Govt must compensate GST hike

Vital that Government keeps its GST compensation promise says Age Concern

It's vital that John Key sticks to his promise that superannuitants be fully compensated for the projected GST rise, Age Concern New Zealand says.

"In his speech to Parliament today Mr Key offered 'upfront increases' in benefits and pensions to compensate for higher prices and we welcome that assurance," Age Concern chief executive Ann Martin says.

"It's vital that these increases fully compensate people on fixed incomes for any increase in GST and any follow-on price increases.

"Every April, Superannuitants desperately await cost-of-living increases to compensate them for the previous year's inflation. The promised increases must be 'upfront', immediate, and additional to this regular cost of living increase.

“GST is a regressive tax; it falls hardest on people who spend most or all of their income. Superannuitants are clearly in this group.

"Older people are already having trouble affording electricity, food and rates – all areas that would be hit with GST increases," Ann Martin says.

"Age Concerns see older people who aren't coping with today's prices. A significant group is suffering financial hardship and some endanger their health by cutting back on food, heat and activities to a dangerous extent to balance their budgets.

"It's important that vulnerable people are supported by Government as it makes changes to the tax system."

ENDS