HIGHER TAXES

Auckland Star, Volume LXXIV, Issue 36, 12 February 1943, Page 3

HIGHER TAXES

WEEKLY PAYMENTS

Striking Increases In New Australian Measures

N.Z.P.A. Special Correspondent Rec. 12.30 p.m. CANBERRA, this day Heavy increases in income taxes and the establishment of a national welfare scheme are provided' for in measures outlined by the Federal Treasurer, Mr. Chifley, in the House of Representatives. The new taxes will yield an additional £40,000,00 a year. The present exemption oF £156 is to be reduced to £104. The "personal exertion" rates are to begin at 6d in the £ at £104, and rise to a maximum of 18/6 in the £ on the excess of income over £5000. Property rates have also been substantially increased. In many of the middleincome groups the rise in taxation is as high as 50 per cent. Australian salary and wage-earners at present pay their year's income tax in 40 weekly instalments. Under the new taxation the payments, in the great majority of cases increased from their present figure, will be made every week of the year. A single person receiving £5 a week, who is now paying in taxation 9/ for 40 weeks of the year, will in future pay 15/ for 52 weeks of the year. But a married man with two children on the same income will remain on a weekly taxation rate of 2/. A person without dependents receiving £10 a week formerly paid £2 1/ a week for 40 weeks. He will now pay £2 15/ for each week of the year. A married man with two children on the same salary, who formerly paid £1 3/ for 40 weeks, will now pay £1 13/ for 52 weeks. National Welfare Scheme The money raised by the new taxation, apart from meeting war needs, will help to implement the national welfare scheme, which will be developed in stages, reaching fulfilment after the war. Points of the scheme to be introduced immediately are:— (1) Increase of 20 per cent in the standard basic rates for full war pensions. (2) New eight weeks' maternity benefit to mothers of 25/ a week, in respect of new births, and a more liberal maternity allowance. (3) Funeral benefits for old age and invalid perlsioners. The full scheme of national welfare includes medical, hospital and dental services, child and maternal welfare, and unemployment relief. The unemployment benefits are expected to be brought forward within six months and the sickness benefit scheme within nine months.

The Government will finance the national welfare fund from July 1, 1943, by an annual grant for general revenue of £30,000,000, or a sum equal to one-fourth of the total annual income tax collections from individuals, whichever is the lower. The balance of the fund will be used during the war to meet war expenditure. The new taxation is regarded as "heavy enough to make one wince, to quote the Sydney Morning Herald, but it is accepted as pessary The main opposition to new the cost arisps from the increase in the cost of living, which has bee" so steep that £1 is now woi th o/ less man before the war. '