Aust. Budget unveiled

Press, 16 August 1978, Page 6

Aust. Budget unveiled

NZPA staff correspondent Sydney Australia’s Federal Treasurer (Mr John Howard) last evening presented a Budget which will have a familiar ring to New Zealanders. Apart from increasing the prices of beer, spirits, cigarettes. and petrol, he introduced a temporary 7 tax surcharge and imposed a departure tax for overseas travel. The Budget, predicted as austere, is certain to be hailed as very harsh. The few olive branches —[ such as a reduction in the! sales tax on cars — were; more than outweighed by

other measures designed to slash the Government’s deficit and reduce inflation even further than the 7.9 per cent claimed for the year ended June 30. Beer will rise about 3.5 c a glass, spirits 10c a nip, cigarettes 10c a packet, and petrol 3.5 c a litre. Personal taxation at the standard rate for the 1978-79 year has been increased 1.5 per cent to 33.5 per cent, and an overseas travel tax, of $lO, due to be imposed from about mid-September. will apply to both Australians and overseas visitors leaving Australia. Mr Howard also announced the dismantling of

the Government-run health scheme, Medibank Standard, but in doing so introduced (inew measures which mean the Government will partly fund hospital charges. Fees Ito private health-insurance ‘ funds are expected to deicrea t His first Budget was heard with occasional interruptions I from a packed House of Representatives. i Among measures to attract approval from the attentive ; House was the announce‘ment of a $2.5M grant to the Queensland Government as the first installment of SIOM earmarked for the 1982 , Commonwealth Games in Brisbane.