The GSA Council has reviewed the Association's policy objectives following progress made in our campaign for everyone to receive a full cost of living adjustment and to make the annuity tax exempt overseas.

The advance payment on the 2011 cost of living adjustment from 1 October 2010 (2.02%) acknowledged our case for a payment of cost of living adjustments when price increases take place.

Receiving the benefit of tax cuts

With major reductions in income tax from October 2010 and a general election in 2011, the GSA is pursuing the case for annuitants to receive the benefit of tax cuts. Because annuities are not assessable for income tax, annuities do not increase when income taxes are cut.

Where the opportunity arises, further action on the following issues will be considered:

• While those on the pre-1985 schemes have received a full cost of living adjustment since 2009, this is not calculated on the basic annuity.
• Remove double tax on annuities paid overseas: the annuity is now tax-free in Australia but this has yet to be achieved in other countries.
• GSF contributions based on a fair definition of remuneration: an issue for some current contributors, this will be pursued in conjunction with the PSA and other state sector unions.
• Full cost of living adjustment for pre age 60 retirees: seek to remove the $1000 limit on the payment for the period before age 60.
• Eliminate delay in paying cost of living adjustments: this remains a significant employee/employer issue.

Other issues to be pursued when the opportunity arises include: anomalies in the NPF DBP scheme, and increasing the survivor annuity to 60%.

Objectives resolved