Wednesday, November 13, 2013

"Genuine investment reasons"

For some unfathomable reason, DPF seems to have missed this astonishing story featuring his own newly-created Taxpayers' Union. 

The story is that a large number of MPs, including the majority of the governing MPs, have discovered a lucrative scam in which you create your own superannuation scheme and have that super scheme buy a property in Wellington.  You then rent the house/apartment from your super scheme, for which you receive an accommodation allowance from taxpayers that you pay the "landlord," ie your superannuation scheme.  Any payments into that "superannuation scheme" pay the mortgage on the property, which means that for every $1 of taxpayers' money that you put into your mortgage, sorry your super scheme, taxpayers also chip in another $2.50 in superannuation contributions.  Nice employment conditions if you can get 'em.

Cue embarrassed government MPs blathering about how they created a private superannuation scheme for "genuine investment reasons" (well, duh - in this instance, laying down some cash so you can rob taxpayers blind would appear a very attractive investment) and, you guessed it, how their putting their hand in your pocket and emptying your wallet was "within the rules."

A confused taxpayer might wonder to themselves what kind of insane motherfucker would hand the ruthless sociopaths who become MPs a set of rules that let them help themselves to the voters' cash like this.  Well, it becomes a little less mysterious when you consider that the rules are set by committees of those self-same sociopaths. 

Next week:  MPs discuss what might be causing the ever-increasing disillusionment with politics among voters.

10 comments:

Nick K said...

It's great having you on this blog, Milt.

David said...

I can't see the issue, they are required to live in two places so the salary package reflects that. They either rent off themselves or some 3rd party, cost to the taxpayer is the same.

Psycho Milt said...

If you want to see what the issue is, next time you find a job that's in another city, tell the new employer that you'd like to negotiate a salary package that includes them buying you a house and paying you extra to live in it. They'll explain it to you.

JC said...

"For some unfathomable reason, DPF seems to have missed this astonishing story featuring his own newly-created Taxpayers' Union."

He did cover it on his own blog though, along with his (2009) preferred solution. That he's not pursuing it with TU might be because solutions don't save money.. just make the rules better.

http://www.kiwiblog.co.nz/2013/11/mps_and_accomodation.html

Psycho Milt said...

Sorry, yes he did. I guess I didn't scroll down far enough.

workingman said...

Psycho Milt,

I live in Wellington and do most of my work outside of there, in Auckland, Sydney, Melbourne, and currently Hobart. In all of these situations the employer pays for my accommodation for the time I am there.

As I am in Hobart for 18-24 months, then I have indeed bought a house and rent it out to my employer, who is fully aware that this is happening. They have no issue with it.

Psycho Milt said...

Was your employer willing to chip in $2.50 for every $1 you paid on the mortgage, as well as renting the place from you? And would they have been as happy about renting the place from you if they discovered you'd concealed your ownership of the property from them?

I've worked overseas and had accommodation provided as well, and neither employer would have been chuffed if I'd scammed them like this.

Watcher said...

Along with their attitude to their perks where most of the submissions were for it to go to an independent authority to decide, this only reinforces that none of them are worthy of my vote at the next election.

Nick K said...

The analogy with employees isn't really valid because MPs aren't really employees. And further, they don't apply for a job; rather, they volunteer for a public service position.

Anonymous said...

"....they volunteer for a public service position."

So do firemen!!!!