War Pensions

Press, Volume CIII, Issue 30399, 25 March 1964, Page 16

War Pensions

Sir, —1 would like to ask why World War II pensioners’ claims for tax exemption have not been brought into line with World War I pensioners. A pensioner from World War 1 with a 100 per cent disability and still able to work is exempt from all tax on unearned income. Yet a World

War II pensioner who is unable to work through severe war disabilities is forced to pay this cruel tax although he is saving the Government £260 a year by providing for himself and not collecting an economic pension. If the R.S.A. is only prepared to support World War I members, then 1 suggest men from World War II should leave the financial burden of the R.S.A. to World War I members.—Yours, etc., ' A FINANCIAL MEMBER. February 27, 1964.

(The Minister of Finance (Mr Lake) said: —“The tax exemption referred to by ‘A Financial Member’ is not an exemption from all tax on unearned income. The exemption extends only to social security income tax on income derived otherwise than from employment by any person who, having served in the First World War with any naval, military or air forces in any part of the Commonwealth, is in receipt of a pension granted by the Goverment of any part of the Commonwealth in respect of his total disablement from such service. The exemption of this group continues an exemption from the unemployment charges made from about 1930 and it has not been thought appropriate to extend the exemption to disability pensioners from the Second World War. It was considered equitable to collect the tax in the normal way and to deal with any cases where payment caused hardship under the special provisions which authorise remission of tax in cases of hardship. Both First and Second World War pensions are exempt from income tax, including social security income tax.”]