AUSTRALIAN BUDGET

Hokitika Guardian, 10 July 1930, Page 6

AUSTRALIAN BUDGET

MAKING UP DEFICIT- ,

MR SCULLIN’S STAND AGAINST

DRIFT,

(Australian Press Association.)

CANBERRA, July 9,

In delivering liis Budget speech in the Federal House of Representatives, the Hon. J. H. Scullin, the Prime Minister and Federal Treasurer, first reviewed the severe economic disturbance- that is prevailing in nearly all of the countries of the world, accompanied as it has been by the disastrous collapse of commodity values. Mr Scullin forecasted that the Commonwealth Government would be faced with a, shortage of revenue for the present year of fourteen millions. He estimated that the customs revenue would drop by seven and three-quar-ter millions to thirty-four millions. He stated that the accumulated deficit had now grown to £6,457,882. Mr Scullin then announced that, towards making good the shortage, of the customs and the excise revenue, the Government intended this year to .impose new. revenue duties which, are likely/ito yield five: million seven "cfred thousand pounds, by means of a sale tax of 2tV per cent. This tax -would ,not -apply to primary products, such as milk, butter, and farm produce, or to Ifarm goods for. export from Australia; . .but would, apply - to all '-sales of imported goods for consumption in Australia, or to the sale of other goods-manufactured in Australia which were not specified as being exempt. The basis of tax, said the was similar to that of Canada. He anticipated that the revenue this year from the income tax would amount to £10,000,000, of which £850,000 was to come from the increases, and £150,000 from amendments to the Income. Tax Act. The proposed increases are: Companies are to pay an increase of eleven decimal one per. cent, extra, thus bringing.-their rate iup ’to 16 ipence tin, the pound. Incli- ■ vid'uals are ;to 'pay [fin increase of 15 per cent. oft that;. part of* their, income -which exceeds-,five;- hundred ‘ sterlinga, yehf p while 'the incbme from pehsorial exertion above. £SOO is to pay an extra 10 per cent. . ' i : ; \ " Mr Scullin said that he expected to obtain a .million, and a-half towards the revenue from the liquidated exenemy. properties. It was intended also to increase the postage charges. The letter rate in future would be two pence per ounce within the Commonwealth and within the British Empire. ThAipresent-charge-'is one penny halfpenny. This would bring in an additional million of revenue.

The Treasurer added that although the Additional taxatibn’ and charges involved £12,500,000, a great proportion of this represented imposts that are to replace, and not to supplement -the taxation of previous years. Actually per head, he pointed out th<| taxation ;was to- be less than it ?was, in . 1927. p ■ -The sum which he expected that the new revenue duties were likely to yield was' £5,700,000, and the revenue which he expected to obtain from the sales tax would amount to over five millions sterling., The vendors of goods are to render monthly accounts, enclosing a remittance upon their taxable sales.

Reviewing the financial results of the year 1929-30, Mr Scullin said that the Government had budgeted for a revenue of £64,589,000 The actual revenue showed a shrinkage oif £1,542,697. The Treasurer here detailed the manner in which considerable economies. ..had been, and were now being, made. He said that no further drift of - the Commonwealth finances could be permitted. He alluded to the loan 'position, /and said that the -Australian Governriients'of the' past three years had floated nineteen loans overseas, aggregating one hundred and twenty .millions. The notes in circulation and the gold reserve were shown to he resectively £44,914,326 and £19,931,102.

MrScullin announced that the proposed new .customs primage duties would cover the following imports:— Petrol, 3d per gallon; tobacco, 6d per pound; cigarettes, Is per pound; cigars, 2s per pound; films, Id per Foot; newsprint paper, 20s per ton ; radio valves, 10 per cent. The excise increases would be: Beer, 2d per gallon; petrol, 3d per gallon; cigarettes, 3d per pound.