A suggested solution to problems resulting from adopting a uniform tariff.

Focus questions
TaQ9 What is expected to be the effect of free-trade on customs income?
TaQ10 What effect might a uniform tariff have on the people of New South Wales?

EQUITABLE ADJUSTMENT

19. The reduced income from Customs, which would probably be experienced by the Federal Government in the early years of Federation succeeding the adoption of intercolonial free-trade, could, I think, be readily overcome by a slight increase in the Customs Tariff. The people, as a whole, would not then be more heavily taxed than under present circumstances, since they pay the same amount already in the Colonies possessing heavy tariffs. It is contended, in certain quarters, that the people in Colonies such as New South Wales, which possess a comparatively small number of items in their lists of Customs Duties, and which have imposed other taxes in lieu of increasing the list of taxable imports would be unfairly treated if a uniform Customs Tariff were imposed higher than the one they now possess, but it should be borne in mind that the people of such Colonies would, in all probability, receive a more than counterbalancing financial advantage by the free and unrestricted introduction of their produce and manufactures into the markets of Australia.

Perth, 13 March, 1897.

Excerpt from Notes on Australian Federal Finance, with Recommendations for the Equitable Adjustment of the Federal Government Surplus, by Edgar T. Owen, Esq., F.S.S., Government Actuary, SLV, MS 10037, MSB 130.