TAXATION OF AUTHORS

Wanganui Chronicle, 8 March 1947, Page 5

TAXATION OF AUTHORS

RULING IN AUSTRALIA (From C. R. Mentiplay, Special N.Z.P.A. Correspondent). Recd. 7.50 pan. Sydney, March 7. 't hough protests of Australian authors and otuer creative workers on the subject of the income tax system, as applied to them earnings, have reached the Federal Parliament, it seems that they will receive nothing but sympathy from the Chifley Government. The Taxation Commissioner has ruled that there can be no departure from the general principle and that proceeds from literary or artistic work must be taxed during the year of their receipt, just as salary or other regular income.

Many writers have pointed out that to achieve single success as the author of a best-selling novel its writer may have worked for many years without rewatd. After this success recurrence is not by any means a matter of course.

The plight of authors was spotlighted recently when results of the novel contest were announces, in which prizes of £3OOO. £2OOO and £lOOO were given. Even if the winners had no othci sources of income during the year their prize-money would be pruned considerably. The first prize of £3OOO would dwindle to £1572 10s. When, as is generally the case, the novelist has a normal tvlary for full-time occupation, the prize money tends to disappear in a w’elter of heavy taxation ranging to 15s in the pound and designed to hit tile big business executive or landowner, whose yearly income is above th e £4OOO mark. The same is true of the artist who studies and improves hi s technique for a number of years until at last he produces a picture which sells handsomely. It has been urged that Australia adopt a similar system to that is use in Great Britain, where the proceeds from a novel are assessed over three years for taxation.