Australia Has Rounded The Corner

Manawatu Times, Volume LIV, Issue 7279, 5 October 1933, Page 7

Australia Has Rounded The Corner

Heartening Taxation Remissions Announced

Industry and Individuals to be . Relieved of Many Burdens

United Press Assn.—By Ele<

Received Oct. 4, 10.35 p.m. CANBERRA, Oct. 4,

Emphasising tho financial stability of tho nation and painting an encouraging picture regarding the future, Mr J. A. Lyons (Prime Minister and Treasurer) delivered the Budget speech in the House of Representatives this afternoon, beginning with tbe announcement of an impending reduction in Commonwealth taxation of £7,350,000.

Direct income taxation remissions will include: Company rate, £585,000; life assurance, £710,000; personal oxertiou rate (which is reduced by 15 per cent.), £200,000; special tax on income from property (reduced from 10 to 5 per cent.), £1,100,000; reduction in the taxation rate on shipping owned abroad from 74 to 5 per cent., £25,000; land tax remission, £400,000.

This makes tho total remissions in direct taxation £3,020,000. The indirect, taxation remissions will ineludo a reduction in the duties on beers and spirits, a reduction in the duty and removal of tho primage on .tea, and adjustment of the duties on goods of British manufacture, affording relief from 10 to 5 per cent, on all protected goods under the British preferential tariff.

Concessions aro also granted tho users of benzol, crude rubber, printing papers, and miscellaneous articles, but perhaps tho most important announcement to tho trading community is a reduction of the sales tax by 1 per cent., which will mean a los3 of revenue of £1,350,000 annually; also additional further exemptions from, t-hc sales tax amounting to £1,220,000.

Remissions from indirect taxation total £4,330,000. Mr Lyon 3 announced that the reductions hitherto made in old-ago and war pensions would be partially restored, while the less highly paid officers of the Public Service will have their salaries restored to tho levels existing before the depression. It is proposed, during the current financial year, to make available for loans to tho works programmes of tho various States £20,600,000, compared with £14,041,000 last financial year. The Government proposes to vacato tho field of entertainments taxation entirely, leaving this source of rovenuo to the States. This will involve a loss of £140,000. Mr Lyons pointed out that prior to

sctric Telegraph.—Copyright. the present Budget the Government had granted tax remissions totalling £3,100,000, so that with tho £7,350,000 now promised, tho Government will have afforded tax relief since it assumed office of £,450,000.

Quiitc a number of t.ho proposed reductions will benefit the primary producers, for practically every item used by them has been exempted from the sales tax and primago duty.

The Government intends to devote £20,000 to investigation and instruction regarding tobacco-growing.

Speeding up defenco activities will necessitate an increaso in expenditure during tho coming year of £1,462,000.

The Government estimates that its normal receipts for tho year 1933-34, less tho taxation remissions, will aggregate £68,580,000. Tho estimated normal expenditure is £69,756,490, leaving a deficit of £1,176,490. The year just closed, Mr Lyons said, ended with a favourable balance of £3,546,608. Tho Government decided, instead of dealing with tho accumulated deficit, to devoto all its efforts to relieving industry of its taxation burden.

Tho actual increase in exports for tho year, including gold production, amounted to £4,197,942, while the increase in imports amounted to £12,777,684. There has been a rise in the prices of the major exports, in Australian currency, of 40 per cent, during the six months from March to September, 1933.

Substantial Reduction In Tariffs Recommended

LIMITED TO STERLING CURRENCY COUNTRIES. Received Ocfc. 4, 11.20 p.m. CANBERRA, Oct. 4. The Tariff Board's report arising out of its investigations into various industries, tabled in th.o House of Representatives, recommends a reduction of 45 per cent, on most items in the schedule and 12£ per cent, on the remainder, This recommendation applies to goods from any country the currency of which at date of shipment of the goods is British sterling or appreciated relative to sterling, or nominally on a sterling basis,