SALES TAX (No. 5a).
No. 81 of 1961.
An Act relating to Sales Tax.
[Assented to 27th October, 1961.]
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.—(l.) This Act may be cited as the Sales Tax Act (No. 5a) 1961.
(2.) Section one of the Sales Tax Act (No. 5) 1961 is amended by omitting sub-section (2.).
(3.) The Sales Tax Act (No. 5) 1930–1960, as amended by the Sales Tax Act (No. 5) 1961 and by this Act, may be cited as the Sales Tax Act (No. 5) 1930–1961.
Commencement.
2. This Act shall be deemed to have come into operation on the sixteenth day of August, One thousand nine hundred and sixty-one.
3. Sections three and four of the Sales Tax Act (No. 5) 1930–1960, as amended by the Sales Tax Act (No. 5) 1961, are repealed and the following sections inserted in their stead:—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 imported into Australia on or after the sixteenth day of August, One thousand nine hundred and sixty-one, by a taxpayer.
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 1935–1961—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1961—2½ per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1961—16⅔ per centum;
(d) in respect of goods covered by the Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1961—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 1935–1961 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia by a taxpayer on or after the twenty-second day of February, One thousand nine hundred and sixty-one, and before the date of commencement of this Act, continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 5a) 1961 was enacted to amend the existing Sales Tax Act (No. 5) 1930–1961, specifically addressing the need for revised sales tax rates on goods imported into Australia. This Act was enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, with the intent to streamline and update the sales tax structure. The policy objective was to ensure a more equitable and effective taxation system on imported goods by adjusting the rates according to different classifications of goods as specified in the Sales Tax (Exemptions and Classifications) Act 1935–1961.
Scope and Application
The Sales Tax Act (No. 5a) 1961 applies to the sale value of goods imported into Australia by a taxpayer on or after the 16th of August 1961, imposing sales tax at various rates specified in the Act. The Act amends and repeals certain sections of the Sales Tax Act (No. 5) 1930–1961, with specific rates of tax set at 25%, 2½%, 16⅔%, 30%, and 12½% depending on the classification of the goods. The Act’s scope extends to the geographic jurisdiction of the Commonwealth of Australia, applying to all goods imported by taxpayers within this territory. The Act also specifies that any sales tax imposed on goods imported between the 22nd of February 1961 and the commencement date of this Act will continue to be imposed as if the repealing provisions had not taken effect. The Act may be further extended or restricted through subordinate instruments, although these are not explicitly detailed within the primary text of the Act.
Key Provisions
The Sales Tax Act (No. 5a) 1961 establishes a tax on the sale of goods imported into Australia. Section 3 introduces sales tax on goods imported on or after 16 August 1961, with the rates specified in section 4. Goods are taxed at varying rates depending on their classification under the Sales Tax (Exemptions and Classifications) Act 1935–1961. Specifically, goods listed in the Second Schedule are taxed at 25%, those in the Third Schedule at 2.5%, those in the Fourth Schedule at 16.67%, those in the Fifth Schedule at 30%, and all other goods not specified in these schedules or exempted by the Sales Tax (Exemptions and Classifications) Act at 12.5%.
Under this Act, taxpayers are required to calculate and remit sales tax on the sale value of imported goods according to the specified rates. The obligation to pay sales tax falls on the taxpayer, who must ensure compliance with the tax rates applicable to the specific goods being imported. The taxpayer must also keep accurate records and documentation to substantiate the tax calculations and payments.
Failure to comply with the provisions of the Sales Tax Act can result in penalties. While the Act does not explicitly state penalties or consequences for non-compliance, it is understood that breaches may attract civil or criminal penalties under broader tax legislation or other applicable laws. Taxpayers found in breach could face fines, interest on unpaid tax, and potential legal action, depending on the severity and intent of the non-compliance.