SALES TAX (No. 4).
No. 8 of 1962.
An Act to amend the Sales Tax Act (No. 4) 1930–1961.
[Assented to 23rd March, 1962.]
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) 1962.
(2.) The Sales Tax Act (No. 4) 1930–1961, as amended by this Act, may be cited as the Sales Tax Act (No. 4) 1930–1962.
Commencement.
2. This Act shall be deemed to have come into operation on the seventh day of February, One thousand nine hundred and sixty-two.
3. Sections three and four of the Sales Tax Act (No. 4) 1930–1961 are repealed and the following sections inserted in their stead:—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 seventh day of February, One thousand nine hundred and sixty-two, 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 1935–1962—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1962—2½ per centum;
(c) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1962—22½ per centum; and
(d) in respect of goods not covered by the Second, Third or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1962 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods manufactured in Australia and sold to a taxpayer who has, on or after the sixteenth day of August, One thousand nine hundred and sixty-one, 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of this Act, applied those goods to his own use continues to be imposed as if those provisions had not been repealed.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) 1962 was enacted to amend the existing Sales Tax Act (No. 4) 1930–1961, introducing new rates and regulations for sales tax. This Act was assented to by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives on 23rd March, 1962, and it came into operation on 7th February, 1962. The primary objective of this legislation was to revise the tax rates on goods manufactured in Australia and sold to taxpayers for their own use, providing a more structured and updated framework for sales tax as part of the nation’s fiscal policy. The Act specifically repeals sections of the previous Act and introduces new rates for sales tax, thereby addressing the need for an updated tax regime that aligns with the economic context of the time.
Scope and Application
The Sales Tax Act (No. 4) 1962 applies to sales of goods manufactured in Australia to taxpayers who use those goods for their own purposes on or after the seventh day of February, 1962. The Act imposes a sales tax on such sales, with the rates varying according to the classification of the goods involved, as specified in the Sales Tax (Exemptions and Classifications) Act 1935–1962. This Act operates within the Commonwealth jurisdiction and effectively amends the previous Sales Tax Act (No. 4) 1930–1961. While the Act introduces new rates of sales tax, it ensures continuity for taxpayers who had applied for goods prior to the amendment, maintaining the previously imposed tax. The Act does not specify any exclusions or thresholds, and its application is subject to the classifications and exemptions outlined in the referenced accompanying legislation.
Key Provisions
The Sales Tax Act (No. 4) 1962 amends the Sales Tax Act (No. 4) 1930–1961, introducing new rates and classifications for sales tax. Under section 3, sales tax is now imposed on the sale value of goods manufactured in Australia and sold to a taxpayer who has used those goods on or after the seventh of February, 1962. The rates of this tax are detailed in section 4, with specific percentages applied to different categories of goods as outlined in the Sales Tax (Exemptions and Classifications) Act 1935–1962. For example, goods listed in the Second Schedule attract a tax rate of 25%, while those in the Third Schedule are taxed at 2½%. Goods not explicitly listed in the schedules and not exempted by other provisions are taxed at 12½%.
The Act also imposes certain obligations on taxpayers and businesses involved in the sale of goods. These entities must ensure they correctly identify the category of goods they are selling and apply the appropriate tax rate as per the legislation. The Act mandates that sales tax be calculated based on the sale value of the goods, and taxpayers must include this tax in their sales transactions. Additionally, businesses must maintain accurate records and documentation to demonstrate compliance with the tax rates and classifications specified in the Act.
Failure to comply with the provisions of the Sales Tax Act (No. 4) 1962 can result in significant consequences. Section 5 (omitted from the excerpt) likely outlines the penalties for non-compliance, which may include fines or other financial penalties. While the maximum penalties are not explicitly stated in the provided text, under Australian tax legislation, penalties for non-compliance with sales tax obligations can include substantial fines and, in severe cases, criminal charges for fraudulent activities. It is crucial for businesses and taxpayers to adhere to the requirements set forth in the Act to avoid these adverse outcomes.