Income boost for elderly

The Prime Minister has reassured the elderly they will get a "significant" boost in income which will more than adequately compensate them for price rises flowing from the expected rise in GST.

John Key yesterday announced that superannuitants would get a cut in income tax and an upfront increase in superannuation payments of more than 2 per cent. Instead of waiting for the usual annual adjustment in super payments, the increase would be immediate from the day GST went up.

Mr Key also hinted that the 33 per cent tax rate on income between $48,000 and $70,000 might fall to 30 per cent.