Sales Tax Act (No. 10C) 1985
Act No. 46 of 1985 as amended
[Note: This Act was repealed by Act No. 101 of 2006 on 14 September 2006
For transitional and application provisions see Act No. 101, 2006, Schedule 6 (items 5–11)]
This compilation was prepared on 11 October 2000
taking into account amendments up to Act No. 140 of 1987
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]...........................
2 Commencement [see Note 1].......................
3 Incorporation of Assessment Act.....................
4 Interpretation.................................
5 Imposition of tax...............................
6 Deemed sales.................................
7 Rates of tax..................................
8 Tax other than duty of excise or customs.................
Notes
An Act to impose a tax, being neither a duty of excise nor a duty of customs, on the sale value of certain goods
1 Short title [see Note 1]
This Act may be cited as the Sales Tax Act (No. 10C) 1985.
2 Commencement [see Note 1]
This Act shall be deemed to have come into operation on the commencement of the Assessment Act.
3 Incorporation of Assessment Act
The Assessment Act is incorporated, and shall be read as one, with this Act.
4 Interpretation
(1) In this Act, Assessment Act means the Sales Tax Assessment Act (No. 10) 1985.
5 Imposition of tax
Sales tax is imposed, at the rates specified in section 7, upon the sale value of goods in Australia deemed by virtue of section 6 to be sold by a taxpayer on or after the commencement of this Act.
6 Deemed sales
(1) Where at any time:
(a) tax is paid or payable, or might reasonably be expected to become payable, by a person upon the sale value of goods under an Act providing for the assessment of sales tax; and
(b) an amount of royalty is paid in respect of the goods by any person;
then, for the purposes of this Act and the Assessment Act, but for no other purpose, the person referred to in paragraph (b) shall be deemed to sell the goods at that time.
(2) A person is deemed to sell goods at a particular time:
(a) whether or not an actual sale of the goods is or has been made by that person; and
(b) irrespective of the time at which any such actual sale is or has been made.
7 Rates of tax
The rates of the sales tax imposed by this Act upon the sale value of goods are the same as the respective rates of the tax referred to in paragraph 6(1)(a) in relation to the goods.
8 Tax other than duty of excise or customs
This Act does not impose sales tax to the extent that, in so doing, it would be:
(a) a law imposing duties of excise; or
(b) a law imposing duties of customs;
within the meaning of section 55 of the Constitution.
Notes to the Sales Tax Act (No. 10C) 1985
Note 1
The Sales Tax Act (No. 10C) 1985 as shown in this compilation comprises Act No. 46, 1985 amended as indicated in the Tables below.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Sales Tax Act (No. 10C) 1985 | 46, 1985 | 30 May 1985 | 10 May 1985 (see s. 2) | |
Sales Tax (Off‑shore Installations) Amendment Act 1987 | 140, 1987 | 18 Dec 1987 | Parts II‑IV (ss. 3‑8): 21 Jan 1987
Remainder: Royal Assent | S. 2(3) |
Table of Amendents
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4.................... | am. No. 140, 1987 |
Overview
The Sales Tax Act (No. 10C) 1985, enacted by the Parliament of Australia and amended on various occasions, was established to impose a sales tax on the sale value of certain goods within Australia, excluding duties of excise or customs. The Act was designed to fill a gap in the revenue system by ensuring a form of taxation on sales that was distinct from other types of taxes. The primary objective of the Act was to streamline the sales tax process by incorporating the Sales Tax Assessment Act (No. 10) 1985, thereby ensuring that sales tax was applied uniformly and effectively. The Sales Tax Act (No. 10C) 1985 was repealed by the Act No. 101 of 2006, which introduced a Goods and Services Tax (GST) system to replace the previous sales tax regime. Transitional provisions were included to manage the shift from the sales tax to the GST system.
Scope and Application
The Sales Tax Act (No. 10C) 1985 applies to the imposition of sales tax on the sale value of certain goods in Australia, with the tax rate being determined in accordance with the respective rates of the tax referred to in section 6(1)(a) in relation to the goods. This Act is designed to operate in conjunction with the Sales Tax Assessment Act (No. 10) 1985, which is incorporated into the Sales Tax Act, and together they form a cohesive legislative framework for the assessment and collection of sales tax. The Act applies to any person who is deemed to sell goods under section 6, whether or not an actual sale has been made, and irrespective of the time at which any such sale might occur. It is noteworthy that the Act explicitly excludes the imposition of sales tax to the extent that it would constitute a law imposing duties of excise or customs, thereby adhering to the constraints set by section 55 of the Constitution. Additionally, the application and enforcement of this Act may be extended or restricted through subordinate instruments, as deemed necessary by the relevant authorities.
Key Provisions
The Sales Tax Act (No. 10C) 1985 primarily imposes a sales tax on the sale value of certain goods in Australia. Section 5 specifies that sales tax is levied on goods sold by a taxpayer on or after the commencement of this Act, at the rates set out in section 7. Section 6 deals with deemed sales, stating that a person is considered to sell goods when tax is paid or payable on the sale value of those goods, and an amount of royalty is paid in respect of the goods. This applies regardless of whether an actual sale has occurred or the time of any such sale. Section 7 sets out the rates of sales tax, which align with the respective rates of tax under another Act as mentioned in section 6(1)(a). Finally, section 8 clarifies that this Act does not impose sales tax to the extent that it would constitute a law imposing duties of excise or customs, as defined by the Constitution.
The Act imposes several obligations on the parties it governs. Firstly, it mandates that taxpayers must account for sales tax on the sale value of goods, as deemed under section 6. Secondly, it requires the payment of sales tax at the rates specified in section 7. Additionally, the Act necessitates that any royalties paid in respect of goods must be reported, as these can trigger a deemed sale under section 6. Furthermore, taxpayers must ensure that their transactions comply with the constitutional limitations outlined in section 8, avoiding the imposition of duties of excise or customs.
Breaches of the Sales Tax Act (No. 10C) 1985 can result in various consequences. While the Act itself does not explicitly state penalties for non-compliance, associated legislation, such as the Assessment Act, may outline penalties for failing to comply with tax obligations. These penalties can include fines and, in severe cases, criminal charges for fraudulent behavior. The exact penalties and legal consequences are typically detailed in the Assessment Act, which is incorporated by reference in section 3 of this Act. It is important for taxpayers to adhere to all provisions to avoid these potential repercussions.