Sales Tax Amendment Act (No. 1) 1981
No. 133 of 1981
An Act to amend the Sales Tax Act (No. 1) 1930
[Assented to 30 September 1981]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Sales Tax Amendment Act (No. 1) 1981.
(2) The Sales Tax Act (No. 1) 19301 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall be deemed to have come into operation on 19 August 1981.
3. Sections 3 and 4 of the Principal Act are repealed and the following sections are substituted:
Imposition of tax
“3. Sales tax is imposed, at the rates specified in section 4, upon the sale value of goods manufactured in Australia by a taxpayer and, on or after 19 August 1981, sold by him or treated by him as stock for sale by retail or applied to his own use.
Rates of tax
“4. The rates of the sales tax imposed by this Act are—
(a) in respect of goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935—30% ;
(b) in respect of goods covered by the Third Schedule to that Act—5%;
(c) in respect of goods covered by the Fourth or Fifth Schedule to that Act—17.5%; and
(d) in respect of goods not covered by the Second, Third, Fourth or Fifth Schedule to that Act 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—17.5%.”.
Saving
4. Where, before the commencement of this Act, sales tax was imposed by the provisions repealed by this Act upon the sale value of any goods, that sales tax continues to be imposed as if those provisions had not been repealed.
NOTE
1. No. 26, 1930, as amended. For previous amendments, see No. 63, 1930; No. 26, 1931; No. 32, 1936; No. 30, 1938; No. 16, 1939; Nos. 3 and 77, 1940; No. 33, 1941; No. 7, 1942; No. 45, 1943; No. 58, 1946; No. 55, 1949; No. 38, 1950; No. 64, 1951; No. 45, 1952; No. 54, 1953; No. 46, 1954; No. 6, 1956; No. 72, 1957; No. 89, 1960; Nos. 2 and 77, 1961; No. 5, 1962; No. 76, 1964; No. 88, 1968; No. 69, 1970; No. 15, 1975; and No. 144, 1978.
Overview
The Sales Tax Amendment Act (No. 1) 1981 was enacted to revise the rates of sales tax and amend the Sales Tax Act (No. 1) 1930. The Act was introduced by the Commonwealth Parliament to address the need for updated tax rates and classifications to better reflect economic changes and administrative efficiencies. This amendment sought to provide a more streamlined and effective sales tax system. The policy objective was to ensure that the tax structure was fair, accurate, and aligned with the current economic environment, thus contributing to a more effective fiscal policy.
Scope and Application
The Sales Tax Amendment Act (No. 1) 1981 amends the Sales Tax Act (No. 1) 1930, imposing sales tax on the sale value of goods manufactured in Australia and sold or treated as stock for sale by retail or applied to the taxpayer's own use on or after 19 August 1981. This Act applies to any taxpayer engaged in the manufacture of goods within Australia, thereby affecting businesses involved in the production and sale of goods. The tax rates are specified in the Act, varying between 30%, 5%, 17.5%, and 17.5% depending on the classification of the goods under the Sales Tax (Exemptions and Classifications) Act 1935. The Act extends its application across the Commonwealth of Australia and provides for the continuation of any previously imposed sales tax where applicable, ensuring a seamless transition under the new legislative framework. The Act also allows for further specification and refinement of its application through subordinate instruments, though no such instruments are mentioned in the provided text.
Key Provisions
The Sales Tax Amendment Act (No. 1) 1981 amends the Sales Tax Act (No. 1) 1930 by repealing sections 3 and 4 of the Principal Act and substituting them with new provisions. Specifically, the new section 3 imposes sales tax on the sale value of goods manufactured in Australia and sold or treated as stock for sale by retail or applied to the seller’s own use, effective from 19 August 1981. Section 4 sets out the rates of sales tax, which are 30% for goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935, 5% for goods covered by the Third Schedule, 17.5% for goods covered by the Fourth or Fifth Schedule, and 17.5% for goods not covered by any of the aforementioned schedules.
The Act places obligations on taxpayers to ensure compliance with the new sales tax rates. This involves calculating the sales tax on the sale value of goods manufactured in Australia and sold on or after 19 August 1981. The obligation extends to accurately reporting and paying the applicable tax rates as stipulated in section 4 of the Act. Taxpayers must also maintain records of sales and the corresponding tax rates applied to ensure transparency and compliance with the legislative requirements.
The Act does not explicitly outline specific offences, penalties, or consequences for non-compliance; however, breaches of tax laws generally attract penalties under the broader tax administration framework. For example, failure to comply with sales tax obligations could result in civil penalties, including fines and interest on unpaid taxes. In more severe cases, criminal penalties might apply, depending on the intent and extent of the non-compliance, potentially leading to prosecution and imprisonment. The precise penalties would be determined in accordance with the applicable tax laws and regulations in force at the time of the alleged breach.