TAXATION

Evening Star, Issue 19002, 25 July 1925, Page 3

TAXATION

NEW INCOME TAX SCHEDULE v AUCTION OF MAXIMUM AND MINIMUM RATES “The question of taxation and its equitable distribution has engaged 'the attention of the Government, said Mr Nosworthy, “with a view to further relieving industry of the burdens imposed on it by the high taxation of war years. While allotting a portion of our surplus to concessions in pensions and in other directions, further adjustments in the rates are desirable if individual initiative ami energy in developing our resources and output are to be encouraged. Moreover, the investment of capital outside the dominion is induced by high taxation. .Taxation which might have the appearance of ■'falling direct on the person or concern taxed does not wholly do so 3 but is largely borne by the consumer, and as a consequence we have a high price level and increased cost of living. Reductions in taxation also assist in diverting capital investments from tax-free securities into trade and development purposes. “The Government has now under consideration the adoption of a new income tax schedule following the lines discussed by the Taxation Commission. The proposed new schedule would reduce the maximum rate to 4s (id from the present rate of 4s 10 2-3 cl, and the minimum rates from 8d to 7d in the £; while between these rates all incomes would receive concessions. The present schedule, which still stands in the Act at rates up to the maximum of 7s 4d in the £, and has been subject to percentage reductions from time to time, would be done awav with by the adoption of straight-out rates, Eull details will ho submitted later. 1 have referred to the desirability of encouraging loans on mortgages, particularly to aid farmers. Investment on mortgage in recent years has suffered in comparison with investment in stocks, debentures, etc., hut the indications are that the mortgage is becoming again more sought after, and a trend in that direction is, moreover, noted in Australia within the last few months. The income tax reductions which the Government is now considering should facilitate investment on mortgage by reducing the rate of income tax down to parity with debenture tax, and it is proposed to repeal the mortgage duty of 5s per cent.”