CAUSE OF DEADLOCK

Otago Daily Times, Issue 25173, 13 March 1943, Page 5

CAUSE OF DEADLOCK

NATIONAL WELFARE PLAN (Rec. 6.30 p.m.) CANBERRA, Mar. 12. The Commonwealth Government’s acceptance of some machinery amendments to the Income Tax Assessment Bill made by the Opposition majority in the Senate has been announced by the Federal Treasurer, Mr J. B. Chifley. The principal amendment accepted will make it possible for taxpayers to claim refunds of amounts overpaid in taxation instalments. It had been the Government’s intention to freeze these over-payments at a low rate of interest until after the war.

The Government, however, refused to accept the Senate’s request to delete from the Bill a clause providing for the passage of £30,000,000 national welfare proposals before the Tax Bill becomes operative on April 1. The Bill will now be returned to the Senate, when the Senate Opposition, holding a majority of two, will have to decide whether to adhere to its request or let the matter drop. According to observers, a serious political crisis will develop if the Senate persists. The Prime Minister, Mr J. Curtin, has indicated that the Government would be prepared to fight an election on the issue. The Senate claimed that the provision was unconstitutional in a-tax measure. In dealing with the Tax Bill, the Senate had to proceed by request, since it has no constitutional power to amend a money Bill.