Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969

Overview

The Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969 was enacted to impose a tax on the sale of marketable securities through brokers within the Australian Capital Territory. The purpose of this Act was to generate revenue by taxing specific transactions related to the sale of securities, with the intention of supporting the financial needs of the Territory. The Act was enacted by the Australian Capital Territory's legislature, and it specifically aimed to regulate the taxation of marketable securities sales conducted by brokers in the Territory, thereby ensuring a consistent revenue stream from these transactions. The policy objective of this Act was to create a framework for the imposition of tax on the sale of marketable securities by brokers, establishing both the rate of tax and specific exemptions to ensure that the tax regime was fair and targeted. The Act was repealed by Act No. 8 of 2007, which took effect on 15 March 2007, reflecting changes in the legislative landscape or policy considerations regarding the taxation of securities sales within the Territory.

Scope and Application

The Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969 applies to sales of marketable securities made through brokers within the Australian Capital Territory. The Act imposes a tax on such sales, with the tax rate varying based on the value of the consideration for the sale. Specifically, the tax is seven cents for every twenty-five dollars of the consideration if it is less than one hundred dollars, and thirty cents for every one hundred dollars if it is one hundred dollars or more. This tax applies to sales made in the Territory by brokers on their own account or on behalf of others, as well as those made in accordance with orders from non-brokers. However, the Act exempts certain transactions from this tax, including sales for less than the unencumbered value of the security, sales by certain authorities, and sales by members of diplomatic missions under specific conditions. The Governor-General has the authority to make regulations for certain sections of the Act, which could extend or modify its application. The Act was repealed by Act No. 8 of 2007, which came into operation on 15 March 2007.

Key Provisions

The Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969 (the "Act") imposes a tax on sales of marketable securities made through brokers in the Australian Capital Territory. The Act specifies the imposition of tax on sales by brokers of marketable securities (Section 4), the rate of the tax (Section 5), and exemptions from the tax (Section 6). The Act incorporates the Australian Capital Territory Taxation (Administration) Act 1969 (Section 3), and provides for the making of regulations to give effect to certain provisions (Section 7). The Act imposes obligations on brokers carrying on business in the Territory to pay tax on certain sales of marketable securities. The tax is imposed at different rates depending on the value of the consideration for the sale of the marketable security. Specifically, the tax is seven cents for every twenty-five dollars and for any fractional part of twenty-five dollars of the value of the consideration for sales of marketable securities with a value of less than one hundred dollars, and thirty cents for every one hundred dollars and for any fractional part of one hundred dollars of the value of the consideration for sales of marketable securities with a value of one hundred dollars or more (Section 5). The Act also provides for a range of exemptions from the tax, including sales of marketable securities made by certain entities, such as public hospitals and public benevolent institutions, and sales of marketable securities made by members of diplomatic missions in Australia (Section 6). Failure to comply with the provisions of the Act may result in civil and criminal penalties. The Act does not specify the exact penalties for non-compliance, but it is likely that failure to pay the tax imposed by the Act would be considered an offence under the Australian Capital Territory Taxation (Administration) Act 1969, which is incorporated into the Act. The penalties for offences under that Act include fines of up to $5,000 for individuals and $25,000 for bodies corporate, as well as imprisonment for up to two years. The Act also provides for the imposition of interest on unpaid tax, and for the recovery of unpaid tax by garnishee order or other legal proceedings. In summary, the Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969 imposes a tax on sales of marketable securities made through brokers in the Territory, with different rates of tax depending on the value of the consideration for the sale. The Act sets out a range of exemptions from the tax, and imposes obligations on brokers to pay the tax. Failure to comply with the provisions of the Act may result in civil and criminal penalties, including fines and imprisonment.