Give-And-Take Aust. Budget

Press, Volume CX, Issue 32379, 19 August 1970, Page 13

Give-And-Take Aust. Budget

(W. Press Association—Copi/riffht; CANBERRA, August 18. Australians were presented tonight with a Budget which gives them sizeable personal income-tax reductions and increases in pensions, but proposes increases in duties on a wide variety of luxury items.

The Federal Treasurer (Mr Leslie Bury) announced the promised income-tax reductions—and widely-forecast indirect taxation increases—in the House of Representatives.

The reductions in personal income-tax are expected to cost the Government s22Bm in the 1970-71 financial year; but increases in excise duties are expected to bring in another sl96m. Company tax will also rise.

"Hie Budget aims at a surplus of s4m.

The increases that will hit the man-in-the-street are:

An increase in duty on cigarettes and cigars of 50c per lb, and an increase of 20c in duty on tobacco, which will make a 2oz packet of tobacco about 3c dearer. At pre-

sent, tobacco costs about 60c a packet A new duty of 50c a gallon on locally-produced wine, and an increase of 50 cents a gallon in the duty on imported wine. This will make a bottle of wine about 8c dearer.

An increase of 3c a gallon in petrol tax, bringing stand-ard-grade petrol to 45c a gallon. A similar increase will 'apply to aviation fuel.

The rate of sales tax on a wide range of goods, including motor ears, radios.

jewellery, cameras and toilet preparations will rise from 25 to 27) per cent from tomorrow. Postage rates, telegram and telephone charges will increase from October 1. Offsetting the rises is the personal income-tax reduction of about 10 per cent

for incomes under $lO,OOO a year.

Mr Bury said that all age. invalid and window's pensions would be increased by 50c a week. Pensions for incapacitated war veterans would be increased by $2 a weekExternal aid would total s2oom, most of it going to South-East Asian countries and the Pacific Islands.

Woolgrowers would receive special assistance because of the sharp drop in their incomes because of the drought The Government would spend up to s3om on a one-y ear scheme of temporary relief. Company tax would rise by 2.5 per cent The general company tax on all except the i first $lO,OOO of taxable in- , come would be 47.5 c in the . dollar for publie companies. : and 42.5 c for private companies.

The new rate would apply to incomes derived during the 1969-70 income year, and was expected to add s76m to the revenue in 1970-71. Mr Bury said that he was introducing the Budget after a year in which the Gross National Product had increased by 5.5 per cent there bad been a surge in the demand for labour, and a rise in consumer-spending

of 9.6 per cent “In brief, through output ' was increasing, demand was increasing faster,” he said , “These are typically the conditions

in which inflation >reeds. This Budget is precautionary, but not repressive.”