SALES TAX AMENDMENT ACT (No. 6) 1978
No. 149 of 1978
An Act to amend the Sales Tax Act (No. 6) 1930.
BE IT ENACTED by the Queen, and the Senate and 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. 6) 1978.
(2) The Sales Tax Act (No. 6) 1930 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall be deemed to have come into operation on 16 August 1978.
3. Sections 3 and 4 of the Principal Act are repealed and the following sections substituted: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 by a taxpayer and, on or after 16 August 1978, sold by him or applied by him 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—27½%;
(b) in respect of goods covered by the Third Schedule to the Sales Tax (Exemptions and Classifications) Act 1935—2½%;
(c) in respect of goods covered by the Fourth or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935—15½%; and
(d) in respect of goods not covered by the Second, Third, Fourth or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935 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%.”.
Saving
4. The sales tax imposed by the provisions repealed by this Act upon the sale value of goods imported into Australia by a taxpayer and, on or after 29 January 1975, and before the date of commencement of this Act sold by him or applied by him to his own use continues to be imposed as if those provisions had not been repealed.
Overview
The Sales Tax Amendment Act (No. 6) 1978 was enacted by the Commonwealth Parliament to amend the Sales Tax Act (No. 6) 1930. This legislation was introduced to address the need to update and refine the rates and scope of sales tax applicable to goods imported into Australia and used domestically by taxpayers. The Act specifies new rates of sales tax to be applied to various categories of imported goods, replacing the previous provisions. The primary objective of this Act is to ensure that the taxation system remains current and equitable, providing clear guidelines on the imposition of sales tax for different types of goods as they are brought into Australia and used by businesses or individuals.
Scope and Application
The Sales Tax Amendment Act (No. 6) 1978 amends the Sales Tax Act (No. 6) 1930 to adjust the rates and application of sales tax on goods imported into Australia. This Act applies to any taxpayer importing goods into Australia and subsequently selling them or applying them to their own use. The tax rates have been revised, with different percentages applicable to goods classified under various schedules of the Sales Tax (Exemptions and Classifications) Act 1935. The jurisdictional reach of this Act is national, as it pertains to the Commonwealth of Australia, impacting entities across all states and territories. There are no specific exclusions noted in the text, but the application of tax rates is contingent on the classification of goods under the referenced schedules of the 1935 Act. The Act also provides a saving clause to ensure continuity in the imposition of sales tax on certain goods during the transitional period between the repeal and commencement of this Act. The Sales Tax Amendment Act (No. 6) 1978 extends its application through subordinate instruments, specifically referencing the Sales Tax (Exemptions and Classifications) Act 1935 for detailed classifications and exemptions.
Key Provisions
The Sales Tax Amendment Act (No. 6) 1978 introduces key changes to the Sales Tax Act (No. 6) 1930 by imposing sales tax on certain goods imported into Australia and sold or applied for personal use by a taxpayer as of 16 August 1978 (section 3). The rates of this sales tax are specified in section 4, with different percentages applied depending on the classification of the goods, as outlined in the Sales Tax (Exemptions and Classifications) Act 1935. Specifically, goods covered by the Second Schedule attract a 27½% tax rate, those under the Third Schedule a 2½% rate, while goods listed in the Fourth or Fifth Schedule are taxed at 15½%. Any goods not covered by these schedules and not exempted by the Sales Tax (Exemptions and Classifications) Act 1935 are taxed at 15%.
This Act imposes several obligations on taxpayers. They must ensure that sales tax is applied to the sale value of imported goods, as per the new rates specified in section 4, if these goods are sold or used by the taxpayer after the commencement date of 16 August 1978. It is essential for taxpayers to accurately classify the goods according to the schedules in the Sales Tax (Exemptions and Classifications) Act 1935 to determine the correct tax rate. Additionally, the Act requires taxpayers to maintain records and documentation to substantiate the tax rates applied to their transactions.
Failure to comply with the provisions of this Act can result in legal consequences. While the Act does not explicitly detail specific offences, penalties, or civil/criminal consequences, it is reasonable to infer that non-compliance with sales tax obligations can lead to investigations by the relevant authorities, such as the Australian Taxation Office. Penalties for non-compliance may include fines, interest on unpaid taxes, and potential legal action. The specific penalties would depend on the nature and extent of the non-compliance, as governed by other relevant taxation laws.