Tax anomaly removed on benefits

Press, 26 July 1978, Page 2

Tax anomaly removed on benefits

FA Wellington * Married superannuitants and some others taxed oa the primary single rate will hot be at a disadvantage now under the revised tax atructure which will come Into effect in October. Under the revised tax Structure announced in the Budget, superannuitants and some income-tested social security beneficiaries including some solo mothers — witn a private income of less than $25 a week would have been at a slight disadvantage. ' Married couples on national supperannuatjon will have a net increase of $14.16 a week from August 31. However each married national superannuitant taxed at the primary “S” rate will get a reduction in cash-in-hand payments . of 23c a week in October as a result of the revised tax structure. Under the latest scheme; to compensate these superannuitants for the increased taxation. an additional benefit of 23c a week f46c for a married couple) will be paid

The additional grants will be reviewed along with national superannuation rates in February next year. < The additional benefit has been estimated to cost an extra $710,000 up to the end of the financial year. Income -«rted social security benefiaw’— and war pensioners who are single, without dependants and with a private income of less than $2l a week can apply to the Department of Social Welfare for additional grant to offset any P.A.Y.E. increase. Solo parents with children over five and a private income of less than $25 a week can also apply to the department for a grant to offset anv PA.Y.E increase. According to the Minister of Social Welfare (Mr Walker) who announced the changes, this latter provision will cover representations from the Society for the Intellectually Handicapped and other organisations representing disabled persons. Provision of $120,000 has been made for additional benefits for these income tested beneficiaries.