John Smith wrote on Oct 30
th, 2015 at 9:01am:
I had a neighbor come in all pissed off yesterday after having dealt wit centrelink all day, trying to find out why they were docking his pension. .... after two visits to the local centrelink office, having security called on him for daring to call them idiots, and multiple phone calls, they worked out they were docking his pension because they ASSUMED he was earning so much in interest on some money he had in a bank account ... when he told them the account earned 0.1% interest and not the 6% they were assuming, they told him that it wasn't their problem.
they ended up calling security on him again when he replied to that.
The problem with centrelink is that they don't actually listen to their clients .. they're programmed to say certain things at certain times, like the good little robots they are, without ever addressing the clients concerns
Gets us back to the argument (nay - call it a dispute) over the difference between the handling of the fully franked (bought and paid for) Pension, and superannuation that is not fully paid for at any time during its life.
A person on super can get as much as the market will bear in a year, after several tax concessions along the way, yet a person on a pension that has been fully paid for over fifty years of work is chopped off at the knees for anything and everything.
One reason why the entire system of retirement funding needs overhaul, and I see the solution is to
pay everyone the pension, no questions asked, and treat all income above that the same for taxation. that would recoup some of the tax concessions that super has garnered along the way - and don't forget - pension is fully the recipient's money since it had no tax concessions at all along the way - whereas super is subsidised several times.
100% agree with your solution. How much of the pension do you think should be tax free?