UNEMPLOYMENT AND THE LAW; EMERGENCY CHARGE PAYMENTS.

Star (Christchurch), Volume XLIV, Issue 457, 19 May 1932, Page 8

UNEMPLOYMENT AND THE LAW; EMERGENCY CHARGE PAYMENTS.

To-day’s Special Article

An Outline of the Constitution and the Activities of the Board. (11-) The following and succeeding articles review the effect of the more important of the amending measures passed by Parliament during the session now ended. Another aspect of unemploy-' ment taxation is dealt with in the accompanying survey. The “ emergency unemployment charge ” is a tax of Id in every Is 8d of wages, salary and other income. It came into operation on May 1 last. With the exception of relief workers, domestics and people under sixteen years of age, every person, whether liable for the general levy or not, who, after August 1, 1931, earned wages or salary is liable for this charge.

'J’HE LEVY is payable by way of special unemployment relief stamps, employers being required to deduct the amount of the tax each week and cancel the requisite unemployment relief stamps on the wages sheet. The same rate of special taxation applies to income from sources other than wages or salary, derived by all persons who are not wholly exempt from payment of the general unemployment levy. It is imposed on the amount received for each financial year after that which ended on March 31, 1931. It will not be levied on unearned income derived from a British Dominion where it has already been subjected to a special unemployment tax. The charge is payable in equal quarterly instalments on May 1, August 1, November 1 and February 1 of each year. In the case of women only an exemption of £2O is allowed. Regarding the payment of the emergency unemployment charge on “ incomes other than wages or salary,” the following points should be borne in mind:— (1) Every male of twenty years and upwards, who is not specially exempted, must furnish a declaration, whether he has received any investment income or not. (2) Youths under twenty years do not have to make a declaration or pay the charge on “ unearned income.” (3) Women, irrespective of age, who receive “ unearned income ” in excess of £2O have to furnish a declaration and pay the charge. Power of Exemption. The Unemployment Board has the same power to exempt on the grounds of hardship any person from liability to pay the emergency unemployment charge or any part of it, and any penalty imposed by reason of default, as it has regarding the general unemployment levy. The rate of the emergency unemployment charge can be reduced from time to time by Order-in-Council if the Governor-General is satisfied that the proceeds are more than sufficient to meet the requirements of the Unemployment Board. Failure to pay the emergency unemployment charge is punishable by a fine of £5 and a penalty of 10 per cent on the amount charged. Both fines and penalties will go to the unemployment fund. Effect on Unearned Incomes. When the emergency unemployment charge was instituted in 1931 it was at the rate of Id for every 6s Bd, and under ordinary circumstances it would have expired on July 31 next. As far as wages and salary were concerned the old charge came into operation on August 1, 1931. With income derived from other sources, it was to apply to two thirds of that income as declared at March 31, 1931. The amounts were payable in two instalments—the first on November 1. 1931. and the second on February 1, 1932. Provision was also made to tax at the same rate one-third of such income received during the year which ended on March 31, 1932. That amount would have been payable on May 1, but the amending Act passed by the House recently repealed that provision, and substituted a mandatory requirement that the increased charge—ld for every Is Bd—shall be paid on the total net unearned income for last financial year. As previously ex-

plained, this is payable in four equal quarterly instalments. The effect of the alteration is that receivers of income other than salary or wages will pay a larger sum than would otherwise have been the case, since they lost the right to pay the old rate on one-third of last year’s income, and have to pay the new rate on all of it. Where womei) received £250 or more from all sources for the year which ended on March 31, 1931, a return had to be made, and on two-thirds of the unearned portion of the income, the emergency unemployment charge at the old rate had to be paid. One-third of last year’s income was to be similarly taxed. Under the legislation of last session the latter provision was repealed, and, as already explained, women receiving other income than salary or wages w.ill pay in the same way as men, except that they will have an exemption of £2O. Constitution of Board. Together with the unemployment fund, the Unemployment Board was established by legislation in 1930. It consisted of eight members, the majority of whom represented sectional interests, and power (which still prevails) was given to co-opt associate members, with expert knowledge in specific subjects. In 1931 provision was made for the appointment of a Commissioner of Unemployment, and the constitution of the board was drastically overhauled. The membership was reduced to five—the Minister of Employment (chairman), the Commissioner of Employment and three Government appointees, one of whom, the deputy chairman, receives a salary of £4OO, the two other members being paid £3OO each. The main functions of the board are to make arrangements with employers, or prospective employers, for the engagement of unemployed workers; to take steps to promote the growth of primary and secondary industries, so that an increasing number of workers will be required for carrying them on; and to make recommendations for the payment of sustenance allowances. Range of Activities. Subsidiary functions comprise the following:—Establish labour exchanges; secure proper collaboration between Departments, local bodies and others undertaking public works, in order to have employment for the year evenly distributed; assist unskilled and other workers by grants or loans to pursue courses of vocational training or study, provide instructors, establish and equip classes or training camps, and do any other things necessary to qualify those workers for suitable employment; make advances to persons or authorities to enable them to carry out developmental or other works calculated to relieve unemployment; obtain information concerning the functions of existing and prospective industries; and appoint local committees. Power exists also for the appointment of special committees, one of which has authority to consider proposals, and make recommendations for the development of unoccupied lands, or the further development of occupied lands, with a view to increasing primary production; and another to make recommendations as to the assistance of unemployed women. (To be continued.)