Small tax relief in Australian Budget

Press, 22 August 1979, Page 6

Small tax relief in Australian Budget

NZPA Canberra Australian taxpayers and pensioners have been given some relief in a Federal Budget that otherwise continues; to give top priority to fight-1 ing inflation. The Federal Treasurer (Mrj John Howard) introduced the' 1979-86 Budget in the House of Representatives last even-] ing. , I The 1.5 per cent in the dol-i lar income-tax surcharge, in-1 troduced as a ‘‘temporary"! measure last year, and raim-i posed at the rate of 2.57 per cent last May, is to be re-[ moved from December 1.. I Mr Howard said that for a person on average weekly earnings of sAust24s a week, the reduction, in tax instalments and increase in takehome pay would be about sAust4.4s a week. The estimated resulting loss to revenue between December 1 and June 30 is sAust4soM. Mr Howard said that economic circumstances were not yet right for the restoration of tax indexation, which the Government promised earlier would take effect from July: 1, this year.

Mr Howard said that twice' yearly automatic indexation'

i< of social security and repatriI'ation benefits would also be i restored, at an estimated cost in 1979-80 of sAust63M. J For 1979-80,as a whole, 'the Treasurer estimated an i increase in the consumer •price index of a little more; ■ I than 10 per cent, putting; : Australia’s inflation rate into; 'double figures. ; “We do not expect unemployment to improve in the J year ahead,” he said. ■ Mr Howard said the clear benefits of firmly pursuing lan anti-inflationary policy (over more than three years ' were reason enough to reaffirm that policy. • “Moreover, the difficulties faced by the entire industrial- ■ ised world — including Australia — over the next year in responding to fresh inflationary pressures make Jit all the more essential that (fighting inflation be the hallmark of this Budget,’’ he said. Air navigation charges for domestic airlines are to be • raised by 25 per cent, and i for the general aviation seci tor by 20 per cent, over the ’ next three years. The increases are estimated to yield about SAust4M in . 1979-80 and sAust6M in the ilfirst full year.

i The measures are also expected to result in further increases to domestic air fares.

An overseas-student charge (is estimated to yield about i$6M in 1979-80. Beginning with the 1980 academic year, [private overseas students en- [ rolled at an Australian university or college of advanced education for the first time will be charged between [sAustlsoo and sAust2soo a [year towards the cost of their (tuition.

Mr Howard disclosed that additional revenue resulting from the Government’s policy of pricing Australian crude at world prices was sAusts2oM more than expected.

A big increase in Budget outlay is provision for defence spending this year of sAust 2887 M. This is a rise of sAust2BlM and implies an increase of 2.6 per cent in real terms.

Budget outlays classified as social security and welfare payments are estimated at sAust 8925 M in 1979-80 — an increase of 9.6 per cent and equivalent to 28 per cent of total outlays.