“AGE BENEFIT” STATED TO BE CAUSE OF LACK OF TRADESMEN

Wanganui Chronicle, 18 August 1948, Page 8

“AGE BENEFIT” STATED TO BE CAUSE OF LACK OF TRADESMEN

One of the contributing causes to the diminishing supply of experienced tradesmen has been the provision made in the Social Security Act for an “age benefit” at 60 years of age. This statement is made by Mr. S. J. Sullivan, Wanganui, in a report on trade conditions.

“There are hundreds of experienced tradesmen who, on reaching the qualifying age of 60 years, have given up their job, and are resting on the age benefit, the basic rate being £2 5s per week,” he stated. “Should the man have a wife, her age is not considered, she is entitled ss per week, giving a total for man and wife of £4 10s per week. Should they have children under 12 years of age, they will be paid in addUwn, a further 10s per week for each (mild. Further, the income exemption is £1 per week for the husband, or £1 a week jointly for man and wife. “What is the effect of this? it is obvious, a single person has an income of £3 5s weekly, while a married couple have a joint income of £5 10s made up of age benefit and other income, plus family benefit of 10s per child under 16 years free of all taxation.

“The Act provides that ownership of any of the following does not adr versely effect the age benefit, but morally supports it. A married or a-.\ single person can have a free unen-\ cumbered home and furniture, an interest in land, a mortgage secured over land, an annuity or an unmatured life insurance policy, and £5OO in the bank, or in bank deposits, shares or bonds, or in the case of aj married couple £lOOO between them/ before any deduction is , made.

“The advantage of the age benelß is very attractive to the man wifl qualifies at 60 years. While this ma" be attractive to a large number of men, it has a distinct sinister effect upon industry by depleting its ranks “It would be very difficult to get the Social Security Act amended so as to encourage able and healthv men !to pursue their callings at. 60 years of age. To secure this, an amendment to the Act must provide for a total relief from all taxation at the age of 60 years. Should this be done, and all taxable income exempted completely, both in respect to wages and all other income, it would mean that some hundreds of skilled workers would remain in industry and be able to produce to the country’s benefit, and also to their own better health and happiness. “The framers of the Social Security Act should have made alternate provision for a man at 60 years of age—giving him the choice of two alternatives. To remain in industry and not pay any*tax, would be the more advantageous. “This means a man supports himself, and does not become an incumbent on the State, thus reducing taxation," added Mr. Sullivan in conclusion.