WAR TAXATION

Dominion, Volume 8, Issue 2539, 13 August 1915, Page 6

WAR TAXATION

AUSTRALIAN PROPOSALS ' LABOUR PARTY'S INCOME TAX The proposals of the Commonwealth Government with regard to tho income tax rates to be charged wero disclosed for tho first time at a meeting of tho Federal Labour Party Caucus at Melbourne on July 30. As has been previously stated, the tax is to be a graduated one, starting at 3d. in the pound, and rising, according to the salary earned, to as much as ss. in tho pound. Tho amount of tho exemption to be fixed was the subject of much discussion. The proposal of the Ministry was that it should be £156 per annum, but some of the rank and file favoured a minimum of £200. In the. end the Government won tho day, and consequently all persons in receipt of £157 and over will be called upon to make a further contribution to tho reveuuo of tho Commonwealth. Ther'o will, however, bo a further exemption of £13 for each child under 1G years of age, so that a person with ono child receiving £169 per year will escape taxation, and so on according to tho number of children in tho family. All salaries up to £1000 a year will bo granted the benefit of tho exemption, but tho full amount of higher salaries will bo taxable. For instance, tho second line of the schedule £500 (over tho exemption) 7d., means that 7d. in the £ will have to bo paid on a salary of £657, of which £157 will be exempted. Tho rates in the case of incomes derived from personal exertion aro as follow:— Tax in the pound, s. d. Salary 0 3 £500 (over the exemption) ... 0 7 £1000 (over the exemption) 0 10 £2000 1 6 £3000 2 0 £4000 3 0 £5000 ' 3 6 £6000 4 0 £7750 and over 5 0 On incomes between theso totals tho amount of tho tax will, as already •explained, bo graduated. Iu tho case of incomes derived .from property the rates are slightly higher ranging from lOd. in tho pound on a,mounts of £500 to ss. in the pound on £7000 and over. Tho respective amounts are as follow: — Tax in tho . pound. Income. s. d. £500 0 10 £1000 1 i £2000 2 5 £3000 3 3 £4000 '. 4 0 £5000 4 6 ■ £60110 ; 4 9 £7000 5 0 Tho tax is estimated to yield a rovenuo of about £4,000,000.