SALES TAX (EXEMPTIONS AND CLASSIFICATIONS).
No. 5 of 1956.
An Act to amend the Sales Tax (Exemptions and Classifications) Act 1935–1954.
[Assented to 12th May, 1956.]
BE it enacted by the Queen’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 and Classifications) Act 1956.
(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1954 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Sales Tax (Exemptions and Classifications) Act 1935–1956.
Commencement.
2. This Act shall be deemed to have come into operation on the fifteenth day of March, One thousand nine hundred and fifty-six.
Classification of goods.
3. Section six b of the Principal Act is amended by omitting from sub-section (1.) the words “the Second or Third Schedule to this Act” and inserting in their stead the words “a Schedule to this Act other than the First Schedule”.
Second Schedule.
4. The Second Schedule to the Principal Act is amended—
(a) by omitting item 43; and
(b) by omitting item 48 and inserting in its stead the following item:—
“48 | Wireless receiving sets; television receiving sets; record players and pick-ups; combined wireless receiving sets and gramophones; combined television receiving sets and gramophones; combined wireless receiving sets and television receiving sets; combined wireless receiving sets, television receiving sets and gramophones”. |
Fourth and Fifth Schedules.
5. After the Third Schedule to the Principal Act the following Schedules are added:—
FOURTH SCHEDULE. Section 6b.
Item No. | Specification of Goods. |
1 | Motor vehicles of a kind used for commercial purposes (not being goods covered by item 1 in the Fifth Schedule to this Act), including prime movers and semi-trailers for attachment to prime movers |
2 | Motor cycles, auto-cycles and motor scooters, and side cars and side boxes for attachment to those goods |
3 | Parts and accessories (other than tyres and tubes) for goods covered by any item in this Schedule or by item 1 in the Fifth Schedule to this Act |
FIFTH SCHEDULE. Section 6b.
Item No. | Specification of Goods. |
1 | Motor cars designed primarily and principally for the transport of persons, including sedans, coupés, tourers, roadsters, racing cars, taxi-cabs, station waggons, estate cars, and vehicles similar in design to station waggons or estate cars, but not including panel vans, delivery vans, utilities, ambulances, hearses, jeeps, trucks, lorries or motor buses |
Overview
The Sales Tax (Exemptions and Classifications) Act 1956 was enacted by the Commonwealth Parliament to amend the Sales Tax (Exemptions and Classifications) Act 1935–1954. This amendment aimed to refine the classification of goods subject to sales tax, ensuring a more precise categorisation that aligns with contemporary commercial practices. The Act was designed to streamline the tax system, ensuring that the imposition of sales tax is both equitable and reflective of the evolving marketplace, particularly in relation to newly introduced technologies and commercial vehicles. By updating the schedules that list specific types of goods, the legislation provides a clearer framework for tax administration and compliance, thereby addressing the gap in the previous Act's classification system.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act 1956 applies to the classification and exemption of goods from sales tax under the Sales Tax (Exemptions and Classifications) Act 1935–1954. The Act primarily focuses on the classification of goods into different schedules, with specific amendments to the Principal Act concerning the exemption of certain items from sales tax. The legislation applies to goods specified in the various schedules, including motor vehicles, motorcycles, and electronic equipment such as wireless and television receiving sets. The jurisdictional reach of this Act is limited to the Commonwealth, as it amends a federal statute. The Act does not explicitly state any exclusions, but the classification of goods into specific schedules inherently excludes those not listed. The application of the Act can be further defined through subordinate instruments, which may provide additional detail or clarification on the implementation and enforcement of the classifications and exemptions outlined within the schedules.
Key Provisions
The Sales Tax (Exemptions and Classifications) Act 1956 (Act No. 5 of 1956) amends the Sales Tax (Exemptions and Classifications) Act 1935–1954 (the Principal Act) by introducing new classifications and specifications of goods subject to sales tax. Section 3 of the Act modifies section 6(b) of the Principal Act by altering the reference from the Second or Third Schedule to any Schedule other than the First Schedule. The Second Schedule is further amended by omitting item 43 and replacing item 48 with a detailed list of wireless and television receiving sets, record players, and combined devices.
Under this Act, various goods are classified to ensure they are appropriately taxed or exempted from sales tax. Section 4(a) removes item 43 from the Second Schedule, while Section 4(b) updates item 48 to include specific electronic devices such as wireless receiving sets, television receiving sets, and related equipment. The Act also introduces new Fourth and Fifth Schedules. The Fourth Schedule lists motor vehicles for commercial purposes, motorcycles, and their parts and accessories. The Fifth Schedule specifies motor cars primarily designed for the transport of persons, excluding certain commercial and utility vehicles.
The Act imposes clear obligations on the entities it governs. It mandates that goods specified in the amended and new schedules be appropriately classified for sales tax purposes. Businesses and individuals must ensure that the goods they trade fall within the correct category as defined in the schedules. Compliance involves correctly identifying and classifying the goods to avoid any legal repercussions. The obligation extends to maintaining accurate records and documentation to substantiate the classification of goods in case of an audit or inquiry.
Breach of the provisions of the Act can result in civil and criminal consequences. While the Act does not specify particular offences, general sales tax legislation often includes penalties for non-compliance, including fines and potential prosecution. The maximum penalties can vary, but they are typically determined by the severity of the breach and the intent behind it. Civil penalties might include financial penalties or demands for unpaid taxes, interest, and additional fees. Criminal penalties could involve fines or imprisonment, depending on the jurisdiction and the nature of the offence.