Silly me. I always thought I'd get the equivalent of the old age pension when I was 60 because I had Vietnam service.

No-one ever mentioned the means test even though it has always applied.

From time to time my wife and I apply for a Service Pension but always find the our collective pensions just exceed the cut-off for income support supplement after the creative accounting rules set up by the Australian Government are applied.

I often wonder what the administrative costs must be in eliminating some older Australians from Australian Government Pension entitlements.

First there are the myriad fact sheets produced to explain just how each asset or income is treated. Then there are the two booklets with hundreds of questions to be answered. Add to this the cost of certifying the accompanying documents each time a claim is submitted. Then every asset and income is checked for validity and a decision advised. Finally there is the requirement for advice in changes in assets and income to be advised within fourteen days. This effectively means for many Defence superannuants that their Service Pension goes down when their retirement pay goes up.

A whole industry has grown up to administer the scheme. To cap it all off, the Service Pension remains taxable income even though recipients are generally over sixty years old.

I believe the Service Pension should be paid tax free to all who have qualifying service and have reached the age of sixty. The whole administrative structure to "spend a pound to save a penny" could then be dismantled. I doubt if the cost to revenue would be much different.

What do other forum members think?