Sales Tax Assessment Act (No. 5) 1963

Legislation au C1963A00045 Not in force Act

Select Document

SALES TAX ASSESSMENT (No. 5).

No. 45 of 1963.

An Act to amend the Sales Tax Assessment Act (No. 5) 1930–1953.

[Assented to 20th September, 1963.]

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 Assessment Act (No. 5) 1963.

(2.) The Sales Tax Assessment Act (No. 5) 1930–1953 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. 5) 1930–1963.

Commencement.

2.—(1.) Subject to this section, this Act shall be deemed to have come into operation on the fourteenth day of August, One thousand nine hundred and sixty-three.

(2.) Section seven of this Act shall come into operation on the day on which the Customs Act 1963 receives the Royal Assent.

(3.) Section eight of this Act shall be deemed to have come into operation on the first day of January, One thousand nine hundred and sixty-three.

Parts.

3. Section two of the Principal Act is amended by omitting the words—

“Part VI.—Miscellaneous.”.

4. Section two a of the Principal Act is repealed and the following section inserted in its stead:—

Definitions.

“2a. In this Act, unless the contrary intention appears—

‘a Collector’ means the Collector of Customs or any person doing duty under the Commonwealth in the matter in relation to which the expression is used;

‘the Collector of Customs’, in relation to goods imported into Australia, means the Collector of Customs or

other principal officer of Customs for the State or Territory of the Commonwealth into which the goods are imported;

‘the Comptroller’ means the Comptroller-General of Customs.”.

Sale value of imported goods.

5. Section four of the Principal Act is amended—

(a) by omitting the second proviso to sub-section (2.); and

(b) by adding at the end thereof the following sub-sections:—

“(3.) Notwithstanding the preceding provisions of this section, where goods that have been exported from Australia for repair after having been imported into Australia and entered for home consumption under the Customs Act 1901, or under that Act as amended, are subsequently re-imported into Australia, the sale value of the goods upon re-importation is an amount equal to—

(a) where duty of Customs is payable on the goods according to the value of the repairs—the sum of the amount of that duty and the amount of the value of the repairs ascertained for the purpose of calculating the amount of that duty; or

(b) in any other case—the amount at which, in the opinion of the Commissioner, the repairs would, if duty of Customs were payable on the goods according to the value of the repairs, be valued, for the purpose of calculating the amount of that duty.

“(4.) The last preceding sub-section does not apply in relation to goods in respect of which, by reason of section six a or six b of this Act, sales tax was not payable at the time of the original entry for home consumption and had not become payable before they were exported from Australia for repair.”.

Delivery of goods upon giving of security or undertaking for payment of tax.

6. Section six a of the Principal Act is amended by omitting from paragraph (b) of sub-section (3.) the words “Minister of State for Trade and Customs” and inserting in their stead the words “Minister of State for Customs and Excise”.

7. After section six a of the Principal Act the following section is inserted in Part II.:—

Delivery of goods on the giving of a general security or undertaking for payment of tax.

“6b.—(1.) The regulations may provide that—

(a) goods of a specified class;

(b) goods imported by persons of a specified class;

(d) goods imported for a specified purpose,

may, in accordance with this section, be brought into Australia on a temporary basis without payment of sales tax.

“(2.) The Comptroller may accept a security given by a person for the payment of, or an undertaking by a person to pay, any sales tax that may become payable on goods to which the security or undertaking relates, being goods in relation to which regulations under the last preceding sub-section apply, that may be imported after a particular date or during a particular period and, where the Comptroller has accepted such security or undertaking, a Collector may grant to a person who imports goods to which the security or undertaking relates permission to take delivery of those goods without payment of sales tax.

“(3.) Goods delivered under this section shall, for the purposes of this Act, be deemed to be entered on being so delivered.

“(4.) The regulations may prohibit a person to whom goods are delivered under this section from dealing with the goods in a manner, or in a manner other than a manner, specified in the regulations, or from so dealing with the goods except with the consent of the Comptroller.

“(5.) Sales tax is not payable in respect of goods delivered under this section unless—

(a) the goods have been dealt with in contravention of the regulations; or

(b) the goods are not exported within such period, not exceeding twelve months, after the date on which the goods were imported as is notified to the person who imported the goods by the Collector when he grants permission to take delivery of the goods, or within such further period as the Minister of State for Customs and Excise, or a person to whom that Minister has delegated powers under section one hundred and sixty-two a of the Customs Act 1901—1963, on the application of the person who imported the goods and of the person who gave the security or undertaking with respect to the goods, allows.

“(6.) Where security under this section is given by way of a payment of money or a deposit of an instrument transferable by delivery, the money shall not be repaid or the instrument shall not be returned, unless no sales tax is, or may become, payable in respect of any goods to which the security relates that have been imported.

“(7.) Where goods have been dealt with in contravention of the regulations or goods are not exported from Australia within the period notified under paragraph (b) of sub-section (5.) of this section or within such further period as is allowed under that paragraph, a security in respect of the goods may be enforced according to its tenor or, where an undertaking to pay the amount of the sales tax on the goods has been given, that amount may be recovered at any time in a court of competent jurisdiction by proceedings in the name of the Comptroller or of the Collector of Customs.

“(8.) The provisions of the Customs Act 1901–1963 (including regulations made under that Act) relating to securities apply in relation to a security under this section as if that security were a Customs security required to be given under that Act.”.

8. After section eleven a of the Principal Act the following section is inserted in Part IV.:—

Refunds of lax on rejected goods.

“11b. Where—

(a) sales tax has been paid in respect of goods that have been imported in pursuance of a contract of sale;

(b) the importer refuses to accept the goods under the contract on the ground that they are not in accordance with the terms of the contract;

(d) the Commissioner is satisfied—

(i) where duty of Customs has been paid or is payable on the goods—that that duty has been, or will be, refunded or remitted by reason of the destruction of the goods; or

(ii) where no duty of Customs was payable upon the importation of the goods—that, if duty of Customs had been paid on the importation of the goods, that duty would have been refunded by reason of the destruction of the goods,

and that the sales tax paid in respect of the goods has not been passed on by the taxpayer to some other person or. if passed on to some other person, has been refunded to that person,

the Commissioner may refund the sales tax so paid.”.

Application of provisions of Sales Tax Assessment Act (No. 1).

9. Section twelve of the Principal Act is amended by omitting paragraph (a) of sub-section (1.).

Repeal of Part VI.

10. Part VI. of the Principal Act is repealed.

Overview

The Sales Tax Assessment Act (No. 5) 1963 was enacted to amend the Sales Tax Assessment Act (No. 5) 1930–1953 and address specific issues related to the valuation and assessment of sales tax on imported goods. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and received Royal Assent on 20th September 1963. The primary objective of this legislation is to refine the assessment process for sales tax on imported goods, particularly in cases where such goods are exported for repair and subsequently re-imported. It also provides mechanisms for the delivery of goods under certain conditions, allowing for temporary importation without the immediate payment of sales tax, and establishes provisions for refunds of sales tax on rejected goods. By introducing these amendments, the Act aims to ensure more accurate and fair assessments of sales tax on imported goods, thereby enhancing the efficiency and effectiveness of the tax collection process.

Scope and Application

The Sales Tax Assessment Act (No. 5) 1930–1963 amends the Sales Tax Assessment Act (No. 5) 1930–1953 and is applicable to goods that are imported into Australia, whether by the Collector of Customs or another authorised officer. The Act applies to various classes of imported goods, including those brought in by specific classes of persons or for particular purposes, and it governs the conditions under which such goods can be imported on a temporary basis without the immediate payment of sales tax. The Act also regulates the conditions for the delivery of goods upon the provision of a security or undertaking for the payment of tax, and it specifies the circumstances under which sales tax may be refunded for rejected goods. The Act applies across the Commonwealth of Australia and its provisions can be extended or modified through subordinate legislation. Exclusions from the Act's application are outlined within the provisions themselves, particularly regarding the sale value of re-imported goods that have been repaired overseas and certain instances where sales tax was not payable at the time of original entry for home consumption.

Key Provisions

The Sales Tax Assessment Act (No. 5) 1963 makes several key amendments to the Sales Tax Assessment Act (No. 5) 1930–1953. Section 5 of the 1963 Act introduces new provisions for determining the sale value of imported goods that have been repaired abroad and re-imported into Australia. Specifically, the sale value is calculated by adding the duty of Customs payable on the goods according to the value of the repairs, or by estimating the value of the repairs if duty is not payable (Section 5(3)). However, this rule does not apply to goods for which sales tax was not payable at the time of the original entry for home consumption and had not become payable before export (Section 5(4)). Section 6 of the 1963 Act modifies the conditions under which goods may be delivered without immediate payment of sales tax. It allows the Comptroller to accept a security or undertaking for the payment of sales tax on specified classes of goods, imported by specified classes of persons, or imported for specified purposes (Section 6b(1)). Goods can be imported temporarily under this arrangement, and sales tax will only become payable if the goods are not exported within a specified period or if they are dealt with in contravention of regulations (Section 6b(5)). If the conditions are not met, the security can be enforced (Section 6b(7)). Under Section 11b of the 1963 Act, the Commissioner may refund sales tax paid on goods that are rejected by the importer and subsequently destroyed under the supervision of a Collector, provided certain conditions are met, such as the refund or remission of Customs duty (Section 11b). The Act also makes technical amendments, such as updating references to the Comptroller-General of Customs and inserting new definitions (Section 2a). Additionally, it repeals certain sections and parts of the Principal Act, including Part VI, which dealt with miscellaneous provisions (Section 10). Regarding penalties, the Act does not explicitly state penalties for breach of its provisions. However, enforcement of securities and recovery of unpaid sales tax are addressed under Sections 6b(7) and 6b(8), implying that failure to comply with the conditions for the temporary importation of goods without sales tax could result in financial penalties or legal action.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Compliance Obligations; Enforcement Powers; Regulatory Standards

Interactions

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.

Legislation content

Overview

Scope and Application

Key Provisions

Legal classification tags

Interactions

Authorises

All Versions