Sales Tax (No. 7)
No. 94 of 1968
An Act to amend the Sales Tax Act (No. 7) 1930–1964.
[Assented to 21 November 1968]
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) 1968.
(2.) The Sales Tax Act (No. 7) 1930–1964, as amended by this Act, may be cited as the Sales Tax Act (No. 7) 1930–1968.
Commencement.
2. This Act shall be deemed to have come into operation on the fourteenth day of August, One thousand nine hundred and sixty-eight.
3. Sections three and four of the Sales Tax Act (No. 7) 1930–1964 are repealed and the following sections inserted in their stead:—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 fourteenth day of August, One thousand nine hundred and sixty-eight, 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 1935–1967—25 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1967—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 1935–1967 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—15 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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia and, on or after the twelfth day of August, One thousand nine hundred and sixty-four, and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sold by a taxpayer, not being the importer of the goods, continues to be imposed as if those provisions had not been repealed.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 (No. 7) Act 1968 was enacted to amend the existing Sales Tax Act (No. 7) 1930–1964, addressing the need to revise tax rates and the application of sales tax to goods imported into Australia. This Act was assented to on 21 November 1968 by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary objective of this legislation was to update the sales tax framework to better align with economic conditions and the need for revenue generation. It repealed certain sections of the earlier act and introduced new provisions for the imposition of tax and the applicable rates, ensuring a more structured and comprehensive sales tax system.
Scope and Application
The Sales Tax Act (No. 7) 1968 amends the Sales Tax Act (No. 7) 1930–1964 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, effective from 14 August 1968. The Act applies to all sales of goods meeting the specified criteria and is subject to the rates set out in the Act, which are differentiated based on the classification of the goods as per the Sales Tax (Exemptions and Classifications) Act 1935–1967. The tax rates are 25 per cent for goods listed in the Second or Fifth Schedule, 2½ per cent for those in the Third Schedule, and 15 per cent for all other goods not exempted by the Sales Tax (Exemptions and Classifications) Act. The Act has a national jurisdictional reach as it is a Commonwealth Act. The Act does not specify any exclusions, exemptions, or thresholds beyond those already detailed in the Sales Tax (Exemptions and Classifications) Act 1935–1967. The application of the Act can be further defined or extended through subordinate instruments, which may include regulations or other legislative provisions.
Key Provisions
The Sales Tax Act (No. 7) 1968 introduces significant amendments to the Sales Tax Act (No. 7) 1930–1964. Primarily, it imposes a sales tax on the sale value of goods imported into Australia and sold by a taxpayer, who is not the importer of those goods, from a specific date onwards (sections 3 and 4). The tax rates are categorised into three groups, based on the classification of goods under the Sales Tax (Exemptions and Classifications) Act 1935–1967. Goods under the Second or Fifth Schedule are taxed at 25%, those under the Third Schedule at 2½%, and all other goods not covered by these schedules and not exempted by the Sales Tax (Exemptions and Classifications) Act at 15%.
The Act imposes clear obligations on taxpayers, who must ensure they are aware of the categories of goods they are selling and the applicable tax rates. They must keep accurate records of sales and the associated tax implications to comply with the new tax regime. The Act also mandates that any sales tax imposed under the repealed provisions on goods sold between August 12, 1964, and the commencement date of this Act, continues to be in effect as if those provisions had not been repealed (section 4). This ensures continuity in tax obligations for goods sold during this transitional period.
Non-compliance with the Sales Tax Act (No. 7) 1968 can lead to significant consequences. While the Act itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches, it is understood that breaches of tax laws in Australia can lead to fines, interest on unpaid taxes, and in severe cases, criminal charges. The penalties can vary, but they can include substantial financial penalties, reflecting the seriousness with which tax non-compliance is treated by Australian authorities.