9.
EFFECT OF THE INTRODUCTION OF ADDITIONAL ALLOWANCE, SUBJECT TO 10% CLAWBACK FOR THE YEARS OF ASSESSMENT 1987/88, 1988/89 and 1989/90:
1989/90
Married Taxpaver
Wife not
Personal Allowance
Additional Allowance
Working Wife Allowance (a)
No tax liability where income does not exceed (b) Additional Allowance
Single Taxpayer
$ 32,000 7,000
Working
Wife Working
$
$
66,000
66,000
14,000
14,000
15,000*
39,000
80,000
93,637
(c)
subject to 10% clawback where income is between (see examples below) No Additional Allowance
where income reaches
39,001 to
80,001 to
80,001 to
108,999
219,999
219,999
109,000
220,000
220,000
Restricted to the actual amount of wife's net assessable income or $15,000 whichever is the less.
Examples of the calculation of Salaries Tax under the CLAWBACK SYSTEM
Example 1 Single person earning $41,000 per annum
Income after outgoings and charitable
donations
Less: Personal Allowance
$41,000
$32,000
Additional Allowance
$ 7.000
$39,000 $2,000
Add: Clawback adjustment (Note A)
10%($41,000 - $32,000 - $7,000)
Net Chargeable Income
Tax payable thereon
$ 200 $2,200
$66
[Net Additional Allowance (Note B): $7,000
$200 = $6,800)
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