EMPLOYMENT TAX

Greymouth Evening Star, 18 June 1936, Page 3

EMPLOYMENT TAX

MINISTER’S EXPEANATION. Now that assessment and collection cl''the employment tax Is the function y.L the Commissioner of Taxes, the necessity for submitting two separate returns of income for employment tax and income, tax purposes will in due course disappear, hut the collection of the tax will still be made through the post office, the Minister oil Labour, the Hon. IL 'J'. Armstrong, explains in a memorandum giving ex--11 lanetory notes on tlie Employment Promotion Act, which came into force on June 1, consolidating and concentrating in one Act the provisions dealing with assistance to persons out of ■ mployment and the promoting of additional. employment, which have hitherto been scattered through the Unemployment Act, 1930, the Amendment Acts of 1931, 1932 and 1934, and sundry’ Finance Acts. The section of the Unemployment Amendment Act, 1931, which allowed amounts paid ns unemployment tax as a special exemption for income tux purposes has not been reproduced in the present Act. The Government considers that the proper place for such a provision is in the Land and Income Tax Act, and the Government may yet decide to proceed with the appropriate amendment of that. Act.

Where income received in advance is apportioned over one or more years by the Commissioner of Taxes for income tax purposes, that apportionment now automatically becomes operative for employment tax. Power was given previously to make default assessments on persons who failed to make declarations of income or made faulty ones, but the complementary power to fix a date by which objection to the default assesment could be lodged was omitted. One section adds the necessary power, and allows the Commissioner discretionary power to accept, if he thinks fit. objections made after the time allowed has expired. The cost of administration was previously charged direct against the fund. The new Act makes such expenses a charge on the Consolidated Fund in the first place, and such proportion of those expenses as the Minister of Labour, with the approval of the Minister of Finance, shall direct. will be recouped; to the Consolidated Fund from the Employment Promotion Fund.

SUSTENANCE ALLOWANCES. Among the most important changes are those in the section dealing with the payment of sustenance allowances. Tho maximum rates fixed by the Unemployment Act, 1930, have been dropp’d and in lieu" thereof a wide discretion has been given the Minister of Labour, who may, with the concurrence of the Minister of finance, fix the rates to be paid from time to time. As before, a residence of not less than six months is a necessary qualification, and no allowance is payable where a person refuses or fails to accept employment considered by the Minister to ba suitable in its nature, location, conditions and remuneration. The Minister is, however, given an overridingdiscretion to enable exceptional cases to be promptly and sympathetically dealt with, where these conditions

would otherwise prevent the giving of adeqaute relief. The only person to whom allowances may not be paid are those under the age of Hi years and mules over 20 years of age who are wholly exempt from liability for the registration levy. This represents an improvement in that sustenance may now be paid to males between the ages of 16 and 20 where considered desirable, and to wo-, men.

The exemption from the employment charge granted by regulation to make males over lite age of 65 years and females over the age of 60, whose income for the year did not exceed £lO4 has been included in the Act. and has been 'extended by a sub-section which states that where the income of such persons is just over t,he limit of £lO4 per ; nnunl, (he amount of tax payable will be reduced so that the net income received by that person will not be reduced below £lO4. 'file same exemption is allowed to people who satisfy the Commissioner that through physical or mental disability they’ are unable to follow any i .' gulnr employment and whose income for the year did not. exceed the figure of £lO4. The rate of tax payable is 8d in the The rate may be varied by Order in. Council, but may not be increased beyond one penny in every one shilling and eightpence (1/- in the £).