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Wednesday, 30 September 1936


Senator LECKIE (Victoria) .- Paragraph h of the definition relating to aids to manufacture refers, inter alia, to patterns, dies, moulds and cores, concerning which the Leader of the Senate (Senator Pearce) said that there was danger of inequitable treatment if an alteration were made. He did not say in what way it would be inequitable.


Senator Sir GEORGE Pearce - In some cases these articles are practically part of a manufacturer's plant. The plant of other manufacturers is not exempt.


Senator LECKIE - Dies for a complete motor body may cost as much as £4,000. Sales tax at 4 per cent, on that amount would represent about £160, which means a considerable addition to the price of motor cars, particularly as the models change fairly quickly. Some of the dies and moulds used in the manufacture of motor car bodies are exempt from sales tax, whereas dies and moulds used by other manufacturers are not exempt, notwithstanding that some of them are not again used after a certain quantity of goods has been made from them. Cores and moulds used in moulders' shops are frequently broken up, after having been used only once, or at most, a few times. Why should they be subject to sales tax? Again, emerypaper and sand-paper, and emery-wheels and files used by engineers and furniture manufacturers are not exempt, whereas emery-paper and sand-paper used by brush manufacturers are exempt. What is the reason for this differentiation? Is the brush-making industry of more importance than the manufacture of furniture or machinery? An examination of the items referred to in this clause would reveal a number of anomalies. I notice that some cleansing materials, such as soda ash, which is used for scouring wool, are included in the schedule, and that peroxide of hydrogen is exempt for wool bleaching but not for other more familiar uses. I should ba better satisfied if the words " dies, moulds and cores " were struck out of paragraph h.







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