322 MILLION BUDGET

Grey River Argus, 26 September 1941, Page 5

322 MILLION BUDGET

AUSTRALIAN WAR TOLL Compulsory Loans and Tax Rises SMALL INCOMES HIT. [Aus. & N.Z. Cable Assn.] (Rec. 11.50). CANBERRA, Sept 25. Long awaited, a “Tighten-the-Belt” Budget was introduced in the House of Representatives to-day by Hon. W. A. Fadden, Prime Minister and Treasurer. It calls lor an expenditure of 322 million pounds, or one third of last year’s’ total national income. Last year’s war expenditure amounted to one hundrea and seventy millions. The Budget provides for a new method of combined taxation and of compulsory loans. They are to be called “Wartime Contributions.” The compulsory loans will yield twenty-five millions. Twenty millions of this is to come from individuals. Five millions is to come from companies. There is a “Postwar Credit Plan.” It will apply to all incomes beginning at one hundred pounds a year in the case of single men, and the scale cf the contributions rises to eighteen shillings in the pound on the higher incomes. The contributions will bear interest at the rate of two percent. They are to be repayable, after the' war The Government intends to also obtain an additional five millions from holders of existing tax-free leans, who will be required to put twenty per cent, of the interest that they draw on these loans ino the Postwar Credit Pool. There is a new company tax of sixpence in the pound. It is estimated to yield two and a half millions. Companies will also have to pay twenty per cent, of their undistributed profits into the Postwar Credit Pool, and also twenty per cent, of the amount which the Taxation Commissioner normally allows them for depreciation. The Budget increases, the postal rates by a half-penny and each telephone call by one farthing, and these are estimated to yield 11 millions. Public loans to be raised in the coming year are estimated to bring in fifty-four millions, as comparea with sixty-two millions last year. Income tax also will be stepped up by three million pounds. Mr. Fadden announced increases of pay for all fighting services, and also increased allowances for their dependents. totalling six millions. Generally speaking, the increase would be one shilling a day. The 'war expenditure, he said, would reach a colossal figure cf 217 million. Thus 160 millions will be spent in Australia, and 57 millions overseas. (Rec. 1.15.) CANBERRA, Sept. 25. Mr Fadden stated that, in addition to raising public loans totalling 54 millions, the Government would further borrqw by means of war savings certificates and loans from the banking system, making its borrowing up to the total of 122 millions. He revealed that the trading banks had given an undertaking not to make excessive profits during wartime, and also to act in accordance time, and also to act in accordance with a policy laid down by the Commonwealth Bank in respect to granting increases in the existing advances and also to deposit with the Commonwealth Bank all surplus investment funds. The Government also intends to establish a mortgage bank, to provide facilities for long-term borrowing. Mr Fadden tabled a statement showing the effect of the new “contribution plan,” which represents total contributions by means of taxation, both State and Federal, and of the Post-war Credits Scheme, to the cost of the war and of the Government. Under this plan, for example, a person with a dependent wife will pay on an income of £2OO about £11; on an income of £3OO, he will pay £33; on an income of £4OO, will pay £55: on an income of £5OO, the payment will be £80; on £6OO, it is £110; on £BOO, it is £180; and on £l,OOO, it is £261 nei’ annum. LABOUR ATTITUDE. CANBERRA September 25. , The Labour Party is to decide its course of action in regard, to the budget on Tuesday.