How a Retired Prime Minister’s Income Sits Against the National Line
When Australians ask about a “retired prime minister salary”, they are usually looking for a single number. Unlike a typical award or enterprise agreement, the income of a former prime minister is not a straightforward wage. It is a mix of a parliamentary pension, travel allowances, office support, and other entitlements set by the Remuneration Tribunal. The exact figure is not published as a salary, but we can compare the components to the national full-time average to see where it lands.
The National Benchmark: Full-Time Average Earnings
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings twice a year. The latest release for May 2026 shows that full-time adult ordinary-time earnings averaged $2,083.70 per week. Multiplied by 52, that gives an annual figure of about $108,352. This is the line that Average line uses as its reference point. Place a salary on the line to see how any income compares.
For context, the full-time median is lower at about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year on a 38-hour week. Award minimums rose by 4.75% at the same time.
Parliamentary Entitlements: A Different Structure
The Remuneration Tribunal’s 2026 determination sets the base salary for a current member of parliament at $239,270. Office holders such as the Prime Minister receive additional percentages of that base. For a retired prime minister, the pension is calculated under the Parliamentary Contributory Superannuation Act. It is based on years of service and the final salary, and is not a single published figure. The determination also provides for a resettlement allowance and travel allowances—for example, $652 per night for commercial accommodation when the former prime minister is travelling on official business.
Because these components are not combined into one “salary”, it is difficult to give a precise annual figure. However, it is safe to say that the total package for a former prime minister is well above the national full-time average of $108,352. The base salary alone for a current MP is more than double that average, and the pension is a significant fraction of that base.
Why State and Award Comparisons Matter
The angle of this article is why a state or an award can move a figure off the national line. For most workers, their pay is influenced by the state they work in or the award that covers them. For example, the full-time average in the Australian Capital Territory is about $119,090, while in Tasmania it is about $96,008. Award rates, such as those in retail or hospitality, are often tied to the national minimum wage or a classification scale. A retired prime minister’s income, however, is determined entirely by federal parliamentary legislation and the Remuneration Tribunal, not by state boundaries or industry awards.
This means that while a worker in Western Australia might earn a full-time average of $115,825—above the national line—a former prime minister’s income is not affected by where they live. It is a national entitlement. Similarly, an award worker on the minimum wage of $52,255 is far below the line, but a retired PM’s pension is likely to be above it.
Tax and Take-Home Pay
Resident tax rates for 2026–27 are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The Medicare levy of 2% applies before any reductions. A retired prime minister’s pension and allowances would fall into the top brackets, meaning a significant portion goes to tax. However, some allowances may be tax-free or concessional.
Where to Get More Information
For a detailed breakdown of how parliamentary salaries and allowances are set, see the Remuneration Tribunal’s determinations. For the national averages and medians, the ABS is the authoritative source. If you want to see how your own salary compares, you can Place a salary on the line or read our Guides on how different pay structures work.
Summary
A retired prime minister’s income is not a single published salary. It is a combination of a pension, travel allowances, and other benefits that together are likely to exceed the national full-time average of $108,352. Unlike state-based or award-based pay, these entitlements are set at the federal level and do not vary by location or industry. For most Australians, the national line provides a useful benchmark, but it is important to understand the different rules that apply to different types of income.