FINANCE SYSTEM

New Zealand Herald, Volume LXXV, Issue 23115, 13 August 1938, Page 17

FINANCE SYSTEM

NEW SPECIAL ACCOUNT THE CONTRIBUTION BASIS START AT AGE OF 16 ALL WOMEN INCLUDED fBT TELEGRAPH —SPECIAL REPORTER! WELLINGTON, Friday Provision for financing the social security scheme is made by the bill introduced in the Houso ; of Representative's to-day. A special account in the Public Account, to be called the Social Security Fund, will be established aud into it will be paid the proceeds,of the' social security contributions and all other moneys that may be appropriated by Parliament for the purpose. Out of the Social Security Fund will bo paid without further appropriation all monetary benefits other than emergency benefits. In addition, the following amounts may be paid out of the fund on the appropriation of Parliament: — (a) The cost of administration; (b) any moneys required for educational or research purposes; (c) all moneys that are appropriated for health benefits or any other purpose incidental to the Act. The Employment Promotion Fund will be abolished on September 30, 1939, and the money remaining in the fund on April 1, 1939, may bo expended in the meantime for the purposes authorised under tlio Employment Promotion Act, 1936. Remissions lor Hardship The social security contribution will consist of:—(a) Registration fee; (b) a charge on salaries, wages and other income. The collection of the social security contribution will be administered by the Commissioner of Taxes. Every person of the age of 16 years or over will be required to pay the social security contribution. The classes of persons to be exempted from the contribution or any part of it will be declared by Order-in-Council, which must be gazetted. The Commissioner of Taxes is given power to grant special exemption in respect of specified instalments of contribution, or to remit any penalty where payment would constitute a hardship, by reason of sickness of the person concerned or of a member of his family, or by reason of financial circumstances. All Women to Register The registration fee will be 5s a year, payable yearly, for all women and for all persons under the age of 20, and 5s a quarter in all other cases. The first instalment of the fee will be payable on May 1, 1939. The charge (b) will be at the rate of Is in the £ on all salaries, wages and other income similarly to the present employment charge. Penalties are provided in the case of any employer who deducts the charge from the wages of his employees and fails to account for it. It is also an offence punishable by fine and a penal charge for any person to evade payment of any portion of the contribution. The charge on income other than salary or wages will be payable quarterly, the first payment being duo on May 1, 1939. Losses in Business Provision is made that any taxpayer who has made a business loss in one year may deduct that loss from his profits in any of the three following years. Social security stamps will be issued for the payment of the charge on wages and salary. In order to assist employers, payment in particular cases may be made otherwise than by stamps. Every person of the age of 16 years or over is required to be registered for the purpose of the Social Security Act not later than May 1, 1939. Any person who employs in his service for inoro than seven days anyone who has failed to register, or is in arrear with payment of registration fee, will be liable to a fine. An application for a benefit may be postponed or declined in any case where the full amount of Social Security contribution has not been paid. Authority is given in the Act for the making of any regulations that may bo necessary to enable the efficient administration of the benefits provided. GRADATION PROPOSED SUPERANNUATION PLAN START AT £lO A YEAR ALL ELIGIBLE AT 65 [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday A special section of the Social Security Bill provides for the gradual introduction of universal superannuation. It is proposed as from April 1, 1940, to pay all citizens over the ago of 65 years £lO a year, this sum to be increased by £2 10s each year until the superannuation reaches £7B annually, and entirely supersedes the age benefit of the samo amount, so that universal superannuation will bo: 1940, £10; 1941, £l2 10s; 1942, £ls; and so on until £7B is reached. l/i the meantime from 1940, tho universal superannuation will form part of tho age benefit for persons of 65 years or over. Tho only qualifications will be in regard to residence and payment of contributions. Applicants who were in New Zealand on March 15, 1939, must havo been in the country for ten years immediately prior to the application, and all others ■ lor 20 years. THE INCOME LIMIT NO PRESENT EXTENSION [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON,. Friday Tho proposal made some time ago by the Prime Minister, Mr. Savage, that allowable incomes under tho Government's superannuation scheme should be extended to permit of a gross income with superannuation of £312 a year is not included in the Social Security Bill, which was introduced in the House of Representatives to-day. The Prime Minister stated in an interview this evening that his proposal in that connection had been replaced by the provision to introduce universal superannuation in gradual stages, commencing in 1940. Under the existing money Bystem it is impossible to do everything all at once," Mr. Savago said. "However, wo proposo to start in 1940 bv paying all .persons over the age of 65, irrespective of their means, an annual allowance of £lO, to be increased annually by £2 10s until the full amount of £7B a year it reached."