House knocks back super. bill

Press, 19 September 1985, Page 6

House knocks back super. bill

PA Wellington An Opposition attempt to remove the tax surcharge on national superannuation from April next year predictably failed in Parliament last evening. The Opposition spokesman on social welfare, Mr Venn Young, moved the introduction of a private member’s bill to end the 25 per cent surtax on superannuitants earning more than $lOO a week over and above national superannuation.

The surcharge was announced in last year’s Budget and implemented in April.

After a two-hour debate, the Opposition failed to get the Income Tax (Repeal of National Superannuation Surcharge) Amendment Bill introduced in Parliament after losing a division, 31-40. Mr Young said that the Labour Party had backed down from undertakings given before the 1984 elec-

tion that the superannuation scheme would remain intact. “That these promises were broken is now an unfortunate part of this Parliament’s history,” he said. “By supporting my bill, Labour members will be able to regain some credibility and perhaps be able to face their constituents again.”

Mr Young said single superannuitants were paying 58c in the dollar for every dollar of income over $6240 a year. “No other New Zealander reaches that level of taxation until his income is $38,000 per year. The superannuitant pays 58c by the time his total income including superannuation is $13,949 per year.” Mr Young said Labour’s basic philosophy of governing was to discourage hard work and thrift and to encourage reliance on Government handouts.

The Minister of Social Welfare, Mrs Hercus, said the bill was one of political expediency and represented the new National Party disease. “They introduce bills but they don’t bother to say where the money is coming from.” Mrs Hercus said that the decision to bring in a surcharge was one of the hardest made by the Labour Government. “But let us face reality. The Labour Government inherited an appalling economic shambles. New Zealanders knew we would have to target assistance to those on low or moderate incomes.” Mrs Hercus said that those particularly in need were low-income families and beneficiaries, and those people — 75 per cent of almost 500,000 superannuitants — who survived on national superannuation alone or national superannuation and modest incomes.