INDIVIDUAL INCOMES

Bay of Plenty Beacon, Volume 7, Issue 48, 11 February 1944, Page 3

INDIVIDUAL INCOMES

TAXATION GROUPS WITHIN NEW ZEALAND

WHAT THE STATISTICS SHOW

Tin the exclusive group of individuals whose incomes exceed £5000 a year arc 13 who are in receipt of £10, 000 or more, according to the statistics relating to income, tax in New Zealand for the year 1941-42. Out of their aggregate taxable balance of. £153,000 they paid £95,000 in tax. In the group earning between £9000 and £10,001) there were three names, in the £8000-£9OOO group seven, in the £7000-£BOOO 11, in the £6000~£7000 26', and in the £5000-£6OOO there were 54.

P>v far the biggest group of wageearners came within the £200-£3OO and the £300-£4OO groups, the number being more than 225,000, out of a total of 315,000.

As the salary increases so docs the number in each group taper off. In the £400-£SOO group, lor instance, there are 35,855 names:, and in the £500-£(500 there are 15,992. Alter that there is a sharp drop in the next group to 5375 names, then to 3739 in the £800-£9OO group, 2457 in the £900-£IOOO group, and a sudden increase to 7978 in the £1000 to £20,00 group. Then the figures fall away steeply again. lin the lastmentioned group the tax assessed was nearly £2,000.000, or just under a quarter of. the total assessment for that year.

The aggregate assessable income of the two largest categories—that is, of £200-£3OO and £300-£4OO, which inelures 71.5 per cent of the number of returns—amounted to 54.2 per cent of the. total assessable income. The percentage of exemptions in these two categories is very high, with the. result that the tax-, able balance comprised only 22.4 per cent of. the total, and. tax assessable amounted to only 16.0 per cent of the total tax assessed.