Rules tighten, but Ministers can still claim $52,000 a year to live in their own mortgage-free homes

Summarised by Centrist

Ministers will still be able to receive up to $1,000 a week for living in Wellington homes they own outright, despite tighter accommodation rules taking effect on November 8.

The Remuneration Authority will require evidence of accommodation costs, such as a rental agreement. Ministers who own their Wellington property will instead need an independent rental assessment.

If that assessment shows the home could fetch $1,000 a week, an eligible minister can still claim the full $52,000 annual allowance, even without a mortgage.

The payment can therefore compensate ministers for rent they could have earned by letting someone else live there, while they continue occupying the property themselves. The rules also allow reimbursement of property-related expenses, including utilities, gardening and housekeeping.

The allowance covers Wellington accommodation for ministers whose main home is elsewhere. It sits alongside salaries of $320,600 for Cabinet ministers and $510,300 for the prime minister.

Christopher Luxon stopped claiming the allowance for his mortgage-free apartment following public criticism and moved into Premier House. Louise Upston, who also faced criticism, could continue receiving the full amount if a rental appraisal supports it.

Upston previously defended the arrangement by saying employers pay accommodation costs when people work away from home.

The new rules also remove the annual cap of 30 one-way trips for MPs’ spouses travelling to Wellington and extend travel support to adult dependants requiring care.

Read more at Stuff

Image: JKeijsers

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