TAXATION IN AUSTRALIA

Press, Volume LXXXIV, Issue 25389, 12 January 1948, Page 3

TAXATION IN AUSTRALIA

UNIFORM SYSTEM STATES’ MOVE TO UPSET DECISION (From Our Own Correspondent.) SYDNEY. January 6. The three non-Labour Governments —Victoria, South Australia and Western Australia—which have allied themselves with the private banks in the legal fight against the Federal Government’s nationalisation of banking bill, are now organising to fight uniform taxation which makes the Federal Government the only taxing authority in Australia. It is possible that the New South Wales Labour Government may join the other States, as the Premier (Mr James McGirr) is bitterly opposed to the principle of centralised taxation. He has quarrelled with the Prime Minister (Mr J. B. Chifley) on the subject, and has indicated that he will continue to seek a return to the pre-war system by which States raised their own taxes instead of having to rely on “handouts” from the Commonwealth. Leader of the protesting States is the South Australian Premier (Mr Thomas Playford) who said: “A climax is fas.t approaching in State and Commonwealth financial relations. Because of the introduction of the Federal 40-hour-week, no increase in charges for services can meet deficiencies that will now arise.” Failing a complete overhaul of relationships between the Commonwealth and the States, Mr Playford threatens to take the question of the constitutional validity of uniform taxation to law. But he doesn’t want it left with the High Court of Australia, which has already decided that the Commonwealth has complete power under the Costitution, and is not simply dependent on, its defence powers. Mr Playford will request the High Court to refer the case to the Privy Council. Pending a Privy Council decision against it. the Federal Government will not budge from its attitude on uniform taxation. It is satisfied that its powers are unshakable, and that the Commonwealth has an indisputable priority in all tax collections.