Superannuation

Press, 10 November 1986, Page 20

Superannuation

Sir, — According to the Minister of Social Welfare, Mrs Hercus, the new rate for a married couple is $230.14 a week, an increase of 11.4 per cent. I am rather curious as to how she arrived at this figure. According to the “Living with GST” brochure, gross national superannuition benefits would increase by 5 per cent. Tax on the gross total would reduce from 20c in $1 to 15c. I would say that would be an overall increase of 10 per cent and not 11.4 per cent. Before tax the old gross total was $262.42; add 5 per cent and the total is now $275.54, less tax at 15c in the dollar ($41.33). The net total is $234.21. “More than sufficient” she remarked. I dare say time will tell. An increase in future GST is imminent, the abolishing of sales tax will matter little to retailers without policing and, of course, after the new wage and salaries are fixed, the old excuse will arise regarding price increases. — Yours, etc., A. HERD. October 4, 1986.

[The Acting Minister of Social Welfare, Mr Russell Marshall, replies: “National superannuation rates have not been increased in the manner that A. Herd postulates. From October 14 national superannuation rates were fixed-,u in line with average after-tax y

wages, and superannuitants have benefited from the tax cuts like other wage and salary earners. The October 14 adjustment was not related to movement in the Consumer Price Index or anticipated GST. The 11.4 per cent increase A. Herd mentions represents the movement in the net married-couple rate from $206.50 a week to $230.14 a week. Your correspondent may rest assured that this Government has no intention of increasing the rate of GST.”]