XN000022-1996-05-01 — Page 38

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The Bill now before Members seeks to increase salaries tax allowances as announced in the Budget, to introduce a new allowance for maintaining a dependent brother or sister, to provide a deduction for taxpayers to claim fees for attending employment-related training courses at qualifying institutions, and to introduce a specific allowance for hotels refurbishment expenditure. Let me now briefly explain the concessions.

First, on increasing various salaries tax allowances. Specifically, the basic and married person's allowances will be increased by 13.9 per cent. The first and second child allowance and the allowance for the third to ninth child will be increased by 11.4 per cent and 13.6 per cent to $24,500 and $12,500 respectively. The basic and additional allowances for parents and grandparents will be increased by 11.4 per cent and 16.7 per cent to $24,500 and $7,000 respectively while those for single parent and disabled dependant will be increased by 12.5 per cent and 36.4 per cent to $45,000 and $15,000 respectively.

Secondly, on introducing a new allowance of $24,500 which can be claimed by a taxpayer if he or she maintains an unmarried brother or sister who, in any time in the year of assessment, was -

(a) under the age of 18;

(b)

of or over the age of 18 but under 25 and receiving full time education;

or

(c)

of or over the age of 18 and was, by reason of physical or mental disability, incapacitated for work.

Moreover, the disabled dependant allowance of $15,000 will also be extended to include a dependent brother or sister who is disabled.

Thirdly, on introducing a new deduction up to a maximum of $12,000 a year to allow taxpayers to claim fees for employment-related training courses attended at qualifying institutions. This will help to upgrade the skill of the workforce. The deduction will apply to a course of education undertaken to gain or maintain qualifications for use in any employment that is provided by a university, university college, technical college or other qualifying place of education, or a training or development course provided by a trade, professional or business association for its members. Courses provided by overseas institutions of the above nature including long distance courses will also be acceptable. The Commissioner of Inland Revenue will publish an information pamphlet to explain the details to taxpayers.