Aust Tax Changes Upset Nauruans

he Australian Government’s de an to cancel tax exemption of tralians working on Nauru has jt the Nauruans. Tax will be sd from next July, says the Aust in Minister for Foreign Affairs, he decision filled Nauru’s Presi t Hammer Deßoburt with “a ie of disappointment and dis s”, he told the Nauru Parliament.

L tax-free income was a great action for expatriates in Nauru, rom the latest available figures, the President, it appeared that ut 70 per cent of the European atriate staff employed by the re lic will be affected, ecalling that the Australian /eminent decided on tax exemp of Australians in Nauru when >ecame a republic and confirmed decision in 1970, President De >urt said his government believed ; decision was based, not only on ealistic and sympathetic under iding of the economic well-being the republic, but also on its own l-being. fauna believed, quite naturally, ; a decision by the Australian /eminent to revoke such exemp i would only be taken for grave

reasons affecting the economy, good government or well-being of the Australian people. 5> “My government is not convinced”, the President said, “nor has it been so claimed by the Australian Govern ment, that the present economy of Australia is likely to be influenced in any way by the collection of what must be a very paltry amount to them of revenue from Australian nationals employed in Nauru, the cost of collection of which is likely to exceed the amount collected.

“It is distressing to record that the Australian Government, being as it is, the government of a vast, ex tremely rich and well-developed country, has apparently decided that the value to Australia of the kind of money 1 have just referred to would seem to have been placed higher than other considerations and, an important one which comes to mind now, is Nauru’s dire need for Australians to assist in the industry for mining of phosphate which Aust ralia wants and which we are com mitted to supply to them.

“The decision of the Australian Government, as conveyed to my government, appears to be in con

tradiction somewhat with the Aust ralian Government’s expressions of sympathy, support for and interest in the well-being of the peoples of small Pacific Islands and, of course, the people of this republic”.

Tax exemption was only tempor ary, an Australian Government spokesman pointed out to PIM, “introduced at the time of indepen dence as a short-term transitional measure, in recognition of the special circumstances existing at the time to enable Nauru to alter the basis of recruitment of Australians.

“The other important factor is that the arrangement was a funda mental departure from the standard basis of taxation of foreign-sourced income.” • Mr A. L. Fogg, a senior officer in the Australian Foreign Affairs Department, has been appointed High Commissioner to Nauru, suc ceeding Mr L. G. Sellars, Australia’s first High Commissioner to Nauru, who was appointed in 1972.

Announcing the appointment, Prime Minister Gough Whitlam said the government attached importance to Australia’s relations with Nauru and was looking forward to a con tinuing development of close links between the two countries.