GENERAL TAXATION UNCHANGED: PENSIONS INCREASED

Press, Volume LXXXIII, Issue 25269, 22 August 1947, Page 8

GENERAL TAXATION UNCHANGED: PENSIONS INCREASED

SOCIAL SECURITY BENEFITS Rates Higher From October 1 MR NASH PRESENTS HIS TENTHBUDGET (From Our Parliamentary Reporter.) WELLINGTON, August 21. The only change in taxation, either direct or indirect, made by the Minister of Finance (Mr W. Nash) in his Budget, read in the House of Representatives this evening, is that granting a measure of relief to persons on small incomes from the imposition of the 33 1-3 per cent, supertax on unearned income. The exemption ends when the total taxable income exceeds £4OO.

Increases in the basic rates of social security benefits from October 1 of 5s a week are proposed, the orphans' benefit being raised by 4s 3d. The existing universal family benefit of 10s a week for every child under 16 years of age will be maintained as at present.

Pensions for totally disabled servicemen and war widows with dependent children, wholly dependent widowed mothers of deceased servicemen, and war widows over 40 years of age or who have ceased to qualify for a fam : ly benefit or mother’s allowance will be increased by lOs a week. Other war pensions are raised by ss.

The bonus to State superannuitants will be increased by 6s 8d a week, no bonus being payable at £422 of income.

The estimates for the Consolidated Fund for 1947-48 are that revenue will be £108.860.000 and expenditure £105,516,000, leaving a balance of £3.344,000 which “will be available for the supplementary estimates, much greater provision than usual being necessary to provide for wage and salary increases and other adjustments in expenditure arising out of the Arbitration Court’s recent decision on basic rates of wages.” Where appropriate and necessarv, adjustments will be made in the classification scales of the Public Service.

Revenue from taxation for the Consolidated Fund is estimated at £89.710,000. a drop of £995,000 on last year’s estimates, when the total receipts of the Consolidated Fund were £7,912.000 in excess of the Budget estimate.

Subsidies require a total vote of £13,459,000. The time of withdrawal of subsidies will vary for different products. Though the subsidies this year for bread, butter, and milk will amount to about £3,600,000, the Government will continue to hold the present prices of these commodities and the existing subsidy on eggs will be continued, while part of the increased cost of tea will be met by additional subsidy.