HIGHER TAXES IN AUSTRALIA

Southland Times, Issue 23540, 21 June 1938, Page 7

HIGHER TAXES IN AUSTRALIA

Probable Measures For Defence

£3,000,000 MORE WANTED FOR PROGRAMME

(United Press Assn.—Telegraph Copyright) (Received June 20, 9.5 p.m.)

SYDNEY, June 20.

The Canberra correspondent of The Sun states that the Federal Government intends to increase the individual income tax, the company tax and revenue and excise duties to raise £3,000,000 for added expenditure on defence.

outlining the most sensational defence proposals ever brought forward in Australia, the Prime Minister (Mr J. A. Lyons) on March 24 said that the Commonwealth had decided on an expenditure of £43,000.000 in the next three years on the mamtenance and development of the defen ®® resources. This unprecedented total will comprise £24,800,000 in additional new expenditure, to be spread over three years, and £18,200,000 which would represent the normal budgetary commitments over three years for the maintenance of the defence forces on the existing basis. The new defence units which will be added during the three years are:— NAVY The purchase from the British Government of two Sydney type cruisers (7000 tons), one to be taken over next September and the other in July 1939. The construction at the Cockatoo dockyard of two naval sloops, increasing the total number of sloops available for antisubmarine defence and patrol work to four. An increase of 1500 in the sea-going personnel. LAND DEFENCE An increase in the permanent troops concentrated in vital parts. The provision of a larger number of key personnel to man forts in an emergency. An increase in the supply of anti-aircraft defence to the fullest extent which, the ordnance factory at Melbourne can supply.' The construction of anti-tank guns and rifles. 'An intensification of mechanization of the army units. AIR FORCE The following new units will be added to the present strength of the air force:— (1) A two-squadron station at Darwin. (2) A one-squadron station at Brisbane. (3) A three-squadron station at Canberra. (4) A two-squadron station on a site to be selected on the southern New South Wales coast. (5) An additional squadron in. Western Australia, and an intensification of the supply of military aircraft constructed in Australia. MUNITIONS There will be an Intensification of the production of munitions and a development of potential resources. The total new expenditure will be:— £ NAVY 7,750,000 ARMY 5.500,000 AIR FORCE 8,800,000 MUNITIONS 2,800,000