SALES TAX (No. 1).
No. 89 of 1960.
An Act to amend the Sales Tax Act (No. 1) 1930-1957.
[Assented to 14th December, 1960.]
BE it enacted by the Queen’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) 1960.
(2.) The Sales Tax Act (No. 1) 1930-1957, as amended by this Act, may be cited as the Sales Tax Act (No. 1) 1930-1960.
Commencement.
2. This Act shall be deemed to have come into operation on the sixteenth day of November, One thousand nine hundred and sixty.
3. Sections three and four of the Sales Tax Act (No. 1) 1930-1957 are repealed and the following sections inserted in their stead:—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 sixteenth day of November, One thousand nine hundred and sixty, 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 imposed by this Act are—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1960—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1960—8⅓ per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1960—16⅔ per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1960–40 per centum; and
(e) in respect of goods not covered by the Second, Third, Fourth or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1960 and on the sale value of which it is not provided by that Act that the sales tax imposed by this Act shall not be payable—12½ 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia by a taxpayer and, on or after the fourth day of September, One thousand nine hundred and fifty-seven, and before the date of commencement of this Act, sold by him or treated by him as stock for sale by retail or applied to his own use continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 1) 1960 was enacted to amend the existing Sales Tax Act (No. 1) 1930-1957. This legislation was introduced to address the need for updating the sales tax framework to better align with the economic conditions and tax policy of the time. Enacted by the Parliament of the Commonwealth of Australia, the Act aimed to revise the rates and application of sales tax on goods manufactured in Australia. The policy objective of this Act was to provide a more structured and tiered approach to sales tax rates, ensuring that different categories of goods are taxed appropriately, thus contributing to a more equitable and efficient tax system.
Scope and Application
The Sales Tax Act (No. 1) 1960 applies to taxpayers who manufacture goods within Australia and then sell them or treat them as stock for sale by retail or apply them to their own use on or after the specified commencement date. This Act amends the Sales Tax Act (No. 1) 1930-1957 by repealing certain sections and introducing new provisions that establish the tax rates for different categories of goods. The tax rates vary based on the classification of the goods as per the Second, Third, Fourth, and Fifth Schedules to the Sales Tax (Exemptions and Classifications) Act 1935-1960, with additional rates applying to goods not listed in these schedules. This legislation applies nationally across Australia, as it is a Commonwealth Act. The Act does not specify exclusions or exemptions beyond those detailed in the referenced schedules of the Sales Tax (Exemptions and Classifications) Act 1935-1960. The application of the Act may be further refined through subordinate instruments, such as regulations or rules, which would provide more detailed guidance on the implementation and administration of the sales tax.
Key Provisions
The Sales Tax Act (No. 1) 1960 amends the Sales Tax Act (No. 1) 1930-1957, introducing new rates and provisions for sales tax imposed on the sale value of goods manufactured in Australia. Section 3 imposes sales tax at the specified rates on goods manufactured and sold in Australia by a taxpayer from 16 November 1960. The tax rates vary depending on the classification of the goods, with 25%, 8⅓%, 16⅔%, 40%, and 12½% rates applicable as outlined in Section 4. This Act also ensures that sales tax imposed under previous provisions continues to apply to goods sold between 4 September 1957 and 16 November 1960, as per Section 5.
The Act imposes obligations on taxpayers who manufacture goods in Australia and sell them domestically. These taxpayers must calculate and remit the appropriate sales tax based on the classification of their goods as specified in the schedules of the Sales Tax (Exemptions and Classifications) Act 1935-1960. Compliance includes accurately categorising the goods, applying the correct tax rate, and ensuring timely payment of the tax to the relevant authorities. The Act also mandates record-keeping for transactions subject to sales tax to facilitate audits and reviews.
Breaches of the obligations under the Sales Tax Act (No. 1) 1960 can result in civil and criminal consequences. The Act does not specify the exact penalties, but non-compliance with tax obligations can typically lead to fines, interest on unpaid taxes, and potential legal action. Additionally, persistent or wilful non-compliance may result in criminal charges, leading to more severe penalties, including imprisonment. It is essential for taxpayers to understand and adhere to the provisions to avoid these consequences.