MORE TAXATION
Australian Proposals
£20,000,000 More Wanted In
Revenue
United Press Association—By Electric Telegraph—Copyright < Received May 2, 11.15 p.m.) CANBERRA, May 2.
New taxation was announced by the Federal Treasurer (Mr P. C. Spender), when presenting the Budget in the House of Representatives to-day. He said that increases in income tax would yield an extra £4.000,000, of which £3.000.000 would be collected during the next financial year. He said that this would represent about a 50 per cent, increase over the whole field. Exemption from income tax would remain at £250 for single men and £4OO for married men with two children. Two new company taxes would be introduced to provide almost £5.000,000 between them, while the present land tax rates would be doubled. The sales tax would rise from 6 per cent, to 8 1-3 per cent., yielding an additional £5.000,000. Increases in customs and excise duties were expected to produce an extra £5,300.000, and estate duties an extra £500.000.
Mr Spender added that new taxes affecting business would be described as a wartime company tax and a tax on undisturbed profits. Neither of these would apply to the goldmining industry. The estimated additional revenue to be obtained next year by the foregoing proposals totals £20.000.000, of which £10.300.000 would be from indirect taxation, and £9.700.000 from direct taxation.
Mr Spender said the wartime company tax to yield £4.250.000 would be 4 per cent, on companies earning 8 per cent, rising to 60 per cent, on earnings in excess of 22 per cent. The tax on the undistributed profits of companies, estimated to yield £450,000, would amount to 1/ in the £. The increased customs excise to yield £530.000 would include 3d a gallon on petrol. The total war commitments of Australia in the next financial year would be £79,000,000 bringing the total for the first two years of the war to £125,000.000.
Mr Spender anticipates borrowing from the public in the current financial year an amount of £50.000,000.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/THD19400503.2.68
Bibliographic details
Timaru Herald, Volume CXLVIII, Issue 21644, 3 May 1940, Page 7
Word Count
329MORE TAXATION Timaru Herald, Volume CXLVIII, Issue 21644, 3 May 1940, Page 7
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