FOR UNEMPLOYED

Evening Post, Volume CIX, Issue 120, 23 May 1930, Page 7

FOR UNEMPLOYED

NEW VICTOEIAN LAW;

ADMINISTRATIVE PROBLEMS

General satisfaction is expressed by members of the Victorian Legislative Assembly at the terms of the agreement which has been reached between tho Ministry and the Opposition for obtaining money for unemployment relief, says the Melbourne "Age." The details appeared in the "Evening Post" recently. Tho agreement combined the proposal i. of the Ministry to - collect. money by .means of a super tax with that of the Opposition for obtaining it as a stamp tax on wages and salaries. Persons whose income from personal exertion is less than £312 a year, or an average of £6 a week, will pay in the form of a stamp tax on wages receipts. Those whose income exceeds £312, or whose income is derived from property, will pay a super tax. The agreement is criticised by a see-\. tion of tho Labour Party as inequitable, insofar as it provides : tx9 difference in the payment by a single man and that by a married man with a family. It is generally; believed, however, that the Legislative Council .will accept it without any attempt at major amendment. The Unemployment Relief Bill has been recast in accordance with the terms of the compromise, and a second Bill is how being prepared to provide for the collection of the wages stamp tax. . TIME TO PREPARE. Officers of the Taxation Department declare that initial difficulties in applying the new taxes make it uncertain when they will operate. The stamp tax will be administered by the comptroller of stamps, and the necessary work in ■preparing and distributing stamps and in providing safeguards to see that tho tax is paid will bo undertaken as soon as the Bill is passed. It is uncerain how long this":work wil^ take, but it" is believed that it will not be practicable to begin the collection of the stamp tax until late in June. , Part of the revenue from the super tax will be collected in the next two months, but the remainder may not be obtained until the end of this year or early next year. - The compromise provides that the tax, will be assessed on income for the current financial year, but as "about 70,000 assessments in re,spect to income earned for the year 1928-29 have yet to be distributed by tho Taxation Department, it is proposed, to make the income earned in that ' year a temporary basis of assessment in these cases, to facilitate the collection of the money. - " . . Added to their ordinary taxation assessment for 1928-29, these 70,000 taxpayers will receive a claim for super tax based on the income for, that year. The super tax payment \hey will make in respect to thisclaim will be subject to adjustment when they lodge their statement of income for the current year. If their income was greater, in 1928-29 than it will be for the current year, the amount by which they overpaid the1 super tax will be returned, either in the form of a. cash refund or a credit to be deducted from their next ordinary income tax assessment. . If their income proves'to be greater this year than last year, they will receive an additional claim, for super tax when they receive their ordinary assessment on this year's income. BUDGET SOONER. ■ Persons who have already received their ordinary income tax assessment in respect to this year will have their super tax assessed directly on the return they will furnish in July, showing income for the current financial year. It is learned that an effort may be made by the '■'. Ministry to expedite tho presentation of the Budget, so that tha ordinary incomo tax rates can be decided earlier |han usual. This would permit assessments for both ordinary income tax and super tax to be sent out before the end of this year. Somo difficulty, however, might be experienced in including the claim for Federal income tax in the same envelope, in accordance with the usual custom. It is, therefore, more likely that a sper cial assessment for the super tax will be sent out later this year, or that the Ministry will obtain a. bank advance r agirist the money to be obtained to enable the Taxation Department to collect the super tax with the ordinary State and Federal income tax in the first half of next year. L Considerable difficulty is expected by the Taxation Department in many eases in deciding' whether a person should, pay a stamp tax or a super tax.-This difficulty will apply particularly to casr ual workers and persons, engaged in piecework whose income l^ usually between £300 and £350 a year, but is variable. The stamp tax will probably begin to operate before-these persons. are able to show their exact income for the current year, and in consequence it will be uncertain at the outset whether they should pay a stamp,tax or a super tax. Incomo tax officers are now attempting to prepare a clause for inclusion in the Stamp Tax Bill to' meet stoch cases, but it is expected that it: will be necessary to give the Department wide powers to make equitable adjustments.