Age Benefits

Press, Volume CIV, Issue 30842, 30 August 1965, Page 12

Age Benefits

Sir, —There appears to be misunderstanding among many older people regarding the change from age benefit to universal superannuation. For example, if a person has been on age benefit and has extra income of £1 a week from savings in the Post Office, then reaches the age of 65 and is offered part-time employment at £5 a week, how much income tax would be payable? Many older folk are capable Of skilled Work but hesitate to accept in case the benefit would be reduced. Information* on this point would be very helpful to many.—Yours, etc., PENSIONER.

August 23, 1965. [Mr E. B. Pyne, district registrar of the Social Security Department,-replies: “The superannuation ■ benefit is assessable as income for ordinary income tax but not for the social Security income tax of Is 6d in the £. The benefit itself is normally paid at the standard rate of £5 6s a week for an unmarried person or £4 16s a week for a married person, regardless of other income or assets. The amount of benefit is the same as the maximum age benefit. The age benefit is not assessable as income for any tax but is subject to reduction on account of the net or actual income received in excess of £2OB a year. The question of how much tax would be payable by any person is the concern of the Inland Revenue Department and any inquiries >in this respect should be made from that department. Pamphlets are available at any Social Security Office giving information on superannuation and age benefits and one on the tax provisions regarding persons ‘receiving superaanuatiori benefit is available from the Inland Revenue Department. In any case, where the position is not fully understood, the staff of both departments will be pleased to answer individual inquiries and explain matters in more detail.”]