N.S.W. FINANCES.

Waikato Times, Volume 103, Issue 17383, 20 April 1928, Page 9

N.S.W. FINANCES.

FAMILY ENDOWMENT. HIGHLY REMUNERATIVE TAX. SYDNEY, April 10. So remunerative has been the lax on family endowment (says a Sydney paper), that the New South Wales Government is almost embarrassed by I tie ever-growing surplus from that source. Sooner or later a question for Cabinet to decide will be, whether or not the tax should be continued. Official figures from the Taxation Department disclose that up lo last week endowment tax had reached £O7 1 .503. Thus the estimate of Ihe special investigation that the lax would yield £1,250,000 by June 30, 1028, looks like being realised. On March 31 Ihe payments made for family endowment totalled £510,022, which is considerably below the official estimate that payments would total £1,000,000 by June 30 nexl. When the Act was passed by the Lang Government- confusion existed as to the fruits of the tax. and the extent to which beneficiaries would draw upon Ihe purse of tthc Stale. The original Act provided for a tax of 3 per cent, which was estimated lo produce more than £5,000,000 a year. Upon assuming office the Bavin Government had ihe position investigated, and discovered that flic estimated probable rosl of benefits had been exaggerated, probably unwittingly. Members of the present Government contended, and still hold the view, that Mr Bang was culpable in launching Ihe scheme without proper investigation. £260,000 Surplus. The estimates furnished to the

Bavin Government, as a result of investigation, look like being realised, and Ihe actual position as at June 30, 1928, may he;— Receipts from lax .... £1,250,000 Payments to beneficiaries under Act £1,000,000 So that, on flic first years’ operations, there will be a surplus of a quarter of a million. This surpus will not be taken into account in the ordinary public revenues, but will be credited to next year’s expenditure. In other words, no new tax will lie imposed until the whole of this. surplus will have been absorbed. Under ihe provisions of the amending Act, introduced by Hic Bavin Government, the tax was suspended definitely loi the months of November and December, 1927, and thereafter suspended each month by Executive Council minute. The period of suspension will continue until the whole of the tax has been exhausted. The Government is giving careful consideration to Die effect upon industry of the incidence of financing family endowment. One measure on the Parliamentary programme . lor the session which opened on April 1 < is an amendment of the Family Endowment. Act, to remove certain anomalies which will he announced when the Bill is introduced.