LOWER TAXES

Evening Post, Issue 73, 23 September 1936, Page 14

LOWER TAXES

AUSTRALIA'S MOVE

STOCK EXCHANGE REACTS

"Evening Post,'' September 23. j Federal taxation remissions over the past five years are estimated to amount to £15,000,000. Of this total £5,205,000 is on income tax, £1.200,000 on land tax, £140,000 on entertainment tax, £6,740,000 on sales tax, £1,115,000 on primage, and £1,205,000 on Customs and excise. The reduction in the sales lax from 5 to 4 per cent... which is estimated to represent a loss in revenue of £3,000 000 a year to the Commonwealth, will be almost negligible on ordinary purchases, as the £1 cut in every £100 will not be noticeable except on higher-priced articles. The Sales Tax Department held that while the spending public would benefit in the aggregate, the real benefit would be more apparent when the Bill was brought down to make additions to the list of articles exempted from the tax. Income tax payable on income from personal exertion' ranges from 10s per annum on a net income of £317 to £27 Is 3d on an income of £1000, and reaches £94 8s on an income of £2000. ■It is repeated that the taxation above referred to is Federal, not State, taxation. . The effect of the reduction in the rate of Federal income and other taxation for 1936-37 was reflected in the Australian investment market on the Sydney Stock Exchange. Prices of a wide range of securities made moder- ' iff*' fIfivSHCGS The significance of the taxation re.missions,. which had not had time to take full effect, was realised chiefly in a stronger, demand for industrial shares. In particular concerns whose business was considered likely to benefit immediately by the relief in taxation were .firmer. . As an instance, retail store shares improved owing to the reduction in the sales tax. Prices of most securities had shown a rising tendency for several months, and this restricted somewhat the. extent of the fresh gains due to wider Federal taxation. ' Australian stocks quoted on the London Stock Exchange were also marked •up as a result of the lower taxation.