TAXATION RATES

Auckland Star, Volume LXXIV, Issue 40, 17 February 1943, Page 4

TAXATION RATES

AUSTRALIA AND N.Z.

EFFECT OF NEW IMPOSTS Increases in taxation designed to yield an additional £40,000,000 in the financial year 1943-44 are provided for in measures authorised by the Federal Treasurer of Australia, Mr. Chiffley, last week. The new rates, under which taxpayers in some income groups will pay almost half as much again as they have been paying, comprise the total of direct taxes now payable by Australians, for the Commonwealth Government is now the sole taxing authority. In any comparison between Australian arid New Zealand taxation rates the most important point to be borne in mind is that, in addition to income tax New Zealanders pay national and social security taxes, which alone reduce every income by one-eighth (2/6 in the £1), plus £1 registration fee. In the following comparison between Australia's new rates and New Zealand's existing ,rates the security taxes have been added to the income tax The tables given below set out the new Australian rates and the rates payable in Britain and New Zealand in respect of the personal exertion income of taxpayers without children and of those with two children in. Australia and New Zealand (shillings and pence omitted). It should be noted that these tables apply to earned income only, unearned incomes being subject to a third additional taxation and part earned and part unearned to proportionate increases.

The broad conclusions reached by comparing taxation in the Commonwealth and in the Dominion are that up to £200 it is higher in the Dominion because of the national and sociai security taxes; on incomes between £200 and £1000 New Zealand taxation has been higher than Australian, but is now lower; and on the highest incomes Australian taxation has been heaA'ier than in New Zealand, and the difference has now been increased. Australians on the average will pay heavier war +axes than wageearners in any o® er of the United Nations, and income taxation will be greater over the whole range than in Britain.

• EARNED INCOME, NO DEPENDENTS Gross earned _ , ',■ „ Ne , w ., income Australia. Britain. Zealand. £ £■■■■■•*•« 10(1 — — 13 200 22 . 22 26 300 55 49 55 400 95 88 86 500 137 120 119 600 179 171 153 800 265 254 226 1,000 355 338 306 2,000 951 796 806 3,000 ..:... 1,747 1,472 5,000 3,530 2,777 3,205 EARNED INCOME, WIFE AND TWO CHILDREN New Australian. Zealand. £ £ £ 100 — 13 200 — 26 300 17 38 350 31 44 500 80 89 600 118. 121 800 199 189 1,000 285 264 2.000 862 739 3,000 1,650 1,331 5,000 3,432 3,088