SALES TAX (No. 2).
No. 39 of 1950.
An Act to amend the Sales Tax Act (No. 2) 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. 2) 195.
(2.) The Sales Tax Act (No. 2) 1930–1949, as amended by this Act, may be cited as the Sales Tax Act (No. 2) 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 Section three of the Sales Tax Act (No. 2) 1930–1949 is repealed and the following sections are inserted in its stead:—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 and, on or after the thirteenth day of October, One thousand nine hundred and fifty, sold by a taxpayer who purchased them from the manufacturer.
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—33⅓ 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, before the date of commencement of this Act, sold by a taxpayer who purchased them from the manufacturer, shall continue to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 2) 195, enacted in 1950 by the Commonwealth Parliament, was designed to amend the Sales Tax Act (No. 2) 1930–1949. This legislation was introduced to address the need for updated sales tax rates and classifications in response to evolving economic conditions and the requirements of post-war Australia. The Act aimed to ensure that the sales tax system remained effective and fair, aligning it with the current economic context and the need for revenue generation to support government expenditure. The policy objective was to maintain and refine the sales tax framework to support national economic stability and development.
This Act repealed certain provisions of the earlier Act and introduced new rates of sales tax for different categories of goods, as classified in the Sales Tax (Exemptions and Classifications) Act 1935–1950. The new rates were set at 10%, 25%, 33⅓%, and 8⅓% depending on the classification of the goods. The sales tax for goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer before the Act's commencement continued to be imposed under the new framework.
Scope and Application
The Sales Tax Act (No. 2) 1950 amends the Sales Tax Act (No. 2) 1930–1949, imposing a sales tax on the sale value of goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer. The Act applies to transactions occurring on or after 13 October 1950 and imposes sales tax at varying rates depending on the classification of the goods, as detailed in the Sales Tax (Exemptions and Classifications) Act 1935–1950. The Act applies to any person or entity that manufactures goods in Australia and subsequently sells them, thereby placing the onus of tax collection at the point of sale by the purchaser from the manufacturer. The Act has a national reach as it is a Commonwealth Act, affecting all jurisdictions within Australia. The Act does not specify any exclusions or exemptions beyond those detailed in the Sales Tax (Exemptions and Classifications) Act 1935–1950, and its application can be further defined or extended through subordinate instruments, such as regulations or schedules, which may provide additional detail on classifications and rates.
Key Provisions
The Sales Tax Act (No. 2) 1950 amends the existing Sales Tax Act (No. 2) 1930–1949 by introducing new rates of sales tax on goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer. This Act came into effect on 13th October 1950. Under section 3 of this Act, sales tax is imposed on the sale value of such goods at rates specified in section 4. The rates of sales tax are 10% for goods listed in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950, 25% for those in the Third Schedule, 33⅓% for those in the Fourth Schedule, and 8⅓% for goods not listed in these schedules and not exempt by the Sales Tax (Exemptions and Classifications) Act 1935–1950.
The Act imposes certain obligations on taxpayers. It requires them to calculate and pay sales tax at the specified rates on the sale value of goods they manufacture in Australia and sell to other parties. The taxpayer must ensure they adhere to the classifications of goods listed in the various schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1950 to correctly apply the appropriate tax rate. Moreover, taxpayers must maintain proper records and documentation to substantiate the tax paid or due on the sales of these goods.
The Act also provides for certain consequences for non-compliance. While specific offences and penalties are not detailed in the excerpt, it can be inferred that failure to comply with the sales tax obligations could lead to legal repercussions. This may include fines, interest on unpaid taxes, and potential legal action to recover the due tax. Given the historical context, it is likely that penalties could have been substantial, reflecting the importance placed on revenue collection during this period.