VICTORIAN FINANCE.

Evening Star, Issue 11776, 5 January 1903, Page 1

VICTORIAN FINANCE.

The Treasurer of Victoria in his Budget Statement, delivered just previous to the Christmas holidays, disclosed conditions relative to the finances of that State that are exceedingly unsatisfactory, and may not unreasonably excite alarm in the minds of the taxpayers. Mr Shiels, in opening his speech, stated that the late Treasurer had estimated that there would bo a deficit of £229,115 on the transactions of the past year, but the actual deficit -was £294,072. The data on. which the calculations were based had been falsified by the Customs returns and the large’ amount required for old age, pensions. The Dank clearances last year had been the highest since 1892, and the railway revenue had been the highest, on record The gold yield and the coal yield each showed a slight increase. Mr Shiete proceeded to say that since October 5, 1902, when he announced a shortage hi receipts of £456,720, the expenditure had been increased till tie total deficiency for the past year for which provision had to be made was £957,586. That total did not include certain large sums which the Federal Treasurer stated would have to go to tae State debit. This year the deficit had been met by savings amounting to £537.308 sanctioned by the House, leaving a deficit of £356,728 for 1902-06. The Treasurer proposes to meet this shortage by new taxation .to tie extent- of £250,000,” and lie intended to make a levy of £IIO,OOO on the special railway funds, which had reserves of £250,000. He hoped to raise £70,000 additional by an alteration of <h© j.relate duties, and by these amounts to be able to show a small surplus of £4,000. It was also contemplated to make changes in the Income Tax so ’as to secure an additional £IBO,OOO. The idea was to make tic starting point of liability- to the tax tJ 125, with exemption on incomes of £IOO on all incomes under £SOO, but above that amount no exemption. The intention, further, was to tax companies on their profits, instead of getting at the individual shareholders, since ii was found, under the existing iaw, that much revenue was lost, bec-msr the .State could not well follow profits when distributed among shareholders. Under these proposals the Treasurer estimated that there would be 31,700 new taxpayers who would .pay a minimum tax (Income Tax) of £18,762. The justification he offered for ♦its alteration of the incidence of the Income. Tax was the absolute necessity of the* years finances, since there were heavy obligations to be met, including, the redemption of loans to tie amount of £5,457,000, under which £60,000 per annum would bo saved in interest charges. The total gross incomes in Victoria, tie Treasurer stated, amounted to £53,000,000, and tie. estimated net incomes loft- nntaxed under the new proposals aggregated £21,000,000; wllilc the number of persons untouched by the tax was 500,000. The rates would bo—starting from £125 to £SOO at 4d personal and 8d in the £ property—up to £SOO there "ouid be exemptions of £IOO, and on incomes a hove. £SOO no exemptions; £•500 to £I,OOO, s<l and 9d in the £; £I,OOO to £l,ooo, 6d and Is; £l,ooo to £2,000, /d and Is 2d; from £2,000 upwards. 8d and Is 4d. It was expected, Mr Shiels said, to get £70,000 by tie. readjustment of probate duties. The amount exempted would be reduces! from £I.OOO to £IOO, and tie " rungs of tie “ scale of jxvyraeut would bo brought closer “ together. ’ The embarrassment of the State finances, wnich necessitates this very material increase of direct taxation, is mainly attributed by the Treasurer to the loss of the tea . duly and reduction of the sugar duties under tiie Federal Tariff.