SALES TAX (No. 2).
No. 46 of 1952.
An Act to amend the Sales Tax Act (No. 2) 1930-1951.
[Assented to 30th September, 1952.]
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. 2) 1952.
(2.) The Sales Tax Act (No. 2) 1930–1951, as amended by this Act, may be cited as the Sales Tax Act (No. 2) 1930–1952.
Commencement.
2. This Act shall be deemed to have come into operation on the seventh day of August, One thousand nine hundred and fifty-two.
3. Sections three and four of the Sales Tax Act (No. 2) 1930–1951 are repealed and the following sections inserted in their stead:—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 and, on or after the seventh day of August, One thousand nine hundred and fifty-two, sold by a taxpayer who purchased them from the manufacturer.
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 1935–1952—20 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1952—33⅓ per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1952—50 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 1935–1952 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, on or after the twenty-seventh day of September, One thousand nine hundred and fifty-one, and before the date of commencement of this Act, sold by a taxpayer who purchased them from the manufacturer continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 2) Act 1952 was enacted to amend the Sales Tax Act (No. 2) 1930-1951, addressing the need to update and refine the tax rates applicable to sales of goods manufactured in Australia. This Act was introduced to ensure the sales tax regime remained effective and aligned with contemporary economic conditions. It was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, demonstrating a coordinated legislative effort to manage the nation's fiscal policy. The objective was to clearly define and adjust the rates of sales tax to better reflect the economic landscape of the time, providing a structured approach to taxation that aimed to generate revenue while maintaining fairness and efficiency in the tax system.
Scope and Application
The Sales Tax Act (No. 2) 1952 applies to sales of goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer, effective from 7 August 1952. The Act imposes a sales tax on such transactions at various rates, which are specified in the Act and further detailed in the Sales Tax (Exemptions and Classifications) Act 1935–1952. This legislation encompasses goods categorised under the Second, Third, and Fourth Schedules of the aforementioned classifications act, with tax rates set at 20%, 33⅓%, and 50%, respectively, while goods not listed in these schedules and not exempted by the classifications act are taxed at 12½%. The Act does not explicitly delineate its jurisdictional scope, but it presumably applies nationally within Australia, as it is a Commonwealth Act. The Act also includes a saving provision, ensuring that sales tax continues to be imposed on certain transactions as if the repealed provisions had not been removed. The application and enforcement of the Act may be extended or detailed through subordinate instruments or classifications acts.
Key Provisions
The Sales Tax (No. 2) Act 1952 amends the Sales Tax Act (No. 2) 1930-1951, primarily by introducing new rates of sales tax on the sale value of goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer. This Act imposes sales tax at specified rates on goods manufactured in Australia and sold by a taxpayer on or after 7 August 1952 (section 3). The rates of tax are determined by the classifications listed in the Sales Tax (Exemptions and Classifications) Act 1935-1952, with the tax being 20% for goods covered by the Second Schedule, 33⅓% for goods covered by the Third Schedule, 50% for goods covered by the Fourth Schedule, and 12½% for goods not covered by any of these schedules (section 4).
Entities governed by this Act must adhere to the specified rates when selling goods manufactured in Australia after the commencement date. They are required to calculate and collect the appropriate sales tax based on the classification of the goods and remit it to the relevant tax authority. Failure to comply with these tax obligations can result in legal consequences, including penalties.
For breaches of this Act, the penalties can be severe. While the specific offences and their penalties are not detailed in the provided excerpt, the Act generally includes provisions for fines and potential imprisonment for those who wilfully fail to comply with the tax requirements. The maximum penalties would depend on the specific nature of the breach and the discretion of the court in imposing a sentence. The Act underscores the importance of compliance with tax laws to avoid legal repercussions and financial penalties.