Sales Tax (No. 9)
No. 96 of 1968
An Act to amend the Sales Tax Act (No. 9) 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. 9) 1968.
(2.) The Sales Tax Act (No. 9) 1930–1964, as amended by this Act, may be cited as the Sales Tax Act (No. 9) 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 Sections three and four of the Sales Tax Act (No. 9) 1930–1964 are repealed and the following sections inserted in their stead:—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 in Australia (including goods which have gone into use or consumption in Australia) leased, on or after the fourteenth day of August, One thousand nine hundred and sixty-eight, by a taxpayer to a lessee.
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 The sales tax imposed by the provisions repealed by this Act upon the sale value of goods in Australia (including goods which have gone into use or consumption in Australia) leased, on or after the twelfth day of August, One thousand nine hundred and sixty-four, and before the date of commencement of this Act, by a taxpayer to a lessee continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax (No. 9) Act 1968 was enacted to amend the Sales Tax Act (No. 9) 1930–1964, addressing the need to update the rates and scope of sales tax imposed on goods leased within Australia. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, aiming to provide a clear and structured framework for the imposition of sales tax. The policy objective of the Act is to ensure that sales tax is uniformly applied across different categories of goods, thereby maintaining a consistent revenue stream for the Commonwealth while adjusting the tax rates to reflect current economic conditions and the evolving marketplace.
Scope and Application
The Sales Tax Act (No. 9) 1968 applies to the sale of goods in Australia, imposing a sales tax on the sale value of goods leased by a taxpayer to a lessee on or after 14 August 1968. This Act amends the Sales Tax Act (No. 9) 1930–1964 by replacing certain sections with new provisions regarding the imposition of sales tax. The tax rates are specified as 25% for goods covered by the Second or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935–1967, 2½% for goods covered by the Third Schedule, and 15% for goods not covered by those schedules and where the Sales Tax (Exemptions and Classifications) Act does not exempt the goods from sales tax. The Act does not explicitly extend or restrict its application through subordinate instruments, but it does maintain the continuity of sales tax imposed on leases of goods made before its commencement date.
Key Provisions
The Sales Tax Act (No. 9) 1968 introduces significant amendments to the existing Sales Tax Act (No. 9) 1930–1964, effective from 14 August 1968. This Act imposes sales tax on the sale value of goods in Australia that are leased by a taxpayer to a lessee after the commencement date. The sales tax rates are set at 25% for goods covered by the Second or Fifth Schedule of the Sales Tax (Exemptions and Classifications) Act 1935–1967, 2½% for those covered by the Third Schedule, and 15% for all other goods not specifically exempted by that Act. This amendment effectively replaces and repeals the previous tax rates established by the Sales Tax Act (No. 9) 1930–1964.
Under this Act, taxpayers are required to ensure that the appropriate sales tax is calculated and paid on the sale value of goods leased after the commencement date. This obligation includes maintaining accurate records of all sales transactions to facilitate compliance and potential audits. Furthermore, the Act imposes a continuing obligation for sales tax on goods leased between 12 August 1964 and the commencement date of this Act, ensuring that any sales tax due under the previous provisions is still payable.
Failure to comply with the requirements of this Act can result in legal consequences. The Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaches; however, general principles of tax law would apply. This typically includes fines and potential legal action for non-payment or under-reporting of sales tax. The severity of penalties may depend on factors such as the intent behind the breach and the extent of non-compliance.