Ian, first up, I was not talking about when tax payments began in Australia as you mentioned first up. I was talking about how the tax had risen in the 1940's, as the government said it would be for a different need in a different separate area specifically for say, social security, pension, including widow pension etc. So with this reasoning, the tax rose well over 18%.
Here is a graph of the income tax rates rise in the 1940's.
And this,
marked the beginning of modern social security system.So yes, I was correct, we have paid it in our taxes for our social security.
But don't worry, the rules always change, and now the Govt will raise the pension age to 70.
It's all about taking and not giving back.
IMO, if the age pension rises to 70, by then, a pensioner should receive more, as they have thus worked longer, and paid more taxes, to which they are priviledged for. They have paid for it via that big rise in tax since the 1940's for social security.
This was my whole disappointment, for my father in law back in the 1980's, when he needed to retire, and didn't want to leave his home which was on the farm, but with the assets test, of land after the 5 acres, he could not get the pension, even though he had paid his taxes all his life, he had earned it. Now, just recently, that has changed re: farming and larger properties, where the homestead on the acreage of more than 5 acres, will not become under the scrutiny of the assets test, provided one has lived on that property for 20 years or more.
There will always be loopholes for the government to get out of wanting to pay the pension, and thus, will want to raise the pension age for entitlements to 70
That graph above, shows the steep rise in tax rates, for the purpose of social security, but really, what one government implements back then, and what another does in this day and age, will not compliment each other.