AUSTRALIAN BUDGET

Timaru Herald, Volume CLVI, Issue 22992, 8 September 1944, Page 5

AUSTRALIAN BUDGET

Reduced War Expenditure (Rec. 8.30 p.m.) CANBERRA. Sept. 7. Australia’s 1944-45 wax' expenditure will be about £505,000,000 —a reduction of £40,000,000 on the previous year. The total Commonwealth expenditure, according to the Budget introduced today, will be about £650,000,000, compared with £686,000,000 last year. There is no alteration in the scale of income taxation, but Budget concessions, including medical and dental rebates on income tax. and a sales tax remission on certain building materials, amount to £1,000,000. The reasons for the reduced war expenditure, according to a Treasury spokesman, are the decreased demand fox- large carpital expenditure and the diversion of some of the Armed Forces to meet needs in essential industry, in accordance with the agreement between the Allied Governments. The gap between revenue and expenditure to be covered by war loans and credits will be about £330,000,000. Subsidies under the stabilisation plan of price control will be increased from £19,000,000 to £25,000.000. The assistance to primary producers under the subsidy scheme will be about £14,000,000. The cost of the Government’s sickness unemployment, free medicine and subsidised hospitals scheme will be about £15,000,000. Tax Concessions The main tax concessions of the new Budget are:— (1) The first instalment of a system of taxation concessions for industry to enable it to meet the cost of deferred maintenance and high wartime depreciation. (2) The inclusion of dental fees in personal expenditure, for which taxpayers can claim a rebate. (3) An adjustment of medical rebates so that a taxpayer with a number of dependents becomes eligible for a substantially larger rebate than at present. (4) Concessions in sales tax on certain building materials to facilitate home building. Presenting the Budget, the Federal Treasurer, Mr J. B. Chifly, said that the reduction : the estimated war expenditure did not imply any diminution of the war effort. He strongly emphasised that wartime controls, including price fixing and rationing, would have to continue, and that the danger of inflation had to be resisted. Last year net subscriptions from public loan, and wax' savings certificates reached the record amount of £265,0C 1,000. The public, however, could subscribe more in view of the increase in spending power. A cash gratuity to members of the fighting services was mentioned by the Treasurer, though this is not included in the 1944-45 estimates. “It is the Government’s conviction that the nation owes them some signal recognition outside ordinary plans for xenatri .tion and re-employment,” said Mr» Chifly. “The methods which the Government will consider include a straie-ht-out gratuity—based on the principle of place and length of service or, on the other hand, payment fox' extended leave based on the same principle.” He suggested that the proposals be referred to a Parliamentary Committee,