Flour Tax Assessment Act 1936

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FLOUR TAX ASSESSMENT.

No. 9 of 1936.

An Act to amend section twenty-four of the Flour Tax Assessment Act 1934–1935.

[Assented to 1st May, 1936.]

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 and citation.

1.—(l.) This Act may be cited as the Flour Tax Assessment Act 1936.

(2.) The Flour Tax Assessment Act 1934–1935 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Flour Tax Assessment Act 1934–1936.

Refunds of tax.

2. Section twenty-four of the Principal Act is amended—

(a) by omitting from sub-section (5.) the words “as bears to the tax the same proportion as the amount so proved to be a bad debt bears to the total amount (including tax) for which the flour was sold” and inserting in their

stead the words “included in the price for which the flour was sold as bears to the total tax the same proportion as the amount so proved to be a bad debt bears to the total amount (including the tax or portion of the tax) for which the flour was sold”;

(b) by adding at the end of sub-section (5.) the following proviso:—

“Provided further that no refund shall be made under this sub-section of tax paid on flour in respect of which an undertaking has been given by a vendor pursuant to sub-section (8.) of this section.”;

“(7.) Subject to this section, the Commissioner shall pay to any person who, at the close of business on the twenty-fourth day of February, One thousand nine hundred and thirty-six, held stocks of flour chargeable with tax under this Act, an amount which represents the tax so chargeable upon the quantity of that flour in excess of one thousand pounds in weight:

Provided that where the flour so held in stock by that person consisted of—

(a) flour, other than self-raising flour, which had been purchased by him at a price in which a portion only of the tax chargeable in respect of the flour tad been included; or

(b) self-raising flour which—

(i) had been purchased by him, or

(ii) had been manufactured by him from flour purchased by him,

at a price in which a portion only of the tax chargeable in respect of the flour used in the manufacture thereof had been included, and in respect of which the Commissioner is satisfied that any person has received or will receive from any State Government a payment by way of relief in respect of that tax,

the amount payable under this sub-section shall not exceed an amount equal to the portion of the tax included in that price.

“(8.) A payment shall not be made to any person under the last preceding sub-section in respect of flour held in stock by him unless the Commissioner is satisfied that—

(a) that person has paid the tax chargeable under this Act in respect of that flour;

(b) that person has purchased that flour from a vendor who has not paid, and is not liable to pay, tax thereon at a price which includes the tax, or a portion of the tax, chargeable thereon;

(c) where that person has purchased that flour from a vendor who has paid, or is liable to pay, tax thereon at a price which includes the tax, or a portion of the tax, chargeable thereon—he has wholly or partly paid that price;

(d) where that person has purchased that flour from a vendor who has paid, or is liable to pay, tax thereon at a price which includes the tax, or a portion of the tax, chargeable thereon—the whole or part of that price is unpaid and that the vendor of the flour has given to the Commissioner an undertaking not to make a claim for a refund under sub-section (5.) of this section in respect of the tax so paid or payable by him; or

(e) in the case of self-raising flour—tax has been paid or is payable in respect of the flour used in the manufacture thereof.

“(8a.) Where a person, to whom paragraph (c), but not paragraph (d), of the last preceding sub-section applies, makes any part payment of the price of the flour the Commissioner shall pay to him, in respect of each part payment, only the amount which represents so much of the tax, or portion of the tax, included in that price as bears to that tax, or portion of the tax, the same proportion as the amount of the part payment bears to that price.

“(8b.) For the purposes of the last three preceding sub-sections—

(a) the tax chargeable under this Act upon flour used in the manufacture of self-raising flour shall be deemed to be tax chargeable on that self-raising flour; and

(b) flour sold to any person and delivered to him on the twenty-fourth day of February, One thousand nine hundred and thirty-six, after the close of business on that day shall be deemed to be flour held by that person at the close of business on that day.”;

(d) by inserting in sub-section (12.), after the word “penalty” (wherever occurring), the words “or tax”; and

(e) by inserting in sub-section (12.), after the word “Act”, the words “the Flour Tax Assessment Act 1933–1934, the Sales Tax Procedure Act 1934–1935 or an Act which, in the last-mentioned Act, is included in the definition of Sales Tax Assessment Act,”.

Overview

The Flour Tax Assessment Act 1936 was enacted to address specific issues arising from the administration of flour tax under the Flour Tax Assessment Act 1934–1935. This Act was passed by the Parliament of the Commonwealth of Australia and received royal assent on 1 May 1936. Its primary objective was to amend the refund provisions related to flour tax, ensuring that taxpayers are appropriately compensated for tax included in the price of flour, while also preventing double recoveries of tax. The Act sought to clarify and refine the conditions under which refunds could be claimed, particularly in cases where flour was held in stock by the close of business on 24 February 1936, and to provide mechanisms for adjusting tax payments based on the proportion of tax included in the purchase price. The Act specifically targets the refund provisions under section twenty-four of the Principal Act, making amendments to ensure that refunds are calculated accurately based on the proportion of tax included in the price of flour, and setting out conditions under which refunds are payable or not payable. This includes provisions for scenarios where flour was purchased at a price that included only a portion of the tax, or where relief payments have been received from state governments. By clarifying these refund mechanisms, the Act aims to achieve a more equitable and effective tax administration process.

Scope and Application

The Flour Tax Assessment Act 1936 amends the Flour Tax Assessment Act 1934–1935 to introduce modifications to the refund of tax provisions. The Act applies to individuals and entities that hold stocks of flour chargeable with tax, and it pertains specifically to transactions involving the sale and taxation of flour within the Commonwealth of Australia. The amendments affect how refunds are calculated and under what circumstances they may be issued, particularly focusing on situations where the tax has already been included in the price of the flour or where relief payments have been received from state governments. Notably, the Act specifies that no refund shall be made for flour in respect of which an undertaking has been given by a vendor, and it sets out conditions under which refunds may be withheld or reduced, including where a part payment has been made. The geographic reach of the Act is limited to the Commonwealth, and it does not explicitly state any exclusions or exemptions, though the application of the Act may be influenced by other federal or state legislation. The Act’s provisions can be further extended or modified through subordinate instruments, enabling the Commissioner to implement additional regulations or clarifications as necessary.

Key Provisions

The Flour Tax Assessment Act 1936 (C1936A00009) amends section twenty-four of the Flour Tax Assessment Act 1934–1935, which is referred to as the Principal Act. The amendments primarily concern the refund of tax on flour held in stock as of 24 February 1936. The Act modifies the conditions under which refunds can be made by the Commissioner. Specifically, refunds will now be based on the proportion of the tax that is included in the selling price of the flour rather than the proportion of the total amount sold (including tax) that is unrecovered. Additionally, refunds are prohibited if a vendor has given an undertaking to the Commissioner not to claim a refund (subsection (5)(b)). The Act introduces new provisions for payments to individuals who held stocks of taxable flour exceeding one thousand pounds as of the specified date. These payments are contingent on several conditions, such as the taxpayer having paid the tax on the flour, having purchased it from a vendor who did not include the tax in the price, or having made a part payment of the price (subsections (7) to (8b)). The Commissioner must also be satisfied that the vendor has undertaken not to claim a refund if the full price has not been paid. The Act imposes several obligations on taxpayers and vendors. Taxpayers must ensure they have paid the tax on flour held in stock or can demonstrate that the flour was purchased at a price that included the tax or a portion of it. Vendors who have paid or are liable to pay the tax on flour must provide an undertaking to the Commissioner if the full price has not been paid by the purchaser. Failure to comply with these obligations may result in the Commissioner withholding the payment or refund. The Act includes provisions for penalties and tax liabilities. Subsection (12) specifies that penalties or tax may be imposed for violations of the Act, the Flour Tax Assessment Act 1933–1934, the Sales Tax Procedure Act 1934–1935, or any Act included in the definition of Sales Tax Assessment Act in the latter Act. While the Act does not specify the exact penalties, it is clear that non-compliance can result in financial consequences, which may include fines or additional tax liabilities.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Civil Penalty Provisions; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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