SALES TAX (No. 2).
No. 7 of 1956.
An Act to amend the Sales Tax Act (No. 2) 1930–1954.
[Assented to 12th May, 1956.]
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) 1956.
(2.) The Sales Tax Act (No. 2) 1930–1954, as amended by this Act, may be cited as the Sales Tax Act (No. 2) 1930–1956.
Commencement.
2. This Act shall be deemed to have come into operation on the fifteenth day of March, One thousand nine hundred and fifty-six.
3. Sections three and four of the Sales Tax Act (No. 2) 1930–1954 are repealed and the following sections inserted in their stead:—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 fifteenth day of March, One thousand nine hundred and fifty-six, 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 1935–1956—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—10 per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—16 per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—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 1935–1956 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, on or after the nineteenth day of August, One thousand nine hundred and fifty-four, and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sold by a taxpayer who purchased them from the manufacturer continues to be imposed as if those provisions had not been repealed.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 1956 was enacted to amend the Sales Tax Act (No. 2) 1930–1954. The act was introduced to address the need for updated tax rates and classifications on goods sold within Australia, ensuring that the taxation system remained effective and responsive to economic changes. Enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, the Act sought to impose revised sales tax rates on goods manufactured and sold within Australia, effective from 15 March 1956. This legislative update aimed to maintain a fair and structured approach to sales taxation, aligning with the broader economic policies of the time.
Scope and Application
The Sales Tax Act (No. 2) 1956 applies to the imposition of sales tax on the sale value of goods manufactured in Australia, with specific rates based on the classification of the goods, and this applies to taxpayers who have purchased the goods from the manufacturer. This Act operates within the Commonwealth jurisdiction and amends the Sales Tax Act (No. 2) 1930–1954, with certain sections repealed and replaced by new provisions. The Act provides for specific tax rates, which are detailed in the Act itself, and references other schedules that further define which goods are subject to specific tax rates. Exemptions and classifications are primarily governed by the Sales Tax (Exemptions and Classifications) Act 1935–1956, indicating that the Act may be further detailed and expanded through subordinate legislation. This Act does not specify exclusions beyond those detailed in the referenced schedules and subordinate legislation.
Key Provisions
The Sales Tax Act (No. 2) 1956 introduces significant amendments to the Sales Tax Act (No. 2) 1930–1954, primarily altering the imposition and rates of sales tax. Under section 3, sales tax is now imposed on the sale value of goods manufactured in Australia and sold by a taxpayer who purchased them from the manufacturer, effective from 15 March 1956. The tax rates are specified in section 4, where different percentages apply to goods classified in various schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1956. For instance, goods listed in the Second Schedule attract a 25% tax rate, while those in the Third Schedule attract a 10% rate. For goods not listed in any of the specified schedules, a default rate of 12½% applies.
The Act imposes clear obligations on taxpayers, particularly those involved in the sale of manufactured goods in Australia. These obligations include determining the appropriate tax rate based on the classification of the goods sold, as outlined in the Sales Tax (Exemptions and Classifications) Act 1935–1956. Taxpayers must accurately calculate the sales tax on the sale value of the goods and remit it to the relevant authorities within the stipulated timeframes. Failure to comply with these obligations can result in serious consequences.
Breaching the provisions of the Sales Tax Act (No. 2) 1956 can lead to both civil and criminal penalties. For instance, if a taxpayer fails to accurately report or pay the sales tax, they may face fines or other civil penalties as prescribed by the Act. Additionally, more severe breaches, such as fraudulent reporting or willful evasion of tax, can result in criminal charges. The maximum penalties for such offences are not explicitly stated in the provided text but are typically determined by other relevant legislation and judicial precedents, which may include substantial fines and imprisonment.