New South Wales.—Income tax in New South Wales first came into operation on the 1st of January 1896. It is complementary with a land tax, assessed on the unimproved value of freehold lands (with certain exemptions and deductions). Incomes of £200 per annum and under are exempt, and all other incomes (except those of companies) are entitled to a reduction of £200 in their assessments. The rate of tax is 6d. in the pound. There are certain incomes, revenues and funds which are exempt from taxation, such as those of municipal corporations or other local authorities, of mutual life insurance societies and of other companies or societies not carrying on business for purposes of profit or gain, and of educational, ecclesiastical and charitable institutions of a public character, &c.
New Zealand.—In New Zealand the income tax is also complementary with a land tax. Incomes up to £300 per annum are exempt; incomes up to £1000 per annum are taxed 6d. in the pound, with an exemption of £300 and life insurance premiums up to £50; incomes over £1300 pay 1s. in the pound, which is also the tax on the income of trading companies, to whom no exemption is allowed. The income of friendly societies, savings banks, co-operative dairy companies, public societies not carrying on business for profit, &c., are exempt from income tax.
Queensland.—In Queensland income tax is levied on (a) income derived from property such as rents, interest, income from companies, royalties, &c., and (b) on income derived from personal exertion. On income derived from property all incomes not exceeding £100 are exempt; incomes between £100 and £120 pay £1 tax; those over £120 but under £300 have £100 exempt and pay 1s. in each and every pound over £100, while incomes over £300 pay 1s. in each and every pound. Incomes from personal exertion pay 10s. between £100 and £125; £1 between £126 and £150; between £151 and £300 have £100 exempt and pay 6d. in each and every pound over £100: between £301 and £500 6d. in every pound; between £501 and £1000 6d. in every pound of the first £500 and 7d. in every pound over £500, between £1001 and £1500 7d. in every pound of the first £1000, and 8d. in every pound over £1000; incomes over £1500 pay 8d. in every pound; 1s. in every pound is charged on the incomes of all companies and of all absentees.
South Australia.—The income tax dates from 1884 and is levied on all incomes arising, accruing in or derived from South Australia, except municipal corporations, district councils, societies, &c., not carrying on business for the purpose ot gain, and all friendly societies. Where the income is derived from personal exertion the rate of tax is 4½d. in the pound up to £800, and 7d. in the pound over £800. For income derived from property the rate is 9d. in the pound up to £800, and 1s. 1½d. in the pound over £800. There is an exemption of £150 on incomes up to £400, but no exemption over that limit.
Tasmania.—In Tasmania there is (a) an income tax proper, and (b) a non-inquisitorial ability tax, one complementary to the other. The income tax proper is levied on all income of any company, at the rate of 1s. for every pound of the taxable amount; on all income of any person, at the rate of 1s. for every pound of the taxable amount derived from property, and on every dividend at the same rate. Personal incomes of £400 and over are assessed at the full amount, but an abatement of £10 for every £50 of income is allowed on incomes below £400 down to incomes of £150, which thus have £50 deducted; incomes between £120 and £150 have £60 deducted; incomes between £110 and £120, £70, and incomes between £100 and £110, £80. The ability tax is paid by (a) occupiers and sub-occupiers of property and (b) by lodgers. The amount of tax paid by occupiers or sub-occupiers is calculated upon the assessed annual value of the property occupied, and that of lodgers from the assessed annual value of their board and lodging. A detailed account of both taxes will be found in House of Commons Papers, No. 282 of 1905.
Victoria.—In Victoria the rate of income tax is fixed annually by act. The rate charged on income derived from property is exactly double that charged on income derived from personal exertion, the rate for which for 1905 was: on the first £500 or fractional part thereof, 3d. in the pound; on the second £500 or fractional part thereof, 4d. in the pound; on the third £500 or fractional part thereof, 5d. in the pound; on all incomes in excess of £1500, 6d. in the pound. All companies, except life insurance companies, were charged 7d. in the pound on their incomes; life insurance companies were charged 8d. in the pound.
Bibliography.—The Annual Reports of the Commissioners of Inland Revenue, the Reports of Committees and other references mentioned in the article, as well as Dowell’s History of Taxation in England (1884); Dowell’s Acts relating to the Income Tax (6th ed., 1908), and Robinson’s Law relating to Income Tax (2nd ed., 1908).
[1] Full statistics of the yield of income tax and other information pertaining thereto will be found in the Reports of the Commissioners of His Majesty’s Inland Revenue (published annually); those issued in 1870 and in 1885 are especially interesting.
[2] In Appendix No. 4 to the Report from the Select Committee on Income Tax (1906), will be found a valuable list (prepared in the Library of the London School of Economics) of references to the graduation of the income tax and the distribution of incomes both in the United Kingdom and in other countries.