PRESIDENTIAL ADDRESS. 



457 



The rate of tax for so much of the taxable value as exceeds 5,000?. and does 

 not exceed 80,000?., may be calculated from the following formula : — 



R = rate of tax in pence per pound sterling. 



E = excess of taxable value over 5,000?. in pounds sterling. 



'■ pence. 



R=f2 + _JL_} 

 I 30,000 J 



The tax has been levied throughout Australia, and is expected to bring in 

 from 1,350,000?. to 1,500,000?. Australian landowners have to pay, irrespective 

 of mortgages and in addition to the Federal tax, about 330,000?. in State land 

 taxes, or about 1,800,000?. altogether, as compared with about 630,000?. paid in 

 New Zealand. If I were to put the gross selling value of the landed estates of 

 Australia at 680,000,000?. and that of New Zealand at 280,000,000?., I might not 

 be utterly wrong. But very much of this huge value — which includes improve- 

 ments — is exempted from the operation of land taxes. Even in Western Aus- 

 tralia there is an exemption of 50?. of unimproved value from the State tax; in 

 New South Wales of 240?. ; in New Zealand of 500?. The Commonwealth tax 

 does not touch values under 5,000?. except in the case of absentees. In New 

 Zealand two years ago less than 31,000 landowners paid land tax, though at that 

 time there were 143,000 freeholders and 25,000 Crown tenants in the Dominion. 



Fortunately I can give you some information as to the comparative incidence 

 of the new Federal land-tax with the incidence of the New Zealand tax as it was 

 previous to April 1909. The Australian Government prepared a comparative 

 table showing this. The table shows that on land values between 5,000?. and 

 40,000?. the Australian tax is much lighter on resident landowners, though rather 

 heavier on absentees. On the upper grades the Australian tax ia noticeably 

 heavier. 



Comparative Statement of Amounts payable under Australian and 

 New Zealand Acts. 



* These are the amounts that were payable under the rates in force to 

 March 31, 1909. 



It must be remembered, too, that in Australia we must reckon the State taxes. 

 Land taxation on big estates in Australia would therefore seem now to be heavier 

 than that of New Zealand was in the years between 1893 and 1909. And it 

 should be especially heavier on the higher grades, where there are State land taxes 

 to supplement it. Shall we, therefore, see the experience of New Zealand 

 repeated so far as a diminution in the number of the very large estates goes ? To 

 what extent, if at all, shall we see an increase in the number of middle-sized 

 estates of from, say, 1,000 to 10,000 acres? To what extent wjl the subdivision be 



