SURPLUS AND TAXATION

New Zealand Herald, Volume LXXV, Issue 23083, 7 July 1938, Page 12

SURPLUS AND TAXATION

The first Australian result for the financial year 1937-38, which ended on June 30, has come to hand. The Commonwealth accounts show a surplus of £3,498,000, against a Budget estimate of £30,000. The result is no surprise, for at the end of 11 months there was an excess of revenue over expenditure amounting to £3,597,000, giving a clear indication of the outcome for the full year. As the cable message says, this is the seventh successive surplus in the Commonwealth accounts. But neither that fact, nor the extent to which this year's credit balance exceeded the estimate, is the most interesting point in Federal finance. If surpluses began a regular appearance seven years ago, relief to the taxpayer was not long in following. The first instalment was granted in the Budget for 1933-34. The Commonwealth Government took its courage in both hands and gave remissions of taxation estimated to amount to £5,410,000 for the balance of the year 1933-34, and £7,350,000 for a full year. In the following Budget there were remissions to the estimated value of £830,000 with further relief amounting to £510,000 in the Budget for 1935-36. There followed relief in the 1936-37 Budget to the extent of £3,868.000 for the remainder of that year and £5,275,000 for a full year. No relief was given in the year just closed, increased expenditure on defence staying the hand of the Federal Treasurer. The full extent of what has been done for the taxpayer by the Commonwealth is impressive. It certainly should be so to New Zealanders, who are being continually told of their own good fortune and prosperity, while at the same time they are paying taxation at a level unequalled in their own history and without a parallel in any other country. »