Estate and Gift Duties Amendment Act 1964 (scale of rates)
Archived legislative commentary on the Estate and Gift Duties Amendment Act 1964 (scale of rates) from PIB vol 13 Aug 1964.
This commentary item was published in Public Information Bulletin Volume 13, August 1964.
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Estate duty reduced - Budget proposals explained
Budget announcement
In the course of his 1964 Budget Statement the Minister of Finance, the Hon HR Lake, announced reductions in estate duty which, it was hoped, would be an incentive to increase production. These reductions are being put into effect immediately and will be validated by legislation during this session of Parliament.
The date from which the new scale of rates will apply
The new rates of estate duty will apply to the estates of all persons who die on or alter 25 June 1964.
The Reductions effected by the new scale of rates
Under the new scale of rates the non liability limit has been raised from £2,000 to £4,000. This will mean that estates of a value not exceeding £4,000 will not be liable for any estate duty at all.
In the range of estates between £4,000 and £48,000 the existing rates have been reduced but estates of £48,000 or more will continue to be charged with duty at the rates which were introduced in 1961.
Examples of the reductions effected
Where estate is left to widow
| Value of estate | Duty under 1961 scale | Duty under new scale | Reduction in duty |
|---|---|---|---|
| £ | £ | £ | £ |
| 4,000 | Nil | Nil | Nil |
| 5,000 | Nil | Nil | Nil |
| 10,000 | Nil | Nil | Nil |
| 15,000 | 376 | 286 | 90 |
| 20,000 | 1,200 | 960 | 240 |
| 30,000 | 3,600 | 6,060 | 540 |
| 40,000 | 6,538 | 6,160 | 378 |
Where estate is left to widower
| Value of estate | Duty under 1961 scale | Duty under new scale | Reduction in duty |
|---|---|---|---|
| £ | £ | £ | £ |
| 4,000 | Nil | Nil | Nil |
| 5,000 | Nil | Nil | Nil |
| 10,000 | 450 | 300 | 150 |
| 15,000 | 1,253 | 953 | 300 |
| 20,000 | 2,250 | 1,800 | 450 |
| 30,000 | 5,000 | 4,250 | 750 |
| 40,000 | 8,172 | 7,700 | 472 |
Where estate is left to adult children
| Value of estate | Duty under 1961 scale | Duty under new scale | Reduction in duty |
|---|---|---|---|
| £ | £ | £ | £ |
| 4,000 | 120 | Nil | 120 |
| 5,000 | 200 | 50 | 150 |
| 10,000 | 900 | 600 | 300 |
| 15,000 | 1,880 | 1,430 | 450 |
| 20,000 | 3,000 | 2,400 | 600 |
| 30,000 | 6,000 | 5,100 | 900 |
| 40,000 | 9,340 | 8,800 | 450 |
A complete table showing the rates which will apply on or after the 25th June appears below. Further copies of this table can be obtained on request from the office of any District Commissioner of Stamp Duties. Persons holding the Information Pamphlet issued by the Department in June 1964 on "Estate Duty in New Zealand" should note the changed rates.
Scale of rates of estate duty for estates of persons dying on or after 25 June 1964
| Net value of estate in steps | Basic duty on net value of estate | Plus duty on the excess between steps at following rates | Net value of estate in steps | Basic duty on net value of estate | Plus duty on the excess between steps at following rates |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ |
| Less than 4,000 | Nil | 5% | 36,000 38,000 | 7,200 7,900 | 39% 41% |
| 5,000 | 50 | 7% | 40,000 | 8,800 | 43% |
| 6,000 | 120 | 9% | 42,000 38,000 | 9,660 7,900 | 45% 41% |
| 7,000 | 210 | 11% | 44,000 | 10,560 | 47% |
| 8,000 | 320 | 13% | 46,000 | 11,500 | 49% |
| 9,000 | 450 | 15% | 48,000 | 12,480 | 43% |
| 10,000 | 600 | 17% | 51,000 | 13,770 | 45% |
| 11,000 | 770 | 19% | 54,000 | 15,120 | 47% |
| 12,000 | 960 | 15% | 57,000 | 16,530 | 49% |
| 14,000 | 1,260 | 17% | 60,000 | 18,000 | 51% |
| 16,000 | 1,600 | 19% | 63,000 | 19,530 | 53% |
| 18,000 | 1,980 | 21% | 66,000 | 21,120 | 55% |
| 20,000 | 2,400 | 23% | 69,000 | 22,770 | 57% |
| 22,000 | 2,860 | 25% | 72,000 | 24,480 | 59% |
| 24,000 | 3,360 | 27% | 75,000 | 26,250 | 51% |
| 26,000 | 3,900 | 29% | 80,000 | 28,800 | 53% |
| 28,000 | 4,480 | 31% | 85,000 | 31,450 | 55% |
| 30,000 | 5,100 | 33% | 90,000 | 34,200 | 57% |
| 32,000 | 5,760 | 35% | 95,000 | 37,050 | 59% |
| 34,000 | 6,460 | 37% | 100,000 | 40,000 | 40% on excess |