N.S.W. Tax Increases Recommended

Press, Volume CVII, Issue 31407, 28 June 1967, Page 25

N.S.W. Tax Increases Recommended

(N.Z. Press Assn.—Copyright) SYDNEY.

Large increases in the range of taxes by local councils and drastic restrictions on exemptions on rating have been recommended by the Australian Royal Commission of Inquiry into New South Wales rating and valuing systems. Councils should be empowered to raise revenue by imposing a per capita tax, not exceeding $2O a year, on residents, excluding ratepayers who are 17 years of age or over, the report says. The report of the Royal Commission is certain to have repercussions in every State in the Commonwealth, said the “Australian Financial Review.”

“The inquiry, which began in October, 1965, finished hearing more than two million words of evidence in December, 1966, was the most far reaching of its kind so far undertaken in Australia.

“It followed years of complaints by local government organisations both in N.S.W., and other States, of lack of finance for local government and of the inequity of present financing methods.

“Because of the broad similarity of most State systems of local government and because of the tremendously detailed nature of the N.S.W. investigation, the report of the Royal Commissioner, Mr Justice Else-Mitchell, is expected to have an Australiawide impact.

“The sweeping changes the report recommends would mean heavy increases In rates and taxes for the public. "Among the report’s major recommendations are:

Councils should be empower-

ed to impose licence fees on business and clubs based on turnover, sales or membership. Councils should be empowered to levy tourist and entertainment taxes. All occupied Crown land including public schools should be subject to rating. Public hospitals, most land owned by charities and religious institutions, including independent schools, should be subject to rating. Councils should be able to levy the general rate on the unimproved, improved or assessed annual value, or a combination of all of them, as they see fit.

The Commission reported that it was not satisfied rates had reached saturation point.

The commission consisted of Mr Justice R. Else-Mitchell (chairman); Mr S. Haviland, former president of the Metropolitan Water Board and Under-secretary of Local Government and Aiderman R. S. Luke, former president of the Local Government Association.