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WEDNESDAY, FEBRUARY 27, 1985
SALARIES TAX CONCESSIONS PROPOSED
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THE FINANCIAL SECRETARY OFFERED FOUR CONCESSIONS IN THE AREA
OF PERSONAL TAXATION AFTER RECONSIDERING THE SALARIES TAX THRESHOLDS SINCE THE LAST BUDGET.
HE PROPOSED:
* FIRSTLY, THAT THE ADDITIONAL MARRIED ALLOWANCE BE INCREASED FROM $15 000 TO $17 000, THUS INCREASING THE TOTAL PERSONAL ALLOWANCES FOR A MARRIED COUPLE TO $58 000;
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SECONDLY, THAT THE CHILD ALLOWANCES BE INCREASED, FOR A FIRST CHILD FROM $8 000 TO $9 000 AND FOR A SECOND CHILD FROM $5 500 TO $6 000;
THIRDLY. THAT THE ADDITIONAL ALLOWANCE FOR A DEPENDENT PARENT RESIDING WITH THE TAXPAYER BE INCREASED FROM $2 000 TO $3 000, THEREBY INCREASING THE TOTAL ALLOWANCE FOR EACH DEPENDENT PARENT IN SUCH CASES TO $11 000;
* FOURTHLY, THAT THE FOURTH BAND IN THE SECOND SCHEDULE OF THE ORDINANCE (THAT IS THE BAND TO WHICH THE 20 PER CENT RATE OF TAX PRESENTLY APPLIES) BE WIDENED FROM $10 000 TO $20 000. THIS WILL DEFER THE POINT AT WHICH THE 25 PER CENT RATE COMES INTO PLAY BY $10 000 OF INCOME AND, INCIDENTALLY, INCREASE THE INCOME LEVELS AT WHICH TAXPAYERS ENTER THE STANDARD RATE ZONE.
SIR JOHN BREMRIDGE SAID HE BELIEVED THAT THE PUBLIC WOULD WELCOME THESE MEASURES WHICH WERE DESIGNED TO BENEFIT SOME OF THE LESS WELL-OFF SALARIES TAXPAYERS INCLUDING SOME OF THE MIDDLE INCOME GROUP - THE SO-CALLED +SANDWICH SOCIETY+,
HE CONTINUED: +THERE WILL NO DOUBT BE THOSE WHO WILL ARGUE THAT THESE CONCESSIONS ARE INADEQUATE. TO THEM I CAN ONLY SAY THAT, GIVEN THE PROSPECT OF ANOTHER DEFICIT IN THE COMING YEAR, ANY TAX CONCESSIONS AT THIS TIME SHOULD BE REGARDED AS GENEROUS. +
SIR JOHN PROPOSED TO INTRODUCE THESE NEW CONCESSIONS WITH EFFECT FROM THE YEAR OF ASSESSMENT COMMENCING ON APRIL 1, 1985.
+THEY WILL THUS APPLY FOR THE FIRST TIME TO PROVISIONAL SALARIES TAX ASSESSMENTS FOR THE FISCAL YEAR 1985-86 AS WELL AS FINAL TAX ASSESSMENTS FOR THAT YEAR- AND TO 1985-86 PERSONAL ASSESSMENTS ALSO.+
THE FINANCIAL SECRETARY EXPLAINED THAT THIS REPRESENTED A DEPARTURE FROM PRECEDENT AS IN THE PAST ADJUSTMENTS TO TAX THRESHOLDS APPLIED NOT ONLY TO THE FORTHCOMING FISCAL YEAR BUT ALSO TO FINAL TAX LIABILITIES FOR THE CURRENT YEAR.
THE CONCESSIONS WILL MEAN A COST OF $150 MILLION IN 1985-86 AND $210 MILLION IN A FULL YEAR.
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