SCOA Australia has received a letter from Prime Minister Scott Morrison in response to a a letter to the Prime Minister dated 27 August 2018 regarding the indexation and taxation of CSS and PSS pensions.
The Prime Minister has responded saying, “….. the government therefore intends to maintain the current indexation arrangements for the pensions paid from these schemes”. With regard to the taxation of the CSS and PSS pensions, the Prime Minister writes that changing the taxation arrangements would give CSS and PSS pensioners an unfair advantage over people who have contributed to taxed superannuation funds and have paid tax on their contributions as well as earnings. In the Prime Minister’s words, “the government believes that current taxation arrangements for members of taxed and untaxed funds are broadly equitable”.
Click here to read the Prime Minister’s letter
Canberra 29 October 2018.