INCOME TAX IN AUSTRALIA.

Hawera & Normanby Star, Volume XLII, Issue XLII, 1 May 1922, Page 6

INCOME TAX IN AUSTRALIA.

RELIEF FOR PASTORALISTS

Substantial reductions in the existing standard values for live stock for the purpose of income tax assessment have been decided upon by the Federal Ministry owing to the depressed condition of the cattle industry, particularly in Queensland.

In announcing the decision of Cabinet, the Federal Treasurer (Mr Bruce) said that the matter had been under consideration by the Royal Commission on taxation, and its report dealing with this subject was expected to be presented to the Governor-General in a few days. In view of the serious decline in cattle values which had taken place generally throughout Australia, however, it had been necessary to give the question urgent consideration Numerous representations had been made by persons interested in cattleraising and dairying that the existing standard values were too high in view of market conditions, and were seriously hindering development of the industry. It had also been represented th,at if the existing standard, values "for * calves Fere jpaiiitained it would result in producing a fictitious income liable , to tax.

"In view of the position that has arisen," added Mr Bruce, "the Government has come to the conclusion that m the interests of the. industry in particular, and of Australia in general, it is necessary that immediate action should be taken so that some relief may be given in respect to taxation for the present financial,- year. The Government has accordingly determined that the standard values to be applied to all calves born during the year ended June 30, 1921 (other than those purchased), and still in the possession of the owner at the end of their accounting period, shall be fixed at one-third ot the existing standard values, and that such new basis shall be applied to all assessments for the current financial year. The existing standard values will not be varied in arriving at the value of stock on hand at the beginning ot the accounting period. A certain number of assessments have already been sent out for the present year, based on the existing standard values in such cases fresh assessments will be issued as soon as possible. Where taxpayers have been assessed on the'existing basis 'of thp st^lard values, and have already p.f-f oir tax, refunds will be ma-Ie at tlie earliest possible