Sales Tax Assessment Act (No. 1) 1934

Legislation au C1934A00029 Not in force Act

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SALES TAX ASSESSMENT (No. 1).

 

No. 29 of 1934.

An Act to amend the Sales Tax Assessment Act (No. 1) 1930-1934.

[Assented to 4th August, 1934.]

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 Assessment Act (No. 1) 1934.

(2.) Section three of the Financial Relief Act 1934 is amended by omitting sub-section (1.).

(3.) The Sales Tax Assessment Act (No. 1) 1930-1933, as amended by the Financial Relief Act 1934, 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 Assessment Act (No. 1) 1930–1934.

Definitions.

2.—(1.) Section three of the Principal Act is amended—

(a) by inserting in sub-section (1.) at the end of the definition of “ Manufacture” the words “, and also includes any treatment applied to foodstuffs as a process in the preparation of the foodstuffs for human consumption “; and

(b) by inserting at the end thereof the following sub-sections:—

“(5.) Where a sale and purchase, for one inclusive price, is made of goods upon the sale value of which sales tax is payable, together with goods upon the sale value of which sales tax is not payable, the amount for which the goods upon the sale value of which sales tax is payable are sold and purchased, shall be deemed to be the amount which, in the opinion of the Commissioner, would have been the sale price of those goods if sold separately.


“(6.) For the purposes of the last preceding sub-section ‘goods upon the sale value of which sales tax is not payable’ shall include any property upon which such tax is not payable.”.

(2.) The amendment effected by paragraph (a) of sub-section (1.) of this section shall have effect and be deemed to have had effect at all times as if the words thereby inserted in the definition of “Manufacture” in sub-section (1.) of section three of the Principal Act had, at the date of the commencement of the Sales Tax Assessment Act (No. 1) 1930 been included at the end of the definition of “Manufacture” in sub-section (1.) of section three of that Act and had, at the date of the commencement of the Sales Tax Assessment Act (No. 1) 1932 been included at the end of the definition of “Manufacture” in section two of that Act.

(3.) The amendment effected by paragraph (b) of sub-section (1.) of this section shall have effect and be deemed to have had effect at all times as if the sub-sections thereby inserted in section three of the Principal Act had, at the date of the commencement of the Sales Tax Assessment Act (No. 1) 1930, been included in section three of that Act:

Provided that the amendment shall not have effect in respect of any sale and purchase, prior to the twenty-sixth day of October, One thousand nine hundred and thirty-three, for one inclusive price, of goods, being plant, machinery or equipment which has been used as such by the vendor in the ordinary course of his business, together with any other property.

3. After section seventeen of the Principal Act the following section is inserted:—

Goods deemed to be sold.

“17a. Where goods are manufactured for a person wholly or in part out of materials supplied by him, the manufacturer of the goods, whether he makes up those goods himself or procures their making-up by another person, shall, for the purposes of this Act, be deemed to have sold the goods to the first-mentioned person, at the time of their delivery to him, for the amount charged to him by the manufacturer in respect of those goods.”.

Sale value of goods.

4.—(1.) Section eighteen of the Principal Act is amended—

(a) by omitting the proviso to sub-section (1.);

(b) by omitting from the proviso to sub-section (2.) the words” any goods used in, wrought into or attached to “ and inserting in their stead the words “all the goods used in, wrought into or attached to any”;

(c) by omitting from the proviso to sub-section (3.) the words “any goods used in, wrought into or attached to” and inserting in their stead the words “all the goods used in, wrought into or attached to any”;

(d) by omitting from paragraph (b) of sub-section (4.) the word “or” (last occurring); and


(e) by inserting in sub-section (4.) after paragraph (c) the following paragraph:—

“; or (d) the goods sold were manufactured, wholly or in part, from materials sold to the manufacturer by the purchaser,”.

(2.) The amendments effected by paragraphs (b) and (c) of sub-section (1.) of this section shall have effect and be deemed to have had effect at all times as if the provisoes to sub-sections (2.) and (3.) of section eighteen of the Principal Act had, at the date of commencement of the Sales Tax Assessment Act (No. 1) 1933, been in force as respectively amended by those paragraphs.

Liquidator to give notice.

5.—(1.) Section thirty-two of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(4.) Notwithstanding anything contained in this section, all costs, charges and expenses which, in the opinion of the Commissioner, have been properly incurred by the liquidator in the winding-up of a company, including the remuneration of the liquidator, may be paid out of the assets of the company in priority to any tax payable in respect of the company.”.

(2.) This section shall be deemed to have commenced on the first day of September, One thousand nine hundred and thirty-three.

Offences.

6. Section forty-five of the Principal Act is amended by omitting sub-sections (2.) and (4.).

Time for commencement of prosecutions.

7. Section fifty of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(2.) A prosecution in respect of any offence against section twelve, section fifteen or paragraph (a) or (c) of sub-section (1.) of section forty-five of this Act may be commenced at any time.”.

 

Overview

The Sales Tax Assessment Act (No. 1) 1934 was enacted by the Parliament of Australia to amend the Sales Tax Assessment Act (No. 1) 1930–1934. The 1934 Act sought to address issues and gaps in the original Act by updating definitions, clarifying the scope of sales tax, and refining the processes for tax assessment and collection. The legislative changes introduced by this Act were aimed at providing clarity and improving the administration of sales tax during a period of economic distress, as evidenced by the amendments related to financial relief measures. The overarching policy objective was to ensure a fair and efficient tax system that could support the broader economic recovery efforts of the time.

Scope and Application

The Sales Tax Assessment Act (No. 1) 1930-1934 applies to entities and individuals involved in the sale of goods that are subject to sales tax, as well as liquidators of companies that have been wound up. It extends to the entire Commonwealth of Australia and governs the assessment, collection, and administration of sales tax. The Act amends the definition of "manufacture" to include any treatment applied to foodstuffs as a process in the preparation of the foodstuffs for human consumption. It also modifies the provisions concerning the sale value of goods, deeming the manufacturer of goods made from materials supplied by another person to have sold those goods to the supplier at the time of delivery. Additionally, it prioritises the payment of liquidators' costs and expenses from the assets of a wound-up company over any sales tax payable by the company. The Act's application may be extended or restricted through subordinate instruments, but no such instruments are specified within the text.

Key Provisions

The Sales Tax Assessment Act (No. 1) 1934 introduces several key amendments to the Sales Tax Assessment Act (No. 1) 1930-1933, which is referred to as the Principal Act in this Act. The Act amends the definitions, particularly expanding the definition of "manufacture" to include any treatment applied to foodstuffs as a process in the preparation of the foodstuffs for human consumption (section 2(1)(a)). It also introduces a new provision that deems the sale value of goods, when sold and purchased together for one inclusive price, to be the amount that would have been the sale price of those goods if sold separately, provided that one part of the goods is subject to sales tax and the other is not (section 2(1)(b)(5) and (6)). Furthermore, the Act deems the manufacturer of goods to have sold the goods to the person who supplied the materials, at the time of their delivery, for the amount charged by the manufacturer in respect of those goods (section 3). The Act imposes obligations on manufacturers and vendors, particularly those who manufacture goods for another person using materials supplied by the latter. These parties must now be prepared to account for these transactions as if a sale had occurred (section 3). Additionally, the Act requires liquidators to give notice to the Commissioner of any costs, charges, and expenses incurred in the winding-up of a company, which may be paid out of the company's assets in priority to any tax payable in respect of the company (section 5(4)). There are several consequences for breaches of the Act. While the Act omits certain sub-sections related to offences and penalties, it maintains the provision that a prosecution in respect of any offence against specific sections of the Principal Act may be commenced at any time (section 7(2)). The exact nature of the offences and the associated penalties are not detailed in the provided text, but the ability to commence prosecution at any time implies that there are legal consequences for non-compliance with the Act's provisions.

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Liquidator to give notice

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.