WEDNESDAY, FEBRUARY 27, 1980
INCREASE IN PERSONAL TAXATION ALLOWANCES PROPOSED
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THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, TODAY PROPOSED TO INCREASE VARIOUS ALLOWANCES FOR BOTH SALARIES TAX AND PERSONAL ASSESSMENT TO BENEFIT MORE THAN 370 000 EXISTING AND POTENTIAL TAXPAYERS.
PRESENTING HIS BUDGET IN THE LEGISLATIVE COUNCIL, SIR PHILIP OUTLINED HIS PROPOSALS AS FOLLOWS:
*
PERSONAL ALLOWANCE FOR A SINGLE PERSON WILL GO UP FROM $10 000 TO $15 000 AND FOR MARRIED PERSONS FROM $20 000 TO $30 000-
* CHILD ALLOWANCE WILL BE INCREASED AS FOLLOWS:
FROM $4 000 TO $5 000 FOR THE FIRST CHILD-
*
$3 000 TO $4 000 FOR THE SECOND CHILD=
$2 000 TO $3 000 FOR THE THIRD CHILD-
$1 000 TO $2 000 FOR THE 4TH, 5TH AND 6TH CHILD- AND
$500 TO $1 000 FOR THE 7TH, 8TH AND 9TH CHILD.
THE DEPENDENT PARENT ALLOWANCE WILL BE INCREASED FROM $4 000 TO $5 000 AND THE CRITERIA FOR GRANTING THIS ALLOWANCE WILL REMAIN UNCHANGED.
HIS PROPOSAL FOR INCREASING THE PERSONAL ALLOWANCE CONSISTS OF INCREASING THE LEVEL OF PERSONAL ALLOWANCES FROM $10 000 TO $12 500 FOR A SINGLE PERSON, AND FROM $20 000 TO $25 000 FOR MARRIED PERSONS, AND ABOLISHING THE EXISTING CLAW-BACK PROVISION IN THE SUPPLEMENTARY PERSONAL ALLOWANCES SO THAT ALL TAXPAYERS WILL ENJOY THIS ALLOWANCE WHICH IS $2 500 FOR A SINGLE PERSON AND $5 000 FOR A MARRIED PERSON.
SIR PHILIP SAID THE IMPLEMENTATION OF THESE PROPOSALS WOULD BE EFFECTIVE FOR FINAL SALARIES TAX ASSESSMENT FOR 1979-80 (AND FOR PERSONAL ASSESSMENT ALSO) AND PROVISIONAL SALARIES TAX FOR 1980-81.
+THE EFFECT OF THESE PROPOSALS WILL BE TO EXEMPT 15 000 PERSONS PREVIOUSLY LIABLE TO SALARIES TAX AND A FURTHER 45 000 WHO WOULD HAVE BECOME CHARGEABLE IN 1980-81, WILL REMAIN OUT OF THE TAX NET,+ HE SAID.
+ADDITIONALLY, 265 000 SALARIES TAXPAYERS WILL BENEFIT BY WAY OF REDUCED LIABILITY AND A FURTHER 50 000 WILL BENEFIT UNDER PERSONAL ASSESSMENT,+
SIR PHILIP SAID THE COST TO THE REVENUE IN 1980-81 TO IMPLEMENT THESE PROPOSALS WOULD BE $426 MILLION.
UNDER THESE