INCOME TAX CUT

Otago Daily Times, Issue 25940, 5 September 1945, Page 5

INCOME TAX CUT

AUSTRALIA’S DECISION OPERATING IN NEW YEAR (Rec. 0.20 a.m.) CANBERRA, Sept. 4. An all-round income tax cut of approximately 12£ per cent, has been approved in principle by the Federal Cabinet. The reduction cannot be made immediately, but will be effected as soon as possible, probably in the New Year. After discussing the suggestion that the concession should apply only to lower incomes, the Federal Cabinet decided that everyone should benefit. A reduction of the sales tax was also decided on by Cabinet. No decision was made on company taxation, but it is understood that the general feeling was that it also should be proportionately reduced. The Budget, which is to be introduced on Thursday, will announce the reductions decided on. A warning is given that it would be difficult to get income tax reductions operating before the New Year, but Cabinet felt that the public should be informed of the reductions the Government proposed. The sales tax is recognised by Cabinet as having an important bearing upon the economic

stability of the community, and upon the community’s capacity to absorb the thousands of men and women who will be released from the forces and from war jobs. This decided Cabinet to endorse the principle that the sales tax should be reduced, leaving the determination of the amount of reduction until later. The treasurer, Mr J. B. Chifley, warned Cabinet that in spite of the cessation of hostilities, Australia is still committed to spending huge amounts. Even the revision of the estimates resulted in only a small saving, and it was not possible to make too sweeping reductions.