TAX ON MORTGAGES

Wanganui Chronicle, Volume 75, Issue 111, 13 May 1932, Page 7

TAX ON MORTGAGES

THE N.S.W. MEASURE BILL PASSED THE ASSEMBLY FAR-REACHING TAXATION (By Telegraph—Press Association—Copyright) Received Mav 12, 8.24 p.m. SYDNEY, May 12. The Mortgage Taxation Bill has passed the Assembly. During an acrimonious discussion, it was stated debentures would come within the purview of mortgages. Thus the Lang Government would levy on at least £200,000,000 further. It is estimated that an institution like the Australian Mutual Provident Society, which had mortgages secured on property in New South Wales exceeding £10,000,000, would be called upon to pay the Government £1,000,000 within fourteen days of the passing of this Act. The Bill now before the Legislative Council and its fate is expected to be decided in the early hours of to-mor-row. There was intense lobbying by Lang supporters to secure a majority.

WOULD DESTROY CREDIT FEDERAL COUNTER MOVE CANBERRA, May 12. Mr. Lyons, in a statement, declared that he had received information con cerning measures introduced in the New South Wales Assembly for the imposition of a tax of 10 per cent, on mortgages, with a provision for vesting in the State the whole* of the rights of the mortgagee in the event of non-payment within 14 days. “It is perfectly obvious,” said Mr. Lyons, “that such a measure, if passed into law, would destroy financial security, not only in New South Wales, but the whole of Australia. It would bring speedy and immediate ruin in its train. The Commonwealth Government has received advice that the powers of the Commonwealth are wide enough to enable it to defeat this latest attempt by Mr. Lang to destroy ! the credit of New South Wales and Australia. “The Commonwealth Government is watching the situation closely, and will not hisitate immediately to use its powers to the full to deter the proposal, which will be fraught with dire consequences to the people. Therefore, there is no occasion for alarm.” A full meeting of Cabinet has been summoned to consider the position. SYDNEY PRESS COMMENT SYDNEY, May 12The Herald, in a leading article, says: “Mr Lang’s Bill to impose taxation upon mortgages is really less than a Bill to confiscate all rea> property upon failure to pay the State wide capital levy. It is a piece of tyranny savagely conceived, but we Relieve it is bound to be defeated. The public look to the Legislative Council to again save them. This is an act of war and pillage by the Lang Government against not alone property owners but all private enterprise and industry. It is meant to precipitate a crisis, and that it certainly will do. Over and beyond the last defences of justice and fair play in the State Parliament, the public looks to the Federal authority, whose active intervention has involved it in this struggle, to use every power it possesses, not only to defeat this Langist attempt to overthrow all order and security but also to drive the wreckers from office.”

BILL PROBABLY PASSED TENSE SCENES IN UPPER HOUSE Received May 13, 12.55 p.m. SYDNEY, May 13. There were tense scenes in the Legislative Council to-night during the debate on the Mortgage Taxation Bill, which is now believed to be carried, by one to three votes, with the aid of the Federal Labour Group, which ear lier were solidly against it. The feeling in the city and Canberra is extremely apprehensive. The Fed oral Government is preparing for enter gencies. It is expected to take extreme action and override the measure if it is passed.