SALES TAX EXEMPTIONS.
No. 32 of 1939.
An Act to amend the Sales Tax Exemptions Act 1935–1938 to exempt certain Defence Supplies and Plant and Building Materials for use in connexion with the manufacture of Defence Supplies.
[Assented to 26th September, 1939.]
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 Exemptions Act 1939.
(2.) The Sales Tax Exemptions Act 1935–1938, as amended by this Act, may be cited as the Sales Tax Exemptions Act 1935–1939.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Amendment of Schedule.
3. The Schedule to the Sales Tax Exemptions Act 1935–1938 is amended by inserting after item 74 a the following items:—
“74b.—(1) Materials for use in the construction, repair or alteration of buildings or other structures (being materials which are to be wrought into or attached to, so as to form part of, those buildings or other structures) which, under an agreement in writing between the Government of the Commonwealth and any person, are to be used by that person, for a period of not less than ten years, exclusively in or in connexion with the manufacture, processing, treatment or storage of munitions or other defence supplies to the order of the Government of the Commonwealth. | Nos. 1 to 9 |
(2) Plant, machinery and apparatus (and parts therefor) for use directly and exclusively in the manufacture, processing, treatment or storage of munitions or other defence supplies to the order of the Government of the Commonwealth under an agreement of the class specified in sub-item (1) of this item. | Nos. 1 to 9 |
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“ 74c. Uniforms and equipment for members of the Naval, Military and Air Forces of the Commonwealth and Cadet Units raised in connexion with those Forces, viz.— | |
(i) clothing, badges, accoutrements and kit for sale by a Department of the Government of the Commonwealth or by an authority which is completely controlled by and the expenditure of which is exclusively borne by the Government of the Commonwealth to members of those Forces or Units; (ii) clothing, badges, accoutrements and kit (specified in the approved scale of issues or Orders for Dress or otherwise specially approved by Defence authorities), n.e.i., for use as uniforms or parts of uniforms by any section of those Forces or Units or by any member of those Forces or Units including military pattern tunic shirts but not including other shirts, under-clothing, collars, ties, studs, sleeve-links, braces, socks, gloves, scarves, bathing costumes or trunks, jerseys, sweaters, pullovers, pyjamas and goods similar to or used in substitution for the goods specified in the abovementioned exceptions. | Nos. 1 to 9”. |
Operation of certain amendments.
4.—(1.) The amendments effected by section three of this Act, except in so far as they insert paragraph (i) of item 74c in the Schedule, shall apply to all transactions, acts or operations performed or entered into on or after the first day of October, One thousand nine hundred and thirty-eight.
(2.) The amendments effected by section three of this Act, in so far as they insert paragraph (i) of item 74c in the Schedule, shall apply to all transactions, acts or operations performed or entered into on or after the first day of October, One thousand nine hundred and thirty-two.
Overview
The Sales Tax Exemptions Act 1939 was enacted by the Commonwealth Parliament to amend the Sales Tax Exemptions Act 1935–1938, specifically to address the need for tax exemptions on certain defence-related materials and supplies in the context of impending military engagements. This Act was assented to on 26th September 1939, shortly before the outbreak of World War II, reflecting a policy objective to support the war effort by reducing the financial burden on the government and related entities involved in the manufacture and storage of defence supplies. The Act exempts materials used in the construction and machinery required for the production of munitions and other defence supplies, as well as uniforms and equipment for the Australian military forces, from sales tax under specific agreements with the Commonwealth Government.
Scope and Application
The Sales Tax Exemptions Act 1939 amends the Sales Tax Exemptions Act 1935–1938 to exempt certain defence supplies and related materials from sales tax. This Act applies to transactions, acts, or operations conducted on or after specific dates, as outlined within the Act itself. It extends to materials used in the construction, repair, or alteration of buildings or other structures for the exclusive manufacture, processing, treatment, or storage of munitions or other defence supplies ordered by the Commonwealth Government, as well as plant, machinery, and apparatus used directly in such activities. Additionally, it includes uniforms and equipment for members of the Naval, Military, and Air Forces of the Commonwealth and Cadet Units, provided they are supplied under specific conditions and agreements. The exemptions provided by this Act are jurisdictional within the Commonwealth of Australia and apply to all transactions as per the specified dates of operation for the various amendments.
Key Provisions
The main operative sections of the Sales Tax Exemptions Act 1939 (sections 1-4) outline the introduction and amendment of the Act. Specifically, section 1 provides the short title and citation for the Act, while section 2 confirms that the Act comes into operation upon receiving Royal Assent. Section 3 details the amendment of the Schedule to the Sales Tax Exemptions Act 1935-1938, introducing new items 74b and 74c, which pertain to defence supplies and materials. Section 4 sets out the effective dates for the application of these amendments, with certain provisions applying from 1 October 1938 and others from 1 October 1932.
The Act imposes several obligations and requirements on the parties or entities it governs. Firstly, the amendments require that materials and plant used in the manufacture or processing of defence supplies must be under an agreement with the Commonwealth Government and used exclusively for defence purposes for a period of at least ten years. Additionally, uniforms and equipment for the Naval, Military, and Air Forces, as well as Cadet Units, must adhere to the specifications outlined in the approved scale of issues or Orders for Dress, and must be procured through a Department of the Commonwealth or a controlled authority. These provisions ensure that the materials and equipment used for defence purposes are subject to strict oversight and usage criteria.
Any breach of the requirements set forth in the Sales Tax Exemptions Act 1939 may result in various consequences, including both civil and criminal penalties. While the Act does not explicitly detail the penalties, it is understood that failure to comply with the terms of the agreements and usage criteria could lead to legal action. The specific penalties would depend on the nature of the breach and any applicable laws governing such actions. However, it is clear that non-compliance with the provisions for defence supplies and materials could result in significant legal and financial repercussions for the parties involved.
In summary, the Sales Tax Exemptions Act 1939 introduces amendments to the Sales Tax Exemptions Act 1935-1938, with specific focus on defence supplies and materials. The Act requires that materials and plant used in the manufacture or processing of defence supplies must adhere to strict usage criteria and be under an agreement with the Commonwealth Government. Additionally, uniforms and equipment for the Naval, Military, and Air Forces, as well as Cadet Units, must meet the specifications outlined in the approved scale of issues or Orders for Dress. Breaches of the Act's requirements may result in civil or criminal penalties, depending on the nature of the breach and any applicable laws.