AUSTRALIA’S FINANCES

Evening Star, Issue 22441, 11 September 1936, Page 9

AUSTRALIA’S FINANCES

THE FEDERAL BUDGET REDUCTION IK TAXATION INCREASE IN PENSIONS Press Association —By Telegraph Copyright CANBERRA, September 10. Outstanding points in the Federal Budget, delivered in the House of Representatives to-day by the Treasurer, Mr R. G. Casey, are Taxation to be reduced the remissions to include £3,000,000 cut in sales tax, £2,105,000 in income tax, and' £170,000 in primage duty. The special property tax is to be abolished, the normal income tax will be reduced by 10 per cent., old-age and invalid pensions will bo increased from 18s to 19s a week, Federal servants’ salaries will be fully restored, and' Federal Ministers and members’ pay will be restored to within ■ 7J and 6 per cent, respectively of the normal rates. ’ Last year’s surplus was £3,567,000, of which £2,000,000 will be applied to defence, which is now increased to £8,766,107. The remainder will be applied to reducing the accumulated deficit and. to special grants to States. This year’s surplus is expected to be £45,000. The revenue is expected to be £81,550,000, and the expenditure £81,565,000. Mr Casey said that the much-im-proved conditions were reflected in the finances. The exports reached £IOB,000,000, compared with £90,000,000 the previous year. Wool realised nearly £18,000,000 more, and wheat nearly £6,000,000 more, while the oversea commodity balance increased by £6,000,000 to £22,000,000. Imports increased by £11,000,000 to £85,000,000. Unemployment is down almost to the pre-depression level. Savings bank deposits increased by £7,000,00. Oversea debt conversions amounted to £43,000,000, bringing the total since 1932 to £198,000,000, on which savings in interest and exchange amounted to almost £4,000,000; State deficits, which amounted to £20,000,000 in 1931-32, are now down to £2,430,000. Mr Casey added that the economic future of Australia appeared to be brighter to-day than at any time since 1929. , GRANTS TO STATES COMMISSION’S RECOMMENDATIONS. j CANBERRA, September 11. (Received September 11, at 10.5 a.m.) The third report of the Common-: wealth Grants Commission tabled in i the House of’ Representatives recommended the following grants for the year 1936-37:—South Australia, £l,330,000; Western Australia, £500,000; Tasmania, £600,000. This total of £2,430,000 is £320,000 leas than the amount recommended by the conuniseion in 1935-6. SOUTH AUSTRALIA'S POSITION ADELAIDE, September 11. (Received September 11, at 10.5 a.m.) The Premier (Mr R. L. Butler) expressed surprise when informed of the recommendations of the Grants Commission. He said he would be forced to budget for a deficit because the Government had no time to make alterations in the Budget, which was already prepared. A STRONG PROTEST PERTH, September 11. A strong protest against the reduction in the Western Australia’s grant has been telegraphed to Mr Lyons by the Deputy-Premier (Mr Troy).