SOCIAL SECURITY

Gisborne Herald, Volume LXVII, Issue 20223, 16 April 1940, Page 10

SOCIAL SECURITY

TAX ON INCAPACITY PAY EXEMPTION IN FORCE Persons receiving allowances from approved sick, accident or death benefit funds during incapacity from work are now exempt from the payment of social security contributions on moneys so received. This concession was made last December by amending regulations under the Social Security Act, and has been in force since the beginning of the present month. Funds to which the concession relates are defined in the regulations as including “any fund established for the benefit of any employees of any employer or of the members of any incorporated, society, or for the bene; fit of the widows and dependants of any deceased employees of any employer, or of any deceased members of any incorporated society, and approved for the time being by the Commissioner of Taxes.” The concession applies also to payments of the same kind from the National Provident Fund.

The amending regulation exempts income received by trustees for such funds, provided that it is not income derived from any business carried on by them or on their behalf. Income derived from public or private superannuation or pension funds remains liable for social security contribution, even in the case of persons drawing partial age benefit from the social security fund. An arrangement has lately been made whereby contributions due in this way by Government superannuitants are deducted at *he source.

Contributions made by employers or former employers to approved superannuation funds on behalf of members of the forces are exempt from social security contribution as from April 1, 1939.