STAGGERING INCREASE

Ashburton Guardian, Volume 61, Issue 41, 28 November 1940, Page 5

STAGGERING INCREASE

TAXATION IN AUSTRALIA.

WAGES! AND SALARIES LEVIES. (Received This Day, 9.10 a.m.) CANBERRA, This Day. Staggering increases in taxation were announced by the Federal Treasurer (Mr A. w! Fadden) in the House of Representatives yesterday. The full impact of the blow will be lelt when weekly deductions from wages hnd salaries begin on January 1. Then, for example, a taxpayer on an income of ’£6oo with one dependant will lose £1 18s a week in Federal tax alone. Taxpayers on £4OO a. year with one dependant will pay 16s a week, and the man on £I.OOO a year will pay £4 11s. Four shillings is being allowed for eacli dependent. Mr Fadden introduced the tax schedule with regret but “without apology.” Mr Fadden, explaining the taxation schedule, said that the war must be won and, to use Mr Churchill’s phrase, that could be done only through blood, tears and sacrifice. No words were needed to justify even the uncomfortable weight of taxation. The Minister said that the weekly deductions under the compulsory instalment plan, beginning on January 1, would rise from Is 6d weekly on salaries £3 to £5 weekly on salaries of £2O. This plan would continue until June 23. Those higher paid would in the aggregate contribute £20,000,000 and the middle income group £8,000,000, while wageearners in under the £4OO group would bo required to find £5,000,000.