SALES TAX (No. 2).
No. 47 of 1954.
An Act to amend the Sales Tax Act (No. 2) 1930-1953.
[Assented to 6th November, 1954.]
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) 1954.
(2.) The Sales Tax Act (No. 2) 1930-1953, as amended by this Act, may be cited as the Sales Tax Act (No. 2) 1930-1954.
Commencement.
2. This Act shall be deemed to have come into operation on the nineteenth day of August, One thousand nine hundred and fifty-four.
3. Sections three and four of the Sales Tax Act (No. 2) 1930-1953 are repealed and the following sections inserted in their stead:—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 nineteenth day of August, One thousand nine hundred and fifty-four, 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 1935-1954—16⅔ per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1954—10 per centum; and
(c) in respect of goods not covered by the Second or Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1954 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, on or after the tenth day of September, One thousand nine hundred and fifty-three, and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sold by a taxpayer who purchased them from the manufacturer continues to be imposed as if those provisions had not been repealed.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 1954 was enacted to amend the Sales Tax Act (No. 2) 1930-1953, addressing the need to adjust the rates and structure of sales tax imposed on goods manufactured and sold within Australia. The Act was assented to on 6th November 1954 and came into operation on 19th August 1954. The enacting body was the Queen’s Most Excellent Majesty, represented by the Parliament of the Commonwealth of Australia. The policy objective was to revise the sales tax rates to better align with economic conditions and revenue needs at the time. The Act specifically repealed certain sections of the previous Act and introduced new rates for sales tax, with different percentages applicable to various categories of goods as classified under the Sales Tax (Exemptions and Classifications) Act 1935-1954.
Scope and Application
The Sales Tax Act (No. 2) 1954 amends the existing Sales Tax Act (No. 2) 1930-1953, establishing a revised regime for the imposition of sales tax on goods manufactured in Australia and sold by taxpayers who purchased them from the manufacturer. The Act applies to sales occurring on or after 19 August 1954, and it specifies different rates of sales tax depending on the type of goods involved, as classified under the Sales Tax (Exemptions and Classifications) Act 1935-1954. This legislation applies to entities and individuals who manufacture goods in Australia and sell them to other taxpayers, thus directly impacting industries involved in manufacturing and retail within Australia. The Act's jurisdiction is the Commonwealth of Australia, meaning it applies nationally across all states and territories. The Act includes provisions for certain goods to be exempt from sales tax, as defined in the Sales Tax (Exemptions and Classifications) Act 1935-1954. The Act may extend or restrict its application through subordinate instruments, such as regulations or schedules that further define categories of goods and specific rates of tax.
Key Provisions
The main operative sections of this Act (Sales Tax Act (No. 2) 1954) introduce amendments to the Sales Tax Act (No. 2) 1930-1953, effective from 19 August 1954. Section 3 imposes a sales tax on the sale value of goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer. Section 4 specifies the tax rates, with different percentages applying to goods classified in the Second and Third Schedules to the Sales Tax (Exemptions and Classifications) Act 1935-1954, and for those not covered by these schedules. The rates are 16⅔ per centum, 10 per centum, and 12½ per centum respectively.
The Act imposes several obligations on taxpayers involved in the sale of goods manufactured in Australia. Firstly, they must ensure that the sales tax is imposed at the specified rates on the sale value of these goods. Secondly, taxpayers must comply with the classification and exemption criteria outlined in the Second and Third Schedules to the Sales Tax (Exemptions and Classifications) Act 1935-1954. This includes correctly identifying which goods fall under which category and applying the corresponding tax rates. Additionally, the Act requires taxpayers to maintain accurate records of their sales transactions and the applicable tax rates, as this information may be subject to audit and review by the relevant authorities.
Breach of the provisions of this Act can result in various consequences. Although the Act itself does not explicitly state the offences or penalties for non-compliance, it is understood that failing to impose the sales tax correctly, misclassifying goods, or providing incorrect information can lead to investigations and potential penalties under the broader tax framework of Australia. Typically, penalties for tax non-compliance can include fines, interest on unpaid taxes, and in severe cases, criminal charges for fraudulent or deliberate tax evasion. The specific penalties would depend on the nature and extent of the breach, and would be determined in accordance with other relevant tax legislation.