XN000022-1985-05-01 — Page 21

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WEDNESDAY, MAY 1, 1985

PERSONAL TAX CUTS WILL BENEFIT 280 000

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PERSONAL TAX CONCESSIONS HE PROPOSED IN HIS BUDGET SPEECH THIS YEAR WOULD BENEFIT OVER 280 000 PEOPLE EITHER BY REMOVING OR REDUCING THEIR LIABILITY TO SALARIES TAX, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY.

THESE PROPOSALS, SIR JOHN SAID, WERE GENEROUS GIVEN THE PRESENT BUDGETARY POSITION, BUT HE BELIEVED THAT THEY HAD BEEN SEEN AS FAIR BY MEMBERS OF THE COUNCIL AND THE PUBLIC, HE SAID.

+AS FORESHADOWED IN MY BUDGET SPEECH THEY ARE INTENDED TO BENEFIT THE LESS WELL-OFF SALARIES TAX-PAYER, SIR JOHN SAID, MOVING THE SECOND READING OF THE INLAND REVENUE (AMENDMENT) (NO. 3) BILL 1985.

FIRSTLY:

HE RECALLED THAT THE FOUR CONCESSIONS HE PROPOSED WERE

TO INCREASE THE MARRIED PERSONS' ADDITIONAL ALLOWANCE FROM $15 000 TO $17 000, THEREBY INCREASING THE TOTAL PERSONAL ALLOWANCE OF A MARRIED COUPLE TO $58 000.

SECONDLY, TO INCREASE THE CHILD ALLOWANCE FOR A FIRST

CHILD FROM $8 000 TO $9 000 AND FOR A SECOND CHILD FROM $5 500 TO $6 000, THEREBY INCREASING THE MAXIMUM CHILD ALLOWANCE TO $27 000.

THIRDLY:

TO INCREASE THE ADDITIONAL ALLOWANCE FOR A DEPENDENT PARENT RESIDING WITH THE TAXPAYER FROM $2 000 TO $3 000 THUS BRINGING THE TOTAL ALLOWANCE FOR EACH DEPENDENT PARENT TO $11 000.

FOURTHLY: DEFERRING THE POINT AT WHICH THE 25 PER CENT TAX RATE TAKES EFFECT BY WIDENING THE 20 PER CENT BAND FROM $10 000 TO $20 000.

HE SAID THAT CLAUSE 4 OF THE BILL WAS A TRANSITIONAL PROVISION TO ENSURE THAT PROVISIONAL TAX ASSESSED AFTER APRIL 1, 1985 WAS BASED UPON THE NEW ALLOWANCES.

+THEY WILL NOT HOWEVER, AS WAS THE PRACTICE IN THE PAST, BE APPLICABLE TO THE FINAL TAX LIABILITY FOR THE PREVIOUS YEAR, I.E. THE NEW SCALE OF ALLOWANCES WILL NOT BE APPLICABLE TO 1984-85, HE EXPLAINED.

+EVEN SO, THESE MEASURES ARE EXPECTED TO COST THE GOVERNMENT $150 MILLION IN 1985-86 AND $210 MILLION PER ANNUM THEREAFTER. +

DEBATE ON THE BILL WAS ADJOURNED.

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