BUDGETS AWAITED

New Zealand Herald, Volume LXXV, Issue 23148, 21 September 1938, Page 18

BUDGETS AWAITED

AUSTRALIAN OUTLOOK NEW SOUTH WALES TAXES FEDERAL INCREASE LIKELY [from our own comiksvondknt] SYDNEY, Sept. 1G Australian taxpayers are awaiting with mixed feelings of hope and [ trepidation the delivery of the State and Federal Budgets. In New South Wales, there seems some reason to believe that the burden may he lightened, but any appeasement taxpayers may receive from this source is certain to lie outweighed by Federal demands for more defence money. The Premier of New South Wales, Mr. 13. S. Stevens, has completed the preparation of his Budget speech, which he expects to deliver in tho Legislative Assembly on September !23, or September 27. While the Budget will disclose the extent of taxation reductions which Mr. Stevens promised in his policy speech at the last election, it will also emphasise the effect of the fall in tho price of wool and wheat on Australia's income and on the revenue of the Government.

The Budget will also mention tho increased costs which will involve expenditure on Government services during the financial year, 1938-39, The Commissioner for Railways, Mr. T. J. Hartigan, estimated in his annual report that higher costs would involve the Railway Department in increased expenditure of more than £(350,000 during 1!M8-M. The Government has been urged by many of its own supporters to proceed with a vigorous policy of city and country public works, and there is keen interest, therefore, in the result of the meeting of the Loan Council, which will consider tho loan programmes of the States this month.

Presentation of the Federal Budget to Parliament will probably be delayed until about September 28. ft has boon indicated that, apart from increases in income tax, the Federal Government's chief instrument in the raising of mor-3 revenue will be the sales tax. This tax was imposed at the rate of 6 per cent as an emergency measure at the beginning of the economic depression. It proved a faciln means of contributing to the Federal revenue, and. from a temporary tax. has passed to permanence. In the interim, the rate has been reduced to 4 per cent, and the tax. has been taken from a lone list of goods, but the proceeds still yield millions of pounds every year. It is generally believed that the rate will ho increased to 5 per cent and that the tax will operate on many goods now free from it.