XN000022-1989-03-01 — Page 30

WEDNESDAY, MARCH 1, 1989

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CUTS IN PERSONAL TAXATION PROPOSED

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REDUCTION IN PERSONAL TAXATION AND INCREASES IN PERSONAL ALLOWANCES, EFFECTIVE FROM APRIL 1, WERE PROPOSED BY THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

PRESENTING HIS BUDGET, MR JACOBS PROPOSED A REDUCTION IN THE STANDARD RATE OF TAX, INCREASES IN PERSONAL ALLOWANCES, INCREASES IN CHILD AND DEPENDENT PARENT ALLOWANCES, AND THE INTRODUCTION OF A NEW ALLOWANCE FOR SINGLE PARENTS RESPONSIBLE FOR THE CARE OF DEPENDENT CHILDREN.

HE PROPOSED THAT THE STANDARD RATE OF PERSONAL TAXATION BE REDUCED FROM 15.5 PER CUNT TO 15 PER CENT AND THAT BASIC PERSONAL ALLOWANCE BE INCREASED FROM $29,000 TO $32,000 FOR A SINGLE PERSON, AND FROM $60,000 TO $65,000 FOR A MARRIED COUPLE.

"TAKEN TOGETHER, THE NEW BASIC ALLOWANCE PLUS THE EXISTING ADDITIONAL PERSONAL ALLOWANCE WILL TOTAL $39,000 FOR SINGLE PERSONS AND $80,000 FOR MARRIED COUPLES; BELOW THESE INCOME LEVELS THERE WILL BE NO LIABILITY TO TAX," THE FINANCIAL SECRETARY SAID.

"AT THEIR MAXIMUM LEVELS, THE NEW ALLOWANCES WILL BE SLIGHTLY MORE THAN EIGHT PER CENT HIGHER THAN THE PRESENT COMBINED BASIC AND ADDITIONAL PERSONAL ALLOWANCES, MR JACOBS ADDED.

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HE PROPOSED THAT THE CHILD ALLOWANCE BE INCREASED, FOR A FIRST ΤΟ CHILD, FROM $12,000 TO $13,000, AND FOR A SECOND CHILD FROM $8,500 $9,000.

AS FOR THE ALLOWANCE FOR A DEPENDENT PARENT, HE PROPOSED THAT THIS BE INCREASED FROM $10,000 TO $11,000, AND THAT THE TOTAL ALLOWANCE IN RESPECT OF A DEPENDENT PARENT WHO RESIDES WITH A TAXPAYER BE $14,000.

MR JACOBS PROPOSED THAT A NEW ALLOWANCE OF $20,000 BE PROVIDED FOR THOSE PARENTS, SUCH AS WIDOWS OR SINGLE PARENTS, WHO ARE SOLELY OR PREDOMINANTLY RESPONSIBLE FOR THE CARE OF DEPENDENT CHILDREN, BUT WHO ARE CURRENTLY INELIGIBLE FOR A PERSONAL AT THE HIGHER RATE APPLICABLE TO MARRIED PERSONS.

1.

ALLOWANCE

FROM THE

FIRST

"I INTEND TO INTRODUCE THESE CONCESSIONS WITH EFFECT YEAR OF ASSESSMENT COMMENCING APRIL

1989. THEREFORE, THE OCCASION ON WHICH THEY WILL APPLY WILL BE ΤΟ PROVISIONAL AND FINAL TAX ASSESSMENTS FOR 1989-90. AND ALSO TO 1989-90 PERSONAL ASSESSMENTS.

"I ESTIMATE THAT THE COST TO THE REVENUE IN 1989-90 WILL BE ABOUT $465 MILLION, AND $650 MILLION FOR A FULL YEAR, MR JACOBS SAID.

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