Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Thursday, 28 May 1942

Mr PATERSON (Gippsland) . - I support very strongly, and in all sincerity - despite what the honorable member for Bass (Mr. Barnard) has said - the motion of the Leader of the Opposition (Mr. Fadden). I am a firm believer in the system of post-war credits, not merely because of its inherent virtues, but also because I consider that it should be made part and parcel of the legislation we are now discussing and should not be regarded as a separate matter; because it could then be used as a medium for tho partial removal of some of the blots and smudges that appear on this legislation, thus compensating in some degree certain of the States which will be more hardly hit than others under what has been given the misleading title of uniform taxation. When uniform income tax has been applied to the citizens of three of the States, they will still be left with at least one-half of the State imposts of all kinds which they formerly carried. On the other hand, the remaining three States will be relieved of from two-thirds to three-quarters of total State taxation. Nobody can contend that that may be described as uniformity or equilibrium in respect of taxation ; because, whilst uniformity of income taxation may be achieved there will also be very considerable disequilibrium in regard to total taxation. I might put it in this way: By the passage of uniform income taxation, three of the States will be relieved of nearly three-quarters of the total State taxation formerly pail, whereas Victoria, South Australia and Tasmania will still be left with one-half of what formerly had to be borne. It may be asked: How, at this stage, may that be remedied? Earlier in the debate upon this legislation, one remedy suggested was to include in these measures uniform provisions in respect of taxes of all kinds. That would be a very drastic means to adopt, and I do not advocate it. I believe that it would be possible to provide compensation to some extent for those States that will be left with onehalf of their original taxation. Compensation might be provided by the means of the post-war credits proposed by the Leader of the Opposition, thus regarding a proportion of the uniform income tax as a compulsory loan, which, I suggest, should be free of interest. It happens that those States which will leave with the Commonwealth, for purely Commonwealth purposes, the largest proportion of their income taxation - in other words, those that will receive from the Commonwealth proportionately smaller reimbursement than will be received by the remainder - will be left with one-half of their original State taxation. For the time being they are being hit harder than persons in the other three States, hut they could get some measure of compensation by being credited with a larger proportion of their tax payments as compulsory loans.

Suggest corrections