SALES TAX (No. 7).
No. 12 of 1956.
An Act to amend the Sales Tax Act (No. 7) 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. 7) 1956.
(2.) The Sales Tax Act (No. 7) 1930–1954, as amended by this Act, may be cited as the Sales Tax Act (No. 7) 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 Sections three and four of the Sales Tax Act (No. 7) 1930–1954 are repealed and the following sections inserted in their stead:—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 imported into Australia and, on or after the fifteenth day of March, One thousand nine hundred and fifty-six, sold by a taxpayer not being the importer of the goods.
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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia and, on or after the nineteenth day of August, One thousand nine hundred and fifty-four, and before the date of commencement of this Act, sold by a taxpayer, not being the importer of the goods, continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Act (No. 7) 1956 was enacted to amend the Sales Tax Act (No. 7) 1930–1954, addressing the need for updated tax rates and classifications in response to evolving economic conditions and to better align with the Commonwealth’s fiscal policies. This Act was assented to on 12 May 1956 and is a product of the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary objective of this legislation is to revise the rates of sales tax applicable to different categories of goods, ensuring a more structured and effective tax collection system. The Act ensures that the sales tax imposed on certain goods continues without interruption despite the repeal of previous provisions, maintaining fiscal continuity until the new rates take effect from the date of the Act’s commencement on 15 March 1956.
Scope and Application
The Sales Tax Act (No. 7) 1956 amends the Sales Tax Act (No. 7) 1930–1954 by imposing sales tax on the sale value of goods imported into Australia and sold by a taxpayer, who is not the importer of the goods, on or after the fifteenth day of March 1956. This Act applies to the sale of goods within Australia, specifically targeting those sold by a taxpayer, excluding the importer of the goods, and imposing tax at various rates contingent on the classification of the goods. The Act provides for different rates of sales tax based on the goods' classification, as detailed in the Second, Third, Fourth, and Fifth Schedules of the Sales Tax (Exemptions and Classifications) Act 1935–1956, and a default rate for goods not listed in these schedules. Notably, the Act does not alter the existing sales tax obligations for sales occurring between 19 August 1954 and the commencement date of this Act.
Key Provisions
The Sales Tax Act (No. 7) 1956 introduces new rates of sales tax on the sale value of goods imported into Australia and sold by a taxpayer, other than the importer, on or after the 15th of March, 1956. Section 3 specifies the imposition of sales tax at different rates depending on the category of goods, as defined in the Sales Tax (Exemptions and Classifications) Act 1935–1956. Section 4 outlines the specific tax rates for each category of goods, which range from 10% to 30%, depending on the classification. For instance, goods covered by the Second Schedule attract a 25% tax rate, while those covered by the Third Schedule have a 10% tax rate.
The Act imposes certain obligations on taxpayers involved in the sale of imported goods. They must ensure they are aware of the tax rate applicable to the goods they sell, which is contingent on the classification of the goods as specified in the Sales Tax (Exemptions and Classifications) Act 1935–1956. It is the responsibility of these taxpayers to calculate and remit the appropriate sales tax to the relevant authorities. Failure to comply with these obligations may result in legal consequences.
Breaching the obligations set forth by the Sales Tax Act (No. 7) 1956 may lead to significant penalties. Although the specific penalties are not detailed in the provided excerpt, it is common for tax-related breaches to result in fines or other financial penalties. The severity of these penalties can depend on factors such as the extent of the non-compliance and whether it was deliberate or inadvertent. Given the historical context of the Act, it is prudent for taxpayers to adhere strictly to the stipulated requirements to avoid any adverse legal ramifications.