SALES TAX (No. 1).
No. 38 of 1950.
An Act to amend the Sales Tax Act (No. 1) 1930–1949.
[Assented to 14th December, 1950.]
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.—(1.) This Act may be cited as the Sales Tax Act (No. 1) 1950.
(2.) The Sales Tax Act (No. 1) 1930–1949, as amended by this Act, may be cited as the Sales Tax Act (No. 1) 1930–1950.
Commencement.
2. This Act shall be deemed to have come into operation on the thirteenth day of October, One thousand nine hundred and fifty.
3. Section three of the Sales Tax Act (No. 1) 1930–1949 is repealed and the following sections are inserted in its stead:—
Imposition of tax.
“3. Sales tax is imposed, at the rates specified in the next succeeding section, upon the sale value of goods manufactured in Australia by a taxpayer and, on or after the thirteenth day of October, One thousand nine hundred and fifty, sold by him or treated by him as stock for sale by retail or applied to his own use.
Rates of tax.
“4. The rates of the sales tax are—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—10 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—25 per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—33 ⅓ per centum; and
(d) in respect of goods not covered by the Second, Third or Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950 and on the sale value of which it is not provided by that Act that sales tax shall not be payable—8 ⅓ per centum.”.
Saving.
4. The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia by a taxpayer and, before the date of commencement of this Act, sold by him or treated by him as stock for sale by retail or applied by him to his own use shall continue to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 1) 1950 was enacted to amend the existing Sales Tax Act (No. 1) 1930–1949. This Act was introduced to address the need for updated and more specific regulations on sales tax imposed on goods manufactured in Australia. Enacted by the Parliament of Australia, the primary objective of this legislation was to redefine and clarify the rates of sales tax on various types of goods, ensuring a more structured and transparent tax regime. The Act came into effect on 13th October 1950 and replaced the previous rates with new specified percentages, ranging from 8 ⅓ per centum to 33 ⅓ per centum, depending on the classification of goods.
Scope and Application
The Sales Tax Act (No. 1) 1950 applies to sales of goods manufactured in Australia by a taxpayer and sold by them or treated as stock for sale by retail or applied to their own use. The Act imposes a sales tax on these sales at rates specified in the legislation, with the rates varying according to the type of goods, as categorised in the Sales Tax (Exemptions and Classifications) Act 1935–1950. The Act has a Commonwealth jurisdictional reach, meaning it applies across the entire nation. The Act’s application may be extended or restricted through subordinate instruments, which can provide additional detail on the types of goods subject to the tax or other relevant classifications. However, the Act does not specify any exclusions, exemptions, or thresholds within its text.
Key Provisions
The Sales Tax Act (No. 1) 1950 (the "Act") amends the Sales Tax Act (No. 1) 1930–1949, introducing new rates and provisions for sales tax on goods manufactured in Australia. Section 3 of the Act imposes a sales tax on the sale value of goods manufactured in Australia by a taxpayer and sold by him or treated by him as stock for sale by retail or applied to his own use, on or after the thirteenth day of October, 1950. Section 4 specifies the rates of the sales tax, which are dependent on the classification of the goods: 10% for goods listed in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950, 25% for goods in the Third Schedule, 33 ⅓% for goods in the Fourth Schedule, and 8 ⅓% for goods not covered by the aforementioned schedules unless exempted by the Sales Tax (Exemptions and Classifications) Act 1935–1950.
The Act imposes several obligations on the parties it governs. Primarily, it requires taxpayers to account for and pay the sales tax on the sale value of goods manufactured in Australia. For example, manufacturers must calculate the applicable tax rate based on the classification of the goods and remit the tax to the relevant authorities. This requirement ensures that the revenue generated from the sales tax is accurately collected and reported, facilitating compliance and enforcement.
Non-compliance with the provisions of the Act can result in serious consequences. While the Act does not explicitly detail offences or penalties, it is reasonable to infer that breaches of the sales tax obligations would be considered tax evasion or tax fraud, which are serious criminal offences under Australian law. The penalties for such offences can include substantial fines and imprisonment. For instance, under the Crimes Act 1914, tax evasion can attract penalties of up to 250 penalty units for individuals and 1,250 penalty units for bodies corporate, with imprisonment terms that may extend up to five years depending on the severity of the offence. Additionally, civil consequences such as interest on unpaid taxes and additional assessments may also be imposed.