General Taxation Cuts In Australia

Northern Advocate, 5 September 1945, Page 4

General Taxation Cuts In Australia

CANBERRA, September 4. An all-round income tax cut of approximately 121 per cent, was approved in principle by the Federal Cabinet. The reduction cannot be made immediately, but will be effected as soon as possible, probably in the new year.

After discussing a suggestion that the concession should apply only to the lower incomes, the Cabinet decided that everyone should benefit. A reduction of sales tax was also decided on by the Cabinet. No decision was made on company taxation, but it is understood that the general feeling was that it also should be proportionately reduced. The Budget, which is to be introduced on Thursday, will announce the reductions decided on. A warning is given that it would be difficult to get the income tax reductions operating before the new year, but the Cabinet felt that the public should be informed of the reductions the Government proposed.

The sales tax is recognised by the Cabinet as having an important bearing upon the economic stability of the community and upon the community’s capacity to absorb the thousands of men and- women who will be released from the forces and from war jobs. This decided the Cabinet to endorse the principle that the sales tax should be reduced, leaving determination of the amount of the reduction until later.

The Treasurer (Mr Chifley) warned the Cabinet that, in spite of the cessation of hostilities, Australia was still committed to spending'huge amounts. Even a revision of the estimates resulted in only a small saving and it was not possible to make too sweeping reductions.