Mrs Hercus hints at exemption adjustment

Press, 5 August 1985, Page 5

Mrs Hercus hints at exemption adjustment

PA Wellington The Minister of Social Welfare, Mrs Hercus, yesterday hinted that the Government may soon adjust income exemption levels for beneficiaries. “The level of income one is able to earn before the benefit is abated has been held at $25 for years,” she told Labour Party members and supporters in Invercargill.

This month’s Budget would spell out first steps in

the reform of the social security system. Mrs Hercus would not say what the “top priority” list was as it would be a breach of Budget secrecy. Adjustment of income exemption levels for beneficiaries could, however, be considered “in the context of the first major steps of coherent tax and benefit reform.” A matter such as transferring national superannuation overseas was the kind of issue that should be

referred to the Royal Commission on Social Security, which would be set up next month. Mrs Hercus said that the Government inherited a social security system that could be described as a “dog’s breakfast.” Some benefits were taxed, some were not. One sector of benefits was wage-linked, the other was price-linked. Some benefits had different age criteria or different tests for income or assets.