SALES TAX (No. 6).
No. 10 of 1962.
An Act to amend the Sales Tax Act (No. 6) 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. 6) 1962.
(2.) The Sales Tax Act (No. 6) 1930–1961,* as amended by this Act, may be cited as the Sales Tax Act (No. 6) 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 Sections three and four of the Sales Tax Act (No. 6) 1930–1961 are repealed and the following sections inserted in their stead:—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 imported into Australia by a taxpayer and, on or after the seventh day of February, One thousand nine hundred and sixty-two, 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 1935–1962—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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia by a taxpayer and, on or after the sixteenth day of August, One thousand nine hundred and sixty-one, 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of this Act, sold by him or applied by him to his own use continues to be imposed as if those provisions had not been repealed.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 Act (No. 6) 1962 was enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to amend the Sales Tax Act (No. 6) 1930–1961. This Act aimed to update and revise the rates and application of sales tax on goods, ensuring it aligns with contemporary economic conditions and objectives. The primary purpose of the Act was to address the need for an updated sales tax framework to better manage the taxation of imported goods and their sale or application to own use by taxpayers.
The Sales Tax Act (No. 6) 1962 introduces specific rates for sales tax on different categories of goods, aiming to streamline the tax system and provide clarity on the tax obligations for businesses and consumers. By setting distinct rates for various classes of goods, the Act sought to ensure a more equitable and effective tax collection system, directly contributing to the policy objective of maintaining a robust revenue stream for the Commonwealth.
Scope and Application
The Sales Tax Act (No. 6) 1962 amends the previous Sales Tax Act (No. 6) 1930–1961, establishing a sales tax on the sale value of goods imported into Australia by a taxpayer and sold or applied to their own use on or after the seventh day of February 1962. This Act applies to the sale value of goods imported into Australia by a taxpayer and sold by them or applied to their own use, with specific rates of tax outlined for different categories of goods as detailed in the schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1962. The Act's application extends across the Commonwealth of Australia and is applicable to all goods imported and sold within the country after the specified commencement date. The Act also includes provisions for the continuation of sales tax imposed by the repealed provisions, ensuring a seamless transition for sales occurring between the repeal and the commencement of this Act.
Key Provisions
The Sales Tax Act (No. 6) 1962 primarily revises the Sales Tax Act (No. 6) 1930–1961, introducing new provisions regarding the imposition of sales tax on goods imported into Australia. Under Section 3 of the Act, sales tax is imposed on the sale value of goods imported into Australia by a taxpayer and sold or applied to their own use on or after the seventh day of February 1962. Section 4 of the Act specifies the rates of sales tax, with different percentages applying to various categories of goods as outlined in the Second, Third, and Fifth Schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1962.
The Act imposes obligations on taxpayers to accurately calculate and remit sales tax on imported goods based on the specified rates. Taxpayers must ensure that they correctly classify the goods according to the relevant schedules and apply the appropriate tax rates. For example, goods listed in the Second Schedule are subject to a 25% tax rate, while those in the Third Schedule are taxed at 2.5%. If goods do not fall under any of these schedules and are not exempt under the Sales Tax (Exemptions and Classifications) Act 1935–1962, they are taxed at 12.5%.
Failure to comply with the Act's requirements can result in civil or criminal penalties. While the Act itself does not specify maximum penalties, subsequent legislation or related statutes might provide for fines, imprisonment, or other civil remedies for non-compliance, evasion, or fraudulent activities. The severity of the consequences would depend on the nature and extent of the breach. It is crucial for taxpayers to adhere strictly to the provisions to avoid any potential legal repercussions.