Essentially a Defence Once It Increases Taxation Australia, like Great Britain, is having to meet the bill for the bell wiry of Europe, states "The Financial News." The 1938-39 Budget, introduced into the House of Representatives Septerüber 21, by Mr. R G Casey, the Commonwealth Treasurer, is essentially a defence budget. And, like Britain, Australia has so far been called on to bear the burden of increased taxation at a time of expanding revenue. Last year's revenue surplus was £3,495,000 instead of the £30,000 budgeted for in August, 1997. it is true that the buoyancy of (he revenue could not have expected under normal conditions to continue indefinitely, in view of the downward trend of prosperity in overseas markets generally, and in the British market in particular. But there was no reason to expect any serious deterioration during the current year, and the country might thus have reasonably looked forward to the reductions in taxation envisaged a year ago. But owing to the pressing needs of defence Mr. Casey has found it necessary to increase income-tax by 15 per cent, sales tax by 4 to 5 per cent. and land tax by roughly 111 per cent. He estimates expenditure during the current year at 893136000, against £85,963,000 (actual) in the preceding year, and he puts revenue on the basis of present taxation at £89,952,000, against £89458000 (actual). The gap to be bridged is thus £3,184,000. The new taxation measures are estimated to produce £3,210,000, and the surplus, consequently, is estimated at £26,000.
Text read from the printed page and cleaned; old type leaves the occasional error.