Archive for July, 2014

Means test of age pension creates two classes of citizens

July 20th, 2014 No comments

5th July 2014

Dear Mr.Southcott.

Thank you for your letter of the 25’th of June 2014 in which you state “There have been no adverse changes to the superannuation system for self-funded retirees”, and then you give some figures on pensions and their indexation, all of which I,am well aware, because they are easily accessible either from Centrelink or government data.

 My concern is the means test of the age pension.

By using the means test for the basic age-pension, the government splits the Australian retirees into two groups; the 80% of either full or part-pensioners, which are greatly affected by the means test, and the other 20% of self-funded retirees, who greatly benefit from the tax-free super, if the income is derived from a so-called taxed fund, and the recipients of large defined super income, with more than $200,000 of super, who benefit to the tune of $20,000 from the 10% tax offset, which is more than a single pensioner receives in age-pension.

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Categories: General, Pension, Superannuation, Tax Tags: