ECONOMY MEASURES

Otago Daily Times, Issue 21772, 11 October 1932, Page 11

ECONOMY MEASURES

VICTORIA’S BUDGET (From Our Own Correspondent.) SYDNEY, September 22. The Victorian Budget, just introduced by the Argyle Ministry, may be described as a Budget lor the times. If the nonLabour' majority in the House can be induced to accent all the proposals of the Treasurer, the deficit will be reduced by £1,000,000 to £900,000 —a great achievement for a single State, especially as so many economies have been effected in recent months. Still, the Victorian Government is bound by the decisions of the Premiers’ Conference, and must comply with the plan. The people have now come to recognise this, and there is a general feeling in all quarters that further economies cannot be avoided. Further sacrifices are also essential, and an unpopular section of the Budget provides for an extension of the incidence of income tax.

The Treasurer said that at present only 110,000 of the 470,000 earning income paid income tax, and that it was proposed to widen the taxation field considerably. Accordingly an additional £232,000 is to be raised by a new emergency tax, but it has been pointed out that this will not be paid wholly by new taxpayers. The tax begins at an income of £IOO, and covers a wide field hitherto exotnpt, but it also imposes a further burden on the whole taxation field. It is difficult to estimate exactly what proportion of the new tax will be paid by new taxpayers, but it is safe to say that those who are about to be taken into the field of taxation will pay considerably less than tEe amount aimed at. It is emphasised that the tax is only an emergency one, but cynics will say, with perfect truth, that they have heard that tale before. The Federal income tax was an emergency tax only imposed during the war. But the war is long since over, and the tax remains. Amusement taxes imposed in all the States during times of prosperity were “ temporary” measures to assist the various Governments in the extravagances, but they still remain, and are likely to be increased before they are decreased. The payment of a double income tax — to the State and to the Federal Governments—falls heavily on the people of Australia, and many of them will welcome the new provision in Victoria which will enable the State lax to be paid in instalments. The Tax Department will issue stamps, and these may bo affixed to a special card. The taxpayer knows approximately the taxation ne will be called upon to pay, and he will be able to work out how many stamps he should purchase weekly, or monthly, in order to have the full amount, in stamps, at the end of the financial year. After the assessments have been issued he will take the stamp card to the taxation office, and adjustments necessary, in favour either of the commissioner or the taxpayer, will be made in cash. It is pointed out that under this arrangement many of the taxpayers will pay in advance, and that the Government, having the use of that money, will be saved a considerable sum each year in Interest on overdraft. The Treasurer expects to benefit by at least £IOO,OOO. The' Victorian Ministry, and every Ministry, as a matter of fact, has found the road of enforced public economy is all uphill. Every proposal designed to save money is fought strenuously by one section or another. One of the latest instances is provided by the proposal to reduce tiro Government’s contribution to the public service superannuation funds.