AUSTRALIAN TAX REDUCTIONS

Auckland Star, Volume LXXVI, Issue 210, 5 September 1945, Page 4

AUSTRALIAN TAX REDUCTIONS

OPEAKING in the Budget debate in the House last night, the member for Patea drew attention to the fact that the debate had entered its third week without Government members showing any inclination to undertake a detailed analysis or defence of the country's financial position.'' Mr. Sheat's remarks were timely. It is customary for members to take advantage of the license permitted when financial bills are under discussion to cover a very wide field, but the public is entitled to feel, with Mr. Sheat, that the Government side of the House on this occasion is reluctant to properly consider the revised Estimates. How different is the position across the Tasman. In Australia the Federal Cabinet has approved an all-round income tax cut of approximately 12& per cent, and all income grades will benefit. Sales tax is to come down, and, although the Government is representative of the Labour party, it is understood that company tax is also to be proportionately reduced. It is obvious that the Federal Cabinet has grappled with realities, and has recognised the need to speed reconstruction by easing wartime financial burdens.

Mr. Chifley is to be congratulated on his recommendations. Australia faces problems which are duplicated in this country, and the Federal Treasurer has taken positive action to tackle them. The example is one that should be closely examined by New Zealand's Minister of Finance. Mr. Chifley pointed out to Cabinet that, as Australia was still committed to spending huge amounts despite the cessation of hostilities, only a small saving had resulted from the revision of the Estimates. Far from making any saving, when Mr. Nash revised his Estimates he raised them by £34,000,000. Further comment is unnecessary. There was an air of unreality about New Zealand's financial policy as set out in this year's original Estimates, and it remained in the revised version. The Budget debate has done nothing to dispel the mists. The country may well reach the conclusion that the Government of the Commonwealth is far more closely in touch with the facts and needs of reconversion and reconstruction than is our own Government in Wellington.