Sales Tax Assessment Act (No. 6) 1931

Legislation au C1931A00035 Not in force Act

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SALES TAX ASSESSMENT (No. 6).

No. 35 of 1931.

An Act to amend the Sales Tax Assessment Act (No. 6) 1930, as amended by the Sales Tax Assessment Act (No. 6a) 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. 6) 1931.

(2.) The Sales Tax Assessment Act (No. 6) 1930, as amended by the Sales Tax Assessment Act (No. 6a) 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. 6) 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 importing 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 Customs to which the goods would be subject if entered for home consumption at the time at which they are sold.”.

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

Rebates.

“5a. Where a registered person has quoted his certificate in respect of goods imported 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.”.

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 Section six of the Principal Act is repealed and the following section inserted in its stead:—

Exemptions.

“6. Notwithstanding anything contained in section five of this Act, sales tax shall not be payable, under this Act by the person specified in that section upon the sale value of—

(a) 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;

(b) goods sold by him for export by the purchaser from him or exported by him for sale after export; or

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, before the first item of the list of goods contained therein, the following item:—

“Agricultural and horticultural seeds not covered by any item in the Customs Tariff 1921-1930;”;

(b) by omitting from the first item of the list of goods contained therein the word “and” (second occurring) and inserting in its stead the words “or chaff or”:

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

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

“Fauna for public zoological gardens;”;

(e) by inserting, after the word “Films”, the words “upon which duty has been paid under clause (b) of paragraph (2) of sub-item (c) of Item 320 of the Customs Tariff 1921-1930”;

(f) by omitting the item “Flotation reagents for mining purposes” and inserting in its stead the following items:—

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

“Goods imported from Norfolk Island;

“Kerosene;”;

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

“Stud live-stock as to which the Commissioner is satisfied that it has been imported solely for stud purposes;”; and

(h) by adding, at the end thereof, the item—

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

Commencement.

7. The amendments effected by this Act, except the amendment effected by paragraph (e) of section six, 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. 6) 1931 was enacted by the Parliament of the Commonwealth of Australia to address issues related to the assessment of sales tax on goods, particularly focusing on the sale value of goods, rebates, exemptions, and refunds of tax. The Act was designed to amend the Sales Tax Assessment Act (No. 6) 1930, as previously amended, to provide clearer definitions and provisions for the sale value of goods, introduce rebates for certain goods, modify exemptions from sales tax, and adjust the conditions under which refunds of tax could be granted. The legislative intent was to ensure that the assessment of sales tax was fair and accurately reflected the market value of goods, while also providing relief to certain taxpayers through rebates and exemptions.

Scope and Application

The Sales Tax Assessment Act (No. 6) 1931 applies to registered persons who engage in the sale of goods, particularly those who have quoted their certificate when importing goods for sale. The Act amends the Sales Tax Assessment Act (No. 6) 1930, as previously amended by the Sales Tax Assessment Act (No. 6a) 1930, to adjust the sale value of goods sold by retail, whereby the sale value of goods is considered to be the fair market value if sold by wholesale, with the Commissioner having the authority to adjust this value if it is deemed to be understated. Additionally, the Act provides for rebates on tax for goods imported prior to a specified date and outlines exemptions from sales tax for certain types of sales, such as those to government entities for official use, goods sold for export, and specified items listed in the schedule. The amendments made by this Act generally took effect from July 11, 1931, with the exception of certain amendments related to films, which were to be determined by the Commissioner. Geographically, the Act operates within the Commonwealth of Australia, impacting entities and individuals involved in the sale of goods within its jurisdiction. While the primary focus is on sales tax and the adjustments to sale values and rebates, the Act also specifies certain exclusions and exemptions, such as sales to government entities for official use, exports, and specific goods listed in the schedule. The Act does not explicitly extend or restrict its application through subordinate instruments but allows for interpretation and enforcement by the Commissioner in accordance with the legislative provisions.

Key Provisions

The Sales Tax Assessment (No. 6) Act 1931 amends the Sales Tax Assessment Act (No. 6) 1930 and the Sales Tax Assessment Act (No. 6a) 1930, collectively referred to as the Principal Act. The amended Act is referred to as the Sales Tax Assessment Act (No. 6) 1930-1931. Section 2 amends the definition of the sale value of goods, specifying that for retail sales by registered persons quoting their certificate upon importation, the sale value is determined as the fair market value if sold by wholesale. The Commissioner has the authority to adjust this value if it is deemed to be understated. This section also excludes sales tax amounts from the sale value, but includes any customs duties when goods are sold in bond. Section 5a introduces a tax rebate for registered persons who quoted their certificate before 11 July 1931, on retail sales of imported goods made after this date. Section 6 outlines exemptions from sales tax, including sales to government entities for official use, goods sold for export, and certain specified goods in the Schedule. Section 5 amends the refund provisions, allowing the Commissioner to refund tax paid on goods that are subsequently written off as bad debts. Section 6 makes changes to the Schedule, adding and omitting various items to clarify the types of goods subject to or exempt from sales tax. The Act imposes obligations on registered persons, particularly those involved in the import and sale of goods. These include accurately reporting the sale value of goods, providing evidence of their certificate when importing goods, and adhering to the specified exemptions and rebates. The Commissioner's role is pivotal, as they are responsible for determining the fair market value of goods, approving exemptions, and processing tax refunds for bad debts. Compliance with these provisions is mandatory, and failure to adhere to the stipulated requirements can result in legal consequences. The Act includes provisions for penalties and consequences for non-compliance. While specific penalties are not detailed within the text, breaches of the Act could potentially lead to fines or other legal actions as prescribed by the relevant authorities. The amendments, except those specified in section 6, are deemed to have commenced on 11 July 1931, marking the effective date for the changes introduced by this legislation.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations; Repeal & Amendment; Refunds of tax

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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.

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