SALES TAX (No. 3).
No. 66 of 1951.
An Act to amend the Sales Tax Act (No. 3) 1930-1950.
[Assented to 11th December, 1951.]
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) 1951.
(2.) The Sales Tax Act (No. 3) 1930-1950, as amended by this Act, may be cited as the Sales Tax Act (No. 3) 1930-1951.
Commencement.
2. This Act shall be deemed to have come into operation on the twenty-seventh day of September, One thousand nine hundred and fifty-one.
3. Sections three and four of the Sales Tax Act (No. 3) 1930-1950 are repealed and the following sections inserted in their stead:—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 twenty-seventh day of September, One thousand nine hundred and fifty-one, sold by a taxpayer not being either the manufacturer of those goods or a purchaser of those goods from the manufacturer.
Rates of tax.
“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 1935-1951—20 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1951—25 per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1951—33⅓ per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1951—50 per centum;
(e) in respect of goods covered by the Sixth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1951—66⅔ per centum; and
(f) in respect of goods not covered by the Second, Third, Fourth, Fifth or Sixth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1951 and on the sale value of which it is not provided by that Act that sales tax 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, on or after the thirteenth day of October, One thousand nine hundred and fifty, and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, continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 3) Act 1951 was enacted by the Parliament of the Commonwealth of Australia to amend the Sales Tax Act (No. 3) 1930-1950. The Act was introduced to address the need for updating the sales tax rates and to ensure that the tax regime remained effective in generating revenue for the Commonwealth. The policy objective of this legislation was to impose a sales tax on the sale value of goods manufactured in Australia and sold by a taxpayer who is neither the manufacturer nor the initial purchaser of those goods from the manufacturer. The Act introduced new rates of sales tax and continued the imposition of sales tax on certain goods as previously defined, ensuring a smooth transition and consistency in tax application.
Scope and Application
The Sales Tax Act (No. 3) 1951 applies to sales of goods manufactured in Australia by taxpayers who are not the manufacturers of those goods or purchasers from the manufacturer. This Act imposes sales tax on the sale value of these goods, effective from the 27th day of September, 1951. The Act establishes specific tax rates for different categories of goods, as detailed in the schedules of the Sales Tax (Exemptions and Classifications) Act 1935-1951, ranging from 12½ per centum to 66⅔ per centum. The jurisdictional reach of this Act is national, applying across the Commonwealth of Australia. It is noteworthy that the Act does not alter the sales tax imposed on sales occurring between the 13th day of October, 1950, and the commencement date of the Act, ensuring continuity in tax obligations for those transactions. The Act may also be extended or restricted by subordinate instruments, allowing for further detail or specification regarding its application.
Key Provisions
The Sales Tax Act (No. 3) 1951 primarily revises the Sales Tax Act (No. 3) 1930-1950 by repealing certain sections and inserting new provisions. Section 3 introduces a sales tax on the sale value of goods manufactured in Australia. This tax applies to sales made by a taxpayer who is neither the manufacturer nor the initial purchaser of the goods, following the date of commencement of the Act, which is the twenty-seventh of September, 1951 (Section 2). Section 4 specifies the rates of sales tax, which vary depending on the classification of goods under the Sales Tax (Exemptions and Classifications) Act 1935-1951.
The Act imposes obligations on taxpayers involved in the sale of goods manufactured in Australia. Specifically, any person selling such goods, excluding the manufacturer and the initial purchaser, must account for and remit sales tax at the rates outlined in Section 4. These rates range from 12½ per cent to 66⅔ per cent, depending on the classification of the goods (Section 4(a) to (f)). It is essential for taxpayers to correctly classify the goods and apply the appropriate tax rate to their sales transactions.
Failure to comply with the provisions of this Act may result in legal consequences. Although the Act does not explicitly detail offences, penalties, or specific civil or criminal consequences for breaches, it is reasonable to infer that non-compliance with sales tax obligations could lead to penalties under the broader tax framework in Australia. This could include financial penalties, interest on unpaid tax, and potential legal action to recover the owed amounts. The severity of the penalties may depend on the extent and intent of the non-compliance, as well as any other applicable tax laws.