INCOME TAX CHANGES

Evening Star, Issue 19658, 10 September 1927, Page 10

INCOME TAX CHANGES

What the Graduations Mean ■ --v . Explanatory tables dealing with the effect of the new taxation proposals' 'have been, issued by the Government. Table A sets out the position of various classes of taxpayers, with and without Children, as in 1914, as at present, and as proposed Only exemption for children has been stated, but, as other exemptions now exist which,did not exist in 1914 (as shown in the note to Table B), even in those cases in which a higher rate is shown than in 1914 the actual payment may be less, depending on the circumstances of each person. In Table 15 is shown the tax payable under the 1914 schedule, the tax payable under the present .schedule, and the tax payable under the proposed

The following note is appended to the table: —It is important to note that these are taxable incomes after deducting from actual income; — (a) The ordinary exemption of £3OO, or that portion of it allowable; ' (b) Allowances for children, which in 1914 ceifsecl at £425 and was limited to live children at £25 per child, and is now £SO per child unlimited,_ and age raised from 16 to- 18 years. (c) Insurance premiums up to 15 per cent, of earned income. In 1914 this was limited to £SO; .jij.ii (d) Superannuation and pension payments, which were not deductable in 1914; . . ■ (e) 10 per cent, reduction of tax on earned income not deductable in 1914. - Hence, for example, taxable income of £I,OOO may belong to a person Trhose real income is, say, £1,300.

'schedule. TABLE A. Actual Income. Number ol 1914. Present. Proposed. ' £ children. £ s. d. £ s. d. £ s. d. .350 . .. None 1 5 U 163 16 3 1 0 12 6 Nil Nil 3 . Nil Nil ' Nil 3 Nil Nil . ; Nil o o .. None ■' 2 10 0 2 12 6 2 12 6 1 1 17 6 1 6 3 16 3 2 1 5 0 Nil Nil 3 0 12 6 Nil Nil 450 . , , . None 3 15 0 3 18 9 3 18 9 I 3 15 0 2 12 6 2 12 6 ■ 2 3 15 0 16 3 16 3 3 3 15 0 Nil Nil 500 • None 5 0 0 5 5 0 5 18 2 1 5 0 0 3 18 9 4 11 11 2 5 0 0 2 12 6 3 5-8 3 5 0 0 1 .6 3 1 19 5 , 550 .. .. . None 6 5 0 6 11 3 7 17 6 i 6 5 0 5 5 0 6 11 3 2 6 5 0 3 18 9 5 5 0 3 6 '5 0 2 12 6 3 18. 9 600 .. . None 7 10 0 7 17 6 10 18 0 1 7 10 0 6 11 3 '8 16 9 2 7 10 0 5 5 0 7 4 5 O ' 7 10 0 3 18 9 : 5 18 2 650 ... . None 8 15 0 11 9 11 14 6 11 1 8 15 0 9 12 5 12 0 0 2 8 15 0 7 17 6 9 1611 3 8 15 0 6 11 3 7 17 6 - TABLE B. Tax as per Tax as per Tax as per Taxable 1914 present proposed income. schedule. schedule schedule. £ £ s. <1. £ s. d. £ s. d. 100 ' 2 10 0 2 12 6 2 12 6 200 5 0 0 5 5 0 5 5 0 300 7 10 0 7 17 6 7 17 6 400 10 0 0 11 9 11 12 0 0 500 14 1 3 15 12 6 16 17 6 COO 18 1 5 20 5 0 23 10 0 700 -24 1 3 25 7 6 28 17 6 800 - 30 0 0 31 0 0 36 0 0 900 36 11 3 37 2 6 43 17 ■ 6 1,000 43 15 0 43 15 0 ■ 52 10 O' 1,100 51 11 3 50 17 6 61 17 6 1,200 60 O' 0 •58 10 0 72 0 0 1,300 69 1 3 66 12 6 83 17 0 1,400 .78 15 0 75 5 0 94 10 0 1,500 85 18 9 84 7 6 106 17 6 1,600 93 6 8 94 0 0 118 10 0 2,000 125 0 0 137 10 0 170 12 6 4,000 ‘ 268 13 4 501 7 9 593 15 0 6,000 400 0 01,087 10 01,141 17 6 9,000 600 0 01,980 0 01,980 0 0