SALES TAX (No. 1).
No. 2 of 1961.
An Act to amend the Sales Tax Act (No. 1) 1930–1960.
[Assented to 4th May, 1961.]
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) 1961.
(2.) The Sales Tax Act (No. 1) 1930–1960, as amended by this Act, may be cited as the Sales Tax Act (No. 1) 1930–1961.
Commencement.
2. This Act shall be deemed to have come into operation on the twenty-second day of February, One thousand nine hundred and sixty-one.
3. Sections three and four of the Sales Tax Act (No. 1) 1930–1960 are repealed and the following sections inserted in their stead:—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 twenty-second day of February, One thousand nine hundred and sixty-one, 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 1935-1961—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1961—8⅓ per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1961—16⅔ per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1961—30 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 1935-1961 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia by a taxpayer and, on or after the sixteenth day of November, One thousand nine hundred and sixty, 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him as stock for sale by retail or applied to his own use continues to be imposed as if those provisions had not been repealed.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) 1961 was enacted to amend the Sales Tax Act (No. 1) 1930–1960, aiming to address the need for updated tax rates and structure on sales of goods manufactured in Australia. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. It was designed to modernise the sales tax regime by introducing new tax rates and ensuring that sales tax continued to be imposed on certain goods as if previous provisions had not been repealed. The policy objective of the Act was to provide a structured and fair tax system on sales of goods within the country, reflecting the economic conditions and needs of the time.
Scope and Application
The Sales Tax Act (No. 1) 1961 applies to all taxpayers who manufacture goods within Australia and subsequently sell these goods. The Act imposes a sales tax on the sale value of these goods, with different tax rates applying depending on the type of goods as classified under the Sales Tax (Exemptions and Classifications) Act 1935-1961. Specifically, the Act imposes tax rates ranging from 8⅓ per centum to 30 per centum on various categories of goods, while goods not explicitly covered by the classification schedules are subject to a 12½ per centum tax rate. The Act applies nationally across Australia, as it is a Commonwealth Act. However, the specific rates of tax are determined by subordinate legislation, which allows for flexibility in adjusting the tax rates and classifications as necessary. The Act does not specify any exclusions or thresholds, meaning that all sales of manufactured goods by taxpayers within Australia are subject to the imposed sales tax unless exempted by another act.
Key Provisions
The Sales Tax Act (No. 1) 1961 primarily revises the Sales Tax Act (No. 1) 1930–1960, introducing new rates of sales tax for various categories of goods. Specifically, section 3 establishes that sales tax is imposed on the sale value of goods manufactured in Australia by a taxpayer, provided these goods are sold or treated as stock for sale by retail or used for personal purposes on or after the effective date of the Act. Section 4 delineates the specific rates of sales tax, categorising goods into five schedules based on their nature and purpose, each subject to different tax rates ranging from 8⅓ per cent to 30 per cent, with a default rate of 12½ per cent for goods not specified in the schedules.
Entities governed by this Act are obligated to accurately calculate and remit the sales tax on their applicable goods as per the prescribed rates. The Act mandates that sales tax be applied to the sale value of goods manufactured in Australia, ensuring compliance with the specified rates depending on the classification of the goods. This requirement extends to goods sold, treated as stock for retail, or used by the manufacturer, necessitating precise record-keeping and reporting to avoid any discrepancies.
Failure to comply with the provisions of this Act may result in significant legal consequences. The Act does not explicitly outline specific penalties or offences within the provided text, but it is inferred that non-compliance could lead to the imposition of fines, interest on unpaid taxes, and potential legal actions to recover the due taxes. While the exact penalties are not detailed, the seriousness of adhering to tax obligations under this Act is implied through the structured and detailed nature of the legislative requirements.