FLOUR TAX.
No. 49 of 1938.
An Act to impose a Tax upon Flour manufactured in Australia by any Person and sold by him or used by him in the Manufacture of Goods other than Flour.
[Assented to 2nd December, 1938.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Flour Tax Act 1938.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Incorporation.
3. The Flour Tax (Wheat Industry Assistance) Assessment Act 1938, other than sections eleven, twelve, thirteen, sixteen, seventeen, eighteen, nineteen, twenty-three, twenty-four, twenty-five and twenty-six, shall be incorporated and read as one with this Act.
Imposition of tax.
4. A tax is imposed upon all flour manufactured in Australia by any person and, on or after the fifth day of December, One thousand nine hundred and thirty-eight, sold by him or used by him in the manufacture of goods other than flour.
Rate of tax.
5.—(1.) The rate of tax, not in any case exceeding Seven pounds ten shillings per ton of flour, shall be such rate per ton of flour as the Minister, from time to time, and in accordance with a recommendation by the Committee, declares, by notice published in the Gazette, to be the amount by which the price per ton of flour based upon the price of wheat per bushel free on rails at Williamstown, in the State of Victoria, at the time of the recommendation by the Committee, is less than what, in the opinion of the Committee, the price of flour would be if the price of wheat per bushel free on rails at Williamstown were Five shillings and twopence.
(2.) For the purposes of this section, “the Committee” means the Wheat Stabilization Advisory Committee constituted under the Wheat Industry Assistance Act 1938, and “price”, when used in relation to wheat, means value for export.
Overview
The Flour Tax Act 1938 was enacted to address the economic challenges faced by the wheat industry during the period, particularly in the context of maintaining stable wheat prices. This Act was introduced by the Commonwealth Parliament to impose a tax on flour manufactured in Australia, aiming to provide financial assistance to the wheat industry. The primary policy objective was to support the wheat industry by stabilising wheat prices, thereby indirectly supporting the broader agricultural sector. The tax was designed to be levied on flour manufactured in Australia and sold or used for the production of goods other than flour, with the rate determined by the difference between the actual price of wheat and a target price deemed to be economically viable for the industry.
The Act incorporated provisions from the Flour Tax (Wheat Industry Assistance) Assessment Act 1938, except for certain sections that were excluded to streamline the legislative framework. The tax rate was to be set by the Minister, based on recommendations from the Wheat Stabilization Advisory Committee, and published in the Gazette. This legislative approach aimed to create a dynamic tax system that could respond to fluctuating market conditions, ensuring the wheat industry remained sustainable and competitive.
Scope and Application
The Flour Tax Act 1938 applies to any person engaged in the manufacture of flour within Australia who either sells the flour or uses it in the manufacture of goods other than flour. The Act imposes a tax on the flour manufactured from the fifth day of December, 1938, and this tax applies on a Commonwealth level. The rate of the tax is determined by the Minister in accordance with recommendations from the Wheat Stabilization Advisory Committee, based on the difference between the actual price of wheat and a hypothetical price set at five shillings and twopence per bushel. The Act incorporates the Flour Tax (Wheat Industry Assistance) Assessment Act 1938, except for certain sections, which are specified in the Act. The tax is levied on the flour manufactured and is subject to the threshold of seven pounds ten shillings per ton of flour, which represents the maximum tax amount allowable.
Key Provisions
The main operative sections of the Flour Tax Act 1938 (sections 4 and 5) impose a tax on all flour manufactured in Australia and sold or used in the manufacture of goods other than flour on or after the 5th of December, 1938. The tax rate is determined by the Minister, in accordance with a recommendation from the Wheat Stabilization Advisory Committee, and is calculated based on the difference between the actual price of wheat and a hypothetical price of wheat (section 5(1)). This rate is to be declared by the Minister through a notice published in the Gazette and shall not exceed Seven pounds ten shillings per ton of flour (section 5(2)).
The Act imposes obligations on any person who manufactures flour in Australia and either sells it or uses it in the manufacture of other goods. Such individuals are required to comply with the tax imposed under section 4, and the rate of tax must be adhered to as declared by the Minister. Additionally, the Wheat Stabilization Advisory Committee’s recommendation plays a critical role in determining the applicable tax rate, thus obligating the Committee to provide timely and accurate recommendations based on the wheat price.
In the event of a breach of the provisions under this Act, the Act does not explicitly detail specific offences, penalties, or consequences for non-compliance. However, the nature of the Act suggests that failure to pay the imposed tax could lead to civil or criminal penalties, as typically seen in tax legislation. Given the historical context and the authoritative nature of such Acts, non-compliance could result in fines or other legal repercussions, although the exact penalties are not specified within the text of this particular Act. The absence of detailed penalties in the Act might imply that the broader tax laws and administrative procedures of the time would apply.