GreyPower On GST Increase

This National Government is shaping up more and more like that of the days of Jenny Shipley when she tried very hard to get the rate of National Superannuation down to 60% of the Net after tax ordinary time weekly wage.

This government is proposing to lift the rate of GST to 15% in order that those on $70,000 per annum may have their tax rate reduced, in other word a tax cut.

It is reported that the Minister of Finance has stated superannuitants are automatically compensated by the calculation of the Consumer Price Index which is adjusted annually and paid out on April 1.

What he does not say is that the CPI is calculated in December for the previous 12 months which means that any increase in GST will be met by National Superannuation rate for the previous year.

Another nail in the coffin for those superannuitants who still have a little savings account in their banks is that this government, on 1 April this year is raising the rate of resident withholding tax (RWT) to 21% thus taking another bite at the hard earned savings whilst those who have incomes in excess of $70,000 per annum get tax cuts. Is this the policy of a “fair government”.

And to think that superannuitants were not so long ago called the “Greedy Oldies”

ENDS

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