XN000022-1973-03-01 — Page 17

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Thursday, March 1, 1973

LOWER EFFECTIVE RATES OF TAX

Graphs And Tables Produced To Give Illustrations

The Commissioner of Inland Revenue, Mr. F.E. Rainbow, today presented

a series of graphs and tables prepared by his department to illustrate the

generally lower effective rates of tax introduced under the 1973-74. budget.

The graphs show how the tax curve for the coming year of assessment

lies below that for last year, and the tables present a comparative breakdown

of how the new concessions affect a wide range of incomes, according to the

marital status of the income earner,

Explaining the tables, Mr. Rainbow said that the income figure in the

first column is, in effect, the gross income less expenses and allowable charitable

donations.

The next three columns respectively show the tax payable last year,

this year and next year at the various levels of income. Here, in the case of

single man, the 1973-74 column shows a lower tax levy at every level of income

from $15,000 to $69,000,

Mr.

Rainbow

From $70,000 onwards the single man starts paying the standard rate

of 15 per cent, placing him beyond the reach of the new concessions.

pointed out, however, that under the previous system he would have reached this

15 per cent maximum much lower down the scale, around the $61,500 mark.

"The beneficial range of the new concessions varies of course, according

to marital status," he added. "When he marries, and has children, this range

rises up the income scale until, in the case of a married man with six children,

the 15 per cent standard rate only applies to incomes in excess of $108,000.

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