AUSTRALIA TO SLASH TAXATION

Chronicle (Levin), 31 August 1948, Page 5

AUSTRALIA TO SLASH TAXATION

(N.Z.P.A,

—Reuter.

Concessions Of £60,000*000 Approved Income Tax Reduced By Nearly £29,000,000

, Covyright)

Received Tuesday, 11.5 a.m. CANBERRA, August 31. Income tax cuts totalling about £29,000,000, -and ranging from 33 per cent. on low income's to three per cent. on high ineomes, have been approved by the Federal Parliamentary Labour Party. It is expected that the cuts will operate either from July 1 last or from October 1, but that reduced weekly tax der ductions from wages will not begin until Janu'ary. The income tax cuts form part of the Budget concessions totalling £60,000,000.

The concessions were approved by caucus on the recommendation of the Prime Minister, Mr. Chifley. The other main concessions are: Firstly, a re'duction of indirect taxation by £10,000,000. Secondly, an increase of 5s weekly in pensions. Thirdly, an increase of 2s 6d weekly in the child endowment, making the new rate of 10s per week payable on all children except the first. Fourthly, an increase of 2s in

liospital benefits under the Federal i State free hospital scheme, making the new rate 8s per bed. Fifthly, free medical treatment in repatriation hospitals for war ;widows and the wives of war penjsioners. ! Sixthly, the liberalisation of the Imeans test to allow an increase in the permissible income from £1 to £1 10s weekly and £3 weekly for a married couple. ' Seventhly, the raising of the ' property qualification figure from £650 to £750.