Sales Tax Assessment Act (No. 7) 1931

Legislation au C1931A00037 Not in force Act

Select Document

SALES TAX ASSESSMENT (No. 7).

No. 37 of 1931.

An Act to amend the Sales Tax Assessment Act (No. 7) 1930, as amended by the Sales Tax Assessment Act (No. 7a) 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. 7) 1931.

(2.) The Sales Tax Assessment Act (No. 7) 1930, as amended by the Sales Tax Assessment Act (No. 7a) 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. 7) 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 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 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.”.

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. 7) 1931 was enacted to address certain issues within the Sales Tax Assessment Act (No. 7) 1930, particularly in relation to the determination of the sale value of goods, rebates for certain sales, and amendments to exemptions and refunds of tax. Enacted by the Parliament of the Commonwealth of Australia, this Act aimed to refine and adjust the existing sales tax framework to ensure more accurate and equitable tax assessments and to provide certain reliefs to taxpayers. The primary objective was to introduce provisions that would better reflect the fair market value of goods when sold by retail, provide rebates for specific sales, and adjust the scope of tax exemptions and refunds to align with the evolving economic conditions of the time. The Act also sought to introduce changes to the schedule of goods to ensure that specific items and categories of goods were appropriately classified for tax purposes, thereby aiming to improve the administration and compliance of sales tax. By amending the Sales Tax Assessment Act (No. 7) 1930, this legislation aimed to address gaps and issues identified in the initial tax regime, ensuring it remained effective and fair for all taxpayers involved.

Scope and Application

The Sales Tax Assessment Act (No. 7) 1931 amends the Sales Tax Assessment Act (No. 7) 1930, introducing changes that primarily affect registered persons engaged in the retail sale of goods, including those selling goods to the Commonwealth or State governments for official use, exports, and specific goods exempt from sales tax. The amendments also provide for rebates on certain sales and clarify the conditions under which sales tax is payable. This Act applies to transactions involving goods sold by retail, including those sold to government entities for official use or for export, and modifies the definition of sale value to exclude sales tax but include customs duty for goods sold in bond. Exemptions are provided for certain goods, including those specified in the amended Schedule, which includes agricultural and horticultural seeds, fauna for public zoological gardens, and works of art intended for continuous public exhibition free of charge. The Act's provisions, except for those related to the amendment of the Schedule, came into effect on 11th July 1931. The Act’s scope and application may be further defined or extended through subordinate instruments, which are not detailed in the primary legislation but can provide additional rules or clarifications on the implementation of the Act.

Key Provisions

The Sales Tax Assessment Act (No. 7) 1931 amends the Sales Tax Assessment Act (No. 7) 1930, which is referred to as the Principal Act. The main provisions of the 1931 Act involve adjustments to the sale value of goods, the introduction of rebates, changes to exemptions, and modifications to refunds of tax. Section 2 of the Act amends the definition of the sale value of goods, introducing a proviso that allows for the fair market value to be adjusted if the Commissioner deems the return amount to be less than the fair market value (Section 2(a)). It also specifies that the sale value does not include any sales tax but does include customs duty for goods sold in bond (Section 2(b)). Section 3 introduces a rebate for registered persons who quoted their certificate before 11 July 1931, in the difference between the tax paid and what would have been paid at a 2.5% rate (Section 3). Section 4 replaces the exemptions section with new provisions, including sales to government entities for official use, goods for export, and specific goods listed in the Schedule (Section 4). Section 5 modifies the refund of tax provisions, allowing the Commissioner to refund tax if goods are written off as bad debts (Section 5). The Act imposes obligations on registered persons to ensure they quote their certificate when purchasing goods and to accurately report the sale value of goods. It requires the Commissioner to review returns and adjust sale values if necessary. Registered persons must also claim rebates for eligible sales and comply with the refund provisions if they write off goods as bad debts. The Act also obliges the Commissioner to make determinations regarding exemptions, such as sales to government entities and exports, and to manage refunds in accordance with the amended provisions. Breach of the provisions of this Act can lead to civil and criminal consequences. For instance, under-reporting the sale value of goods when a higher fair market value is applicable can lead to adjustments by the Commissioner and possible additional tax liabilities. Failure to claim eligible rebates may result in lost tax benefits. Non-compliance with refund provisions, such as falsely claiming bad debts, can lead to penalties. While the Act does not specify maximum penalties, it is subject to the broader legal framework of the time, which might have included fines or other sanctions for non-compliance.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Exemptions & Exclusions; Refunds of tax

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