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24
Sir Hamish gave the following examples to illustrate the benefits of the proposed tax concessions to taxpayers.
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A single-parent family with two children will have to earn more than $13,500 a month before paying any tax. At present, this family would be liable to pay tax when its earnings exceeded $12,000 a month.
A single-income family of five, with two children and one disabled dependent parent or grandparent living with the family, will have to earn more than $20,000 a month before paying any tax. At present, this family would be liable to pay tax when its earnings exceeded $17,200 a month.
A single-income family of four with a monthly income of $18,000 will have its tax bill cut by some 81 per cent. It will pay less than $24 a month in tax.
The typical sandwich-class family with monthly earnings of $22,000 will have its tax bill cut by 37 per cent. It will pay only $428 a month in
tax.
The proposed concessions will take effect from the year of assessment starting on April 1, 1995.
Sir Hamish estimated that they would cost $1.2 billion in 1995-96 and $7.7 billion up to 1998-99.
End/Wednesday, March 1, 1995
No changes in corporate tax
The Financial Secretary, the Hon Sir Hamish Macleod, proposed in his Budget Speech today (Wednesday) no changes in the level of corporate tax.
However, he informed the Legislative Council that he would ask the Board of Inland Revenue to review one important aspect of the capital allowances which could be claimed against profits tax.
No comments yet.
Private notes are available after approval.