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Wednesday, 3 June 1942


Senator LAMP (Tasmania) .- I whole-heartedly support the bill. In his second-reading speech, the Minister for Trade and Customs (Senator Keane) said -

Commonwealth expenditure in the manufacture of munitions of war and on the many services utilized for war purposes has created a wave of economic prosperity throughout the States and has enlarged the field of income available for taxation. The increased taxable capacity created by the Commonwealth's war expenditure has considerably increased the revenue of the States and has absorbed their unemployed. The result is, therefore, that while the obligations of the Commonwealth have multiplied the obligations of the States have diminished.

The position now is that almost all sections of the community are supporting the Government's uniform income tax proposals. Earlier to-day, Senator Cameron read a memorandum from certain organizations in New SouthWales which urged the endorsement of these proposals. The people of Tasmania wholeheartedly endorse them. They are supported by the manufacturing and commercial interests, the Trades Hall Council and the Labour party. The

Tasmanian people share the view held by the people of New South Wales that this scheme will simplify our taxation methods and will effect considerable savings in the collection of taxes. At the same time, income tax will be spread fairly over all sections of the community. I was amazed to hear some honorable senators opposite declare that this Government was endeavouring to make political capital out of these proposals. Is any one so foolish as to believe that a political party could make political capital out of income tax legislation? Taxation measures are the most unpopular of all kinds of legislation. Indeed, a member of the Tasmanian Government told me that so far as Tasmania was concerned the Commonwealth was welcome to take control of income tax because it was the only legislation that reduced the State Government's popularity.

The following statement, which was issued by the Premier of Tasmania through the Treasurer of that State, and was published in the Tasmanian press on the 21st May, 1942, definitely refutes the statement made by the Leader of the Opposition (Senator McLeay) that Tasmania is opposed to these uniform tax proposals : -

In view of the paramount importance of financing Australia's war effort as equitably as possible, he had no sympathy with the emphasis given to State rights, and still less sympathy with those Australian State statesmen who offered violent protests without proffering any sort of practical alternative. The Tasmanian Government on the contrary had acted with sense, decision and promptness, quite rightly regarding the issue of State rights as settled for all practical purposes by what occurred at the conference of State and Federal Ministers on uniform taxation in Melbourne on 24th April.

On the following day, 22nd May, 1942, the Hobart Mercury published the following report : -







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