Beneficiaries’ tax

Press, Volume CXI, Issue 32708, 10 September 1971, Page 10

Beneficiaries’ tax

Sir,—What validity is there in tax demands of universal superannuitants whose income approximates the income exemption for age beneficiaries? When the two benefits deal with the same amounts. and circumstances, the former is taxed to place it at a disadvantage with the latter. For the year ended March 31 last, a couple over 65, with only income husband’s $676, could receive either an age benefit each, income tax free, or universal superannuation each, the husband paying $145 income tax, less U.S. rebate and PA.Y.E. already paid. All increases in bene-, fit amounts and allowable in-, comes for age-benefit young-, sters of 60 to 65 push the' really aged on small incomes ■ into the bumbledom of j means tests. Investigate the , former,, but why give oteto-] genarians, with similar in- ■■ comes, the choice of either income tax or chat-ups about their jobs?—Yours, etc., A. B. CEDARIAN. < September 1, 1971. . (The District 'Commissioner of Taxes (Mr C. K. Jones) replies: “It is a fact that universal superannuation is liable to tax and the age benefit is not. Other than this I do not think there is any other useful comment ‘I can make except that it may be better to refer this letter to the Registrar of the Social Security Department. As I understand it, the choice of 1 which benefit to apply for is for each individual to decide in the knowledge that one is taxable, the other is not.”]