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Taxation of married women
92.
In debating my budget proposals last year, a number of Members urged that separate taxation should be introduced for working wives. In my speech concluding the debate on last year's budget, I explained why I did not consider that separate taxation was appropriate (45). Since that time, there has been continued public debate on this subject; I am also aware of the trend in some other tax administrations in the direction of separate taxation. In all the circumstances, I am now prepared to consider further how separate taxation for working wives might best be introduced.
93.
I must warn,
however, that there are a number of
difficult questions to be resolved not the least of which is the question of transferability of allowances between spouses. This is a complex subject with many options to be considered if we to ensure broadly equitable treatment. It would therefore
not be feasible to introduce separate taxation overnight. Because of
of the difficulties involved in implementing separate taxation, and so that some benefit can be enjoyed now, I propose to introduce in 1988-89 an annual allowance of up to $15,000 for working wives. This will cost a further $240 million in 1988-89, and $340 million in a full year. As this concession will be introduced with effect from the year of assessment commencing 1 April 1988, the first occasion on which it will apply will be to provisional and final salaries tax assessments for 1988-89, and also to 1988-89 personal assessments.
(45) Speech concluding the Debate on the Second Reading of the Appropriation
Bill, 1987, paragraphs 29-36.
/94. Examples
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