Gold Pass: Malcolm Turnbull scraps scheme for former MPs, change expected to restore $5M

Prime Minister Malcolm Turnbull announced that the Federal Government will be cancelling the Life Gold Pass immediately. As part of the benefits, politicians are able to avail unlimited domestic travel. The move comes in an attempt to restore as many as $5 million.

A new legislation will also be designed later this week with an aim to monitor expenses, Special Minster of State Scott Ryan said. "Australians are entitled to expect parliamentarians spend taxpayers' money efficiently, effectively and ethically," he said. As many as 200 former MPs are expected to be impacted by the decision.

Speaking during a party room meeting, Turnbull said the priorities of the MPs were “out of touch,” as reported by the Fairfax Media. Although former prime ministers will be able to avail the Gold Pass, Turnbull announced he will not be accessing it. Three years ago, former Prime Minister Tony Abbott had sought to abolish the Gold Pass scheme.

In 2002, the number of flights that MPs could avail was dropped to 25. The number was further brought down to 10 in 2012. Further changes made in 2012 disallowed politicians retiring after 2012 to avail the scheme. Last year, the change was shifted to early 2017 due to a busy legislative agenda of the government. As reported by The Australian, since 2001, the Gold Pass has cost $17.2 million worth of taxpayer money.

“We have the opportunity and we are seizing it to show Australians the current generation of politicians is determined to subject itself to higher standards than ever before,” Ryan said.

The decision comes on the heels of a scandal involving Former Health Minister Sussan Ley, who was forced to quit from the front bench. Ley was found to have made several trips to the Gold Coast to attend parties hosted by a Liberal party donor at taxpayers’ money.

The change was met with criticism from Liberal MP Warren Entsch and another member from the Coalition. Questioning the abolishment of the Gold Pass, Entsch emphasised the change was unfair to politicians who had served for a long time.

Meanwhile, Ryan said he had received support from his colleagues over the change. "The introduction of this bill continues the Coalition's progress towards the most extensive reforms to parliamentary work expenses in more than two decades," he said.

First brought into effect in 1918, the Gold Pass allowed unlimited domestic trips to former MPs. The reduction in the number of flights politicians can avail has been reduced since 2002.