Sales Tax Assessment Act (No. 3) 1931

Legislation au C1931A00029 Not in force Act

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SALES TAX ASSESSMENT (No. 3).

 

No. 29 of 1931.

An Act to amend the Sales Tax Assessment Act (No. 3) 1930, as amended by the Sales Tax Assessment Act (No. 3a) 1930.

[Assented to 10th August, 1931.]

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. 3) 1831.

(2.) The Sales Tax Assessment Act (No. 3) 1930, as amended by the Sales Tax Assessment Act (No. 3a) 1930, 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 Assessment Act (No. 3) 1930-1931.

Sale value of goods.

2. Section four of the Principal Act is amended—

(a) by adding at the end of sub-section (1.) the following proviso:—

“Provided that where goods are sold by retail by a registered person who has quoted his certificate when purchasing the goods the sale value of the goods shall be the amount which would be the fair market value of those goods if sold by him by wholesale, but if the Commissioner is of opinion that the amount set forth in any return by the registered person as the sale value of any such goods is less than the amount which would be their fair market value if sold by wholesale, the


Commissioner may alter the amount set forth in the return to the amount which, in his opinion, would be the fair market value of the goods if sold by wholesale, and the amount as so altered shall be the sale value of the goods for the purposes of this Act.”; and

(b) by omitting sub-section (3.) and inserting in its stead the following sub-section:—

“(3.) For the purposes of this section, the sale value of goods shall not be taken to include any amount payable in respect of sales tax, but, when the goods are sold in bond, the sale value shall be taken to include the amount of any duty of Excise to which the goods would be subject if entered for home consumption at the time at which they are sold.”.

Rebates.

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

“5a. Where a registered person has quoted his certificate in respect of goods purchased by him prior to the eleventh day of July, One thousand nine hundred and thirty-one, he shall be entitled, in respect of any sale of those goods by retail made by him on or after that date, to a rebate of tax of the difference between the amount of tax payable by him in respect of that sale and the amount of tax which would have been payable if the rate of tax payable in respect of such sale had been two and one-half per centum of the sale value of the goods.”.

Exemptions.

4. Section six of the Principal Act is amended—

(a) by omitting the words “the last preceding section” and inserting in their stead the words “section five of this Act”; and

(b) by inserting, after the words “sale value of—”, the following paragraph:—

“(aa) goods sold to the Government of the Commonwealth or the Government of a State, where the Commissioner is satisfied that the goods are for the official use of a Government Department, or of an authority which is completely controlled by, and the expenditure of which is exclusively borne by, the Government, and are not for re-sale, and, in the case of goods sold to the Government of a State, an arrangement has been made between the Governor-General and the Governor-in-Council of the State for the collection and payment by the State of sales tax upon the sale value of all goods sold by the Government of the State, and by every such authority established under the law of the State, in the conduct of an enterprise which, in the opinion of the Commissioner, is a trading enterprise;”.


Refunds of tax.

5. Section eleven of the Principal Act is amended by omitting from sub-section (2.) the portion commencing with the word “Where” and ending with the words “to be a bad debt”, and inserting in its stead the words:—

“Where a registered person has sold goods upon the sale value of which he has paid tax, and has subsequently written off as a bad debt the whole or any part of the amount for which the goods were sold, the Commissioner may—

(a) on proof to his satisfaction that the whole amount is a bad debt—refund to the registered person the amount of tax paid on the sale value of the goods;

(b) on proof to his satisfaction that a part of the amount is a bad debt—refund to the registered person so much of the tax as bears to the total amount of tax the same proportion as the amount so proved to be a bad debt bears to the total amount for which the goods were sold”.

Amendment of Schedule.

6. The Schedule to the Principal Act is amended—

(a) by inserting at the commencement of the list of goods contained therein the items—

“Australian timber to be used in connexion with mining operations;

“Australian wine;”;

(b) by inserting, before the item commencing with the word “Boxes”, the item “Bibles and Scripture portions;”;

(c) by inserting, before the item “Cheese”, the item “Charcoal, coke, firewood and kerosene for all purposes;”;

(d) by inserting, after the item “Cream”, the items—

“Crude oil and fuel oils for use in the production of power;

“Crude tar sold as a fuel to a registered-manufacturer for use by him as a fuel;”;

(e) by inserting, after the item “Electric current for lighting or power”, the item—

“Fauna for public zoological gardens;”;

(f) by inserting, after the item “Fertilizers and raw materials for use in the manufacture of fertilizers”, the item—

“Flotation reagents sold to a person engaged in the mining industry for use in that industry;”;

(g) by omitting the words”, pollard and semolina” and inserting in their stead the words “and pollard”;

(h) by inserting, at the end of the item commencing with the word “Milk”, the words “,or any food containing not less than ninety-five per centum of milk or milk powder”;

(i) by inserting, before the item “Meat, raw”, the item—

“Hydraulic power;”;


(j) by inserting, after the item “Meat, raw”, the item “Metal, blast furnace slag, gravel and sand for road-making sold to any public authority charged with responsibility for the formation or maintenance of public roads;”;

(k) by omitting the item “Pastry but not including cakes or biscuits” and inserting in its stead the item—

“Pastry, scones, bread sandwiches, buns, Milk Arrowroot biscuits, Baby Rice biscuits and Baby Rusks, but not including other biscuits and not including cakes;”;

(l) by inserting, after the item “Petrol”, the items—

“Power alcohol produced in Australia and mixtures produced in Australia of petrol and power alcohol;

“Ships and power-driven vessels of over 1,000 tons gross register;”; and

(m) by adding at the end thereof the item—

“Works of art intended for continuous public exhibition free of charge.”.

Commencement.

7. This Act shall be deemed to have commenced on the eleventh day of July One thousand nine hundred and thirty-one.

 

Overview

The Sales Tax Assessment Act (No. 3) 1931, enacted by the Australian Parliament, amends the Sales Tax Assessment Act (No. 3) 1930 to address issues surrounding the assessment of sales tax. The Act aims to ensure accurate and fair valuation of goods sold by retailers, provide rebates to registered persons for certain sales, exempt certain government purchases from sales tax, and modify the process for refunds of tax where goods are written off as bad debts. It also updates the list of goods subject to sales tax and adjusts certain provisions to reflect changes in economic conditions and tax policy. This legislative update seeks to streamline tax assessments and provide clarity and relief to taxpayers in various sectors. The amendments introduced by this Act include changes to the sale value of goods, allowing the Commissioner to adjust the sale value if it is deemed less than the fair market value, and clarifying the exclusion of sales tax from the sale value. It introduces rebates for registered persons on sales made after a certain date, expands exemptions for government purchases, and modifies the refund process for tax paid on goods written off as bad debts. The Act also revises the schedule of goods subject to sales tax, adding and omitting various items to better align with contemporary economic activities and needs. This Act was designed to provide a more equitable and efficient framework for sales tax assessment in Australia.

Scope and Application

The Sales Tax Assessment Act (No. 3) 1931 applies to registered persons who engage in the sale of goods and provides specific amendments to the Sales Tax Assessment Act (No. 3) 1930, as previously amended. This Act impacts registered entities involved in retail sales, including those who have quoted their certificates when purchasing goods. It defines the sale value of goods in certain circumstances, provides rebates on tax for goods purchased before 11 July 1931, and allows for exemptions for sales to government entities for official use, provided certain conditions are met. Additionally, the Act details procedures for refunds of tax in cases where goods sold are written off as bad debts. The amendments also modify the schedule of goods subject to sales tax, adding and omitting specific items to reflect changes in the economic environment or tax policy. This Act applies on a national level across Australia, as it is enacted by the Commonwealth of Australia.

Key Provisions

The Sales Tax Assessment Act (No. 3) 1931 amends the Sales Tax Assessment Act (No. 3) 1930, as previously amended, introducing several key provisions. Section 2 modifies the definition of the sale value of goods, ensuring that the sale value for goods sold by retail by a registered person who has quoted their certificate is the fair market value if sold wholesale (subsection (1)). It also clarifies that the sale value does not include any amount payable in respect of sales tax, except when goods are sold in bond, where the sale value includes the amount of any duty of Excise (subsection (3)). Section 3 introduces a rebate for registered persons who have quoted their certificate in respect of goods purchased before 11 July 1931, entitled to a tax rebate for any retail sale made on or after that date, based on the difference between the tax payable and what it would have been at a 2.5% rate (section 5a). Section 4 amends the exemptions by clarifying that goods sold to the Government of the Commonwealth or a State for official use by a government department or controlled authority are exempt from sales tax, provided certain conditions are met (subsection (1)(aa)). Finally, section 5 revises the provisions for refunds of tax, allowing the Commissioner to refund tax paid on goods that have been written off as bad debts, based on the proportion of the bad debt to the total sale amount (subsection (2)). The Act imposes specific obligations on registered persons, primarily concerning the calculation and reporting of the sale value of goods, the application for rebates, and the eligibility criteria for tax exemptions. Registered persons must ensure that the sale value of goods reflects the fair market value when sold by wholesale, particularly if they have quoted their certificate (section 2(1)). They must also accurately report any rebates they are entitled to under the new section 5a (section 3). Additionally, when claiming exemptions for sales to government entities, registered persons need to provide satisfactory proof that the goods meet the specified criteria (section 4(1)(aa)). Registered persons also have the obligation to seek refunds of tax paid on goods written off as bad debts, providing the necessary proof to the Commissioner (section 5(2)). Violations of the provisions in the Sales Tax Assessment Act (No. 3) 1931 can lead to civil or administrative penalties. For instance, if a registered person fails to accurately report the sale value of goods or does not correctly apply for rebates, they may face penalties as prescribed by the Principal Act. Additionally, incorrect claims for tax exemptions could result in the imposition of additional tax liabilities and interest. The specific penalties are detailed in the Principal Act, which the amended Act references and incorporates. The Act does not explicitly state criminal penalties but implies that severe or repeated breaches could lead to criminal charges under related tax legislation.

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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.