Senate
19 December 1916

6^th Parliament · 1^st Session

QUESTION
- MANIFESTO TO THE ANZACS
QUESTION
- THE CENSORSHIP
QUESTION
- PERMANENT GUARD
ANSWERS TO QUESTIONS
CHARGES BY MR. GILCHRIST
HOME SERVICE PROCLAMATION
CIVILIAN PRISONERS OF WAR
UNIMPROVED LAND VALUE TAXATION
UNLAWFUL ASSOCIATIONS BILL
DAYLIGHT SAVING BILL
INCOME TAX BILL (No. 3)
SUSPENSION OF SITTING
ENTERTAINMENTS TAX ASSESSMENT BILL
ENTERTAINMENTS TAX BILL
SUSPENSION OF SITTING
INCOME TAX ASSESSMENT BILL
SPECIAL ADJOURNMENT
PAPER
ENTERTAINMENTS TAX ASSESSMENT BILL
ADJOURNMENT

The President took the chair at 11 a.m., and read prayers. ‘

page 10149

QUESTION

MANIFESTO TO THE ANZACS

Senator MULLAN:
QUEENSLAND

– In view of the fact that the Prime Minister’s manifesto to the Anzacs has been laid on the table of the Senate, have the Government any objection to the newspapers printing it if they so desire? I understand that the newspapers have been refused the right ‘ to publish the manifesto.

Senator LYNCH:
Minister for Works and Railways · WESTERN AUSTRALIA · ALP

– I ask the honorable senator to give notice of a question for tomorrow.

Senator Mullan:

– There will not be much time.

Senator LYNCH:

– Well, for a later hour of the day.

page 10149

QUESTION

THE CENSORSHIP

Senator MULLAN:

– Is the Leader of the Government here yet in a position to answer the question I forecasted last Thursday evening as to whether it was. the intention of the Government to re-enact the regulation in connexion with the censorship which we disallowed a couple of weeks ago ?

Senator LYNCH:
ALP

– The honorable senator asked a question under two headings.

What he has referred to now relates to one portion of his question. His first question was -

Is it the intention of the Government, as stated in the Herald, on the 8th inst., to re-enact Statutory Rule No. 204, which was recently disallowed by the Senate?

The answer to that question is “ The matter is being considered.”

page 10150

QUESTION

PERMANENT GUARD

Senator MILLEN:
NEW SOUTH WALES

– I want to ask the Minister representing the Minister for Defence a question in reference to the statement in to-day’s newspaper, that it is the intention . of the military authorities to create or appoint a permanent guard. Is it intended to create a new permanent military unit outside the Kitchener scheme, or is it to be permanent only in the sense of being for the time of the war ?

Senator LYNCH:
ALP

– Will the honorable senator give notice of the question?

page 10150

ANSWERS TO QUESTIONS

Senator Millen:

– The honorable senator’s idea of rapidity of motion seems to have altered lately.

page 10150

CHARGES BY MR. GILCHRIST

page 10150

HOME SERVICE PROCLAMATION

Senator Mullan:

– The father of. one man was complaining in the precincts of the Senate last night that his son had just been arrested under the proclamation.

page 10150

CIVILIAN PRISONERS OF WAR

page 10151

UNIMPROVED LAND VALUE TAXATION

Order of the day for the resumption of the debate, adjourned from 14th December (vide page 9879), on motion bySenator Grant, discharged.

page 10151

UNLAWFUL ASSOCIATIONS BILL

Bill received from the House of Representatives.

Standing and Sessional Orders suspended, and Bill read a first time.

Second Reading.

Senator LYNCH:
Minister for Works · Western Australia · ALP

– In moving -

That this Bill be now read a second time,

– They would sooner pay the i:ne than enroll.

Senator Blakey:

– It is just an election kite.

Senator McDougall:

– This Bill will accomplish nothing.

Senator MULLAN:
Queensland

Government . could exercise any power which is granted to them in this measure?

Senator McDOUGALL:
New South Wales

.- I shall not detain the Senate very long in dealing with this Bill. When speaking this morning Senator Millen claimed that unionists like myself should condemn, the action of certain men who assaulted the worker in the Small Arms Factory who was doing the best he could at the machine he controlled. It is in connexion with that statement that I have risen to speak on the Bill. So far as the measure itself- is concerned, it is not worth half-an-hour’s bother. I do not believe that it will extinguish the organization I desire to see extinguished, which has been an opponent of mine since I have known it, and which has continuously opposed the principles of craft unionism to which I subscribe. I have no sympathy with it, and I have stated that when the members of that organization get in, it is time for me to get out. I assume that I am one of the unionists who, according to Senator Millen, should condemn the action to which he referred. I have been a unionist in Sydney for forty years, and, perhaps, have witnessed more of the progress of unionism in the States than has any other honorable member of the Senate. I know the advantages which the community has derived from the efforts pf unionists, and I am willing at all times to condemn the intimidation of any man. I should like, however, to remind Senator Millen that there is under the common law a means of obtaining justice open to the man to whom he referred. I can scarcely believe that the secretary of a union assaulted this man, because I find it difficult to believe that any man would be such a coward as to permit himself to be assaulted twice without having recourse to the law to punish , those who assaulted him. I can mention a case in point. The secretary of the Typographical Society in Sydney expelled a man from a room who had been expelled from the union. This man sued the union in the Court, and got a verdict for £500. The union appealed, but the High Court upheld the decision. I say that the man who is said to have been assaulted in the Small Arms Factory has open to him the same means of redress that was open to the man who was assaulted by the secretary of the Typographical Society. There is a remedy for action of the kind to which Senator Millen referred, if those who suffer from it care to avail themselves of that remedy. T wish to bring under the notice of the Senate the fact that under clause 5 it is clear that the Bill deals only with the members of an unlawful association. If the members of such an association disband and call themselves by another name, this Bill will not affect them. It will not, for instance, deal with the. I.W.W. man who is a member of the Wharf Labourers Union or the Seamen’s Union. It deals with them only while they are members of an unlawful association. I say that it should deal with all alike who are guilty of the offences against which the measure is aimed, including those indivi duals who have the temerity to interfere with the distribution of foodstuffs of the country in time of war. I direct attention to another anomaly in clause 6 of the Bill, which provides that -

Any person, not being a natural-born British subject, born in Australia, who is convicted of an. offence, under either of the last two preceding sections, shall be liable, in addition to the punishment imposed upon him for the offence, and either during or upon the expiration of his term of imprisonment, to be deported from the Commonwealth, pursuant to any order o:i the Attorney-General.

– I shall mention the matter on the adjournment.

Senator Russell:
ALP

– If the Bill applied to any genuine trade union, I should not be found supporting it.

Senator LYNCH:
Minister for Works · Western Australia · ALP

– I shall not take up much time in replying to the debate. I wish to say that I appreciate the way in which the Bill has been received by the Senate. We have been told by some honorable senators that the measure overshoots the mark, and by others that it falls far short of the mark. It would ap- pear, therefore, that it must about hit the bull’s-eye. Senator McDougall supports the Bill because he thinks it can do neither good nor harm; whilst Senator O’Keefe has just said that he supports it because it will root out the disease.

Senator O’Keefe:

– Nothing of the kind.

In Committee:

Clause 1 agreed to.

Clause 2 -

This Act shall continue in force for the duration of the present war, and a period of six months thereafter, but no longer.

Senator MULLAN:
Queensland

– Seeing that this measure is intended to suppress crime, I should like to know why it is to be limited to the period of the war, and six months thereafter?

Senator LYNCH:
Minister for Works · Western Australia · ALP

.- This Bill has its origin in the defence powers of the Commonwealth, and, as the honorable senator will observe, it is mainly intended to deal with offences which are likely to be committed during the currency of the war. We believe that on the termination of the war the necessity for such a Bill will largely disappear.

Clause agreed to.

Clauses 3 and 4 agreed to.

Clause 5 -

Whoever, being a member of an unlawful association, advocates or encourages, or incites or instigates to, any action intended or calculated to prevent or hinder the production, manufacture, or transport, for purposes connected with the war, of troops, arms, munitions, or warlike- material, including foodstuffs, shall be guilty of an offence…….

Senator MULLAN:
Queensland

– I wish to know whether the inciting to, or encouragement of, the acts set out in this clause will be limited strictly to members of an unlawful association.

Senator LYNCH:
Minister for Works · Western Australia · ALP

– The clause in its literal sense applies only to members of unlawful associations. The presumption is that only such persons will be guilty of these crimes, and if there are men guilty of them who do not belong to such associations, they can be dealt with under the ordinary law.

Senator GARDINER:
New South Wales

– The very fact that a person who is a member of an unlawful association is directly indicated as being liable to six months’ imprisonment if guilty of any of these acts conveys the idea that any person’ who is not a member of an association is not liable to imprisonment if he does any of those acts, and cannot be prosecuted under the scope of this Bill.

Senator DE LARGIE:
Western Australia

– The Bill is quite comprehensive enough in its scope, and will pretty well meet the case as I see it. At the same time, if honorable senators opposite feel that it is not sufficiently comprehensive, and that individual criminals may escape, I am prepared to help them to draw the net evencloser.

Senator KEATING:
Tasmania

– The. point raised by Senator Mullan is very strong, sound, and valid. Clause 4, which we have just passed, reads -

Whoever advocates or encourages, or incites or instigates to the taking or endangering of human life, or the destruction or injuring of property shall be guilty of an offence.

We might well bring clause 5 into conformity with clause 4 by striking out the words, “ being a member of an unlawful association.” It would then read -

Whoever advocates or encourages, or incites or instigates to any action intended or calculated to prevent or hinder the production, manufacture, or transport for purposes con nected with the war, of troops, arms, munitions, or warlike material, including foodstuffs, shall be guilty of an offence.

If Senator Mullan moves that amendment I will support him.

Senator Russell:
ALP

– Many a man may say a thing in a moment of excitement for which he ought not to be put in gaol. This clause deals with an association deliberately organized for a purpose.

Senator- KEATING. - If the two clauses are compared it will be found that I am right. There are men in this community who have done the things indicated in clause 5, and belong to no organization. They should come under this Bill just the same as if they were members of an organization banded together for the purpose of doing damage to the Empire.

Senator Mullan:

– You are going the right way to do it the next time.

Senator Blakey:

– Under clause 4 you cannot tell a man to go and kill a German.

Senator Mullan:

– How would recruiting go under that clause ?

Senator O’Keefe:

I have said a few times that the main object of the Bill is to deal with unlawful associations and the acts of the members of such associations. But if . we were to circumscribe the scope of the Bill to that main object alone, much of the measure would have to go by the board. For instance, clause 4 would have to go, and clauses 6 and 7 would also have to go.

Senator Lynch:
ALP

– The complete measure would be emasculated if it were agreed that its scope was confined within the narrow lines suggested by Senator Needham.

SenatorGardiner. - If the Bill applies to lawful associations the whole measure will have to go.

Senator MILLEN:
New South Wales

– If the amendment is pressed I propose to vote against it. I want to say that it is an entirely logical amendment, and I can find no fault with it on that ground. It seems to me that it is an unanswerable argument that if it is a wrong thing for John Smith, who happens to be a member of the Industrial Workers of the World, or some other unlawful association, in time of war, to incite men to delay the loading of a transport, for instance, it cannot be a right thing- for William Brown, who does not happen to be a member of the Industrial Workers of the World,’ but is a member of some other organization, to do the same thing. . If we have to take a vote upon the amendment, and it is carried, any union deciding to strike, for instance, would, I presume, have a meeting of its members, at which a motion to strike would probably be made, and then the man who moved the motion would be liable under this Bill. I am not saying that some steps will not yet have to be taken to prevent strikes which affect our warlike operations. But we cannot deal with such a matter as that piecemeal, or in this Bill. We have legislation in some of the States, and I think also in the Commonwealth, which makes a strike illegal, but it has so far been honoured more in . the breach than in the observance, and nothing very dreadful has happened. To-day we have to recognise the fact that no matter what law may appear upon our statute-books, the strike is the accepted practice of the. unions. I do not propose that we should deal with this very big matter in this piecemeal fashion. The whole standing, privileges, and rights of unions must be passed in review before we can accept a proposition to deny that which the community tolerates as a practice, and which the law has so far tolerated. In the circumstances, although I agree with its logic, I am unable to support the amendment submitted by Senator Keating,

Amendment negatived.

Clause agreed to.

Clauses 6 to 8, preamble, and title agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 10193

DAYLIGHT SAVING BILL

Bill received from the House of Representatives.

Standing and Sessional Orders suspended, and Bill read a first time.

Second Reading.

Senator MILLEN:
New South Wales

– So far as the principle of the Bill is concerned, it is not necessary to say anything about it. We should just put it through. But I desire to ask a question which was put by Senator Ready a moment or two ago. I observe that the measure is limited to the duration of the war and six months thereafter. If it is to be so limited I submit that, on the termination of the war, we shall lose the benefit of what should prove a very useful measure.

Senator McDOUGALL:
New South Wales

– This is one of those measures to which I attach very little importance. I happened to be in the Old Country recently when a similar Bill was brought into operation, and scarcely any one knew anything about it. I quite recognise that it is possible to save money by dispensing with artificial light for a certain period of the year. I am glad that the Commonwealth has taken action to make this, practice uniform throughout Australia. When I was serving my. time, and for some years afterwards, I used to start work at 6 o’clock in the morning during seven months of the year, and at 7 o’clock in the morning during five months of the year. But the wiseacres in the persona of our employers came along and said, “ You must all start work at the one time, namely, 8 o’clock.” As, a result we lost an hour’s daylight.. We had a strike in opposition to the employers’ orders - a strike which lasted ten weeks - and we were defeated.- But I am pleased to know that we are now going to revert to the ideal of the trade unionists of thirty years ago. When in England I heard the story of an old lady who would not put her old clock back because it had “ told the truth for 100 years, and she could not bear it to tell a lie”; but she had put her little clock back, as it was made in Germany, and was used to lying.

Senator READY:
Tasmania

– I congratulate the Government on bringing forward the Bill, even at this late hour of the session. We have had a little experience in Tasmania of daylight saving, and saving on our light bills. There was considerable opposition to the reform in Tasmania when the Bill was first introduced, but that has almost entirely disappeared. To Captain Giblin, ex-member of the House of Assembly, now at the front with the 40th Battalion, is due the credit for getting the Bill through, after a long and strenuous fight. It seems a small thing to put the clock forward an hour, but the alteration has been appreciated very highly in Tasmania, as I have been told by a number of workers there in the last month or two. When they knock off at 5 o’clock they have nearly five hours of daylight for recreation or amusement. That alone, without the other savings stated, would justify the putting forward of the clock in the beautiful summer climate of the Commonwealth. Another health advantage which has not been touched on is that it gets one to bed an hour earlier every night. We go to bed at 11 o’clock, as usual, although it is really 10 o’clock, so that the Bill is . really, a legislative inculcation of the old adage, “ Early to bed and early to rise makes a man healthy, wealthy, and wise.” Doctors speak very highly of the Bill for health reasons.

We, in Tasmania, have led Australia in this reform, and, in consequence, have been under a great difficulty because our time has been an hour different from mainland time. All the boats sailing to and from Tasmania nave kept mainland time, but the time of departure has had Eb be advertised in the press in Tasmanian time.- Other complications arose, particularly in the sending of telegrams and cables. The closing of the post-offices had to be extended in Tasmania by one hour to keep the time uniform, and’ I believe this caused a little friction as far as telegraphic arrangements were concerned, which had to be adjusted. All these disadvantages will disappear with a uniform Act. I hope the Government will look into the constitutional question raised by Senator Millen, so that, instead of being only a temporary war measure, this reform may be permanently grafted upon the national life of the people of Australia.

Senator KEATING:
Tasmania

– Senator Millen seems to be under the impression that this measure has been introduced in consequence or on account of the war, and for its duration only. If that is the case, the validity of the legislation can be seriously challenged, because no such ground or’ justification is shown in the measure for submitting it and passing it into law. Any authority that we have for passing legislation of this character is given under section 51 of the Constitution, in the paragraph dealing with astronomical and meteorological matters. 1 have very grave and serious doubt whether the measure is within the competence of the Federal Legislature. Had it been desired to pass a measure of this kind, and make time uniform throughout Australia, even adopting the zone system that applies under present conditions that might have been done by regulation under the War Precautions Act; but whether we have the competence to decide by legislation what shall or shall not be standard time for any particular portion of the Commonwealth is very much open to question.

In Committee:

Clause 1 agreed to.

Sitting suspended from 6.30 to 8 p.m.

Clauses 2 to 6 agreed to.

Title agreed to.

Bill reported without amendment ; report adopted.

Bill read a third time.

page 10196

INCOME TAX BILL (No. 3)

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Motion (by Senator Russell) proposed -

That this Bill be now read a first time.

Senator Russell:
ALP

– The increase in taxation averages about 25 per cent, over that of last year, and, roughly speaking, will give us about £1,000,000 more.

Question resolved in the affirmative.

Bill read a first time.

Second Reading.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I move -

That this Bill be now read a second time.

The Senate is in a position similar to that which arose in connexion with the Entertainments Tax Bill, which was received here without the accompanying Assess ment Bill. Honorable senators expressed the desire to have the Assessment Bill first, but as that measure is not yet available, we have been compelled, owing to the short time at our disposal, to go on with the taxation measure first. If honorable senators desire to postpone this measure until the other Bill is before the Senate, there will be no objection. Very little requires to be said for the Bill, which simply provides for an all-round increase of about 25 per cent, upon the taxation of last year. It is scarcely necessary for’ me to say that the money must be obtained to meet our interest obligations, and provide for our other undertakings. I might add, however, that there has been a uniform alteration in regard to the exemptions. Most honorable senators will remember that there was a higher exemption in the case of incomes from personal exertion in last year’s Act as compared with the exemptions on income from property, but this year the exemption in both will disappear at £500 on a graduated scale. Companies’ incomes will have to provide for the usual increase, which will bring their tax up to 1s. 101/2d. in the £1. It is estimated that the increase provided for will bring in an additional revenue of about £1,000,000.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without request.

page 10196

SUSPENSION OF SITTING

page 10196

ENTERTAINMENTS TAX ASSESSMENT BILL

Bill received from the House of Representatives.

Standing Orders suspended, and Bill read a first time.

Second Reading.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I move -

That this Bill be now read a second time.

Though this is rather a lengthy Bill, it contains few or no principles. It simply provides machinery whereby the grand principle embodied in the taxing Act may be carried out. The main principle of the measure is to prevent persons from dodging the tax. It prescribes what societies and entertainments shall be taxed, and defines an entertainment to include “ any exhibition, performance, lecture, amusement, game or sport for admission to which payment is made.” The exemptions are set out in clause 12, as follows : -

Entertainments tax shall not he charged on payments for admission to any entertainment where the Commissioner is satisfied -

that the whole of the takings thereof are devoted to philanthropic, religious, or charitable purposes without any charge on the takings for any expenses of the entertainment; or

that the entertainment is of a wholly educational character (any question on that ‘ point to be determined, in case of difference, by the Commissioner) ; or

that the entertainment is intended only for the amusement of children, and that the charge is not more than 1d. for each person; or

that the entertainment is provided for partly educational or partly scientific purposes by a society, institution, or committee not conducted or established for profit.

The last exemption will include agricultural societies - that is, where no payment is made to members of the committee; but the ordinary agricultural society as conducted in Australia will be exempt from taxation under this measure. Of course, the charities, children’s bazaars, and so on are also exempted. There is another clause of some little importance, and that is clause 13, which provides for a refund of the tax in certain cases. It says -

Where the Commissioner is satisfied that the whole of the net proceeds of an entertainment are devoted to philanthropic, religious, or charitable purposes, and that the whole of the expenses of the entertainment do not exceed 50 per centum of the receipts, he shall repay to the proprietor the amount of the entertainments tax paid in respect of the entertainment.

A refund of the amount of the tax will be granted where the entertainment is held purely for philanthropic purposes. A refund is provided in another case.

Provided that when the Commissioner is satisfied that, owing to adverse climatic con. ditions the expenses of an entertainment for philanthropic, religious, or. charitable purposes in respect of which payments for admission have been made exceed 50 per centum of the receipts, the Commissioner shall repay to the proprietor the amount of the entertainments tax paid in respect of the entertainment.

Where a fete or a gathering has Deen organized, and owing to adverse weather conditions certain expense has been undertaken by the parties interested, as they are acting purely from a philanthropic motive, that is for the purpose of raising money for an institution, a refund to that amount will be granted. Most of the other provisions are merely machinery provisions for an effective check upon the revenue.

Senator MILLEN:
New South Wales

– Taking advantage of the brief interval which occurred just now, I asked the Minister a question as to what entertainments were exempted by the provisions he has read ; and I assume from the statement he made just now, that paragraph 6 of clause 12 was intended to supply the information I was seeking. I want to ask the Minister to be very clear on this point, because I think it would be defeating the purpose of Parliament if we attempted to levy the tax on agricultural shows. Although the Minister says tnat they are exempt, as I think they ought to be, he put a qualification on that exemption; but, apart from the qualification, I am not quite clear, although I accept, his statement as to the intention, that the Bill does exempt these institutions. Clause 12 provides, amongst other things, that the tax shall no’t be charged on payments for admission to any entertainment where the Commissioner is satisfied

that the entertainment is provided for partly . educational or partly scientific purposes by a society, institution, or committee not conducted or established for profit.

I see many difficulties there in regard to these institutions. The question is whether one would say that an agricultural or horticultural show is partly scientific or partly educational. The Commissioner might take a different view of the matter. When it comes to a question of being conducted for a profit, many of these shows make a profit at one gathering. They do not exist for profit-making, and, on the whole, whatever profits they make go to the improvement of their large grounds. Nevertheless, they make a profit, and it was out of the profits that the Royal Agricultural Society at Sydney built up their magnificent grounds and improvements. I notice that in paragraph 3 of section 10 the South Australian Act of 1916 exempts these shows. It reads as. follows: -

Amusements duty shall not be charged on payments for admission to any agricultural, horticultural, floricultural, poultry, dog, or other like show.

That -provision is clear and explicit. I ask the Minister to consider before we come to the Committee stage whether it would not be better to incorporate words of that kind, or, at any rate, to amplify the wording of the clause as it stands.

Senator FINDLEY:
Victoria

.- Senator Millen has nut forth a plea for agricultural societies. If the Government are to be moved by that plea, I would point out to them that once they open the door to exemptions they cannot stop there. From time to time in Victoria there is held an exhibition of a highlyimportant character for the . purpose of helping onward Australian industries. It is held under the auspices of the Australian Natives Association in the Exhibition Building here, and is very educa tional. If the Government once open the door in regard to exemptions, it will be very difficult to say where to stop. The exhibition I referred to is not run for a profit, but a charge for admission is made. There have been two or three exhibitions held under the auspices of the Australian Natives Association. The exhibitions have had a highly educational interest to visitors, and a very big effect in encouraging Australian manufactures in different parts of the Commonwealth. They have helped to create a patriotic sentiment in Australia that was not so strongly manifested before the Australian Natives Association took the matter in hand.

Senator Millen:

– Paragraph d of clause 12 exempts the kind of exhibition to which you refer and I want agricultural shows put on the same ground.

Senator Bakhap:

– Do the profits, if there have been any profits from such exhibitions, go to the funds of the Australian Natives Association?

Senator Millen:

– They are exempt under clause 12, and I want to put agricultural shows on the same list.

Senator GRANT:
New South Wales

– In the various States demonstrations in connexion with which sports are held are arranged every year by trade societies in celebration of the Eight Hours Day. The proceeds in some cases are used entirely for the purpose of completing partially erected trades halls. I am not sure that such demonstrations and sports would be covered by paragraph d of clause 12.

Senator de Largie:

– Should not all these points be considered in Committee?

Senator BLAKEY:
Victoria

– I am glad that Senator Findley raised’ the question he did in connexion with paragraph d of clause 12, under which the Assistant Minister has said that shows conducted by agricultural societies will be exempt from this taxation. Though that is not quite clear to me, I accept the assurance of the Minister. I hope we shall have a similar assurance in respect of the Australian Natives’ Association Exhibition, to which Senator Findley has referred, and ‘which is held on the 26th January in this State. I am doubtful whether that exhibition, which is largely scientific and educational, will be covered by paragraph d of clause 12. I hope that before the Bill goes into Committee the Assistant Minister will be able to five us some assurance on the point. Last year the exhibition was run at apretty severe financial loss,but this year it is hoped there will be a profit.

Senator McDOUGALL:
New South Wales

– We have not had much time to look into this Bill, and I therefore require a little information. I should like to know whether it is the intention of the Government to tax complimentary tickets and cards of invitation for entertainments for admission to persons who do not hold such tickets or cards are obliged to pay. If it is not the intention of the Government to tax such tickets and cards it should be. I should like to know also whether totalizator tickets, and tickets for Tattersall’s sweeps, from which a considerable revenue is derived, are to be liable to this taxation, or whether those who derive large profits from this source of revenue are to be allowed to go scot-free !

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– Questions in dispute as to liability to taxation under clause 12 are to be determined by the Commissioner, from whose decision there is no appeal. I have the authority of the Acting Commissioner to say that, in his opinion, clause 12 does cover agricultural shows, and we may, therefore, accept that as final. They are partly educational and partly scientific. The Australian Natives Association Exhibition referred to by Senators Findley and Blakey would certainly come under the same determination, as it is not held for the purpose of making a profit. The whole matter depends on the question whether the fete, carnival, race-meeting, cricket or football match, or sports meeting is run for profit. Tickets for admission to a professional football match would undoubtedly be taxed, but if there were a guarantee that a particular match was an amateur game, it would be a question for the Commissioner to decide whether it would not be exempt.

Senator Turley:

– The Minister is speaking only of Victoria.

Senator Grant:

– What if it is held for the benefit of a trades hall fund?

In Committee:

Clauses 1 to 11 agreed to.

Clause 12 -

Entertainments tax shall not be charged on payments for admission to any entertainment where the Commissioner is satisfied -

Senator SENIOR:
South Australia

– I want a little information from the Minister in charge of the Bill. In South Australia a concert is held annually by the children of the State schools, in which as many as a thousand children take part. There is a charge for admission, ‘but the whole of the money is devoted to the decoration of the schools throughout the State. This cannot definitely be said to be a charity, nor can it any more definitely be said to be an entertainment run for profit, whilst it is certainly in the interests of education.

Senator TURLEY:
Queensland

-I would like to be clear as to the position that will be occupied by the annual demonstration of the Eight Hours Union. The Assistant Minister has stated that in Victoria the demonstration is conducted purely on charitable lines. But Victoria is the only State in the Commonwealth which has enacted legislation in that direction. In the other States, the annual demonstration is conducted in the capitals and towns in which there is an Eight Hours Union of the various trades and occupations. If any profit results from the demonstration, it is devoted, not to the organizations, but to the erection of a hall, in- which they may meet. I do not know under what heading such entertainments will come.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I understand that an institution holding a benefit carnival, such as the Trades Hall, will not be exempt from the operation of the Bill, unless the Commissioner determines that the carnival is of a charitable, educational, or scientific character. Where an eight hours demonstration is run for charitable purposes, the proceeds will be exempt from taxation, but where it is run for the benefit of a building fund it will be taxed.

Senator GRANT:
New South Wales

– I should like to know whether the tickets of admission to social and other forms of entertainment which are held by committees of the Liberal party to assist in defraying the cost of their election campaigns will be exempt from taxation?

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I would point out to the honorable senator that it is not so much a question of the nature of the function as it is of its object and purpose. If the Women’s National League hold a garden party, for example, and the profits are used for political purposes, they will certainly be taxed.

Senator GUY:
Tasmania

.- It seems to me that there ought to be some provision in the- Bill to exempt from taxation all Eight Hours Demonstrations. I have had some experience of the little demonstration that is held in Tasmania. The profits from it are really nil, and the demonstration is practically financed by voluntary contributions. I know that these contributions amount to £50 or £60, and that the whole takings do not exceed £120. It would be cruel to tax a demonstration of that sort, which is not run for the purposes of private profit. If a profit should accrue from the exhibition, it is devoted to providing, a hall for the various trade organizations. But that profit is represented entirely by voluntary contributions.

Senator FINDLEY:
Victoria

Senator TURLEY:
Queensland

– It ‘has been distinctly stated that the agricultural societies throughout the States will be exempt from this taxation. There are agricultural shows held annually, not only in the capitals, but in almost every town along the coast and inland. They do not make a great deal of money, but they have a certain amount of ground, and on its improvement expend whatever profit is made. In addition to Brisbane, shows are held at Ipswich, Toowoomba, Maryborough, Rockhampton, Bundaberg, Mackay, and other places by agricultural and industrial societies, but in all those places there’ is also another annual demonstration which brings the people into the centres. That is the demonstration bv the Labour orrganizations, which has exactly the same effect, and to a great extent a similar influence. No person or individual organization makes a profit out of these - gatherings. In most places the , State has granted a piece of land on which the organizations are to erect a building. Their principal means of raising funds is their annual demonstration, and the profits are ‘ always used to improve the land and erect buildings for the benefit of the organized labour in the district, just as the annual agricultural and industrial shows are held for the benefit of the people engaged in agriculture and industry. An honorable senator from South Australia has called my attention to the fact that a wealthy man in Adelaide paid off the debt on the Trades Hall in Adelaide, but in most other cases in Australia numbers of people by attending these demonstrations provide a certain amount of money which is used to pay for or improve the hall.

Senator SENIOR:
South Australia

– In paragraph c of the clause there appears the following: -

That the entertainment is intended only for the amusement of children, and that the charge is not more than Id. for each person; or

It would appear that the Bill was drawn up at a, time when 6d. and even 3d. tickets were included, but tickets up to 6d. have been exempted, and I want to know now if entertainments given by private showmen to school children will be included. It seems to me necessary to alter this paragraph in order to make the Bill conform, with the other measure which we have passed.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– The words complained of by the honorable senator are useless, but they can do no harm, and I would ask the honorable senator not to press the matter.

Senator KEATING:
Tasmania

– I would suggest that Senator Senior press the question he has raised. The Minister says it does not mattervery much, and, that’ being so, I do not see why another place should not accept the amendment at once. It would indicate, at all events, that we are edeavouring to harmonize our legislation, and if we are here simply to wait on another place, and are expected to say “ ditto,” we might just as well go home.

SenatorSENIOR (South Australia) [9.38]. - I will adopt the suggestion of Senator Keating, and move -

That in paragraph c the words “ One penny “ be left out, with a view to insert in lieu thereof the word “ sixpence.”

Amendment agreed to.

Clause, as amended, agreed to.

Clauses 13 to 21 agreed to.

Title agreed to.

Bill reported with an amendment: report adopted.

Bill read a third time.

page 10204

ENTERTAINMENTS TAX BILL

Report adopted.

Bill read a third time.

page 10204

SUSPENSION OF SITTING

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I understand that we shall have to wait for some time for clean copies of the Income Tax Assessment Bill. There are only about halfadozen available.

page 10204

INCOME TAX ASSESSMENT BILL

(No. 4).

Bill received from the House of Representatives.

Second Reading.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– I move -

That this Bill be now read a second time.

This is really the complement to the -Bill which was recently passed fixing the rate of income tax for the present year. The object of the measure is to effect certain amendments in the principal Act, which have been found, as the result of practical experience gained by the officers, to be necessary for the successful working of the Act, and to remove those little frictions which from time to time arise in the working of. a large Act of this character. The Bill makes one or two amendments in the principal Act. Where, for instance, a man is allowed a deduction for a dependant the rate Has been increased from £13 to £26. Likewise where a man is allowed to make a deduction for each of his children the amount has been increased from. £13 to £16. It’ has been found necessary to amplify the provisions of the principal Act with regard to official secrecy, so as to enable a free interchange and exchange of information between Commonwealth and State officers. This amplification will lighten the work a good deal, and will be the initial step in leading to what we trust will be the harmonizing and cheapening of these services, as well as making more effective provision in that regard.

Senator Keating:

– That is a reciprocal provision 1

Senator Millen:

– Insurance ‘companies are to be included in the provision.

Under the proposed scheme it is estimated that the taxation will disappear at £500 in regard, to income from personal exertion, and also income derived from property.

Senator Keating:

– What clause deals with that?

Senator Turley:

– What will be the difference in the taxation, taking three or four instances of incomes ranging from £500 to £1,000?

In Committee:

Clauses 1 to 3 agreed to.

Clause 4 -

Section 11 of the principal Act is amended -

by omitting from paragraph (e) the words “the War Loan Act (No. 1) 1915,” and inserting in their stead the words “a Commonwealth War Loan”; . . . . . ,, .

Senator MILLEN:
New South Wales

.–In this clause I notice a ‘provision amending the principal Act by omitting from paragraph e of section 11, the words “ The War Loan Act(No. 1) 1915,” and inserting in their stead the. words, “a Commonwealth War Loan.” Owing to the brief period in which the Bill has been in our hands, I am not quite clear as to the effect of that amendment. But if, as it seems to me, it is intended to incorporate in this measure a permanent exemption for all future war loans, the Committee should be informed of that, so that we shall not unwittingly commit ourselves to a declaration of policy as to future war loans. I would like the Minister to say whether this provision is merely intended to legalize the second war loan, or whether it is intended to cover future war loans.

Senator RUSSELL:
Assistant Minister · Victoria · ALP

– The Government feel that in granting the exemption under the War Loan Act, both Houses deliberately led the people of this country to believe that such exemption would be granted in respect to all war loans. We found that the moment it was intimated that there was going to be a tax on war bonds and inscribed stock the drop in their value was very marked indeed, indicating that we would have to . pay at least 41/2 per cent for war money. The Government felt that they were under an obligation, not so much to a previous Government as to the decision of Parliament to exempt war loans from taxation.

Senator MILLEN:
New South Wales

– I am sorry to hear the statement of the Minister, because it raises the whole question. I have no desire in doing so to cut across the conditions under which previous loans -may have been issued, and if this provision could be so amended as to apply only to those loans which have been floated, I would be content to rest there. If we are now asked under the guise of an Income Tax Bill, to tie our hands as to future loans, I am unable to consent to the provision. What I suggest to the Government is that they should cover all the loans issued to date, and then when a fresh loan is about to be floated, the Parliament will have another opportunity of considering and determining the conditions under which future loans shall be issued. In the short time at my disposal, I have been’ unable to ascertain exactly how this provision fits in with the principal Act, but in order to put ourselves on a proper footing, I move -

That the words “ a Commonwealth War Loan “ be- left out.

I do not quite know what the effect of their omission would be.

Senator KEATING:
Tasmania

– It was the same lines in the Bill which arrested my attention. I recognise the difficulty with which the Government are confronted in reference to this matter. Provision has been made with regard to the first war loan, referred to here as the war loan of 1915 I take it, though I am not quite sure on the point, that the object of the provision is to make applicable to subsequent war loans the provisions that apply to the first war loan in connexion with the exemption from income tax.

Senator MILLEN:
New South Wales

– Since I spoke I have obtained a copy of the main Act, and I should like, by permission of the Committee, to withdraw my amendment, with a view to sub- mitting it in an amended form. The section of the existing Act which we are by this clause invited to amend reads -

The following incomes, revenues, and fundsshall he exempt from income tax.

And paragraph e of the section which is sought to be amended by this Bill reads -

The income derived from bonds, debentures, stock, or other securities of the Commonwealth issued under the provisions of War Loan Act No. 1 1916.

We have been asked to amend that, and my desire will be attained if the Committee will negative paragraph a of the clause now under consideration. That will leave the existing Income Tax Assessment Act as it stands in this connexion, and it does exempt war loans issued so far.

Senator LYNCH:
Minister for Works · Western Australia · ALP

– I am afraid Senator Millen will not accomplish the object he has in view. There will be nothing to prevent the Government bringing down a further authorization and exempting loans to be raised under it from income tax.

Senator Millen:

– Then agree to it.

Senator Grant:

– Because it was not good enough.

Clause 10 (Deductions).

Senator KEATING:
Tasmania

– This is a very comprehensive clause, that seems to strike at many- of the principles of the original measure. Will the Minister briefly explain its significance, purpose, and effect?

Senator RUSSELL:
Assistant Minister · Victoria · ALP

.- The first two amendments proposed make the intention of the first part of sub-section 1 of section 18 of the principal Act clearer, by specifically stating that the section deals only with assessable income, that is, income which is not exempt, and that the deductions allowable are in respect of expenditure incurred in producing the assessable income. Under amendmentc the war-time profits tax payable on the profits of a business earned in 1915-16, and which are being assessed for income tax for 1916-17, will be deductible when ascertaining the taxable income for the 1916-17 assessment. It will be noticed that the new section does not say that the deduction is to be war-time profits tax paid in the year in which the taxable income was derived. The proposal will operate so as to prevent payment of income tax on that part of the profits of the year which will be taken as war-time profits tax. It will authorize the Commissioner of Taxation to, in effect, reopen the income tax assessments based on the 1914-15 income in those cases in which war-time profits tax is also payable on that income, so as to allow refunds of income tax already assessed on that part of the profits which will be taken as war-time profits tax. That is to avoid double taxation. It is proposed to provide in the War-time Profits Tax Assessment Bill a clause authorizing the Commissioner to treat these refunds as a set-off against the amount of war-time profits tax in those cases in which, when the income tax was assessed, it was not practicable .to ascertain the amount of the war-time profits tax which would be deductible. The proviso to - amendment c is a proper one to insert in the Bill, otherwise larger deductions than are justly allowable will be allowed in all those cases in which taxpayers have received refunds on account of overpayment of any of the taxes mentioned.

Clause agreed ,to.

Clause 11 -

Section nineteen of the principal Act is repealed, and the following section inserted in its stead : - 19. (1) In the case of a person (other than a company, an’ absentee, or a person without a dependant) there shall be deducted, in addition to the sums set forth in the last preceding section, the sum of One hundred and fifty-six pounds less Five pounds for every Eleven pounds by which the income . exceeds One hundred and fifty-six pounds.

When the total taxable income consists partly of income from personal exertion and partly of income from property the deduction under this section shall be apportioned pro rata between the income from each source.

In the case of a person (not being an absentee) without a dependant there shall be deducted, in addition to the sums set forth in the last preceding section, the sum. of One hundred pounds less One pound for every, Four pounds by which the income exceeds One hundred pounds..

Senator TURLEY:
Queensland

– This is another evidence of the effect of introducing legislation just at a time when honorable senators are anxious to get away to their homes ; and I can see looming in the distance the time when, if the. Government introduce measures like this, the Senate will simply adjourn over the holidays and resume to go on with the business.- Is it fair that the Senate should be asked to consider a measure like this? In the first place, the Bill brought down was just the taxing

Bill. The Government have now brought down a complicated measure which one could not thoroughly understand without devoting a day or two of solid work to the task of comparing it with the original Act. We were allowing this Bill to pass almost without any criticism when this question was raised. On the motion for the second reading of the Bill I asked the Minister, by way of interjection, whether he would give us some examples of how this proposed amendment of the Act would work out, and he replied that he would do so later on. Senator Findley had already worked out what would be the extent of the increase of taxation in respect of a number of/ incomes, and he has shown that under this proposal men who are in receipt of the smaller incomes of from £300 to £700 or £800 a year will be called upon to bear a greater share of this increased tax than will these in receipt of larger incomes. I should like to know whether the Government deliberately laid themselves out to do this. Did they merely say, “ We want an increase of 25 per cent, in the tax,” without taking care to see that the bulk of the increase would not fall upon those in receipt of the smaller incomes ? I believe it would be better either to send this Bill back to another place for further consideration or to allow the whole question to stand over till we meet again. The Bill, even if passed now, would not be put in force before the date on which it is proposed to re-assemble.

Senator Russell:
ALP

– As another place has already adjourned till to-morrow, there is no reason why we should pit all night. The honorable senator should move that progress be reported.

Senator GARDINER:
New South Wales

– I think it would be wise to report progress and allow this question to stand over till to-morrow morning. If I am any judge of the temper of the Committee I think this clause is likely to be struck out, so that the Government will do well to come prepared to-morrow with something to take its place.

Motion (by Senator Russell) proposed -

That progress be reported.

Question put. The Committee divided.

AYES: 15

NOES: 12

Majority … … 3

AYES

NOES

Question so resolved in the affirmative.

Motion agreed to; progress reported.

page 10214

SPECIAL ADJOURNMENT

Motion (by Senator Lynch) agreed to -

That the Senate, at its rising, adjourn until 11 o’clock a.m. to-morrow.

page 10214

PAPER

The following paper was presented: -

The War. - Report on the Typhus Epidemic at Gardelegen, by the Government Committee on the Treatment by the Enemy of British Prisoners of War. (Paper presented to British Parliament).

page 10214

ENTERTAINMENTS TAX ASSESSMENT BILL

Message received from the House of Representatives intimating that it had agreed to the Senate’s amendment in this Bill.

page 10214

ADJOURNMENT

Unemployed Military Officers. - Permanent Guard - Soldiers’ Leave - Compulsory Military Service - Reinstatement in Employment : Manifesto to Anzacs - United States Industrial . Commission - Profits of Coal Mining Companies - Tasmanian Shipping Freights and Fares.

Senator LYNCH:
Minister for Works · “Western Australia · ALP

.- I move -

That the Senate do now adjourn.

I wish to clear up a few arrears of work that have accumulated within the last few days. I have first a statement to make in reference to Senator Gardiner’s’ remarks concerning a number of officers who have qualified for commissions in Australia, and for whom it has been found impossible to find positions. Senator Gardiner suggested, first of all, that these officers should be sent to the front, and in the alternative that they should be sent to the Old Country, and the British authorities asked to find places for them. The honorable senator is quite justified in the anxiety he has displayed in regard to these men, but there are difficulties in the way of dealing with them satisfactorily. In the first place, the men at the front to-day who are eligible for promotion would naturally feel aggrieved if men coming fresh from Australia were placed over their heads. Then with respect to the second suggestion, we learn that in the camps in Great Britain special schools of instruction have been established for the training of men who have returned from the field of battle, and they are qualifying as commissioned and noncommissioned officers in those schools of instruction. To replace them with men sent fresh from Australia would raise just the same difficulty. It is clear, therefore, that the matter is beset with difficulties which were not apparent at the outset. Senator Millen, I believe, made the same suggestion as did Senator Gardiner.

Senator Ready:

– I can give the honorable senator specific complaints if he wants them.

Senator GARDINER:
New South Wales

– I regret the answer given by Senator Lynch as to those officers, who, at great inconvenience and expense to themselves, have qualified for commissions. I take the answer as an attempt to reply to the arguments I put forward the other day. I was not, however, putting the case with a view to argument, but simply stating a fact that was- clear to every one, namely, that this represents the tearing up of a “scrap of paper.” Here we have capable, willing young men, who are tossed aside simply because there is some present difficulty. I have no desire to prevent the men at the front from getting promotion, but we have here a number of highly-trained, efficient officers, anxious to get to the front, and it is our duty to send them there.

Senator NEEDHAM:
Western Australia

– I thank the Minister for Works for replying to the’ question that I addressed to him privately this afternoon in connexion with the proposal of the previous Government to send an Industrial Commission to America. On the 30th November I asked whether the Government had given further consideration to the question, and, if so, when they would be in a position to announce the personnel of the Commission. The reply I received from. Senator Pearce then Was that the matter was “ under the consideration of the Government.” To-day, however, the Minister for Works tells us that the question has not yet been considered by this Government. With all due deference to the honorable gentleman and his Government, I think it is quite time’ that the question was determined yea or nay. During the absence of the Prime Minister in England, Senator Pearce, who was Acting Prime Minister, was at a certain function in Melbourne, presided over by Mr. Brooks,, who suggested that such a Commission should be sent to America. To that suggestion the Acting Prime Minister practically agreed, and applications were called for from the different States for the nomination of representatives of employees and employers.

Senator Russell:
ALP

– This Government were not pledged to the appointment of a Commission, and it was never announced as partof their policy.

Senator Lynch:
ALP

– They have not considered a number of other things besides !

Cite as: Australia, Senate, Debates, 19 December 1916, viewed 22 October 2017, <http://historichansard.net/senate/1916/19161219_senate_6_80/>.

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Senate19 December 1916

QUESTION

MANIFESTO TO THE ANZACS

Senator MULLAN:QUEENSLAND

Senator LYNCH:Minister for Works and Railways · WESTERN AUSTRALIA · ALP

Senator Mullan:

Senator LYNCH:

QUESTION

THE CENSORSHIP

Senator MULLAN:

Senator LYNCH:ALP

QUESTION

PERMANENT GUARD

Senator MILLEN:NEW SOUTH WALES

Senator LYNCH:ALP

ANSWERS TO QUESTIONS

Senator Millen:

CHARGES BY MR. GILCHRIST

HOME SERVICE PROCLAMATION

Senator Mullan:

CIVILIAN PRISONERS OF WAR

UNIMPROVED LAND VALUE TAXATION

UNLAWFUL ASSOCIATIONS BILL

Senator LYNCH:Minister for Works · Western Australia · ALP

Senator Millen:

Senator Mckissock:

Senator Turley:

Senator Millen:

Senator Millen:

Senator Millen:

Senator MILLEN:New South Wales

Senator de Largie:WESTERN AUSTRALIA

Senator de Largie:

Senator Senior:SOUTH AUSTRALIA

Senator McDougall:NEW SOUTH WALES

Senator Watson:

Senator McKissock:

Senator McDougall:

Senator McDougall:

Senator Watson:

Senator Grant:NEW SOUTH WALES

Senator GARDINER:New South Wales

Senator Millen:

Senator Guthrie:

Senator NEWLANDS:SOUTH AUSTRALIA · ALP; NAT from 1917

Senator de Largie:

Senator Lynch:ALP

Senator O’Keefe:TASMANIA

Senator Senior:

Senator McDougall:

Senator Lynch:ALP

Senator Lynch:ALP

Senator Needham:WESTERN AUSTRALIA

Senator Watson:

Senator Story:SOUTH AUSTRALIA

Senator Barker:VICTORIA

Senator Guthrie:

Senator Guthrie:

Senator de Largie:

Senator Millen:

Senator Senior:

Senator Millen:

Senator de Largie:

Senator de Largie:

Senator de Largie:

Senator NEWLANDS:SOUTH AUSTRALIA · ALP; NAT from 1917

Senator NEWLANDS:SOUTH AUSTRALIA · ALP; NAT from 1917

Senator Senior:

Senator de Largie:

Senator Senior:

Senator Senior:

Senator Senior:

Senator Senior:

Senator Keating:TASMANIA

Senator Keating:

Senator Senior:

Senator Millen:

Senator Senior:

Senator Keating:

Senator Keating:

Senate
19 December 1916

Senator MULLAN:
QUEENSLAND

Senator LYNCH:
Minister for Works and Railways · WESTERN AUSTRALIA · ALP

Senator LYNCH:
ALP

Senator MILLEN:
NEW SOUTH WALES

Senator LYNCH:
ALP

Senator LYNCH:
Minister for Works · Western Australia · ALP

Senator MILLEN:
New South Wales

Senator de Largie:
WESTERN AUSTRALIA

Senator Senior:
SOUTH AUSTRALIA

Senator McDougall:
NEW SOUTH WALES

Senator Grant:
NEW SOUTH WALES

Senator GARDINER:
New South Wales

Senator NEWLANDS:
SOUTH AUSTRALIA · ALP; NAT from 1917

Senator Lynch:
ALP

Senator O’Keefe:
TASMANIA

Senator Lynch:
ALP

Senator Lynch:
ALP

Senator Needham:
WESTERN AUSTRALIA

Senator Story:
SOUTH AUSTRALIA

Senator Barker:
VICTORIA

Senator NEWLANDS:
SOUTH AUSTRALIA · ALP; NAT from 1917

Senator NEWLANDS:
SOUTH AUSTRALIA · ALP; NAT from 1917

Senator Keating:
TASMANIA

Senator SENIOR:
South Australia

Senator Guy:
TASMANIA

Senator MULLAN:
Queensland

Senator Bakhap:
TASMANIA

Senator Shannon:
SOUTH AUSTRALIA

Senator BAKHAP:
Tasmania

Senator McDOUGALL:
New South Wales

Senator GUTHRIE:
South Australia

Senator Buzacott:
WESTERN AUSTRALIA

Senator TURLEY:
Queensland

Senator Henderson:
WESTERN AUSTRALIA

Senator DE LARGIE:
Western Australia

Senator Maughan:
QUEENSLAND

Senator Lynch:
ALP

Senator O’KEEFE:
Tasmania