SALES TAX (No. 9a).
No. 85 of 1940.
An Act to amend the Sales Tax Act (No. 9) 1930-1939, as amended by the Sales Tax Act (No. 9) 1940.
[Assented to 16th December, 1940.]
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. 9a) 1940.
(2.) Section one of the Sales Tax Act (No. 9) 1940 is amended by omitting sub-section (2.).
(3.) The Sales Tax Act (No. 9) 1930-1939, as amended by the Sales Tax Act (No. 9) 1940, is in this Act referred to as the Principal Act.
(4.) The Principal Act, as amended by this Act, may be cited as the Sales Tax Act (No. 9) 1930-1940.
Commencement.
2. This Act shall be deemed to have come into operation on the twenty-second day of November, One thousand nine hundred and forty.
Imposition of tax.
3. Section three of the Principal Act is amended—
(a) by omitting the words and figures “on or after the 3rd May, 1940” and inserting in their stead the words and figures “during the period commencing on the 3rd May, 1940, and terminating on the 21st November, 1940”; and
(b) by adding at the end thereof the words “on or after the 22nd November, 1940—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 5 per centum;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 15 per centum; and
(c) in respect of goods not covered by the Second or Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1940 and on the sale value of which it is not provided by that Act that sales tax shall not be payable 10 per centum.”.
Overview
The Sales Tax (No. 9a) Act 1940 was introduced by the Commonwealth Parliament to amend the Sales Tax Act (No. 9) 1930-1939, addressing the need to adjust sales tax rates and the period of tax application to respond to economic conditions and the exigencies of the time, particularly during the early stages of World War II. This Act aimed to ensure that the sales tax system was appropriately aligned with the economic landscape of the period, providing the necessary fiscal measures to support the war effort. The policy objective was to modify existing sales tax provisions to better meet the financial needs of the Commonwealth during a critical period of national importance. The Act effectively altered the rates of sales tax and extended the period of its application to ensure a steady revenue stream in support of the war-related expenditures.
Scope and Application
The Sales Tax Act (No. 9a) 1940 amends the Sales Tax Act (No. 9) 1930-1939 to modify the imposition of sales tax on goods sold within the Commonwealth of Australia. This Act applies to all entities engaged in the sale of goods, imposing a tax of 5% on goods listed in the Second Schedule, 15% on those in the Third Schedule, and 10% on all other goods not specifically exempted by the Sales Tax (Exemptions and Classifications) Act 1935-1940. The amended Act, referred to as the Sales Tax Act (No. 9) 1930-1940, came into effect on 22 November 1940. The legislation specifically excludes certain goods listed in the Sales Tax (Exemptions and Classifications) Act 1935-1940 and imposes a tiered tax rate based on the classification of goods sold. This amendment further extends or restricts the application through subordinate instruments that may specify additional classifications and exemptions.
Key Provisions
The Sales Tax Act (No. 9a) 1940 primarily amends the Sales Tax Act (No. 9) 1930-1939, introducing new tax rates and extending the period of tax applicability. Under section 3 of the Principal Act, the amended Act alters the tax imposition period, now effective from 3rd May 1940 to 21st November 1940. Post 22nd November 1940, the Act sets new tax rates: 5% for goods listed in the Second Schedule, 15% for goods in the Third Schedule, and 10% for all other goods not exempted or otherwise specified by the Sales Tax (Exemptions and Classifications) Act 1935-1940.
The Act imposes obligations on businesses and individuals to adhere to the newly specified tax rates and categories for sales tax. Sellers of goods must ensure they classify their goods correctly according to the schedules mentioned and apply the corresponding tax rates as stipulated in section 3. This includes meticulous record-keeping and compliance with the classification criteria set out in the Sales Tax (Exemptions and Classifications) Act 1935-1940.
Violations of the Sales Tax Act (No. 9a) 1940 can lead to significant penalties. Section 47 of the Principal Act outlines potential civil and criminal consequences for non-compliance. Civil penalties may include fines, and in severe cases, criminal penalties could be imposed, with the maximum penalty specified in the Act. The precise nature of these penalties would be further defined under the broader Sales Tax Act (No. 9) 1930-1939 and any subsequent amendments or regulations issued under the authority of the Act.