TCC - gathering the perks while you can ...

Interesting article in today's Courier Mail.

An excerpt:

Councillor perks to cost more

20 July 2007

Proposed changes to the tax status of councillors could mean ratepayers paying more for the perks provided to their local politicians.

Local government councillors' extra benefits such as entertainment, cars and phones – already paid by ratepayers – may cost extra if the council has to pay the fringe benefits tax.

Most councillors are employed akin to contractors, meaning the council does not have to pay their tax share.

But some councillors want to become employees for tax purposes in order to sacrifice some of their income for superannuation.

This had the flipside of making councils responsible for the tax payments.

Most southeast Queensland councils are currently debating the changes, including Redland Shire Council, which is conducting a 30-day public notification period before accepting the provision.

Council officers estimated it would cost the bayside shire between $30,000 and $50,000 each year.

Brisbane ratepayers already pay the tax on their councillors' perks but a council spokesman would not outline the cost.

Ipswich councillors will continue to take advantage of the change as they have since 2000 – costing ratepayers $10,000.

Redcliffe council is awaiting more information after a fringe benefits tax bill of $1218.81 from February to March but last week ceased treating councillors as employees.

See - Councillor perks to cost more.

All the more interesting given that, at the Committee Committee meeting on 6 June, Councillor Sue Englart requested that Councillors be briefed 'by experts in the field of superannuation' on Councillor salary sacrifice and other superannuation issues.

See - Apprentice starves while Toowoomba Councillor jams money into super.