FEDERAL BUDGET
AS RECAST BV LABOUR GOVERNMENT TOTAL OF £325,000,000. « INCREASES IN TAXATION. (By Telegrauh—Press Association—Copyright) CANBERRA, October 29. The Federal Labour Budget presented in the House of Representatives today by the Treasurer, Mr Chifley, calls for the record sum of £325,000,000 without resort to compulsory loans, compared with the Fadden Budget of £322,000,000 with forced loans. Mr Chifley has budgeted to obtain an additional £20,250,000 revenue over the full year from direct taxation, while from indirect taxation he hopes to obtain £8,800,000 in the full year. The sales tax has been increased to yield an additional £3,300,000' in a full year and excise and Customs increases by £3.500,000 in a full year. The ordinary company tax has been increased to 3s in the pound, estimated to yield an additional £4.800,000. The war time company tax is increased considerably on a sliding scale, rising to 78 per cent on taxable profits exceeding 16 per cent on the capital employed. This is estimated to yield an additional £4,750,000, compared with the Fadden Budget estimate of £1,000,000 in a year. Incomes in excess of £l5OO a year will pay at the rate of 10s in the pound on the excess over that figure, while incomes over £2500 derived from personal exertion will pay 16s 8d in the pound on the excess. On incomes from property over £2OOO the rate will be 16s 8d in the pound on the excess. Mr Chifley said the increase in the war time company tax would take a very large proportion of the high profits earned during the war. ■ Other important features of the Budget provide for increases in active service pay, invalid and old age pensions and more rigid control by the Commonwealth Bank of the trading banks, which will not be able to operate without a licence. Active service pay increases by Is a day for all services and married men will be compelled to increase their family allotments by 6d a day. The Government, in addition, is making allowances to wives. These extra payments will absorb £4,900.000 for the remainder of the present financial year. Old age and invalid pensions are being increased to 23s 6d a week at an extra cost of more than £1,000,000 this year. Mr Chifley said banking policy would be modernised to meet changed conditions and, in order to bring the trading banks’ operations under more effective control, the trading banks would, after being licensed, be compelled to hold on deposit with the Commonwealth Bank their excess investable funds on a basis to be determined by the Treasurer after consultation with the Commonwealth Bank. They would be required to publish accounts and balance-sheets' at intervals and also furnish such statements in respect of their business as the Treasurer directed. These powers would be exercised to prevent the expansion of credit by the trading banks arising out of the increased funds due to war activities.
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Wairarapa Times-Age, 30 October 1941, Page 4
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485FEDERAL BUDGET Wairarapa Times-Age, 30 October 1941, Page 4
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