The revenue per inhabitant for each state during the past ten years was as follows:- The following statements show that the expenditure of the six Commonwealth states has increased from £23,786,695 in 1895, to £29,127,665 for the year 1903-4, while the amount per inhabitant has increased from £7 1s. 3d. to £7 8s. Od. The expenditure of Australasia has increased, during the same period, from £28,053,407 to £35,561,946, while the amount per inhabitant has increased from £6 18s. 11d. to £7 9s. 4d. The expenditure for each state during the past ten years is set forth in the following table : 1895 9,329,353 6,760,439 3,308,434 2,661,934, 936,729 789,806 23,786,695 4,266,712 28,053,407 1896 9,698,891 6,540,182 3,567,947 2,640,688 1,823,863 748,946 25,020,517 4,370,481 29,390,998 1897 9,316,620 6,568,932 3,604,264 2,779,110 2,839,453 750,244 25,858,623 4,509,981 30,368,604 1898 9,299,411 6,928,850 3,747,428 2,750,959 3,256,912 785,026 26,768,586 4,602,372 31,370,958 1899 9,562,739 7,001,663 4,024,170 2,777,614 2,539,358 830,168 26,735,712 4,858,511 31,594,223 1900 10,086,186 7,280,689 4,540,418 2,936,619 2,615,675 871,454 28,331,041 5,140,128 33,471,169 1901 10,729,741 7,683,079 4,624,479 3,007,034 3,051,331 923,731 30,019,395 5,479,703 35,499,098 1902 11,020,105 7,407,781 3,967,001 2,823,578 3,151,427 870,442 29,240,334 5,914,915 35,155,249 1903 11,467,235 6,774,084 3,717,806 2,641,789 3,521,763 850,684 28,973,361 6,214,019 35,187,380 1904 11,319,887 6,914,993 3,607,864 2,707,253 3,698,312 879,356 29,127,665 6,434,281 35,561,946 The expenditure per inhabitant in each state for the last ten years is as follows: Below will be found a statement showing the total revenue and expenditure of each state for the financial year 1903-4, with the amounts per head of population. It must be pointed out that from the revenue and expenditure of New South Wales, Victoria, South Australia, Tasmania, and New Zealand, as given in the table, refunds are excluded; while for Queensland and Western Australia there is nothing in the published statements to show whether the amounts are gross or net : As will be seen from the table, the revenue of the states included in the Commonwealth for the financial year 1903-4 was £29,133,144, or £7 8s. 1d. per head of population, and the expenditure £29,127,665, or £7 8s. Od. per head, showing a total surplus on the twelve months' transactions of £5,479. The revenue of the whole of Australasia was £36,263,260, or £7 12s. 4d. per head of population, and the expenditure £35,561,946, or £7 9s. 4d. per head, showing a surplus of £701,314. The only states which had a surplus were Victoria, Western Australia and New Zealand. SOURCES OF REVENUE. The revenue of the states is mainly derived from taxation and public services. During the year 1903-4 the customs and excise duties, and postal and telegraph revenue of the states forming the Commonwealth were collected by the Federal Government, and the balance, after deducting expenses of the transferred and new services, was returned to the states. These balances amounted to £7,424,126, and other forms of taxation, £3,074,946; while the railways and tramways returned a revenue of £11,999,976, making altogether a sum of £22,499,048 derived from these sources, or 77.23 per cent. of the total receipts. For New Zealand, customs and excise duties yielded £2,698,046 and other taxation, £951,555; railways returned £2,167,992, and posts and telegraphs, £580,771; the receipts from the sources mentioned being £6,398,364, or 89.74 per cent. of the total. It will thus be seen that for the whole of Australasia the collections under the headings mentioned amounted to £28,897,412, or 79.69 per cent. of the gross revenue. division of the revenue of each state is appended :-- A 2,698,046 951,555 2,167,992 580,771 Western Australia Commonwealth New Zealand £ £ £ £ 1,860,570 2,683,417 1,340,404 11,248,328 384,708 2,002,804 764,907 7,313,591 637,080 810,855 181,608 556,949 375,360 3,595,440 297,714 2,568,101 205,854 1,065,244 431,196 3,550,016 72,585 304,857 82,110 857,866 3,342,405 7,424,126 3,291,691 29,133,144 Australasia.... 2,698,046 4,026,501 14,167,968 580,771 3,590,247 7,424,126 3,775,601 36,263,260 Below will be found a statement of the revenue in 1903-4 on the basis of population. The average for the states of the Commonwealth was £7 8s. 1d., and for the whole of Australasia £7 12s. 4d. per head, the amounts ranging from £4 16s. 1d. in Tasmania to £15 12s. 7d. in Western Australia. The high revenue in the latter state is attributable partly to the influx of foreign capital for the development of the gold-fields, but chiefly to the large consumption of dutiable goods and the railway revenue yielded by the gold-fields. While oversea goods entering the state are subject to the Federal tariff, importations from the other states are dutiable under the Special Western Australian Tariff, and as a consequence a large importation of capital necessarily means a large customs revenue and increased traffic and earnings for the railways:— Dividing the revenue derived from taxation into that payable (a) directly and (b) indirectly by the people, the former including land and income taxes, stamp duties, &c., and the latter customs and excise, license fees, &c., the appended figures are obtained. The figures for the Commonwealth states include the collections of the Federal Government within each state as shown on page 639. As already stated, the Customs and Excise Duties were collected by the Commonwealth Government during the year ended 30th June, 1904, and from the 9th October, 1901, were not determined by the state, but by the Parliament of the Commonwealth. Comparing these figures with the returns for the year 1881, which are given below, it will be found that the general tendency has been to increase both forms of taxation: this is contrary to the general experience, which is that the expenses of government as compared with population, should diminish as population increases. With regard to the proportion of revenue raised at the present time by direct taxation, the states differ considerably. Thus, no less than 15.76 per cent. of the revenue of Tasmania in 1903-4 was derived from that source; while in New Zealand the proportion was 13:34 per cent. ; in Queensland, 11·71 per cent. ; in Victoria, 10-18 per cent. ; in Western Australia, 5.71 per cent.; in South Australia, 12.99 per cent.; and in New South Wales, only 8-69 per cent. The comparison, however, is chiefly interesting as showing the large territorial revenue that New South Wales is fortunate enough to possess. In all the states probate duties are levied, and except in Western Australia and Queensland, land and income taxes. In Queensland, with few exemptions, all incomes are taxed as well as the dividends of joint-stock companies, and in Western Australia a dividend and companies tax was introduced at the close of the financial year 1898–9. In the edition of this work for 1895-6 the changes in the probate and succession duties, and in the land and income taxes, were traced; the description given below deals only with the duties as they stand at the present time. PROBATE AND SUCCESSION DUTIES. New South Wales. In this state a duty of 1 per cent. was payable to the end of the year 1899 on the value of the real and personal estate of a testator or intestate, and on settlements of property taking effect after death, provided the value of the property was less than £5,000: 2 per cent. was payable on estates of the value of £5,000 and under £12,500; 3 per cent. upon £12,500 and under £25,000; 4 per cent. upon £25,000 and under £50,000; and 5 per cent. upon £50,000 and upwards. Estates not exceeding £200 in gross value were exempt from duty. On the 22nd December, 1899, an amending Act was assented |