COMMONWEALTH BUDGET

Press, Volume LXXIV, Issue 22513, 22 September 1938, Page 11

COMMONWEALTH BUDGET

HEAVY INCREASES IN

TAXATION

DEFENCE EXPENDITURE

OP £16,000,000

RECIPROCITY WITH N.Z. ON

OLD AGE PENSIONS

(UNITED PRESS ASSOCIATION—COPYRIGHT.)

(Received September 21, 11.30 p.m.)

CANBERRA, September 21,

Heavy increases in taxation were announced in the Federal Budget Speech by the Federal Treasurer (Mr R. G. Casey), in the House of Representatives to-day.

The. Federal income tax, payable by companies and individuals, is being increased by 15 per cent., and land tax by approximately 11.1 per cent.

The sales tax is being increased from to-morrow by from 4 to 5 per cent.

Mr Casey stated that the estimated revenue for the year would amount to £ 93,162,000, and the expenditure to £93,136,000, leaving a surplus of £26,000. - The total additional revenue to be raised from taxation is expected to amount to £3,210,000, which is being devoted to an enlarged defence programme, invalid and old age pensions and the inauguration of national insurance.

The total defence expenditure this year will reach the colossal figure of £16,796,000 or £5,000,000 more than last year. ' Invalid and old age pensions are expected to absorb £ 16,150,000, and war pensions and repatriations about £9,400,000. During the year the Government will introduce legislation providing for reciprocity between Australia and New Zealand on.invalid and old age pensions. This will mean that time spent in either country will be taken into account in determining the residential qualification.