Chifley Refuses Tm Rights To States

Northern Advocate, 24 August 1948, Page 6

Chifley Refuses Tm Rights To States

CANBERRA. Tue.—The Prime Minister (Mr Chifley). at the Premiers’ conference, yesterday flatly rejected a demand by the state Premiers for the return to the states of their taxing rights. “The Commonwealth," he said “does not propose to depart from the system of uniform taxation .irrespective of what motion is carried here, or what challenge may be contemplated in the courts.”

Mr Chifley took his stand on the tax demands after Labour and Liberal Premiers had joined forces in an attempt to get a greater share of revenue from taxation. In an atmosphere of bitter disatisfaction with existing financial relations, the Premier of New South Wales (Mr McGirr) proposed that the states reenter the taxation field in 1949-50.

“Commonwealth revenue is coining in at such a rate,” said Mr McGirr.

“that the Treasury is almost at its wits’ end to know how to salt it away. “In spite of this and the fact that expenditure in New South Wales alone last year was nearly £12,030,000 greater than in the preceding year, the extra taxation reimbursement for all Australia was only £5,000.000. SUBSIDIES TO CEASE

In spite of a warning by the state Fremiers that there would be an immediate rising in the cost of living, Mr Chifley rejected a plea for the continuance of price-stabilisation subsidies.

Mr Chifley told the conference that the Commonwealth Government could not agree to retain subsidy payments on wool, cotton, cotton yarn, imported textile piece goods, inter-state shipping and potatoes. The Commonwealth would continue, he said, to subsidise butter, tea and superphosphates. Mr McGirr read a statement prepared on behalf of six state Governments in which it was stated that the withdrawal of subsidies would mean an increase in the basic wage by 53.6 d a week.