SALES TAX (No. 4).
No. 9 of 1956.
An Act to amend the Sales Tax Act (No. 4) 1930–1954.
[Assented to 12th May, 1956.]
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. 4) 1956.
(2.) The Sales Tax Act (No. 4) 1930–1954, as amended by this Act, may be cited as the Sales Tax Act (No. 4) 1930–1956.
Commencement.
2. This Act shall be deemed to have come into operation on the fifteenth day of March, One thousand nine hundred and fifty-six.
3. Sections three and four of the Sales Tax Act (No. 4) 1930–1954 are repealed and the following sections inserted in their stead:—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 sold to a taxpayer who has, on or after the fifteenth day of March, One thousand nine hundred and fifty-six, applied those goods to his own use.
Rates of tax.
“4. The rates of the sales tax imposed by this Act are—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—10 per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—16⅔ per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956—30 per centum; and
(e) in respect of goods not covered by the Second, Third, Fourth or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1956 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—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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and sold to a taxpayer who has, on or after the nineteenth day of August, One thousand nine hundred and fifty-four, and before the date of commencement of this Act, applied those goods to his own use continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 4) 1956 was enacted by the Parliament of Australia to amend the existing Sales Tax Act (No. 4) 1930–1954, addressing the need to update and refine the sales tax rates and structures to better align with economic conditions and policy objectives of the time. The Act was assented to on 12th May 1956 and came into operation on 15th March 1956. It repealed certain sections of the previous Act and introduced new rates for sales tax on various goods, reflecting a shift in fiscal policy to manage revenue generation more effectively. The overarching policy objective was to ensure a structured and progressive approach to sales taxation, enhancing the efficiency and fairness of the tax system.
Scope and Application
The Sales Tax Act (No. 4) 1956 applies to the sale value of goods manufactured in Australia and sold to a taxpayer who applies those goods to their own use after the specified commencement date of 15th March 1956. This Act amends the Sales Tax Act (No. 4) 1930–1954 and imposes a sales tax on such transactions at various rates as specified in the Act, depending on the classification of the goods involved. The rates range from 10% to 30%, with different rates applying to goods listed in the Second, Third, Fourth, and Fifth Schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1956, and a default rate of 12½% for goods not listed in those schedules. The Act also retains the sales tax imposed on goods sold before the Act's commencement, if those goods were applied to the taxpayer's own use after 19th August 1954. The application of the Act is subject to any exemptions or classifications provided in the Sales Tax (Exemptions and Classifications) Act 1935–1956 and may be further extended or restricted through subordinate instruments.
Key Provisions
The Sales Tax (No. 4) Act 1956 introduces amendments to the Sales Tax Act (No. 4) 1930–1954, primarily altering the imposition of sales tax on goods sold within Australia. Section 3 of the Act imposes a sales tax on the sale value of goods manufactured in Australia and sold to a taxpayer who has used those goods for their own purposes on or after 15 March 1956. The tax rates specified in Section 4 vary depending on the classification of the goods. For instance, goods listed in the Second Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1956 are taxed at 25%, while those in the Fifth Schedule attract a 30% tax rate. Goods not listed in the schedules but subject to sales tax are taxed at 12½%.
The Act outlines obligations for taxpayers and sellers. Taxpayers who have applied goods to their own use on or after the specified date must account for the applicable sales tax in their tax returns. Sellers are required to charge the appropriate sales tax rate based on the classification of the goods sold. The Act further stipulates that the sales tax imposed under the repealed provisions continues to apply to goods used on or after 19 August 1954, and before the Act’s commencement, ensuring a seamless transition for affected taxpayers.
Breach of the provisions established by the Sales Tax (No. 4) Act 1956 can result in both civil and criminal consequences. While the Act does not explicitly enumerate penalties within its text, non-compliance typically results in civil penalties, including the payment of outstanding tax amounts plus interest and possibly fines. Persistent or deliberate non-compliance may lead to criminal charges, with potential imprisonment depending on the severity and intent behind the breach. These consequences underscore the importance of adherence to the tax obligations outlined by the Act.