21
WEDNESDAY, MARCH 2, 1988
THIRDLY, TO INCREASE THE ADDITIONAL PERSONAL ALLOWANCE FROM $5,000 TO $7,000 FOR A SINGLE PERSON, AND FROM $10,000 TO $14,000 FOR A MARRIED COUPLE. THUS, THE BASIC ALLOWANCE PLUS THE INCREASED ADDITIONAL ALLOWANCE WOULD TOTAL $36,000 FOR A SINGLE PERSON, AND $74,000 FOR A MARRIED COUPLE. BELOW THESE INCOME LEVELS THERE WOULD BE NO LIABILITY TO TAX. THE NEW ALLOWANCES AT THEIR MAXIMUM LEVELS WOULD BE NEARLY SIX PER CENT HIGHER THAN THE PRESENT BASIC AND ADDITIONAL PERSONAL ALLOWANCES;
FOURTHLY, TO INCREASE THE CHILD ALLOWANCE, FOR A FIRST CHILD FROM $11,000 TO $12,000, AND FOR A SECOND CHILD FROM $8,000 TO $8,500; AND
LASTLY, TO INCREASE ALLOWANCE FOR A DEPENDENT PARENT FROM $9,000 TO $10,000. THUS, THE TOTAL ALLOWANCE IN RESPECT OF
A DEPENDENT PARENT RESIDING WITH A TAXPAYER WOULD BK
$13,000.
MR JACOBS SAID HE INTENDED TO INTRODUCE THESE CONCESSIONS EFFECT FROM THE YEAR OF ASSESSMENT COMMENCING APRIL 1 THIS YEAR.
WITH
"THEREFORE, THE FIRST OCCASION ON WHICH THEY WILL APPLY WILL BE TO PROVISIONAL AND FINAL SALARIES TAX ASSESSMENTS FOR 1988-89, AND ALSO TO 1988-89 PERSONAL ASSESSMENTS."
THE COST OF THE CONCESSIONS TO THE REVENUE IN 1988-89 WILL BE ABOUT $1.1 BILLION, AND FOR A FULL YEAR, $1.5 BILLION.
MR JACOBS SAID HIS PERSONAL TAXATION PACKAGE HAD BEEN CAREFULLY STRUCTURED TO SLOW DOWN THE RATE AT WHICH PEOPLE MOVE TO HIGHER TAX BRACKETS. AT THE SAME TIME, ALTHOUGH WLLOWANCES WOULD BE RAISED BROADLY IN LINE WITH INFLATION, THUS KEEPING A NUMBER OF PEOPLE OUTSIDE THE TAX NET, INCREASES IN REAL INCOME WOULD HAVE THE OVERALL EFFECT OF INCREASING THE NUMBER OF TAXPAYERS.
WORKING WIVES TO GET TAX ALLOWANCE CONCESSION
A TAX CONCESSION IN THE FORM OF AN ANNUAL ALLOWANCE OF UP TO
BY THE $15,000 FOR WORKING WIVES WAS PROPOSED
FINANCIAL SECRETARY, THE HON PIERS JACOBS, TODAY (WEDNESDAY).
IN HIS BUDGET SPEECH TO THE LEGISLATIVE COUNCIL, HE SAID THIS WOULD COST A FURTHER $240 MILLION IN 1988-89, AND $340
IN A
MILLION
FULL YEAR.
/"AS THIS