bills etc). Damn site easier than collecting every little receipt and at the lower end of the scale make administrative sense. Any saving would quickly be eroded by compliance costs.