FEDERAL FINANCE.

Auckland Star, Volume LXI, Issue 161, 10 July 1930, Page 7

FEDERAL FINANCE.

AUSTRALIA'S BUDGET. Prime Minister Forecasts £14,000,000 Deficit. TAX INCREASES. (United P.A.—Electric Telegraph—Copyright) CANBERRA, July 9. The Prime Minister and Treasurer, Mr. J. H. Seullin, introduced his Budget in the House of Representatives to-day. In the course of his speech he reviewed the severe economic disturbance prevailing in nearly all countries, accompanied by a disastrous collapse of commodity values. Mr. Seullin forecast that the Government would be faced with a shortage of revenue for the present year of £14,000,000. He estimated that the Customs revenue would drop by £7,750,000 to £34,000,000. The accumulated deficit had grown to £6,457,882. Toward making good the shortage of Customs and excise revenue, the Government intended this year to impose new revenue duties likely to yield £5,700,000, and also to raise £5,000,000 by means of a sales tax of 21 per cent. This tax would not apply to primary products—milk, butter and farm produce—nor to farm goods for export from Australia, but it would apply to all imported goods for consumption in Australia or to other goods manufactured in Australia which were not specified as exempt. Tlie basis of this tax was similar to that in Canada. The proposed new Customs and primage duties would include the following;— Petrol, 3d a gallon; tobacco, 6d per lb; cigarettes, 1/, and cigars 2/ per lb; films, Id per foot; newsprint, 20/ a ton; radio valves, 10 percent. Increases in excise duties are:—Beer, 2d a gallon; petrol, 3d a gallon; cigarettes, 3d per lb. Mr. Seullin said he anticipated £10,000,000 from income tax this year, £5,850,000 of which was to come from the increased taxes and £150,000 from amendments to the Income Tax Act. The proposed increases were: —Companies to pay an increase, of 11.1 per cent, bringing the rate up to 16d in the pound; individuals to pay an increase of 15 per cent on income which exceeds £500, while incomes from personal exertions above £500 would be - subjected to an extra 1(P per cent. Proceeding, Mr. Seullin said he expected £1,500,000 toward revenue from liquidated ex-enemy properties. It was intended also to increase postage charges. The letter rate i*i future would be 2d an ounce within the Commonwealth and the British Empire, the present charge being lid. This would bring in an additional £1,000,000 of revenue. Reviewing the financial results of .the year 1929-30 Mr. Seullin said the Government had budgeted for a revenue of £64,fj59,000. Tlie actual revenue showed a shrinkage of £1,542,697. He detailed the manner in which considerable economies had been, and were being, made. He said no further drift of Commonwealth finances could be permitted. Mr. Seullin alluded to the loan position and said Australian Governments in the last three years had floated 19 loans overseas, aggregating £125,000,000. The notes in circulation and the gold reserve were respectively, £44,914,326 and £19,931,102.