No reduction in net super, incomes

Press, 10 July 1979, Page 2

No reduction in net super, incomes

PA Wellington I No reduction would be! made in the cash-in-hand in-1 comes of national superannuitants after the change] to the new formula nextl month, said the Minister of| Social Welfare (Mr Gait) I yesterday. The new system of 80 per] cent of the average ordinary wage after tax was announced in the Budget last] (nonth. The Cabinet had details of] the movement in the average ordinary-time weekly wage shown in the April] half-yearly survey, Mr Gair! (aid. “Strict application of the: survey figure would cause a small loss in the cash-in-hand income of national! superannuitants from August!

128, when the new rates would have been applied, to lOctober 1, when the calcullation would be revised with the introduction of the new Itt; rates,” he said. “The Cabinet has therefore decided that the calculation Ito be applied from August 125 should be based on the I new tax rates. This will cause a small increase in the amount received by national I superannuitants at present.” ‘ Details of the figures |>..,uid be announced when i legislation was introduced later this month. Mr Gair said. i “The normal full sixi monthly adjustment, to ’ achieve a consistent aftertax 80 per ■ cent relativity, will apply after the next inIcrease in February,” he said.