STATE PAYMENTS

Otago Daily Times, Issue 26113, 28 March 1946, Page 6

STATE PAYMENTS

FAMILY BENEFITS AND GRATUITIES SIGNIFICANT APRIL 1 The introduction on Monday next of the universal family benefit, the first payment of war gratuities on the same date and changes in social security taxation and income tax exemptions on May 13, are three events, one or more of which will affect practically everyone in the community. The Social Security Department is at present working overtime to deal with the thousands of applications for. the family allowance of 10s a week for each child under the age of 16, or to the age of 18 in the case of full-time attendance at a day school. It will not be possible for all applicants to receive their allowance on April 11, the first day of payment, because of the enormous rush being experienced, but payments, when they are made, will be retrospective to April 1. Payment Date Many applications have not yet been received 'oy the department, but all those who apply before the closing date, April 30, will receive payment retrospective to the beginning of next month. Once tiie system is running smoothly payments will be made regularly on the 11th of each month. Applicants will first of all receive an acknowledgment from the department and later will be notified of a grant with a certificate authorising them to collect the benefit at the Social Security office or a money order office. Apolicants may, if they so desire, have the benefits paid into a Post Office Savings Bank account, or may allocate it, with the mother's authority, as prepayment of income tax. War gratuities are also payable on April 1. Up to the present the Chief Post Office in Dunedin has received the ledger cards of some 3500 applicants, and payment on these, together with the additional ones received before the end of the month, will be paid on the due date. It is estimated that approximately 8000 gratuities will be payable through the Post Office in Dunedin. The gratuities will be placed to the credit of applicants at Post Office Savings Banks and money not withdrawn will earn interest at the rate of 1% per cent., 5 per cent, of which is a special rate. Payment is computed on the basis of 8d a day for each day of service in New Zealand and 2s 6d a day for service overseas. Reduced Security Taxes As from May 13 the national and social security payment of 2s 6d in the £1 will be reduced to 2s, Is 6d of that amount being for social security, and 6d for war expenses. The registration levy of £ 1 a year for males was abolished recently, the final 5s instalment being payable last month. The final levy for females was paid last May. ~ , In addition to these tax adjustments, exemptions for income tax purposes will be amended. The £SO exemption for a wife will be raised to £IOO, and the £SO exemption for each child under 16 will be eliminated.