HIGHER TAXES

Waikato Independent, Volume XXXIV, Issue 3109, 27 January 1934, Page 2

HIGHER TAXES

DOMINION PAYS MORE AUSTRALIA’S ADVANTAGE Figures now available show that New Zealand is paying more taxation a head of population than is Australia (says a statement by the Associated Chambers of Commerce). This is a strong argument for early attention being given by the Government to a reduction of taxation in New Zealand, which would materially assist the recovery of industry, trade and commerce, and the re-absorption of the unemployed. Passing reference to the question of taxation was made by the Prime Minister (the Et. Hon. G. W. Forbes) in the House of Representatives on October 6 last. He stated that anything that could be done to ease the burden would be done, “but in considering the reductions granted in Australia it had to be remembered that taxation there was higher than in New Zealand.” In support of this he said that in 1931-32, taxation in Australia amounted to £l4 5/9 a head, and in New Zealand to £ll 9/6. An Important Feature. While this is correct as far as it goes, the Prime Minister has not stated the whole ease, because the figures he quoted relate only to general government taxation. The position is not adequately covered unless due regard is paid to local government taxation, because this class of taxation is just as real, and just as onerous, relatively, as the other. Local government taxation in New Zealand for the financial vear 1931-32 was at the rate of £3 19/5 a head of population. The latest available figures from Australia give local taxation there as £2 3/4 a head for the calendar year 1931. Reductions in general taxation have now been effected in Australia, and these are officially estimated at £7,350,000, or £1 2/5 a bead on the mean population of Australia in 1932. The position with regard to taxation a head in Australia and New Zealand. on the basis of 1931-32 statistics, can therefore be set out as follows:

Difference in favour of Australia: £1 2/3 a head. It may he thought that the succeeding year (1932-33) may have altered the figures to the advantage of New Zealand. This, however, is certainly not the case in regard to general taxation. Further Adverse Trend. General Government taxation in 1932-33 increased in Australia by 6.9 per cent (or 18/6) a head, but in New Zealand it increased by 12.3 per cent (or £1 S/3) a head. The difference of 9/9 is of course to the disadvantage of New Zealand. In regard to the remaining factor — that of local government taxation —the 1932-33 figures arc available for neither country, but all indications are that they will give. New Zealand no advantage. This is a perfectly reasonable assumption because even if the local taxation figure in Australia remained stationary and did not fall (and the present tendency of this class of taxation revenue is downward), New Zealand’s local taxation figure would have to fall 40 per cent (or £1 12/- a head) to equalise the total taxation in the two countries. That this drop has occurred is highly improbable in view of the fact that the New Zealand figure fell by less than 7 per cent in 1930-31, and by less than 4 per cent in 1931-32. (The Australian figure fell by 9.4 per 'cent in 1931). There is therefore very good ground for believing that total taxation a head in New Zealand is even more in excess of Australia than is shown in the above table. The taxation figures constitute a strong indictment of local government costs in New Zealand, which provide a striking - contrast, with Australia. They emphasise the need for the setting up of the local government commission promised long ago by the Government, for the purpose of surveying the whole field of local body administration and securing real economy in the system.

To a request from tne Farmers’ Union that the Government be urged to bring down legislation to enable drivers’ licenses to be renewed by post, the Transport Department replied that provision in the regulations already existed- to enable drivers’ licenses to be renewed by post. It was the intention of the department to place recommendations before the Government which would give .greater flexibility to the granting of drivers’ licenses.

£ s. d. £ s. cl. Austral N.Z. General 13 5 9 11 9 G Local (1931) 2 3 4 3 19 5 15 9 1 15 8 11 Less 1R eductions in 1933-34 1 2 5 Totals 14 6 s 15 8 11