SICK BENEFITS
RAILWAY EMPLOYEES
QUESTION OF TAXATION
A recent intimation that sick benefits paid to members of the Government Railway Employees' Sick Benefit Society must be regarded as "income" and became liable to the Social Security tax of Is in the £ was the subject of a question addressed to the Minister of Finance in the House of Repre-
sentatives by Mr. S. G. Holland (National, Chris'tchurch . North). Mi\ Holland asked whether the Minister would take the • necessary • steps to exempt railway sickness benefits from the obligation to pay the tax.
In a written reply given today on behalf of Mr Nash, the Prime Minister (the Rt. Hon. M J. Savage) said: "The position is that the sick pay referred to comes within the definition of 'income' for income tax purposes, and is accordingly 'income' for the purpose of the Social Security charge. It is recognised that there is some justification for exemption from liability in resoect of sick benefit payments received by members of. the Government railways and the numerous other sick benefit societies. The matter is at present under consideration with a view to rectification along with other anomalies arising* out of certain provisions of the Social Security Act."
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19390728.2.20
Bibliographic details
Evening Post, Volume CXXVIII, Issue 24, 28 July 1939, Page 4
Word Count
200SICK BENEFITS Evening Post, Volume CXXVIII, Issue 24, 28 July 1939, Page 4
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