INCOME TAX PAYMENTS

Press, Volume LXXVII, Issue 23220, 6 January 1941, Page 4

INCOME TAX PAYMENTS

Instalment Plan In Australia

EMPLOYERS TO MAKE W AGE

DEDUCTIONS

SYDNEY, December 27

A new system of collecting Federal income tax by instalments has now been introduced in Australia, states the “Sydney Morning Herald.” The scheme enables employers to make the deductions of instalments due from the wages of employees for direct payment to the Government. It is obligatory on the employer to purchase instalment stamps and see that they are distributed to employees who come under the scheme.

On and after the first pay day in January, 1941, employers are required to deduct Federal income tax from their employees, whose earnings, including free board and quarters (valued at £1 a week) exceed £3 17s a week. The amount to be deducted each pay day must be in accordance with prescribed rates, less a rebate of 5s a week for each dependant. A schedule of rates may be obtained from the Department of Taxation

The employer is required to purchase and hand' to each employee instalment stamps of a value equivalent to the amount of tax deducted from the employee’s earnings. Tax instalment stamps will be on sale at all post offices. Employees are required to obtain approved tax instalment stamp books, which will be available at all stationers, and to fix in them the tax stamps received from their employers. These should be cancelled by the employees immediately they are received. The stamps will be accepted in payment of Federal tax payable in respect of income derived during the year ended June 30, 1940. Any excess in the value of tax stamps over the amount of tax payable will be refunded. An employer with 100 or more employees may arrange with the commissioner to remit the amount of tax deducted from his employees direct to the department. In such cases instalment stamps will not be used, and tax collected will be dealt with under the group scheme. Books of remittance forms will be supplied free by the Department of Taxation. Details of the group scheme may be obtained from the department. The assessments of taxpayers who are not employees will be issued as usual, and will be payable within the prescribed time as in other years. Amounts Payable A table, showing in simple form the weekly instalments which must be paid from wages and salaries for Federal income tax, has been issued by the Taxation Department. The table, which has been prepared for the convenience of employers, is:—

Employee’s weekly salary or wages, including board (15s a Weekly week) and quarters (5s a week), deduction and not (if no de-

On salaries exceeding £lB 10s, the amount of the deduction is to be calculated by multiplying the number of pounds (to the nearest £1) by five. The answer is the amount to be deducted in shillings. The weekly deduction will be 5s less for each dependant shown in the declaration to be made by the employee to his employer.

Exceeding Exceeding 1 pendants) £ s. d. £ s. d. £ s. d. 3 17 0 4 10 0 2 0 4 10 0 5 10 0 5 0 5 10 0 6 10 0 9 0 6 10 0 7 10 0 14 0 7 10 0 8 10 0 1 0 0 8 10 0 9 10 0 1 2 6 9 10 0 10 10 0 1 10 0 10 10 0 11 10 0 1 13 0 11 10 0 12 10 0 2 2 0 12 10 0 13 10 0 2 5 6 13 10 0 14 10 0 2 9 0 14 10 0 15 10 0 2 12 6 15 10 0 16 10 0 2 16 0 16 10 0 17 10 0 2 19 6 . 17 10 0 18 10 0 4 1 0