Veteran Coalition Senator Ian Macdonald has defended one of the most generous retirement perks for MPs, the Life Gold Pass, and indicated he won't be supporting its axing.
The pass allowed MPs who entered the parliament before 2012, as well as their partners, to claim up to 10 domestic business class airfares per year.
Prime Minister Malcolm Turnbull told MPs during the first Joint-Party Room meeting for 2017 that he would be scrapping the entitlement immediately.
Under the changes, only former Prime Ministers would be eligible for the perk, however Mr Turnbull said he would not be using it.
Queensland backbencher Ian Macdonald believes politicians work extremely hard, aren't "particularly well paid", and should be entitled to the perk they were promised.
Senator Macdonald - who earns roughly $200,000 per year - acknowledged the public would "hate it" but said former parliamentarians were entitled to the scheme and "it should not be taken from them".
"It’s about time our leaders, all of our leaders, started just emphasising how much work politicians do," he said.
"They don’t get particularly well paid.
"Most parliamentarians would have done infinitely better financially staying in their legal practice, staying in their business, staying in their veterinary practice, staying in their jobs they had before.
"But that’s not why they come into this chamber."
Senator Macdonald attempted to have the Gold Pass legislation referred to a Senate inquiry to give those affected by the changes the chance to voice their concerns, but the move was rejected by the upper house.
He started his speech by insisting he was standing up for the entitlements of his colleagues.
"I'll leave this place probably in a box, so it's not going to relate to me," he said.
Earlier the Prime Minister Malcolm Turnbull announced a new entitlements watchdog to oversee and report on politicians' expenses, set to begin operating on July 1.
Mr Turnbull said it was important to improve transparency and make sure politicians are held accountable for their expenses.
"Australians are entitled to expect that politicians spend taxpayers' money carefully, ensuring at all times that their work expenditure represents an efficient, effective and ethical use of public resources," he said.
