WAR TAX ON ELIGIBLES

Dominion, Volume 10, Issue 3192, 17 September 1917, Page 4

WAR TAX ON ELIGIBLES

HOW IT WORKS IN AUSTRALIA. The new Federal tax of 10 per cent, on fiio liTconies of single men and widowers without children between the ages of 21 and 45 years who have not enlisted is likely to work in two ways (says tho "Ago"). It may induce'those concerned to enlist and take their places in tho r«nks of the Australian Army, or it may lead them to enter the matrimonial sphere wifTl greater celerity than otherwise would liavo been the ciso. so us to escape the tax. Following are several examples of how the tax will affect sivgle men and childless widowers of military age who have not enlisted:— '. Income of .£lso.—Exemption of £Joo,' diminishing at the rate of £1 for every £4 by which the income exceeds £100— .£l5O, less .£IOO eq. £50; £50, divided by i eq. £12 (approx.); £100 (exemption), less £12 eq. .£88; £150 (income), less £88 (exemption) eq. £62. Ten per cent, of .£62 would only bo .£6 is., but the taxpayer v:ould have to pay tho minimum of .£lO. Income of £250—Exemption of £100, diminishing at the rate of £1 for every £i by which the Incomo exceeds £100— £250, less £100 cq. £150; £150 divided by 4 eq. £37 (approx.); JEIOO (exemption), less £37 eq. £63; £250 (income), less £63 (exemption) eq. .£lB7. Upon this XIS7, the new tax of 10 per cent, operates, it would, therefore, be .£lB Us. Income of .£3oo.—Exemption of vflOO, diminishing at the rate of £1 for every £i by which the income' exceeds £100— 4>300, less £100 eq. £200; £200, divided by i eq. £50; £ICO (exemption), less £50 eq. ££50; .£3OO (income) less £50 (exemption) eq. £250. Upon this £250 a levy of 10 per cent, would mean a tax of £25. Income of £'100.—Exemption of £100, 'diminishing at the rate of £1 for every £i by■which the income exceeds £100; £•100, less £100 eq. £300; £300, divided by i eq. £75; £100 (exemption), less £75 eq. £50; £300 (income)'less £50 (exemption) cq. £375. Upon this £375 income a 10 per cent, tax would amount to £37 10s. Each of the above examples is worked out without regard for the deductions provided in the existing law for life insurance policies and donations to charitable institutions, etc. In addition,-the taxpayer concerned will have to pay the ordinary income tax. the amount of which lie should already have some knowledge. ''