SALES TAX (No. 3).
No. 40 of 1950.
An Act to amend the Sales Tax Act (No. 3) 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. 3) 1950.
(2.) The Sales Tax Act (No. 3) 1930–1949, as amended by this Act, may be cited as the Sales Tax Act (No. 3) 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 Section three of the Sales Tax Act (No. 3) 1930–1949 is repealed and the following sections are inserted in its stead:—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 not being either the manufacturer of those goods or a purchaser of those goods from the manufacturer.
Rates of pay.
“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—8⅓ per centum.”.
Saving.
4. The sales tax imposed by the provisions repealed by this Act on the sale value of goods manufactured in Australia and, before the date of commencement of this Act, sold by a taxpayer not being either the manufacturer of those goods or a purchaser of those goods from the manufacturer shall continue to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 3) Act 1950 was enacted to amend the Sales Tax Act (No. 3) 1930–1949 and introduce updated rates of sales tax on the sale value of goods manufactured in Australia. The Act was assented to on 14th December, 1950, by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. This legislation addressed the need to modernise the sales tax system by repealing previous provisions and inserting new rates of sales tax, effective from 13th October, 1950. The Act ensures that sales tax imposed on certain goods remains consistent with previous provisions despite the repeal, thus maintaining a seamless transition in tax obligations.
Scope and Application
The Sales Tax Act (No. 3) 1950 applies to sales of goods manufactured in Australia by taxpayers who are neither the manufacturer of those goods nor a purchaser from the manufacturer. The Act imposes a sales tax on such sales at various rates depending on the classification of the goods, with rates ranging from 8⅓ per cent to 33⅓ per cent. The Act's jurisdictional reach is national, being enacted by the Commonwealth of Australia, and it extends to cover sales occurring on or after the Act's commencement date of 13 October 1950. Certain goods are exempted from the tax as per the Sales Tax (Exemptions and Classifications) Act 1935–1950, and the Act provides for the continuation of sales tax on goods sold before the Act's commencement, as if the previous provisions had not been repealed. The application of the Act may be further defined through subordinate instruments, which may extend or restrict its application as necessary.
Key Provisions
The main operative sections of the Sales Tax Act (No. 3) 1950 detail the imposition of sales tax on certain goods. Section 3 establishes that sales tax is imposed on the sale value of goods manufactured in Australia, but only if the goods are sold by a taxpayer who is not the manufacturer or the purchaser from the manufacturer. Section 4 specifies the rates of sales tax, which vary depending on the classification of the goods, as outlined in the Sales Tax (Exemptions and Classifications) Act 1935–1950. These rates include 10%, 25%, 33⅓%, and 8⅓% for goods in different categories.
The Act imposes specific obligations on taxpayers, particularly those involved in the sale of goods manufactured in Australia. It requires these taxpayers to calculate and remit the appropriate sales tax on the sale value of the goods, in accordance with the rates specified in Section 4. This means that if a taxpayer sells goods that fall under the Second, Third, or Fourth Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1950, they must apply the corresponding tax rate to the sale value of those goods. If the goods do not fall under these schedules and sales tax is not exempted by the Act, a tax rate of 8⅓% must be applied.
Breaching the requirements of this Act can lead to civil and criminal consequences. While the Act itself does not explicitly state the penalties for non-compliance, under the broader Sales Tax Act 1930–1950, penalties for non-compliance can include fines and, in severe cases, imprisonment. The specific penalties may vary based on the severity of the breach and the jurisdiction's regulations. Taxpayers must ensure they comply with the Act to avoid these potential consequences.