Forgotten?

By: AlanK (Registered ) on 26-10-2007 23:09

What has been forgotten in this argument is how it all started in the first place. For my first tax return, Form S, I was actually paying 2 components. One was for Social Services, and the other was Income Tax. The social services were for the age pension, child endowment, widow’s pension, and unemployment relief. 
Income tax rates were far less than now. (I am quite sure that an old form S from 1948 could be found by an interested party). The average weekly wage was 7 guineas, $14.70 a week, 364 guineas, $765 per annum, and this was enough for a husband to support a wife and 2 kids, save, and allow for holidays, theoretically. The point is that the top tax rate for the top income on the back of the form was for 5,000 pounds, $10,000. If you did earn 5001 pounds per annum, then you paid x, and 1 shilling and 8 pence tax on each pound over the 5000. 1 shilling and 8 pence is 1/12th, or, as near as dammit to 8.5%. 8.5% tax for someone who obtained remuneration of 7.5 times the average weekly wage. Maybe a far more people were paying their fair share of taxes back then! 
We all know that for some time, federal governments have been trying to shift the burden of support for the elderly onto their, [the elderly], shoulders, but it takes many years to plan for this. Legislation changes have been far to rapid to allow the planning to happen, even for those who thought they were well removed. Changes to Super laws for one. Reduction from 75% to 50% pensions on final salary for one. Then the next change to NO pension, just a lump sum, bugger off, you are out of the mix. 
I would guess that most 70 year olds of today would have been caught by this one, caught and trapped. If the governments plan is to lose any need of support, why not now raise the pension to, and tie it to, at least 60% of the average weekly wage in the country. Maybe this is why AWA’s were brought in. Too have a lower base, or am I being facetious?  
Those who are retiring now, or, have just retired, are those who paid the BIG taxes and levies through the time that Australia was emerging to become the player that it ‘thinks’ it is today. An old saying, but true, “Charity begins at Home”. 
If the government can not raise the benefit, then spend the money saved on services 
So that the pensioner gains are made in other ways. Pensioners still may be in a position to contribute to children/grandchildre

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