NEW FEDERAL BUDGET.

New Zealand Herald, Volume LXVI, Issue 20420, 23 November 1929, Page 13

NEW FEDERAL BUDGET.

SUPERTAX ON INCOMES. LEVY OF 10 TO 20 PER CENT. MORE TARIFF INCREASES. BEER DUTY REDUCED. SMALL SURPLUS FORECAST. (By Telegraph—Press Association—Copyright. (Received November 22. 8.5 p.m.) CANBERRA. Nov. '22. The Federal Treasurer, Mr. E. C«. Theodore, unexpectedly presented tho Budget estimates of the new Government in tho House of Representatives last evening. Mr. Theodore said Dr. Earle Page, the former Treasurer, had grossly miscalculated the commitments, and also probably tho revenue. Tho increased expenditure, for which inadequate provision had been made, totalled £807,340. The Government proposed to raise a further £885.000 by an increase in tho income tax. The. existing rates would bo increased by an imposition of a super tax, as follows: On taxable incomes of individuals refceiving £2Ol to £ISOO, an increase of 10 per cent.; oil incomes from £lsOl to £3OOO, 15 per cent.; on incomes of £3OOI and upwards, 20 per cent. The revised estimate of customs and excise duties is £43.250,000, or £500,000 less than tho Budget estimates. The Government does not intend to levy the 5 per cent, tax on the gross receipts from entertainments. Tho excise tinty on petrol will bo increased by Id per gallon. The duty will bo increased on leather and rubber goods, motor-cars, and cotton and wool yarn. The recent increase of 3d a • gallon in the beer excise duty will be reduced to Id. The total revenue is estimated at £64,559,000 and tho expenditure at £64,574,442, leaving an estimated surplus of £14,558. Mr. Theodore presented his Budget Speech without warning at 10.28 p.in. >vben the business of the House was proceeding drowsily to what everyone supposed would be an early close. The press ;was not supplied with details beforehand iis has been the practice in the past, i Most of the telegraph operators had gone toff duty. The result was a hectic time of rounding up the telegraphists from their homes while journalists feverishly prepared their messages from printed copies provided after the speech had been begun. To crown all, the pneumatic chute from ihe press gallery to the telegraph office became jammed, causing further delay. The Budget taxes are hardly more unpopular among businessmen than is the nnnouncer, Mr. Theodore, to-day among the Parliamentary journalists. The revised estimates compare with the Jictual results for 1928-29 as follows: Actual. Estimate. ' 19-23-29. 1929-30. Tlevenue . . £61.419.77U .£64.539.000 Expenditure .. 63,776.745 04,571,442 Deficit , . X 2.355.975 Surplus . , The Budget presented by Dr. Earle Page on August 22 estimated the revenue at £64,198,000, and the expenditure at £63,837,102, leaving an estimated surplus of £360,893. • The Budget uf £64,000,000 represents the ret total of transactions in the consolidated revenue account, the official method being to group receipts and expenditure in four classes, and to bring only the balances of three of them into the final estimate. The gross Budget, allowing for the present revision, will balance at over £109,000,000. This represents a considerable increase over last year's Budget, the gross expenditure having been £81,343,000. The greater part of the increment is due to the inauguration of the agreement by which all the State debts are assumed by the Commonwealth, as from July 1, the State Governments paying to the Commonwealth all interest on their debts in excess of the annuai sum of £7,584,912 to be provided by the Commonwealth for 58 years from July 1, 1927. Hence this year the Federal Budget will receive from the States £30.000,000, as against £4,089,000 last year, and there will be a corresponding increase in the interest payments. In addition, the year's appropriation for the service of Commonwealth Debt was £26,487,431, including £4,180,000 for sinking fund. The original estimate of revenue comprised £59.450.000 from taxation, as against £56,303,000 in 1928-29, and £4,748,000 from miscellaneous sources. Expenditure arising from the war and repatriation was estimated at £30,324,521, including £21,180,000 for interest and sinking fund of war debt and departmental expenditure, including £10,900.000 for invalid and old ago pensions and maternity allowance, brought the total in the first group to £51,986,161. Business undertakings (post office, etc., and railways) were expected to contribute a profit'of £266,600: the loss on the administration of territories was estimated at £637.630, and net payments to or for the States to £11,489,912. These estimates have been revised by the new Treasurer, the revenue being increased bv £391,000, and the expenditure |

Ny EFFECTS OF TAB IFF. COST OF LIVING RAISED. HIGHER DUTY ON WHITE TIMBER. (Received November 22, ]0.35 p.m.) SYDNEY. Nov. 22. The Federal Government's new tariff duties have dealt a staggering blow (o British industries and will necessarily raise the cost of living in Australia. The duties on whisky, brandy, rum, gin and other spirits have been increased 8s per gallon. Very heavy increases are imposed on imported cigarettes, cigars, i'clts, furs, while lead and varnishes. ' The duty on white timber for boxmaking has been increased 7s per 100 superficial feet and on dressed timber Bs. Prohibitive duties are imposed on imported socks and stockings. In some cases the duties are doubled. The foreign rate on matches is one inetancc. The Sun says this extra, £2.000,000 a 'Jrear extorted by -Mr. Theodoro by way of new taxation represents a tax of 5 per cent, on £40,000,000 of the country's industrial income and is bound to result 'in additional unemployment. The average Amount of taxation paid by 8169 companies in Australia in the past was £325 12s lid; the average amount payable under ihe new schedule will bo increased by £65 2s 7d to £390 15s 6d.