91.
to tax. The new allowances at their maximum levels will be nearly 6% higher than the present basic and additional personal allowances (44);
Fourthly, I propose that the child allowance be increased, for a first child from $11,000 to $12,000, and for a second child from $8,000 to $8,500; and
Lastly, that the allowance for a dependent parent be increased from $9,000 to $10,000. Thus, the total allowance in respect of a dependent parent residing with a taxpayer will be $13,000.
I intend to introduce these concessions with effect from the year of assessment commencing 1 April 1988. Therefore, the first occasion on which they will apply will be to provisional and final salaries tax assessments
tax assessments for 1988-89, and also to 1988-89 personal assessments. I estimate that the cost to the revenue in 1988-89 will be about $1.1 billion, and for a full year, $1.5 billion.
(44) Under section 42B(1) of the Ordinance, the present basic and additional
allowances are:
Basic Allowance
Additional
Allowance
Total
$
$
$
Single
29,000
5,000
34,000
Married
60,000
10,000
70,000
/Taxation