Tax change on Super?

Press, 16 March 1982, Page 38

Tax change on Super?

Parliamentary reporter The Government fayours a change in the taxation oi National Superannuation, according to the Labour spokesman on social welfare, Mr G. W. R. Palmer. The Government’s strategy on superannuation had now become clear. By changing the way in which superannuation was taxed, the Government would Introduce

an income test and benefit abatement system “via the back door." The Government . was determined to save money, Mr Palmer said. A number’ of options had been explicitly rejected. The only option left open was a change in the taxation of superannuation, and that was what the Government favoured.

It seemed clear that the Government would introduce a special tax table for the superannuation benefit, Mr Palmer said. That way the Government would be able to get back more of the money it paid out. It seemed likely that superannuitants would pay higher taxes than other people on the same income, he said. The Minister of Finance

(Mr Muldoon) said Mr Palmer misunderstood the taxation system. If personal income tax changes were made in this year’s Budget, it was inevitable that they would affect National Superannuation and it was for this reason that the Government would not announce final decisions on National Superannuation until Budget time, Mr Muldoon said.