Pensions ?not taxed on extra earnings
'RETIRED chartered accountant Jeff Baldwin does not give tax advice or opinions but felt the need to clarify a point in regard to pensions and how they are affected by earnings.
Mr Baldwin, a self-funded retiree, said pensioners do not actually have their pension taxed when they earn over $50 a week as reported in the Daily News on April 14.
Mr Baldwin said what happens is their pension is reduced when they earn a certain amount, which varies depending on your type of pension.
"A single person on a pension receives $482.10 a fortnight and is allowed to earn $122 a fortnight before losing any of their pension," he said.
"This can be through working or money earned on investments.
"So Justine Elliot wasn't right in saying it was a tax - it's a reduction in the pension and it's after you earn $61 a week, not $50."
Mr Baldwin said to make the system fairer for pensioners, you would need to change the social security act which pension reductions fall under, rather than the tax act.
"I felt it was important to clarify this - it's important for the local community to understand the system and for us to ensure our local member gets it right and is then able to fight for a fairer system," he said.
Richmond MP Justine Elliot will hold an Aged Care Summit on April 28 at Banora Point Salvation Army Centre.