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Thursday, 11 October 1956

General Rates of Tax and Contribution Payable by Persons.

The rate of income tax and social services contribution for every £1 of each part of the taxable income specified in the first column of the following table is the rate set out in the second column of that table opposite to the reference to that part of the taxable income: -

 

Second Schedule.

Rates of Tax and Contribution by Reference to an Average Income.

In the case of a taxpayer to whose income Division 16 of Part III. of the Assessment Act applies, the rates of income taxand social services contribution are -

(a)   for every £1 of so much of the taxable income as does not exceed Four thousand pounds -

(i)   the rate ascertained by applying the rates set forth in the First Schedule to a taxable income equal to his average income and dividing the resultant amount by a number equal to the number of whole pounds in that average income; or

(ii)   71.775 pence, whichever is the less; and

(b)   for every £1 of the remainder of the taxable income, the rate ascertained by deducting the amount of One thousand one hundred and ninety-six pounds five shillings from the tax and contribution which would be payable if the rates set forth in the First Schedule were applied to the total taxable income and dividing the resultant amount by a number equal to the number of whole pounds in that remainder.

Third Schedule.

Rateof Tax and Contribution by Reference to a Notional Income.

For every £1 of the taxable income of a taxpayer deriving a notional income, as specified by section eighty-six or section one hundred and fiftyeight d of the Assessment Act, the rate of income tax and social services contribution is the rate ascertained by dividing the tax and contribution which would be payable under the First Schedule upon a taxable income equal to his notional income by a number equal to the number of whole pounds in that notional income.

Fourth Schedule.

Rate of Tax and Contribution Payable by a Trustee.

For every £1 of the taxable income in respect of which a trustee is liable, in pursuance of either section ninety-eight or section ninety-nine of the Assessment Act, to be assessed and to pay tax and contribution, the rate of income tax and social services contribution is the rate which would be payable under the First, Second or Third Schedule, as the case requires, if one individual were liable to be assessed and to pay tax and contribution on that taxable income.

By this resolution, it is proposed to declare the rates at which income tax and social services contribution shall be payable by individual taxpayers for the current financial year 1956-57. Under our system of pay-as-you-earn taxation, these rates will be applicable to the taxable incomes that will be derived by individuals during the current income year 1956-57. As indicated by the Treasurer (Sir Arthur Fadden) in the course of the budget speech which he delivered on 30th August last, the Government, after reviewing the economic situation, did not think the time to be opportune to make tax deductions which would have the effect of adding to demand. From a financial stand-point also and having regard particularly to our potentially large commitments, the position does not warrant any major reduction in our available sources of finance.

Accordingly, the rates proposed by the resolution 1 have moved are the same as those declared last year for application to the taxable incomes of individuals for the financial year 1955-56. I may emphasize that this resolution relates to individual taxpayers only and has no application to companies as the rates of tax and contribution payable by companies for the financial year 1956-57 were declared in May last. There is no occasion for me to undertake the task of explaining the paragraphs of the resolution as, so far as individual taxpayers are concerned, these paragraphs follow the pattern of the resolutions annually introduced. The resolution is submitted for the consideration of the committee.

Progress reported.







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