£14,000,000 DEFICIT.

Waikato Times, Volume 108, Issue 18068, 10 July 1930, Page 7

£14,000,000 DEFICIT.

AUSTRALIAN BUDGET. NEW REVENUE DUTIES. y HIGH RATES ON INCOMES. INCREASE IN POSTAL RATES. United Press Assn.—Elec. Tel. Copyright. CANBERRA, July 9. The Prime Minister and Treasurer. Mr J. H. Scullin, introduced his Budget in the House of Representatives to-day. He reviewed the severe economic disturbance prevailing in nearly all countries, accompanied by a disastrous collapse of commodity values. Mr Scullin forecast that the Government would be faced with a shortage of revenue for the present year o £14,000,000. He estimated that the customs revenue would drop by £7.150,000 to £34.000,000. The accumulated deficit had grown to £6,457,882. I‘oward 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 also to raise £5,000, 000 by means of a sales lax of 2£ per cent. This tax would not apply to primary products-—milk, butter and farm produce—nor to farm goods for export from Australia, but it would apply to all imporled goods for consumption in Australia, or to other goods manufactured in Australia which were not specified as exempt. The basis ol this tax was similar to that in Canada The proposed new customs and primage dulies would include the following:—Petrol, 3d a gallon; tobacco, Gd per lb. cigarettes, Is and 1 cigars 2s per lb.; films Id per foot; newsprint, 20s a ton; radio valves, 10 per cent. Increases in excise duties are:—Beer, 2d a gallon; petrol, 3d a gallon; cigarettes, 3d per lb. Mr Scullin said he anticipated £lO,000,000 from income tax this ' year, £8,850,000 of which was to come from the increased taxes and £150,000 from amendments to the Income Tax Act. The proposed increases were:— Companies to pay an increase of 11.' per cent., bringing the rate up to 16d in tl)e pound; individuals to pay an increase of 15 per cent, on income which exceeds £SOO, while incomes from personal exertions above £SOO would he subjected to an extra 10 per cent. Proceeding, Mr Scullin said he expected, £1,500,000 toward revenue from liquidated ex-enemy properties. It was intended also to increase postage charges. The letter rate in future would be 2d an ounce within the Commonwealth and the British Empire, the present charge being lid This would bring in an additional £1,000,000 of revenue. Although the additional taxation and charges involved £12,500,000 a great proportion, represented imposts to replace, not to supplement, the taxation of previous years. Actually the per capita taxation was less than in 1927 Reviewing Ihc financial results o. the year 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 Commonwealth finances could be permitted. . Mr Scullin alluded to the loan position and said Australian Governments in the last three years had floated 19 loans overseas, aggregating £125,000,000. The notes in circulation and the gold reserve were respectively, £44,914,326 and £19,931,102. LATER, POOLING PROPOSITION. CONFERENCE OF BANKERS. CREDIT MUST BE MAINTAINED. United Press Assn.—Elec. Tel. Copyright. (Received. July 10, 920 a.m.) MELBOURNE, July 10. Eminent banking authorities are in conferrence here on the question as to whether Australian credit in London can be pooled with advantage. The official exchange rate for the telegraphic transfer of money to London is still £6 10s per cent. It is understood that bankers are discussing the proposal to co-ordinate Ihc availability of exchange on London to meet the future needs of Australia in respect of interest on oversea debts accruing from time to time, which if succesful will improve the general financial outlook. It was announced that a tentative agreement had been reached whereby it was intended that as far as practicable the Governments of Australia should have the first call on Australian credit In London for meeting national obligations. The conference was unanimous that the national credit must be maintained at- all costs.