HOLD-UP POSSIBLE

Dominion, Volume 35, Issue 249, 18 July 1942, Page 7

HOLD-UP POSSIBLE

Federal War Finance Plans (By Telegraph.—Press Assn.- —Copyright.) (Special Australian Correspondent.) SYDNEY, July 17. With £12,000,000 of additional revenue depending on the High Court upholding the uniform tax legislation, the Commonwealth Government is uueasy over rumours that the Court’s decision may not be announced before July 28. The Government’s plans for the 19421943 financial year (commencing in July, though tax collections do not begin till August) are based on the assumption that its legislation is constitutional. If the High Court should decide otherwise, such a late announcement would leave the Federal authorities only a few days in which to revise the Budget. The Labour leaders have forecast that should the Court declare the legislation. unconstitutional, a referendum would be held, but this would take six months. The Commonwealth Government has planned a colossal outlay of £500,000,000 for the next financial year and would certainly fight to the last ditch against the relinquishment of any of its war works. The Government had hoped the High Court would announce its decision without delay and give reasons for its judgment later. The hearing of the States appeal against the uniform taxation concluded on June 30. The Federal Government has decided to grant a further concession in its proposal to limit company profits to 4 per cent. The Treasurer, Mr. Chiffiley, has announced the Government’s decision to take in taxation only 80 per cent, of the profits above 4 per cent. The remaining 20 per cent, concession will be allowed in the form of a rebate which might be held in bonds for the duration of the war.