Federal Politics

Turnbull takes the axe to the most notorious political perk of all

The parliamentary perk that gives retired politicians free business-class travel on the taxpayer will be immediately scrapped under a new plank of Prime Minister Malcolm Turnbull's crackdown on the political entitlements system.

Special Minister of State Scott Ryan will announce details of the Life Gold Pass' demise at a press conference on Tuesday.

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But news of the decision leaked out early when Mr Turnbull told his MPs during a party room meeting the perk would go.

He was responding to questions from Coalition MPs Ian Macdonald and Warren Entsch, who wanted assurances the perk would not be touched under Mr Turnbull's entitlements changes. Mr Turnbull suggested their priorities were a little "out of touch".

The Coalition first promised to scrap the controversial perk nearly three years ago but the plan was put on the backburner. Late last year the government drew fire for saying it was too busy to follow through on its pledge - even though the legislation would sail through Parliament with Labor, Greens and crossbench support.

The Life Gold Pass once offered former MPs unlimited travel at taxpayers' expense. 

Changes in 2002 limited that to 25 return flights a year and further changes in 2012 limited it to 10 return flights.

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The Gillard government scrapped it for MPs retiring after 2012. Under Mr Turnbull's plan it will now be fully abolished for all but former prime ministers. Mr Turnbull told the party room he personally would not use the pass.

The move comes after Mr Turnbull announced sweeping changes to the entitlements system last month in the wake of the travel scandal that brought down his then-health minister Sussan Ley.

The changes are expected to kick about 200 former MPs off the scheme, saving taxpayers an estimated $1.5 million a year.

Mr Turnbull's approach goes further than that proposed by former prime minister Tony Abbott, who planned to phase out the scheme over six years.

He announced his plan in the 2014 budget to show that the "age of entitlement" was over for everyone, including MPs. But after sailing through the lower house, his bill stalled in the Senate and then lapsed at the July election.

It's believed a High Court case in which four former MPs challenged the constitutionality of changes to post-Parliament payments was one of the reasons the government put the bill on the go-slow.

However, the court last year emphatically rejected the case, paving the way for its demise.

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