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Unemployment T ax
Reduction
FOR LOWER PAID
WORKERS
SYDNEY, Wednesday.
A bill to reduce the unem
ployment relief tax; on salaries
and -wages between £2 and £3
10s a week, passed all stages in
both Houses of Parliament to
day.
In moving the second reading of the
bill in tlie Legislative Assembly, the
Premier (Mr1. Stevens) said it was a
short measure consisting of two clauses.
It amended the Prevention and Relief
of Unemployment Act by providing that
where the weekly rate of income from
the employment of an employee derived
after the commencement of the Act did
not exceed £3 10s, ho greater amount
of tax than the following should be.
collected : .
; One shilling. where the weekly rate
of income from - employment was not
less, than £2 and not more-than £2
10s.. ■
ls.6d exceeding £2 10s and not ex
ceeding £3.
2s exceeding £3 but not exceeding £8
10s.
4 BELIEF WORKERS EXEMPT
The Premier said the-reductions re
presented a saving in the tax from (3d
to Is 6d a week. The bill also pro
vided total exemption from.the tax of
employees engaged on any work de
clared by the Governor to be work pro
vided for the relief of unemployment.
It (was estimated, said the Premier,
that these concessions would involve a
loss of revenue this year of approxim
ately £250,000. The reduced tax would
come into operation on October 1.
The remission of this taxation, said
the Premier, may be taken as an indica*
tion of the Government's determina
tion to reduce the tax on wages and
salaries as the cost of services on ac
count of which it was levied lessened.
The amount estimated to be collected
this year from the tax on wages and
salaries would fall short of the antici
pated expenditure on food relief service,
alone, to say nothing of the special
provision for unemployment relief
works.
BURDEN ON WORKERS
The Government recognised that this
form of tax bore heavily upon the
workers and for that matter upon in
dustry itself and as the cost of social
services ,was reduced, the Government
would, be able to effect corresponding
reductions in the rate of taxation.
In committee, Mr. Clyne moved an
amendment to provide that the tax
should be levied on the actual amount
earned and not on the rate of salary
or wage.
This was rejected by 36 votes to 18.
The bill passed the remaining stages
and was forwarded to the Legislative
Council, where it was also agreed to.
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