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Taxation of reserve force pay



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Leader of the Opposition 1 S " 1

i · ·

PRESS RELEASE 157/83

TAXATION OF RESERVE FORCE PAY

"The Government's decision on Reserve Force pay is typical of its erratic approach of acting first and thinking later, the Leader of the Opposition, the H on. Andrew Peacock, said today.

"I pointed out in the House yesterday that the decision to tax part-time members of the Reserve Defence Force '

. will destroy morale in the Reserve

. will ultimately see the demise of the Reserve Force

. will seriously weaken our defence capabilities.

"By announcing that only 50 per cent of Reserve pay will be taxed, the Government has in effect admitted that my criticisms are correct. As with the superannuation tax, the prescribed payments t a x , the fuel oil excise and a number of other measures, the Government has been forced to change

direction when the stupidity of its original decision has become apparent.

"But the Government has not gone far enough. If it now accepts that taxation of reserve pay will have the disastrous consequences I pointed out yesterday, it should have gone the whole way and returned reservists to their pre-Budget tax free position. Today’s decision to "split the difference" is an

attempt at compromise which will satisfy no-one."

9 November 1983.