War Tax On Gold

Application to Papua and Mew Guinea

IN an effort to meet Australia’s colos sal war expenditure, a new tax on gold production, applicable to New Guinea and Papua, was announced by the As sistant Federal Treasurer on September 15. He said that the tax would be three quarters of the amount by which the price exceeded £9 Aust. per fine ounce.

The Gold Tax Bill was pushed through the House of Representatives and came before the Senate on September 20, where it met unexpected opposition. Westralian Senators spiritedly criticised the meas ure, declaring that a tax on gold com panies’ profits would have been much more equitable. Senator Foil pointed out that the price of gold had risen sharply as a result of war conditions and that the Government was merely seeking to obtain a share of the unearned incre ment.

A compromise was eventually made, whereby the tax will be only one-half of the amount in excess of £9, instead of three-quarters.

Regulations were also gazetted, placing the onus of payment on the producer, who is obliged to deliver the gold to the Commonwealth Bank, or its agent, where the duty will be deducted from the price paid.

The tax, no doubt, will be criticised in New Guinea and Papua, owing to the heavier costs of operating imposed by the war; but nevertheless the price now received for gold, after the impost has been paid, is still higher than the rates ruling when the outbreak of war caused the price to reach a new record high.

New Guinea mining companies already pay a 5 per cent, royalty to the N.G.

Administration; although this is not im posed in Papua. Until recently, all pros pectors and small “shows” were com pelled to pay the 5 per cent. tax. but relief measures for miners operating in a small way Have been promised by the Australian Government.