FEDERAL TAXATION

Evening Star, Issue 25956, 22 November 1946, Page 8

FEDERAL TAXATION

RESENTED BY AUSTRALIAN STATES ONLY THE SHADOW OF POWER SYDNEY, November 21. The New South Wales Budget provides for an expenditure of only £19,000,000 less tjjan the 1938-39 Commonwealth Budget, says the ‘ Sydney Daily Telegraph.’ In introducing the Budget, the Premier, Mr W. J. McKell, strongly attapked the uniform taxation system under which the Federal Government dominates the taxation field and compensates States with annual grants. Under this system, lie said, tlie State will ultimately have but the shadow and not the substances of power. He said the Commonwealth Government was determined to maintain the scheme indefinitely, in spite of unanimous objection by the State Premiers. The Commonwealth could not directly prevent the States from levying in-come-tax, but it could exercise certain constitutional powers to make it extremely ■ difficult for a State to reenter the field of. private taxation. Mr McKell said that the rate of construction of houses had now 'probably readied that of. the two years before the war, and it was apparent from the number of building permits issued that an attempt was being made to build up to 75 per cent, more houses than were built in an average pre-war year. There was still, however, a huge unsatisfied demand for housing. Mr McKell said that the number employed in New South Wales was already a record and would reach 1.000,000 during the financial year. The State was beginning to enter peace-time economy after the transitional period, which had been marked by a stability in employment and in economic conditions unnaralled by ativ nation which had fought in the war.