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Monday, 4 June 1984
Page: 2410


Senator JACK EVANS —My question is addressed to the Minister for Social Security . Under the new assets test legislation and the proposed lump sum superannuation legislation, will people drawing annuities be disadvantaged either through having the capital proportion of their annuity made taxable or through having this capital proportion of the annuity regarded as income, which would reduce their social welfare payments?


Senator GRIMES —As Senator Evans will remember, under the previous assets test legislation people in this situation were given a choice because, first of all, we did not want to disadvantage people, and secondly, as Senator Evans would also know, we wanted to encourage people to provide for their retirement by investing in annuities which could be rolled over into weekly payments rather than taken as lump sums. As the existing assets test proposals are somewhat different, although not that different to the previous legislation, that matter is under immediate consideration. I will let the honourable senator know as soon as we have made a decision about that.