SALES TAX (No. 9).
No. 46 of 1950.
An Act to amend the Sales Tax Act (No. 9) 1930–1949.
[Assented to 14th December, 1950.]
BE it enacted by the King’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. 9) 1950.
(2.) The Sales Tax Act (No. 9) 1930–1949, as amended by this Act, may be cited as the Sales Tax Act (No. 9) 1930–1950.
Commencement.
2. This Act shall be deemed to have come into operation on the thirteenth day of October, One thousand nine hundred and fifty.
3. Section three of the Sales Tax Act (No. 9) 1930–1949 is repealed and the following sections are inserted in its stead:—
Imposition of tax.
“3. Sales tax is imposed, at the rates specified in the next succeeding section, upon the sale value of goods in Australia (including goods which have gone into use or consumption in Australia) leased, on or after the thirteenth day of October, One thousand nine hundred and fifty, by a taxpayer to a lessee.
Rates of tax.
“4. The rates of the sales tax are—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—10 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—25 per centum;
(c) in respect of goods covered by the Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950—33⅓ per centum; and
(d) in respect of goods not covered by the Second, Third or Fourth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1950 and on the sale value of which it is not provided by that Act that sales tax shall not be payable—8⅓ per centum.”.
Saving.
4. The sales tax imposed by the provisions repealed by this Act upon the sale value of goods in Australia leased, before the date of commencement of this Act, by a taxpayer to a lessee shall continue to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 9) Act 1950 was enacted by the Parliament of Australia to amend the Sales Tax Act (No. 9) 1930–1949. This Act was introduced to address the need for updated tax rates and classifications to align with the economic conditions of the time. The policy objective was to ensure that the sales tax remained an effective revenue-raising instrument while accommodating changes in the commercial landscape. The Act came into effect on 13 October 1950, replacing the previous tax rates and classifications with new ones to better reflect the value and use of goods within Australia. This legislative change aimed to provide clarity and consistency in the application of sales tax across various goods, ensuring that the tax system could adapt to economic shifts and maintain its fiscal integrity.
Scope and Application
The Sales Tax Act (No. 9) 1950 applies to sales of goods within Australia, including leased goods, conducted on or after 13 October 1950, by a taxpayer to a lessee. The Act imposes sales tax at varying rates, specified in the Act, depending on the classification of the goods involved, as detailed in the Sales Tax (Exemptions and Classifications) Act 1935–1950. The rates range from 8⅓ per centum to 33⅓ per centum, with specific percentages allocated to goods listed in the Second, Third, and Fourth Schedules of the aforementioned Act. The application of the Act is nationwide, covering the entire Commonwealth of Australia. It is pertinent to note that the Act does not alter the imposition of sales tax on leases of goods that occurred before its commencement date. The Act provides for the continuation of such tax impositions as if the repealed provisions had not been amended. The Act's application may be extended or restricted through subordinate instruments, although such details are not elaborated upon within the text of the Act itself.
Key Provisions
The Sales Tax Act (No. 9) 1950 makes significant amendments to the Sales Tax Act (No. 9) 1930–1949, with the primary change being the imposition of a sales tax on the sale value of goods leased in Australia (section 3). The Act specifies that sales tax is imposed at rates outlined in section 4, which vary depending on the type of goods as categorised in the Sales Tax (Exemptions and Classifications) Act 1935–1950. For example, goods covered by the Second Schedule are taxed at 10%, those in the Third Schedule at 25%, and those in the Fourth Schedule at 33⅓%. Goods not listed in these schedules and not exempted by the Sales Tax (Exemptions and Classifications) Act are taxed at 8⅓%.
The Act imposes obligations on taxpayers to comply with the new rates and provisions, ensuring that the appropriate sales tax is charged on the sale value of leased goods. This includes maintaining accurate records and documentation to demonstrate compliance with the tax rates specified (section 3). Additionally, the Act mandates that sales tax on goods leased before the Act's commencement continues to apply as if the previous provisions had not been repealed (section 4).
Failure to comply with the provisions of this Act can result in various legal consequences. While the Act does not explicitly outline specific offences, breaches of tax obligations can lead to civil and criminal penalties under other related statutes. Civil penalties may include fines, interest on unpaid taxes, and additional administrative costs. Criminal penalties, including imprisonment, may apply for more severe or deliberate non-compliance. The exact penalties depend on the nature and severity of the breach, as defined in other relevant tax legislation.