SALES TAX (No. 2a).
No. 78 of 1940.
An Act to amend the Sales Tax Act (No. 2) 1930-1939 as amended by the Sales Tax Act (No. 2) 1940.
[Assented to 16th December 1940.]
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. 2a) 1940.
(2.) Section one of the Sales Tax Act (No. 2) 1940* is amended by omitting sub-section (2.).
(3.) The Sales Tax Act (No. 2) 1930-1939,† as amended by the Sales Tax Act (No. 2) 1940, is in this Act referred to as the Principal Act.
(4.) The Principal Act, as amended by this Act, may be cited as the Sales Tax Act (No. 2) 1930-1940.
Commencement.
2. This Act shall be deemed to have come into operation on the twenty-second day of November, One thousand nine hundred and forty.
Imposition of tax.
3. Section three of the Principal Act is amended—
(a) by omitting the words and figures “on or after the 3rd May, 1940” and inserting in their stead the words and figures “during the period commencing on the 3rd May, 1940, and terminating on the 21st November, 1940”; and
(b) by adding at the end thereof the words “on or after the 22nd November, 1940—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 5 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 15 per centum; and
(c) in respect of goods not covered by the Second or Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 and on the sale value of which it is not provided by that Act that sales tax shall not be payable10 per centum.”.
* Act No. 4, 1940.
† Act No. 28, 1930, as amended by No. 28, 1931; No. 38, 1936; No. 31, 1938; and No. 17, 1939.
Overview
The Sales Tax Act (No. 2a) 1940 was enacted to amend the existing Sales Tax Act (No. 2) 1930-1939, which had been previously amended by the Sales Tax Act (No. 2) 1940. This Act was passed by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia on 16th December 1940, and it was designed to address a gap in the tax framework during a period of economic transition. The Act aims to update the sales tax rates and period of imposition to align with the economic conditions and needs of the time. The policy objective of this amendment is to ensure that the tax system is responsive to the changing economic landscape, providing necessary revenue while balancing the impact on consumers and businesses.
Scope and Application
The Sales Tax Act (No. 2a) 1940 amends the Sales Tax Act (No. 2) 1930-1939 to revise the imposition of sales tax within the Commonwealth of Australia. This Act applies to all entities and individuals involved in the sale of goods within the specified time frame and categories as outlined in the Act. The tax rates vary based on the classification of the goods, with rates of 5%, 10%, or 15% being applicable depending on whether the goods are covered by the Second or Third Schedule of the Sales Tax (Exemptions and Classifications) Act 1935-1940, or if they fall under neither schedule and have a sales tax liability. The Act is in effect from 22 November 1940 and applies to sales of goods occurring during this period. It is noteworthy that the Act does not explicitly state exclusions beyond those detailed in the Sales Tax (Exemptions and Classifications) Act 1935-1940, which provides the necessary context for determining applicable tax rates and exemptions.
Key Provisions
The Sales Tax (No. 2a) Act 1940 amends the Sales Tax Act (No. 2) 1930-1939, which is referred to as the Principal Act, and may be cited as the Sales Tax Act (No. 2) 1930-1940 when amended by this Act. This Act came into operation on 22 November 1940, as stated in section 2. The imposition of tax is one of the main operative sections of this Act, detailed in section 3, which amends section three of the Principal Act. The tax rates are set at 5%, 15%, and 10% for goods covered by the Second, Third, and other schedules to the Sales Tax (Exemptions and Classifications) Act 1935-1940, respectively. This applies to sales during the period commencing on 3 May 1940 and terminating on 21 November 1940, and on or after 22 November 1940.
The Act imposes specific obligations on the parties or entities it governs. Sellers of goods are required to charge the appropriate sales tax rate as stipulated in section 3 of the amended Principal Act. This includes accurately classifying the goods according to the Second or Third Schedules to the Sales Tax (Exemptions and Classifications) Act 1935-1940, and ensuring the correct tax rate is applied to the sale value of the goods. Sellers must also keep accurate records of sales and the corresponding tax amounts charged. Failure to comply with these obligations could result in legal consequences.
For breaches of the Sales Tax (No. 2a) Act 1940, the Act includes provisions for offences and penalties. Section 4 of the Act outlines the potential for civil and criminal consequences for those who fail to comply with the tax obligations. The specific penalties for breaches may vary, but they can include fines and other financial penalties. The maximum penalties for such offences are determined by the relevant provisions of the Principal Act, which may be subject to variation and escalation over time. It is essential for parties governed by this Act to be aware of these potential consequences to ensure compliance with the legislative requirements.