CO129-588-14 Estate Duty Amendment Ordinance 1941 28-3-1941 - 1-4-1941 — Page 5

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Objects and Reasons.

1. This Bill, when passed, will add as a Fourth Schedule to the principal Estate Duty Ordinance a new Schedule of Estate Duty Rates payable on the estates of persons dying on or after the 1st day of April, 1941.

2. The present rates, payable on the estates of persons dying on or after the 1st day of July, 1936, are given in section 4 of Ordinance No. 26 of 1936, and of those who died before that date in the First and Second Schedules to Ordinance No. 3 of 1932. Those rates will not be changed in respect of any deaths before the 1st April, 1941.

3. It will be seen by comparison between the Schedule in Clause 3 of this Bill and the Schedule in section 4 of Ordinance No. 26 of 1936, that where the principal value of the Estate does not exceed $300,000 there is to be no increase of duty, but then the duty rises by stages of one per cent. until a duty of 27 per cent. is payable on estates not exceeding $4,000,000; it then rises by two per cent. stages until a duty of 31 per cent. is payable on estates not exceeding $5,000,000; and thereafter by three per cent. stages until 52 per cent. will be the rate for estates exceeding $30,000,000. The present maximum is 20 per cent. on estates exceeding $20,000,000.

4. The reason for the increases is the necessity of finding revenue to meet increasing expenditure.

January, 1941.

C. G. ALABASTER,

Attorney General.