The 1954 Budget Leak: A Treasurer's Premature Revelation

According to a memoir published decades later, the details of the 1954 Australian federal budget were disclosed to a journalist by the Treasurer weeks before its official announcement. The leak, its publication, and the subsequent confirmation of the reported facts are documented in the recollections of the journalist involved.

Background: Pre-Budget Speculation

The event is described in the 1999 book The Whispering Gallery by Hal Myers, who was the political correspondent for the Sydney Morning Herald in Canberra during the 1950s. Myers recounts that pre-budget media speculation was a common practice at the time.

In the lead-up to the 1954 budget, journalist Ken Schapel, writing for a rival newspaper, published speculative stories. These stories suggested the government would reintroduce a 40% initial depreciation allowance for industry—a policy that had been previously abolished. Multiple sources state this speculation was part of a campaign by the Daily Telegraph newspaper, whose proprietor was Frank Packer.

The Leak: A Private Conversation

According to Myers's account, the leak occurred at a reception in the members' dining room of Old Parliament House in Canberra.

Treasurer Arthur Fadden approached him and told him to disregard the speculative stories about the depreciation allowance, confirming it would not be included in the budget.

Myers writes that Fadden then proceeded to outline the ten main points of the upcoming federal budget. In his memoir, Myers suggests Fadden's decision to disclose the information may have been due to annoyance with the pressure campaign led by Frank Packer's newspaper.

Publication and Immediate Reaction

Myers filed the story with his editors at the Sydney Morning Herald, describing the information as coming from an unquestionable source. The newspaper published the story on August 6, 1954, but did not feature it as the front-page lead; sources indicate it was placed as the third story on page one.

Myers reports that editors in Sydney were skeptical of the story's accuracy, particularly the claim that the speculated depreciation allowance had been rejected.

In Canberra, Prime Minister Robert Menzies was reportedly angered by the leak, as some of the budget elements disclosed had not yet been presented to the cabinet for approval. The following day, Treasurer Fadden met with Myers, reportedly to confirm that the journalist had not revealed his source.

Outcome and Confirmation

The official federal budget was released on August 19, 1954. The details reported by Myers in his earlier story were confirmed.

Key budget points included:

• No changes were made to depreciation allowances for industry.
• The government announced it would appoint a committee to examine the issue of depreciation allowances.

Hal Myers wrote the main budget story for the Sydney Morning Herald's front page on the day of the official release. His report included the line:

"Depreciation allowances for industry remain unchanged, but the government will appoint a committee to examine them."