Sales Tax (No. 3)
No. 90 of 1968
An Act to amend the Sales Tax Act (No. 3) 1930–1964.
[Assented to 21 November 1968]
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. 3) 1968.
(2.) The Sales Tax Act (No. 3) 1930–1964, as amended by this Act, may be cited as the Sales Tax Act (No. 3) 1930–1968.
Commencement.
2. This Act shall be deemed to have come into operation on the fourteenth day of August, One thousand nine hundred and sixty-eight.
3. Sections three and four of the Sales Tax Act (No. 3) 1930–1964 are repealed and the following sections inserted in their stead:—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 fourteenth day of August, One thousand nine hundred and sixty-eight, 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 imposed by this Act are—
(a) in respect of goods covered by the Second or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1967—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1967—2½ per centum; and
(c) in respect of goods not covered by the Second, Third or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1967 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—15 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and, or after the twelfth day of August, One thousand nine hundred and sixty-four, and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goods or a purchaser of those goods from the manufacturer, continues to be imposed as if those provisions had not been repealed.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 Act (No. 3) 1968 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia on 21 November 1968, aiming to amend the Sales Tax Act (No. 3) 1930–1964. The primary purpose of this Act was to revise the rates and application of sales tax, thereby addressing the need for updated taxation regulations in response to changes in the economic landscape. The new Act introduced a three-tiered sales tax rate structure, replacing the previous system to ensure a more streamlined and equitable tax imposition on goods manufactured and sold within Australia. This legislative amendment aimed to improve the efficiency and fairness of the sales tax system, ensuring it remains relevant and effective in the context of evolving commercial practices.
Scope and Application
The Sales Tax Act (No. 3) 1968 applies to sales of goods manufactured in Australia, specifically targeting transactions conducted by taxpayers who are neither the manufacturer nor the initial purchaser from the manufacturer. This Act imposes sales tax at specified rates, which vary according to the type of goods involved. It is important to note that this legislation applies to sales occurring on or after the fourteenth day of August, 1968. The Act’s jurisdiction is at the Commonwealth level, meaning it governs the imposition of sales tax across the entire nation. While the Act itself sets the rates and categories of goods subject to sales tax, it also references the Sales Tax (Exemptions and Classifications) Act 1935–1967 to determine which goods fall under specific tax rates or are exempt from tax altogether. The Act does not explicitly mention exclusions or exemptions beyond those detailed in the referenced act, and it operates in conjunction with subordinate instruments to clarify and extend its application.
Key Provisions
The Sales Tax Act (No. 3) 1968 introduces significant amendments to the existing Sales Tax Act (No. 3) 1930–1964. Under Section 3 of this Act, sales tax is imposed on the sale value of goods manufactured in Australia and sold by a taxpayer who is neither the manufacturer nor the purchaser of those goods from the manufacturer, effective from 14 August 1968. The tax rates specified in Section 4 range from 25 per cent for goods listed in the Second or Fifth Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1967, 2½ per cent for those in the Third Schedule, and 15 per cent for goods not covered by these schedules, provided they are not exempt by that Act.
The Act imposes specific obligations on taxpayers who are involved in the sale of goods manufactured in Australia. They must ensure they are not the manufacturer or the direct purchaser from the manufacturer to be subject to the sales tax. Additionally, they must calculate the tax based on the applicable rates as outlined in Section 4, depending on the classification of the goods being sold. Failure to comply with these obligations may result in financial penalties and legal consequences.
Breaches of the provisions outlined in the Sales Tax Act (No. 3) 1968 can lead to severe penalties. The Act does not explicitly detail the penalties within the provided excerpt; however, it is common under Australian law for such breaches to incur financial penalties or other civil consequences. The specific penalties would typically be outlined in related or subsequent legislation or administrative guidelines, but they can include fines or additional tax liabilities for the non-compliant party. Legal action may also be pursued in cases of wilful or repeated non-compliance, potentially leading to criminal charges.