Super, increase welcomed

Press, 8 February 1985, Page 2

Super, increase welcomed

The increase in national superannuation announced by the Government this week has been welcomed by the Canterbury Aged People’s Welfare Council. Married superannuitants will receive an extra $3.90 a week and single people an extra $2.34. From March 19 therefore, the new rate for married couples will be $176.68 after tax and $105.01 after tax for single people (not $133.83 as reported in

“The Press” of Wednesday). The council’s secretarymanager, Mr C. L. Waters, said the increase would help superannuitants cope with the “alarming” increase in the cost of living, but he hoped that the Government would see the inequity of basing the six-monthly superannuation adjustments on 80 per cent of the average net wage for married couples and 60 per cent of

the gross married rate for single people. “With wages pegged to about 7 per cent rises, and inflation running about 15 per cent, it is obvious that superannuitants will continue to lose heavily in the race with inflation,” he said. Mr Waters said the only way to rectify this would be to base national superannuation adjustments on the cost-of-living index, as

were other benefits. Unless this was done, the situation of pensioners would deteriorate further with the introduction of the goods and services tax next year. “Any personal tax relief promised by the Minister of Finance as compensation for the tax will mean little to those already on the minimum rate of tax on a minimum income,” Mr Waters said.