EXPLANATORY STATEMENT
ISSUED UNDER THE AUTHORITY OF THE MINISTER FOR THE ARTS, TOURISM AND TERRITORIES
A.C.T. Self-Government (Consequential Provisions) Act 1988
A.C.T. Self-Government (Consequential Provisions) Regulations (Amendment) 1989 No. 391
Subsection 31(1) of the A.C.T. Self-Government (Consequential Provisions) Act 1988 provides that the Governor-General may make regulations making provision (including provision by way of modifications of an Act) in relation to:
(a) any matter arising from, connected with or consequential upon the establishment of the Territory as a body politic under the Crown; or
(b) any matter arising from, connected with or consequential upon the conversion of a law into an enactment.
Subsection 31(2) provides that regulations made under section 31(1) may be expressed to commence on and from a date earlier than the making of the regulations not being a date earlier than Self-Government Day.
The Regulations provide for the modification of the Sales Tax (Exemptions and Classifications) Act 1935.
The purpose of the Regulations is to enable the Commonwealth to treat the ACT like the States and the Northern Territory for the purposes of the Sales Tax (Exemption and Classifications) Act 1935.
The details of the Regulations are as follows:
Regulation 1 provides that the Regulations shall be taken to have commenced on 11 May 1989, the date of Self-Government in the Australian Capital Territory.
Regulation 2 provides that the modifications to the Sales Tax (Exemptions and Classifications) Act 1935 are inserted in Schedule 1 of the ACT Self-Government (Consequential Provisions) Regulations.
The Schedule provides that Item 74 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act 1935 will be modified to provide that goods for official use (whether as goods or in some other form), and not for sale, by a department of the Government of the ACT, or an authority which is completely controlled by, and the expenditure of which is exclusively borne by, the Government of the ACT shall be exempt from sales tax, provided that, in the case of goods for the use of a department or an authority of the Government of the ACT, an arrangement has been made between the Governor-General and the Chief Minister of the ACT, for the collection and payment by the ACT of sales tax upon the sale value of goods sold by the Government of the ACT, and by every such authority established under the law of the ACT, in the conduct of an enterprise which, in the opinion of the Commissioner of Taxation, is a trading enterprise.
Overview
The A.C.T. Self-Government (Consequential Provisions) Act 1988 was enacted to address the legislative changes required as a result of the Australian Capital Territory's establishment as a self-governing body. This Act empowers the Governor-General to create regulations that modify existing laws to align with the new political status of the A.C.T. One such consequential regulation, introduced in 1989, was the A.C.T. Self-Government (Consequential Provisions) Regulations (Amendment) No. 391. This regulation, issued under the authority of the Minister for the Arts, Tourism and Territories, aims to amend the Sales Tax (Exemptions and Classifications) Act 1935 to ensure that the A.C.T. is treated similarly to other states and territories in terms of sales tax exemptions for government use. The objective of these amendments is to facilitate a smooth transition to self-government by addressing tax implications arising from the new political structure of the A.C.T.
Scope and Application
The A.C.T. Self-Government (Consequential Provisions) Regulations (Amendment) 1989 No. 391 apply to the Australian Capital Territory (ACT) and modify the Sales Tax (Exemptions and Classifications) Act 1935 in order to align the ACT with the States and the Northern Territory for sales tax purposes. These regulations are consequential upon the establishment of the ACT as a body politic under the Crown and its conversion of laws into enactments. They specifically address the exemption of certain goods from sales tax when used for official purposes by government departments or controlled authorities in the ACT, subject to an agreement for the collection and payment of sales tax by the ACT government. The regulations came into effect on 11 May 1989, the date of Self-Government in the ACT, and are implemented through the insertion of modifications in Schedule 1 of the regulations.
Key Provisions
The main operative sections of the A.C.T. Self-Government (Consequential Provisions) Regulations (Amendment) 1989 No. 391 pertain to the modification of the Sales Tax (Exemptions and Classifications) Act 1935 to reflect the establishment of the Australian Capital Territory (A.C.T.) as a body politic under the Crown (Regulation 2). Specifically, these Regulations modify Item 74 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act 1935, ensuring that goods for official use by the A.C.T. Government or its controlled authorities are exempt from sales tax, provided there is an arrangement between the Governor-General and the Chief Minister for the collection and payment of sales tax on goods sold by the A.C.T. Government and its authorities in the conduct of trading enterprises (Schedule 1).
These Regulations impose specific obligations on the Government of the A.C.T., as well as any authorities completely controlled by and exclusively financed by the A.C.T. Government. They must ensure that an arrangement is in place with the Governor-General and the Chief Minister to collect and pay sales tax on the sale value of goods sold by the A.C.T. Government and its authorities when these goods are used in trading enterprises, as determined by the Commissioner of Taxation. This arrangement is crucial for maintaining the exemption from sales tax for goods designated for official use.
Failure to comply with these provisions could result in significant consequences. While the Explanatory Statement does not explicitly detail the penalties or consequences for non-compliance, it is reasonable to infer that breaches of sales tax regulations could lead to financial penalties, legal action, or other enforcement measures under the Sales Tax (Exemptions and Classifications) Act 1935. These consequences could include fines, interest on unpaid tax, and potential legal costs associated with any resulting litigation. The exact penalties would be governed by the provisions of the Sales Tax (Exemptions and Classifications) Act 1935, which could include fines and interest on unpaid tax.