SALES TAX (No. 7).
No. 82 of 1964.
An Act to amend the Sales Tax Act (No. 7) 1930–1962.
[Assented to 5th November, 1964.]
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) 1964.
(2.) The Sales Tax Act (No. 7) 1930–1962, as amended by this Act, may be cited as the Sales Tax Act (No. 7) 1930–1964.
Commencement.
2. This Act shall be deemed to have come into operation on the twelfth day of August, One thousand nine hundred and sixty-four.
3. Sections three and four of the Sales Tax Act (No. 7) 1930–1962 are repealed and the following sections inserted in their stead:—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 twelfth day of August, One thousand nine hundred and sixty-four, 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 or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1963—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1963—2½ per centum; and
(c) in respect of goods not covered by the Second, Third or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1963 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia and, on or after the seventh day of February, One thousand nine hundred and sixty-two, and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sold by a taxpayer, not being the importer of the goods, continues to be imposed as if those provisions had not been repealed.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) 1964 was enacted to amend the existing Sales Tax Act (No. 7) 1930–1962, addressing the need for updated tax rates and structures in response to economic changes and policy objectives. The Act was assented to on 5 November 1964 by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. Its primary function was to adjust the rates of sales tax on various goods, ensuring that the tax framework remained effective and responsive to economic conditions. The Act aimed to streamline and modernise the sales tax system by repealing certain sections of the previous Act and introducing new tax rates for different categories of goods, thereby aligning the tax structure with contemporary economic needs.
Scope and Application
The Sales Tax Act (No. 7) 1964 applies to the sale value of goods imported into Australia, specifically targeting taxpayers who are not the importers of these goods. It imposes a sales tax on such sales at specified rates, contingent on the classification of the goods according to the Sales Tax (Exemptions and Classifications) Act 1935–1963. The Act came into effect on 12 August 1964, replacing and amending the Sales Tax Act (No. 7) 1930–1962, and sets out the new tax rates applicable to different categories of goods. Notably, it excludes certain goods listed in the Second, Third, or Fifth Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1963, for which different or no tax rates apply. The Act's jurisdiction is nationwide, covering all states and territories within Australia, and it extends its application through the subordinate instrument of the Sales Tax (Exemptions and Classifications) Act 1935–1963, which specifies the classifications and corresponding tax rates.
Key Provisions
The Sales Tax Act (No. 7) 1964 introduces significant amendments to the Sales Tax Act (No. 7) 1930–1962, establishing a new tax regime that applies to the sale of imported goods. Section 3 of the Act imposes a sales tax on the sale value of goods imported into Australia, with different tax rates depending on the type of goods involved. Specifically, Section 3 specifies that sales tax is imposed at rates of 25 per centum for goods listed in the Second or Fifth Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1963, 2½ per centum for goods listed in the Third Schedule, and 12½ per centum for goods not covered by these schedules unless exempted by the Sales Tax (Exemptions and Classifications) Act 1935–1963. This tax applies to sales made by a taxpayer who is not the importer of the goods, and it comes into effect on or after the twelfth day of August, 1964.
The obligations imposed by the Act on taxpayers include the accurate calculation and remittance of the sales tax based on the specified rates. Taxpayers must ensure that they apply the correct tax rate to the sale value of the imported goods, depending on the classification of those goods. This involves meticulous record-keeping and reporting to comply with the new tax structure introduced by the Act. Furthermore, taxpayers must ensure that the sales tax is paid to the relevant authority within the stipulated timeframes to avoid penalties and interest on late payments.
Breach of the Act's provisions can lead to significant civil and criminal consequences. Section 4 clarifies that any sales tax imposed under the repealed provisions continues to apply as if the repeal had not occurred, ensuring continuity in tax obligations for certain transactions. Non-compliance with the Act, such as failure to report or remit sales tax, can result in fines and penalties. The maximum penalties for such breaches may include substantial fines and, in more severe cases, imprisonment. It is crucial for taxpayers to adhere strictly to the requirements set out in the Act to avoid these adverse consequences.