DEFENCE COSTS IN AUSTRALIA

Press, Volume LXXXVII, Issue 26515, 1 September 1951, Page 7

DEFENCE COSTS IN AUSTRALIA

SPECIAL TAX MAY BE LEVIED

CANBERRA. August SI. A special defence tax at a flat rate of 10 per cent, on all types of income is expected to be strucK by the Commonwealth Government in the Budget to be introduced on September 26. • according to the Australian United Press. Features of the Budget are expected to be: (1) An increase in sales tax over all ranges of goods by 4 per cent on the lowest levels to 100 per cent, on luxury goods. (2) An increase in company tax by 2s in the £ on the present rates. (3) The retention of income tax rates, including social service payments at the present levels. (4) The raising of the sales tax on new motor vehicles by 10 per cent, of the value (making the new sales tax equal to 20 per cent, of the value of the car).

(5) The raising of some pensions by 25 per cent. It is planned that the defence levyshould be imposed as a separate levy. The sales tax rises are expected to double last year’s income from this source, and the new rates are estimated to bring in £100,000,000. A new high level of 66.6 per cent, sales tax is reported to have been approved for certain classes of luxury goods, including cut glass, jewellery, fancy goods and furs. The Canberra representative of the Sydney -"Daily Telegraph" makes no reference to the special defence tax. but predicts an average increase of 10 per cent, in income taxes rising to 1< per cent, on the highest incomes.