GENERAL EXEMPTIONS

Waikato Times, Volume 124, Issue 20740, 25 February 1939, Page 9

GENERAL EXEMPTIONS

SECURITY REGULATIONS SCOPE OF PAYMENTS COMPARED WITH PRESENT RATES (By Telegraph.—Press Association) WELLINGTON, Friday To enable a ready comparison of the general exemptions which existed under the Employment Promotion Act and the general exemptions now provided for under the Social Security regulations, the Minister of Social Security, the Hon. W. Nash, to-night Issued a summary showing the position of the various oiasses of persons.

“An examination will show at a glance whether the general obligation of each individual to contribute has in any way been varied,’’ said Mr Nash. "It must, of course, be remembered that this is a summary of the position as it affects classes of persons, and that individuals within those classes may, because of circumstances personal to themselves, be entitled to exemptions not granted to the class as a whole.”

The summary is as follows: — Persons over 10 and under 20 years of age.—Registration fee: Previously exempt. Charge on income: Previously exempt. These exemptions have now been discontinued. Case of Women Women.—Registration fee: Previously exempt. Charge on income: Previously wholly exempt from charge upon wages from private domestic service, and wholly exempt in respect of the first £3O of income other than wages. These exemptions have been discontinued. Natives.—Registration fee: Previously exempt unless a request was made to become a contributor. Charge on income: Previously liable. Natives are now placed upon the same basis as European residents. Chatham Islanders. Registration fee: Previously exempt. Charge on income: Previously exempt. Chatham Islanders have now been granted the benefits provided by the Social Security Act and are liable upon the same basis as residents on the mainland. Pensioners' Obligations Pensioners under the Pensions Act, 1926 (old age, widows, miners, etc). —Registration fee: Previously exempt. Charge on income: Previously exempt from charge on income other than wages. These persons are now exempt from liability to pay the registration fee only if the benefits received by them under the Social Security Act or under the Pensions Acts now repealed constitute the sole source of income. In view of the greatly increased monetary benefits now payable to them they are liable to pay the charge upon all other income. Aged persons (males 65, females 60) and persons more or less permanently disabled. —Registration fee and charge on income: These persons were previously exempt both from the registration fee and from the charge on income other than wages if the total income received was not more than £lO4 a year, but they were liable to pay wages tax on wages from employment. In view of the fact that they will now receive greatly increased benefits under the Social Security Act, the exemptions have been, discontinued. This. means that those who are entitled to benefits under the Social Security Act will be exempt from the charge upon the value of those benefits. They will also be exempt from liability to pay’ the registration fee if they have no income except benefit under the Act. Those who have income from other sources will be liable for the charge upon that income and for the registration fee. Other Institutions War Pensioners. —Registration fee: Previously total-disability war pensioners were exempt, but other war pensioners were liable. Charge on income : Previously total-disability war pensioners were exempt from the charge, but not from the wages tax. Other pensioners were exempt only m respect of the pension received. In the case of all war pensioners the existing position has been continued. Persons in Schools and Other Institutions. —The new regulations provide for exemption of the following persons from liability to pay the registration fee during such period as they are not in.receipt of any income: (!) Inmates of institutions for the reliefof_aged needv and Infirm persons. (2) Mental hospital patients and patients in public hospitals. (3) Inmates of prisons, etc. fi) St-udimts attending educational institutions. These are not recarded as receiving income merely because they may receive benefits under scholarships or bursaries, vo) Members of religious orders whose rules forbid the possession of property. (it) Persons who are registered as unemployed. . Issue of Leaflets “Leaflets setting out information as to the obligation of members of the nublic generally and of business men and farmers will be issued to householders and others in the near future, said Mr Nash. “These leaflets will apt out in greater detail the requirements of the Act and of the regulations as they apply to particular would suggest that those in doubt a- to their particular duties or rights should not in the meantime create unnecessary correspondence by communicating with me or with the Commissioner of Taves. but should await the issue of ihe leaflet, and then, if any diftlculty remains, inquu-e as to the position."

COMPANY DIVIDENDS announcing liability (By Telegraph.—Press Association) WELLINGTON, Friday A regulation of particular interest to shareholders was mentioned by the Minister of Social Security, the Hon. W. Nash, in his statement to-night on the provisions of the Social Security The regulation is one which requires companies that are liable for the Social Security change to print

upon their dividend certificates the following words: —"The company is liable for the Social Security charge upon this dividend, and no Social security charge on this amount is payable by the shareholder.’’ This endorsement will enable shareholders at a glance to see what dividend should be included in their annual declarations of income and what should be excluded, it will thus avoid confusion which might otherwise arise Companies are liable to pay Social Security charge in quarterly instalments. in the same manner a» are individuals.