TAXATION RELIEF

New Zealand Herald, Volume LXXIII, Issue 22517, 7 September 1936, Page 6

TAXATION RELIEF

AUSTEALIAN BUDGET EXPECTED CONCESSIONS RISE IN WHEAT PRICES [FROM OUR OWN CORRESPONDENT] ! SYDNEY, Augngt 27 Tie Federal Budget, the draft pro. posals of which have been completed i 8 claimed hy Ministers to be the "best 'for years." A few months ago, even a few weeks ago, the Cabinet despaired of gj T . I ing taxpayers relief, for, i n spite | of the surplus of nearly £4,000.000 i n the last financial year, the increased He. mands for defence made taxation redutv tion unlikely. Then came the sudden spurt in wheat prices, with every indication that they will remain on a payable basis f or at I k as t this season. This now and mm*, pec ted development has rendered unnecessary the Federal financial assist.* ance to wheat-growers, which for sev. , era 1 years has ranged from £2.000.01)0 to £4,000.000 annually. Forecast of Features Taxation relief and other concessions to be given in the next Budget .are j likely to aggregate about £4,000,000. ! Details of the Budget proposals are ! being guarded with the utmost secrecv j but the principal features are underl stood to be:—A reduction of sales tax from Is in the pound to about 9d; Ruhstantial reductions in the primage on British goods, and a general easing of the impost; petrol tax reduction; lib. eralisation of the maternity allowancefurther confessions to soldierc' dependants; and restoration of public servie# salaries. . Additional provision will be made for defence, and provision will also t>e made to speed up important Commonwealth j public works throughout Australia. ! There will be substantial expenditure ou the improvement of civil aviation ground organisation, and the first step in the modernisation of air services, in. eluding night flying for air mail services, will be taken. It is expected that, although proposed sales tax anl primage concessions will theoretically mean a loss to revenue of at least £2,000,000, the experience | in past years will be repeated, and the i actual reduction in revenue will not equal the amount of the concessions Past Revenue Increases ! The Government has, in the last three years, made tax remissions and expenditure concessions worth more than £10,000,000 a year, vet taxation collections last year were nearly £3,000,000 greater than in 1932-33, before the remission. Sales tax cuts alone have been worth more than £3,000,000 a year, yet collections last year were a record. It is expected that increased activity following concessions this year will mean a corresponding advantage to the Treasury. Utmost precautions were taken to avoid any Budget leakage scandal. The copy wast placed in the custody of a special Treasury" officials"" and when it went to the printer it was kept under lock and key. Compositors were given small, disconnected sections, selected so that they could not read any long consecutive items. After each night's setting, copy and proofs were locked in a special safe, and on completion all Budget material was removed to the Treasury.