27 Feb 2010

Scepticism about PM's GST promise to pensioners

6:19 am on 27 February 2010

A promise by Prime Minister John Key to pensioners they will be better off if the tax on goods and services rises to 15%, has been met with scepticism.

Mr Key told a meeting of North Shore Grey Power on Friday that pension payments would rise as personal tax rates are cut, because payments are based on the after-tax average wage.

Mr Key said the Government would also increase superannuation payments by just over 2% to match the rise in GST.

He said the two changes together would lift superannuation more than the GST increase.

Age Concern president Liz Baxendine says she will believe this if and when she sees it.

The Grey Power Federation says it is also sceptical.