Sales Tax Amendment Act (No. 5) 1981
No. 137 of 1981
An Act to amend the Sales Tax Act (No. 5) 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. 5) 1981.
(2) The Sales Tax Act (No. 5) 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 Sections 3 and 4 of the Principal Act are repealed and the following sections are substituted: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 imported into Australia on or after 19 August 1981 by a taxpayer.
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 Where, before the commencement of this Act, sales tax was imposed by the provisions repealed by this Act upon the sale value of any goods, that sales tax continues to be imposed as if those provisions had not been repealed.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. 34, 1930, as amended. For previous amendments, see No. 34, 1931; No. 36, 1936; No. 34, 1938; No. 20, 1939; Nos. 7 and 81, 1940; No. 37, 1941; No. 11, 1942; No. 49, 1943; No. 62, 1946; No. 59, 1949; No. 42, 1950; No. 68, 1951; No. 49, 1952; No. 58, 1953; No. 50, 1954; No. 10, 1956; No. 76, 1957; No. 93, 1960; Nos. 6 and 81, 1961; No. 9, 1962; No. 80, 1964; No. 92, 1968; No. 73, 1970; No. 19, 1975; and No. 148, 1978.
Overview
The Sales Tax Amendment Act (No. 5) 1981 was enacted to revise and update the existing Sales Tax Act (No. 5) 1930, addressing the need for modernising the tax framework to better suit the economic context of the time. The Act was passed by the Queen, in Parliament, reflecting the legislative authority of the Commonwealth of Australia. The policy objective was to streamline the sales tax system by replacing outdated provisions with new rates that better reflect the value and classification of goods being imported into Australia.
This amendment was intended to ensure that the sales tax system remained effective and equitable, adapting to the changing economic landscape and the introduction of new goods and classifications. By repealing certain sections of the Principal Act and substituting them with new provisions, the Sales Tax Amendment Act (No. 5) 1981 aimed to provide clearer and more structured tax rates, thereby facilitating compliance and enforcement within the updated regulatory environment.
Scope and Application
The Sales Tax Amendment Act (No. 5) 1981 amends the Sales Tax Act (No. 5) 1930, establishing the imposition of sales tax on the sale value of goods imported into Australia from 19 August 1981 onwards by a taxpayer. This Act applies specifically to the sale value of goods imported into Australia and does not extend to other forms of transactions or entities. The sales tax is imposed at rates specified in section 4, which vary depending on the classification of the goods, as outlined in the Sales Tax (Exemptions and Classifications) Act 1935. The Act repeals certain sections of the Principal Act and substitutes new provisions for the imposition and rates of sales tax. Any sales tax imposed under the repealed provisions before the commencement of this Act continues to apply as if those provisions had not been repealed. The jurisdictional reach of this Act is Commonwealth, impacting the entire nation with its sales tax regulations. The Act does not specify any exclusions, exemptions, or thresholds beyond those outlined in the Sales Tax (Exemptions and Classifications) Act 1935. The application of the Act may be extended or restricted through subordinate instruments under the authority granted by the Principal Act.
Key Provisions
The Sales Tax Amendment Act (No. 5) 1981, as enacted, primarily amends the Sales Tax Act (No. 5) 1930 by repealing and substituting certain sections. Section 3 of the Principal Act is repealed and replaced with a new section imposing sales tax on the sale value of goods imported into Australia on or after 19 August 1981 by a taxpayer (section 3). The rates of this tax are then specified in section 4, with different percentages applied depending on the classification of the goods (section 4).
The Act imposes specific obligations on taxpayers regarding the payment of sales tax. For goods covered by the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935, a sales tax rate of 30% applies (section 4(a)). For goods under the Third Schedule, the rate is 5% (section 4(b)), and for goods listed in the Fourth or Fifth Schedule, it is 17.5% (section 4(c)). Goods not covered by any of the aforementioned schedules, and on which sales tax is not exempted by the Sales Tax (Exemptions and Classifications) Act 1935, are also subject to a 17.5% sales tax rate (section 4(d)).
Breach of the obligations imposed by this Act could lead to civil or criminal consequences. Although the specific offences and penalties are not detailed within the provided excerpt, under Australian law, failure to comply with tax obligations can result in penalties. These penalties may include fines, interest on unpaid taxes, and in severe cases, imprisonment. The exact penalties would depend on the nature and extent of the non-compliance, as well as any applicable statutory provisions or case law.