INCOME TAX REBATE REMAINS UNCHANGED

Ashburton Guardian, Volume 69, Issue 263, 19 August 1949, Page 4

INCOME TAX REBATE REMAINS UNCHANGED

(Special to “Guardian.”) WELLINGTON. This Dav. The continuation of the £lO rebate on all income tax assessments and increases of 5s in social security monetary benefits, the latter at an estimated cost of £1,800,000, are the main feature& of the Budget presented in the House of Representatives by the Minister ofi Finance, the Rt. Hon. W. Nash, last night. Legislation is to be introduced to provide exemption from amusement taxation on certain amateur sports and musical and operatic functions. To assist parents who are required io board children at school, increased bearding allowances are to be paid, and similarly incregsed financial assistance is to be given University students by increasing bursaries and scholarships. ** War pension rates are also to be increased.

, The specific sections of the Budget dealing with increases were as follows :4—. “Amusements Tax: Amusementstax is payable in respect of certain amateur, sports and amateur musical and operatic functions. From the information available the Government is satisfied -that activities of this kind merit exemption from taxation. Legislation to this end will therefore be introduced- during this session. i! National Disasters: In accordance with the Government’s promise last year, it is proposed to extend the cover under • section 14 of the Earthquake and War Damage Act, 1944, to insured property damaged as the dire.efi'result of storm or flood which is of an abnormal and unforseen nature. No increase in the present premium charge is intended for this additional cover, but 10 per cent, of the premium income will be credited to a special disaster Fund to be used to meet approved claims.... . “It; is also intended to give authority to grant insurance on a voluntary basis tinder section 15 of the Act for damage occurring as the direct result of;.storm apd flood to property of any kipd, including property which is not normally insured against loss or damage by Are. . “Apart from these provisions, if farmers promote mutual insurance’ schemes to protect their crops-;*- and stock not normally covered by . insurance, the Government ' will '"''■'d.Qnsider favourably paying a proportion of the cost of approved claims;

“Assistance in Education To as-' sist parents who are required to boardtheir children away from home ‘tin order to attend school it'is proposed to increase the boarding-allowances paid on account of children attending both primary and post-primary schools. These increased allowances will be payable from the beginning of _ the next school 3 T ear, February -X-, 1950. T:. /!':

“Similarly, it is intended to give increased financial assistance to students attending University by increasing the values of University scholarships and bursaries. Regulations to implement these proposals will be issued in due course. Social Security Benefits “It is proposed to increase the scale of social security monetary • benefits from £2 os to £2 10s a week, with effect from June 1, 1949. “The increase will apply to age, widows’, invalids’, miners’, sickness, and unemployment benefits, and where the benefit includes a portion payable on account of a wife who is not qualified to receive a benefit in her own right her portion will also be raised by 5s a week, from £2 5s to £2 10s a week. “Beneficiaries under 20 years of ago and orphans will benefit from Hie increase of 5s weekly in the basic rate. Mothers’ allowances payable to widows will also be increased by 5s weekly. “It is not proposed to vary the present rates, of universal superannuation or : family benefits. _ , “The estimated additional cost ol the above increases for the current financial year is £1.800,000.

“Proposals for the present year include* the' introduction of an "ambulance benefit,” and also improvements to the existing procedure in 'dealing with the "general medical services.”

"War Pensions: War-pension rates will also be increased. As the majority- of ex-servicemen suffering minor disabilities for which they are receiving war pensions are following normal employment, they will benefit from the increase in the general wagelevel, but to insure that all pensioners will participate in the improvements in benefits it is proposed to raise the basic pension. For a pensioner who suffers 50 per cent, disablement the pension will be raised from £1 10s a week to £1 15s a week. Where a pensioner is totally disabled the pension will be raised from £3 a week to £3 10s a week. Other pensions for various degrees of disablement will be proportionately increased. "At the same time tire pension for a wife will be increased from £1 to £1 5s a week. Where there are dependent children, the mother’s al lowanee of £1 10s will rise to £1 15s, but the children’s allowance will remain at 10s a week for each child as at present. - "Thus a disabled man on full pension with a wife and two children, according to percentage of disability can I’GGGiVG I "The basic rate of pension for warwidows will lie increased by 5s per week, while war pensions payable to other classes of dependants will he increased pro rata. f "The basic rate of war veterans allowanee, boh for the war veteran and, if married, for his wife, will lie increased from £2 5s to £2 10s a week giving a maximum of £5 weekly lor a married couple. . "All increases in war pensions anti war veterans’ allowance will operate from June 1, 1949.- .. "The estimated cost of these increases for the balance of the current financial year is £ooo,ooo. Income Tax Rebate "Last year a rebate of up to £lO was made on all income-tax assessments of individuals. This was tiesigned to give relief, particularly to those in the lower-ineomo groups, ine result was that no income-tax was payable by individuals whose assessments were not more than £lO, and a flat reduction of £lO was made on all other individual assessments.

“It is proposed to continue this rebate for the current financial year, and a reduction of some £3.3 million lias been allowed for in the estimates of revenue which I have already mentioned.

“Conclusion: From the facts and figures, which I have supplied to the House, it will be seen that tlie public finances, as well as the whole economy of New Zealand, are in a very good condition. We have been able to conclude the past year with a surplus of £2,'300,000. At a time when other countries are experiencing or expecting difficulty in disposing of all their products which normally enter into international trade we have a full and insistent demand for all our products. “Controls have been necessary and efficacious in the past and may be essential in the future. The Government will, nevertheless, take every opportunity to relax and abandon controls wherever the circumstances warrant. Rationing of meat and sugar has been removed during the past year, while the restrictions on building control have been diminished. At the same tin»e it, is to be borne ; in mind that the needs of the United Kingdom, with which New Zealand’s fortunes are so closely and so irrevocably bound, may require some redirection of exports and of imports. “Supplies of goods and services are becoming in increasing degree more .readily available in New Zealand. In other words, our standard of living is rising. In the. announcement which I have just made regarding increased benefits, and pensions for those who for one good reason or another are unable to increase tlxeir earning-power, some recognition is made of the fact that every one should share in an increase in the national income and in an enhanced standard of living.

Strikes Pull Country Back “Too much emphasis cannot be placed on the fact that continuance of the present good conditions depends upon good conditions in other countries as well as upon everyone pulling his weight in our- own country. Strikes, disputes, profiteering, idleness and friction of all kinds, whether local or international, merely drag us hack, and in the long run are of no gain to airy one. A steady increase in efficiency and in productivity is imperative.

“We are fortunate in that New Zealand is a country with great resources. We have a great heritage in our country and in our association with the other members of tlie British Commonwealth. To live up to the responsibilities of that heritage means continuous and energetic efforts. Thoso efforts can only he successful with orderly Government and orderly nublie finance. These during the past fourteen years have been and will be for the future tlie objectives of tlie Government.