Centrelink payments should take into account your net income, NOT your gross income!
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This affects every Centrelink payment!!
As a fairly new 'customer' of Centrelink, having applied for a Disability Support Pension back in May, I am astounded to learn that your GROSS income is taken into account when calculating the amount of assistance you receive and not your NET income.
Surely this is double taxation? There is no way I can spend my full gross income as tax has to be paid, so why reduce my (and everyone else's) benefit by the amount I am taxed??
Surely a fairer way is to utilise net income.
For example I am currently receiving income protection payments which list a gross and net amount. Obviously I only get paid the net amount and yet in talking to Centrelink they take my gross payment into consideration to calculate what benefit I will receive.
This is a cruel hoax, as I (and all others) are penalised for paying tax! And because our benefit is reduced by the amount of tax we pay we are victimis of double taxation, which is against all principles of the taxation system.
This gross amount is not received by me to spend on doctors visits or medication, but is ultimately used to pay my reduced benefit!
Not only does this fail the double taxation standard but also eliminates the tradition of a 'Fair Go'.
How can this be justified? How can you possibly count income tax paid as income I can spend?
It makes no sense at all and desperately needs changing!
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