SALES TAX (No. 3a).
No. 79 of 1940.
An Act to amend the Sales Tax Act (No. 3) 1930-1939, as amended by the Sales Tax Act (No. 3) 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. 3a) 1940.
(2.) Section one of the Sales Tax Act (No. 3) 1940 is amended by omitting sub-section (2.).
(3.) The Sales Tax Act (No. 3) 1930-1939, as amended by the Sales Tax Act (No. 3) 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. 3) 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 payable 10 per centum.”.
Overview
The Sales Tax Act (No. 3a) 1940 was enacted by the Commonwealth Parliament to amend the Sales Tax Act (No. 3) 1930-1939, responding to economic challenges during World War II. This legislation aimed to adjust the sales tax rates and the period of application in order to generate additional revenue for the government during a period of heightened fiscal need. The Act came into effect on 22 November 1940, introducing a temporary increase in sales tax rates for certain goods and extending the period of application for these rates. This legislative action was integral to the broader fiscal strategy of the Commonwealth during wartime, ensuring a steady stream of revenue to support war efforts and other critical government functions.
Scope and Application
The Sales Tax Act (No. 3a) 1940 amends the Sales Tax Act (No. 3) 1930-1939, introducing changes to the imposition of sales tax during a specified period. The amended Act, now referred to as the Sales Tax Act (No. 3) 1930-1940, applies to sales of goods within the Commonwealth of Australia from the 22nd of November, 1940, onwards. The Act imposes a sales tax of 5% on goods listed in the Second Schedule of the Sales Tax (Exemptions and Classifications) Act 1935-1940, 15% on goods listed in the Third Schedule, and 10% on all other goods not covered by these schedules, except where the Sales Tax (Exemptions and Classifications) Act specifies that no sales tax is payable. The Act's jurisdiction is federal, covering the entire Commonwealth of Australia. Any further application or restrictions are determined by subordinate instruments, which may specify additional classifications or exemptions.
Key Provisions
The Sales Tax Act (No. 3a) 1940 amends the Sales Tax Act (No. 3) 1930-1939, introducing specific rates of sales tax that apply to certain goods. Under the amended Section 3, the tax rates are now set at 5% for goods listed in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940, 15% for those listed in the Third Schedule, and 10% for all other goods not exempt under that Act. These new rates apply from 22 November 1940.
The Act imposes certain obligations on businesses and individuals involved in the sale of goods. Sellers are required to collect the appropriate sales tax from buyers at the point of sale, as specified by the amended Section 3. This includes ensuring that the correct rate is applied based on the classification of the goods being sold. Additionally, sellers must maintain accurate records of sales and the corresponding tax amounts collected, which may be subject to audit by the relevant authorities.
Breaching the provisions of the Sales Tax Act (No. 3a) 1940 can result in significant legal consequences. For instance, failing to collect or remit the correct amount of sales tax could lead to fines. The maximum penalties for such offences are not explicitly stated in the provided text, but typically, penalties for tax-related offences can include fines that are substantial enough to deter non-compliance. Additionally, ongoing failure to comply could result in more severe legal action, potentially impacting the business's ability to operate.