AUSTRALIAN FINANCES.

Press, Volume LXVI, Issue 20086, 15 November 1930, Page 12

AUSTRALIAN FINANCES.

AMENDED BUDGET PROPOSALS. NEW TAXATION. Amended Budget proposals were announced by the Acting-Treasurer last week. - 1 Towards making good the loss ot revenue it is proposed to impose new ■ revenue duties-, which are estimated to yield £3.100,000 annually. The amount that will be realised from these duties during the remainder of the year is estimated at £2,000,000. The new taxation proposals relate principally to income from property. The object aimed at is an increase in property taxation which, with increases by the States, will result in property bearing "a fair burden in'the plan of Budget readjustment." It is proposed that a super tax of 7$ per eent. should be imposed upon all incomes derived by every taxpayer (including companies) from property. The exemption in respect of property income is to be reduced to £100; and it will vanish when the taxable income reaches £2OO. In the case of composite it is proposed to deduct the general, exemption first or mainly from income from personal exertion, instead of income from property ae at present. The total increase m income tax from property which, is expected as the result of these proposals is £1,500,0-0 r yoar. a It is proposed to increase the rate of tax on income 'from personal exertion, where total income exceeds £6OO, by 16 per cent., instead of by 10 per cent., an previously intended. The additional 5 per cent, is expected to produce £160,000 additional revenue. The Government considers there is ample justification for adjusting the National Debt Sinking Fund to the original basis of 30 and 50 years. Under this plan, contributions from revenue will be reduced by an amount equal to the reparation moneys, the bank profits, and other excess contri- . butions. ■ The total amount of the reduction in sinking fund contributions will be approximately £1,960,000 for the eurfent year. The amount which will still be available for Commonwealth debt redemptions in 1930-31 will be £4,900,000. . Estimates of expenditure have been closely scrutinised and it is proposed a k®»3ditionai aggregating *•'l ,^30,000, There will be a deficit for the quar- v ter of, £6,747,000. It appears likely that an additional sutn of £250,000 will be required dur. Mg the year for invalid and old age -pensions, and war pensions will proh* ably absorb £150;000 more than estimated. Lyptta said it would be quite impossible in a beriod of eight ittOnttis so to reconstruct the Budget that a balanced ledger could be scoured in the present year. The most that eoula be achieved, without undue sacrifice, was to plan the Budget on such a basis that \vhen It operated for fe full year the Commonwealth would. have redeemed Jits undertakings toi secure a "bfilftneed budget." w ® s , announced in the House ot Jwipresentatives that increases would )e made in the tariff on certain goods.