FEDERAL BUDGET DELIVERED.

Timaru Herald, Volume CXXV, Issue 18615, 10 July 1930, Page 9

FEDERAL BUDGET DELIVERED.

Facing Heavy Deficit. HEAVIER TAXATION ANNOUNCED. United Press Association—By Electric Telegraph—Copyright (Received July 9, 9.20 p.m.) CANBERRA, July 9. Delivering his Budget speech, Mr Scullin (Prime Minister and Treasurer), reviewed the severe economic disturbance prevailing in nearly all countries, accompanied by a disastrous collapse of commodity values. He forecasted that the Government would be faced with a shortage of revenue for the present year of £14,000,000. He estimated that the customs revenue would drop by £7,750,000 to £34,000,000. The accumulated deficit had grown to £6,457,882. Heavier Taxation. Mr Scullin announced that towards making good the shortage of customs and excise revenue, the Government intended this year to impose new revenue duties, likely to yield £5,700,000, and an additional £5,000,000 by means of a sales tax of 26 per cent. This tax would not apply to primary products, milk, butter and farm produce, or to farm gcMs for export from Australia, but would apply to all imported goods for consumption in Australia, or other goods manufactured in Australia, which were not specified as exempt. The basis of this tax was similar to that in force in Canada. The sum of £10,000,000 was anticipated from income tax this year, £350,000 of which would come from increases and £150,000 from amendments to the Income Tax Act. The proposed increases are that companies are to pay an increase of 11.1 per cent, extra, bringing the rate up to 16d in the £. Individuals are to pay an increase of 15 per cent, on incomes which exceed £SOO, while the income from personal exertion above £SOO is subjected to an extra 10 per cent.

Mr Scullin said he expected £1,500,000 towards the revenue from liquidated ex-enemy properties. It was intended also to increase postage charges, and the letter rate in the future would be 2d per oz. within the Commonwealth and British Empire. The present charge is 15d. This would bring in an additional £1,000,000 revenue. He added that although the additional taxation and charges involved £12,500,000, a great proportion represented imposts to replace, and not to supplement, the taxation of previous years. Actually, per capita, the taxation was less than in 1927. Customs Increases. Mr Scullin announced that the proposed new customs primage duties would cover the following' Petrol, 3d per gallon; tobacco, 6d per lb; cigarettes, 1/- per lb; cigars, 2/- per lb; films, Id per foot; newsprint, 20/- per ton; radio valves, 10 per cent. Excise increases include: Beer 2d per gallon; petrol, 3d per gallon; cigarettes, 3d per lb. Australian Finance. Reviewing the financial results of 1929-30, Mr Scullin said the Government had budgeted for a revenue of £64,589,000. The actual revenue showed a shrinkage of £1,542,697. He detailed the manner in which considerable economies had been, and were being, made. He said no further drift of the Commonwealth finances could be permitted. He alluded to the loan position, and said the Australian Governments of the past three years had floated nineteen loans overseas, aggregating £125,000,000. Notes in circulation and gold reserve are respectively £44,914.326 and £19,931,102.