INCOME TAX IN NEW ZEALAND

Southland Times, Issue 24444, 26 May 1941, Page 10

INCOME TAX IN NEW ZEALAND

FALL IN ASSESSABLE FARM EARNINGS

Persons earning between £2OO and £3OO comprise the largest group of taxpayers in New Zealand, but though this group is numerically 12 times larger than those earning between £lOOO and £2OOO, it contributes less than half what the latter group does in national taxation. This is one of many interesting features of the Government Statistician’s report on the incomes of individual taxpayers for the income tax year 1939-40 (which deals with incomes for the 12 months ended March 31, 1939) which appears in The Abstract of Statistics. A feature of the table dealing with the sources of income is the decline in assessable farming income. i The report shows that for the income tax year 1935-36 there were 66,483 taxpayers in New Zealand whose total assessable income was £47,207,965. Exemptions totalled £30,823,597, leaving a taxable balance of £16,384,368. The tax assessed was £1,445,316. For 1939-40 the number of taxpayers was 174,552, whose assessable income was £91,223,462. Exemptions totalled £65,244,005, leaving a taxable balance of £25,979,457. The tax assessed was £4,610,295, which includes the additional 15 per cent, imposed by the War Expenses Act. MORE TAXPAYERS The figures show that during the four years the number of taxpayers has practically trebled, the assessable income has doubled, as have the exemptions. The tax assessed has trebled.

The following table shows the tax assessments according to the size of

SOURCES OF INCOME

A further table is devoted to the sources of the incomes of individuals and covers the income tax years 193738, 1938-39, and 1939-40. This shows that the total assessable income derived from salary or wages, mining or extraction and building or construction has increased since 1938-39 by 24.3 per cent., 13.5 per cent, and 10.1 per cent, respectively. Assessable farming income shows a decline for the same period by 29.5 per cent. Details for 1938-39 and 1939-40 are:—

incomes:— Tax- Assessable ExempTax payers, income. tions. assessed. £ £ £ Under £206— 9,569 466,139 91,781 59,571 £200 to £300— 63,348 31,824,785 29,291,941 435,186 £300 to £400— 52,978 24,234,201 20,064,502 648,294 £400 to £500— 19,926 9,452,648 6,547,740 390,609 £500 to £600 9,637 5,272,125 3,001,769 319,403 £600 to £700— 5.411 3,487,621 1,687,381 262,493 £700 to £800— 3,381 2,517,663 1,070,404 219,326 £800 to £900— 2,265 1,911,576 726,517 187,876 £900 to £1000— 1,631 1,524,702 523,307 164,597 £1000 to £2000— 5,162 6,849,413 1,753,590 962,057 £2000 to £3000— 851 2,011,485 325,264 421,863 £3000 to £4000— 250 843,842 97.881 228,068 £4C'O to £5000— ’3 315,108 25,664 102,077 £5000 to £6000— 32 174,710 15,909 63,594 £6000 to £7000— 18 117,450 8,354 46,857 £7000 to £8000— 6 44,151 2,610 22,695 £8000 to £10,000 — 5 42.88G 1,825 21,445 £10,000 and over— 9 110,957 7,558 54,287

-1938-39. 1939-40. Salary or Total Total Number Assess- Number Assessor able of able Returns. Income. Returns. Income. wages Profes199,739 56,683,616 211,697 10,442,913 sional Commerce, trade or 2,884 2,546,711 2,937 2,542,995 business Indlustry or manti 10,898 5,625,383 10,521 5,504,531 facture 213 126,647 175 115,757 Farming 7,704 5,975,467 6,059 4,213,407 Transport Building or con■1,056 510,670 1,043 503,897 struction Mining or 937 489,773 955 539,334 extraction 111 Invest52,245 146 59,330 ments Entertain20,603 7,135,931 23,393 7,289,691 ment 20 10,682 21 “11,634 Totals 214,165 79,157,125 256,947 91,223,462