THE TRUTH ABOUT PENSIONS

As a Wartime measure, the Federal Government gained sole control over Australian Income Tax. Labor Prime Minister ( Ben Chifley ) introduced three bills to establish the National Welfare Fund, to be financed by a Compulsory Contribution (levy) of one and sixpence in the Pound (20/- ) on all personal income. 1946 Opposition Leader (Robert Menzies) stated that the Compulsory Contribution (levy) should be kept completely separate.

That it should be shown separately on the Taxation Assessment and paid straight into a “TRUST” account and not mixed with the General Revenue. Menzies said “The stigma of charity should be removed from the Age Pension.” ”It should be an entitlement earned by the person’s personal contribution to the fund.” Prime Minister Chifley agreed and established

The National Welfare fund as at 1/1/1946. A “Trust” Fund with the Parliament as “Trustee.” The Compulsory Contributions (levy) commenced as at 1st January 1946. It was shown separately on the personal Tax Assessments for 1946, 1947, 1948, 1949 and 1950 And the compulsory levy was properly paid straight into the Special “Trust” fund And Welfare claims were paid out of the fund. The balance in the fund in 1950 was almost 100 Million Pounds. 1949 Robert Menzies became Prime Minister and he introduced Bills to amend the acts governing the National Welfare Funds. The Compulsory Contributions (levy) was then grouped with the Taxation Assessment and appeared as one amount on the Taxation Assessments and was paid as one straight into the Consolidated Revenue Account. 1951-1985

The Compulsory levy of 7.5% now included in the tax continued to be collected and placed in the Consolidated Revenue Account treated as General Revenue and spent, until 1985. 1974-1975 Labor Prime Minister (Gough Whitlam) abolished income test for all persons 70 years of age and over and paid pensions to all people over that age.

1975 Liberal Prime Minister (Malcolm Fraser) cancelled the Witlham achievement of abolishing the test for all 70 years of age and over.

1977 Liberal Prime Minister (Malcolm Fraser) with Treasurer Philip Lynch) transferred the balance in the Welfare Fund Account (approximately $ 470.000.000) to Consolidated Revenue Account.

1985 The Hawke Labor Government repealed acts No. 39, 40, and 41 of 1945 (The National Welfare Fund Acts). Thus the funds finally ceased to exist yet the 7.5% levy continued to be collected as a proportion of the Income Tax revenue. It also introduced the (much maligned) Income and Asset Tests, thereby excluding millions of levy and tax paying Australians from receiving Social Services Pensions.

This money these self-funded contributions paid as a percentage of the total income tax collections are today worth far more than the amount of means tested pensions paid out. Actuaries have calculated the non-means tested entitlement due to each retiree, today is in excess of $ 500 per week. This surely debunks the politician’s claim that the generation are paying a proportion of their current taxes to cover the payments made to pensioners.

The obvious short fall has been swallowed by the government’s Taxation Black Hole. The historical summary above highlights the fact that politicians of opposing political parties each contributed to the agenda to destroy the entitlement as it was intended why? When it clearly would not have been the will of the people. While Party Politicians are controlled by a few people who are hidden from public view yet are open to Manipulation and Outright Corruption, there can be no certainty of the payment of pensions. Only a majority of truly Independent representatives can bring about a change from Government under corporate control, to Government for the People, of the People, by the People. Just because a cabal of political miscreants become so GREEDY and they change the way a tax looks in the Ledgers.

THIS IN NO WAY REMOVES THE FACT THAT THIS TAX IS STILL COLLECTED AND IS SO COLLECTED STILL TO THIS DAY TO PROVIDE FOR THE SUPPLY AND CONTINUATION OF THE OLD AGE PENSION. A STIPEND TO THE ELDERLY CITIZENS OF THIS COUNTRY WHO HAVE WORKED FOR DECADES OF THEIR LIVES TO BUILD A NATION AND HAVE FROM WORKING DAY ONE OF THEIR LIVES, BEEN PAYING 7% PLUS OF THEIR TAXES DIRECTLY TOWARDS THIS PENSION.