Sales Tax Assessment Act (No. 7) 1932

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SALES TAX ASSESSMENT (No. 7).

No. 45 of 1932.

An Act to amend the Sales Tax Assessment Act (No. 7) 1930–1931.

[Assented to 5th October, 1932.]

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) 1932.

(2.) The Sales Tax Assessment Act (No. 7) 1930–1931 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) 1930–1932.

Sale value of goods.

2. Section four of the Principal Act is amended by inserting in sub-section (1.) after the word “person” (first occurring) the words “, or a person required to be registered”.

Rebates.

3. Section five a of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(2.) Where, upon the death or bankruptcy of the registered person to whom this section applies, or otherwise by devolution of the estate of that person, the ownership of goods purchased as specified in this section becomes vested in some other person, that other person shall, if he becomes liable to pay tax in respect of any sale by retail of those goods, be entitled to a rebate of that tax to the extent specified in this section.”.

Refunds of tax.

4. Section eleven of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(3.) Where goods are sold by any person to the Government of the Commonwealth or the Government of a State and the Commissioner is satisfied—

(a) that the goods are for the official use of a Government Department or of an authority specified in paragraph (a) of section six of this Act, and are not for re-sale, and, in the case of goods sold to the Government of a State, an arrangement of the kind specified in that paragraph has been made between the Governor-General and the Governor of the State,

(b) that tax has been paid or is payable under this Act in respect of some prior act, operation or transaction in relation to those goods, or goods used in, wrought into or attached to those goods,

(c) that the amount of that tax has been paid or is payable by the person who so sold the goods, or has been wholly or partly included in the price for which that person purchased those goods, or the goods used in, wrought into or attached to those goods, and

(d) that the amount of that tax has been excluded wholly or in part from the price for which the goods were sold by that person to the Government or Government Authority,

the Commissioner may refund or pay to that person the amount which, in the opinion of the Commissioner, was so excluded.

Amendment of Schedule.

5. The Schedule to the Principal Act is amended—

(a) by inserting after the item commencing with the words “Agricultural and horticultural” the items—

“Agricultural and other machinery and implements, viz.—

Chaff cutters and horse gears;

Chaff cutter knives;

Cheese presses;

Churns;

Combined corn shellers, huskers and baggers;

Corn shellers and corn huskers, and combined corn shellers and huskers;

Cotton gins;

Cream separators;

Cultivators;

Dairy coolers;

Discs for agricultural implements;

Drills—seed, grain and fertilizer;

Engines for use in farming and pastoral pursuits;

Farm tractors;

Fertilizer spreaders;

Field mowers;

Fire rakes and fire ploughs;

Fruit grading, sorting and cleansing machines;

Garden and field spraying machines and spray pumps;

Harrows;

Hay presses;

Hay rakes—horse-drawn, and hand-worked rakes and ploughs combined;

Hay tedders;

Lucerne bunchers;

Machines for planting seedlings;

Maize harvesters and maize binders;

Milking machines;

Pasteurizers and jacketed vats or jacketed tanks, and also enamelled vats or tanks not jacketed, including those fitted with agitators or stirrers, capable of use as pasteurizers or coolers or as storage receptacles;

Ploughs, plough shares, plough mouldboards, and mouldboard plates in the flat;

Potato planters, raisers, diggers and sorters;

Reapers and binders;

Reaper threshers and harvesters;

Seats, poles, swingle-bars, yokes and trees for agricultural machines;

Scarifiers;

Scoops for use in farming or pastoral pursuits;

Sheep-shearing machines;

Straw stackers;

Strippers and stripper harvesters;

Stump extractors and lifting jacks for use in farming or pastoral pursuits;

Sub-surface packers for agricultural purposes;

Threshing machines;

Wagons, drays and spring drays for use in farming or pastoral pursuits;

Wheat grading and pickling machines;

Winnowers and winnower forks (wood and steel);

Wool presses;

and parts thereof, not being parts of a kind that are ordinarily used for any other purposes;”

“Agricultural, horticultural and viticultural spraying and dusting materials, and preparations and materials to be used in the checking of noxious weeds, plant and seed insect pests and plant and seed diseases;”;

(b) by inserting after the item commencing with the word “Bags” the item—

“Bee-keepers’ equipment but not including articles ordinarily used for any other purpose;”;

“Binder twine;

Blow-fly traps;

Chemicals sold to a person engaged in the mining industry for use in the recovery of gold, silver or base metals by the flotation, cyaniding, electrolytic or similar processes;”;

(d) by inserting after the item commencing with the words “Crude oil” the items—

“Dips and washes for cattle or sheep;

Explosives sold to a person engaged in the mining industry for use in that industry;”;

(e) by omitting the item commencing with the word “Films”

and inserting in its stead the item—

“Films covered by 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 sold to a person engaged in the mining industry for use in that industry;”

and inserting in its stead the item—

“Fumigators for extermination of rabbits;”;

(g) by inserting after the item “Kerosene” the items—

“Lime for use in farming pursuits;

Machinery and parts thereof to be used in the mining industry;

Nets and netting for fishing and cotton for repair thereof;”;

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

“Poultry farmers’ equipment, viz., incubators, brooders, trap-nests, feeders, hoppers, fountains and waterers;

Preparations for use in the prevention, cure or eradication of diseases or pests in poultry, birds or live stock;

Rabbit poisons;

Rape seed for pasture purposes;

Sheet iron, galvanized—flat and corrugated;

Stockinette and hessian for use in the manufacture of meat wraps;”; and

(i) by inserting after the item “Tobacco” the items—

“Traps for rabbits and dingoes;

Water bore casings;

Water pipes (galvanized) not exceeding 3 inches in diameter, and galvanized pipe fittings therefor; windmills and towers, pumps, pump jacks, power pumping heads, pump valves, pump rods, pump rod joints, tank stands, tanks and troughing, and water sprinklers, for use in farming, pastoral or mining activities;

Wire netting, barbed wire and iron or steel wire of gauges 8 to 14; manufactured field wire fencing and gates, and fencing droppers and posts for wire fencing, which are ordinarily used in farming or pastoral pursuits;”.

Remission of tax on chaff bags.

6. Where any bags or sacks used for chaff and imported into Australia have been sold in Australia by a person other than the importer on or after the first day of August One thousand nine hundred and thirty and prior to the tenth day of July One thousand nine hundred and thirty-one—

(a) if sales tax has not been paid in respect of those sales—sales tax shall not be payable in respect thereof; or

(b) if sales tax has been paid in respect of those sales and the Commissioner is satisfied that the tax has not been passed on to or been paid by the user of the bags or, if so passed on and paid by the user of the bags, has been refunded to him by the person who paid the tax—the Commissioner may refund the tax to that person.

Commencement.

7.—(1.) The amendment effected by section five of this Act in respect of the goods specified in paragraph (e) of that section shall be deemed to have commenced on the tenth day of August, One thousand nine hundred and thirty-one.

(2.) The amendments effected by section five of this Act in respect of the items specified in paragraphs (a), (c), (d), (f), (g), (h) and (i) of that section shall be deemed to have commenced on the second day of September, One thousand nine hundred and thirty-two.

Overview

The Sales Tax Assessment Act (No. 7) 1932 was enacted to amend the Sales Tax Assessment Act (No. 7) 1930–1931. It was introduced to address issues and gaps in the existing sales tax framework, particularly in relation to rebates, refunds, and specific goods and materials subject to tax. This Act was passed by the King's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The policy objective of this legislation is to ensure clarity and fairness in the application of sales tax, particularly concerning the ownership of goods post-transfer and refunds to government entities or authorities for goods purchased for official use. The Act aims to provide a more comprehensive framework for sales tax administration by including specific items and materials in the tax schedule and addressing tax implications for goods transferred through inheritance or bankruptcy. The Sales Tax Assessment Act (No. 7) 1932 seeks to amend the existing legislation to improve the administration and application of sales tax, ensuring that the tax system is fair and effectively managed. By providing provisions for rebates and refunds, the Act aims to address instances where tax has been unjustly borne by the end user or government entities, thereby promoting a more equitable tax system.

Scope and Application

The Sales Tax Assessment Act (No. 7) 1932 amends the Sales Tax Assessment Act (No. 7) 1930–1931, introducing several changes to the taxation regime on sales of goods. This Act applies to individuals or entities that are required to be registered under the Principal Act, as well as those involved in the sale of specified goods. The amendments primarily focus on the sale value of goods, rebates for certain transactions, and refunds of tax for sales to government entities. Notably, the Act provides for rebates where ownership of goods vests in another person due to death, bankruptcy, or estate devolution, and allows for refunds of tax to entities that have already paid tax on goods sold to the government or government authorities for official use. The geographic and jurisdictional reach of this Act is national, applying across the Commonwealth of Australia. The Act also includes specific exclusions and modifications to the schedule of goods subject to sales tax, with certain items like agricultural machinery, chemicals, and mining equipment being either added or removed from the tax regime. The Act's provisions are designed to provide clarity and adjustments to the existing sales tax framework, with the amendments coming into effect on specified dates in 1931 and 1932.

Key Provisions

The Sales Tax Assessment (No. 7) Act 1932 amends the Sales Tax Assessment Act (No. 7) 1930-1931, which is referred to as the Principal Act. The 1932 Act modifies the sale value of goods (section 2), introduces rebates (section 3), provides for refunds of tax (section 4), and amends the schedule (section 5). It also provides a remission of tax on chaff bags (section 6) and specifies the commencement dates of these amendments (section 7). Section 2 of the 1932 Act amends section 4 of the Principal Act to include the phrase "or a person required to be registered" after the word "person" in subsection (1). This implies that the sale value of goods will now include those sold by registered persons. The obligations and requirements imposed by the Act include the registration of persons involved in the sale of specific goods, as outlined in the amended schedule. Section 3 introduces a rebate provision for goods purchased by a registered person, which can be claimed by the new owner if they become liable for tax upon the sale of those goods. This requires the new owner to provide evidence of the original purchase and subsequent liability for tax to claim the rebate. Section 4 allows for the refund of tax paid on goods sold to the Government of the Commonwealth or a State, provided certain conditions are met. This requires the seller to provide documentation proving that the goods were for official use, tax was paid on a prior transaction, and the tax amount was excluded from the selling price. Section 5 of the Act lists specific goods and items that are subject to sales tax or exempt from it, which includes machinery, chemicals, explosives, and other materials and equipment used in various industries. The Act also provides for the remission of tax on chaff bags sold between August 1, 1930, and July 10, 1931, by persons other than the importer, if the tax was not passed on to the user or if the user was refunded the tax by the seller. This requires the seller to provide evidence of the sale and tax payment to claim a refund. Breaches of the provisions in the Sales Tax Assessment (No. 7) Act 1932 may result in civil or criminal penalties. However, the specific penalties are not detailed within the text of the Act. It is likely that the Principal Act or related legislation would outline the penalties for non-compliance, which could include fines, imprisonment, or other legal consequences. It is important for parties and entities governed by this Act to ensure they comply with the obligations and requirements to avoid potential penalties.

Area of Law: Taxation Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Offence Provisions; Reporting & Disclosure Obligations

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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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