SALES TAX (No. 6).
No. 7 of 1961.
An Act to amend the Sales Tax Act (No. 6) 1930–1960.
[Assented to 4th May, 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.—(1.) This Act may be cited as the Sales Tax Act (No. 6) 1961.
(2.) The Sales Tax Act (No. 6) 1930–1960, as amended by this Act, may be cited as the Sales Tax Act (No. 6) 1930–1961.
Commencement.
2. This Act shall be deemed to have come into operation on the twenty-second day of February, One thousand nine hundred and sixty-one.
3. Sections three and four of the Sales Tax Act (No. 6) 1930–1960 are repealed and the following sections inserted in their stead:—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 by a taxpayer and, on or after the twenty-second day of February, One thousand nine hundred and sixty-one, sold by him or applied by him 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 1935-1961—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1961—8⅓ 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia by a taxpayer and, on or after the sixteenth day of November, One thousand nine hundred and sixty, and before the date of commencement of this Act, sold by him or applied by him to his own use continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 6) Act 1961 was enacted to amend the Sales Tax Act (No. 6) 1930–1960. This legislation was introduced to update and refine the rates of sales tax imposed on the sale value of goods imported into Australia, aligning with evolving economic policies and fiscal requirements. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this Act was designed to ensure that the sales tax structure was comprehensive and equitable, reflecting the changing commercial landscape. The policy objective was to provide a clear and effective framework for the imposition of sales tax, thereby supporting government revenue and economic stability.
Scope and Application
The Sales Tax Act (No. 6) 1961 applies to the sale value of goods imported into Australia by a taxpayer and sold or used by them on or after the commencement date of the Act, which is 22 February 1961. This Act imposes a sales tax on such goods at various rates, as specified in the Act, and amends the Sales Tax Act (No. 6) 1930-1960 by repealing certain sections and inserting new ones to reflect these changes. The Act delineates different tax rates for goods categorised in the Second to Fifth Schedules of the Sales Tax (Exemptions and Classifications) Act 1935-1961, with additional rates for goods not listed in these schedules. It is applicable nationwide as it is a Commonwealth Act. While the Act itself does not specify exclusions, exemptions, or thresholds beyond the categorisation in the schedules, it is likely that these are defined in the subordinate Sales Tax (Exemptions and Classifications) Act 1935-1961. The Act’s application may also be extended or restricted through regulations or other subordinate instruments issued under its authority.
Key Provisions
The Sales Tax (No. 6) Act 1961 primarily modifies the Sales Tax Act (No. 6) 1930–1960 by introducing new rates of sales tax (section 3) and repealing certain sections (section 4). The Act imposes sales tax on the sale value of goods imported into Australia by a taxpayer and sold by them or applied to their own use after its commencement date of 22 February 1961 (section 3). The Act sets forth different rates of tax for various categories of goods. For example, goods listed in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1961 are subject to a 25% tax rate (section 4(a)), while goods in the Third Schedule are subject to an 8⅓% tax rate (section 4(b)). The Act also stipulates that sales tax imposed by the repealed provisions will continue to apply to sales of goods between 16 November 1960 and the date of the Act's commencement (section 4).
Entities and individuals subject to the Act are required to comply with the new tax rates specified for different categories of goods. They must calculate the sales tax based on the sale value of the goods and ensure that the appropriate tax rate is applied. This involves keeping accurate records of sales and imports of goods to correctly categorise them according to the schedules and applying the corresponding tax rates. Compliance also requires the submission of tax returns and payment of the applicable sales tax to the relevant authorities.
Failure to comply with the provisions of the Act may result in penalties. Although the Act does not explicitly detail the penalties for non-compliance, under Australian law, non-payment or underpayment of tax can lead to fines and interest charges on the unpaid amount. In severe cases, persistent non-compliance may result in criminal charges, which could include imprisonment. The precise penalties would be determined in accordance with the prevailing tax laws and regulations.