Sales Tax (Exemptions and Classifications) Act 1967

Legislation au C1967A00021 Not in force Act

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Sales Tax (Exemptions and Classifications)

No. 21 of 1967

An Act relating to the Exemption from Sales Tax of Goods for the use of Governments of Countries other than Australia and for the use of certain Representatives of those Governments and their Staffs and Families.

[Assented to 12 May 1967]

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 (Exemptions and Classifications) Act 1967.

(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1966 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 (Exemptions and Classifications) Act 1935–1967.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

3. After section 5 of the Principal Act the following sections are inserted:—

Limitation on exemption from sales tax on imported goods for use by consuls, trade commissioners, &c.

“5a.—(1.) Item 71 in the First Schedule to this Act does not apply in respect of goods that are intended for the use of a consular post or person referred to in that item where any other goods of the same kind, or of a similar kind, that have been imported into Australia were, at the time when they were entered for home consumption under the Customs Act 1901-1966, intended for the use of the consular post or person and the Minister, by instrument in writing, declares that, in his opinion, the reasonable requirements of the consular post or person, as the case may be, have adequately been met by the other goods.


“(2.) Item 71 in the First Schedule to this Act does not apply in respect of goods unless—

(a) the person for whose use the goods are intended, or, if the goods are intended for the use of a consular post, the head of the post, agrees that, in the event of the goods being sold or otherwise disposed of in Australia within two years after the date of entry of the goods for home consumption under the Customs Act 1901–1966, he will, unless the Minister otherwise determines, pay an amount equal to the sales tax that, but for that item, would have been payable in respect of the goods; and

(b) where the person so entering into an agreement has previously entered into a similar agreement in relation to any other goods and has committed a breach of that last-mentioned agreement—the person complies with such conditions, if any, as the Minister, by instrument in writing, determines (which may include a condition that the person give security, satisfactory to the Minister, that he will comply with the first-mentioned agreement).

Limitation on exemption from sales tax on excisable goods for use by consuls, trade commissioners, &c.

“5b.—(1.) Item 72 in the First Schedule to this Act does not apply in respect of goods that are intended for the use of a consular post or person referred to in that item where any other goods of the same kind, or of a similar kind, that have been entered for home consumption under an Act relating to duties of excise were, at the time when they were so entered, intended for the use of the consular post or person and the Minister, by instrument in writing, declares that, in his opinion, the reasonable requirements of the consular post or person, as the case may be, have adequately been met by the other goods.

“(2.) Item 72 in the First Schedule to this Act does not apply in respect of any goods unless—

(a) the person for whose use the goods are intended, or, if the goods are intended for the use of a consular post, the head of the post, agrees that, in the event of the goods being sold or otherwise disposed of in Australia within two years after the date of entry of the goods for home consumption under an Act relating to duties of excise, he will, unless the Minister otherwise determines, pay an amount equal to the sales tax that, but for that item, would have been payable in respect of the goods; and

(b) where the person so entering into an agreement has previously entered into a similar agreement in relation to any other goods and has committed a breach of that


last-mentioned agreement—the person complies with such conditions, if any, as the Minister, by instrument in writing, determines (which may include a condition that the person give security, satisfactory to the Minister, that he will comply with the first-mentioned agreement).”.

First Schedule.

4. The First Schedule to the Principal Act is amended by omitting items 71, 71a, 72 and 72a and inserting in their stead the following items:—

“71. Goods that are imported and, at the time when they are entered for home consumption under the Customs Act 1901–1966, are intended for—

(a) the official use of a consular post in Australia of any country;

(b) the official use of a Trade Commissioner in Australia of any country; or

(c) the personal use of—

(i) the head of a consular post in Australia of any country;

(ii) a person, not being the head of such a post, who is entrusted in the capacity of a consular officer with the exercise of consular functions at such a post;

(iii) a person who is employed in the administrative or technical service of such a post; or

(iv) a member of the family of a person referred to in sub-paragraph (i) or sub-paragraph (ii) of this paragraph,

being goods that—

(d) are of a kind otherwise subject to duties of customs but are free from duties of customs by reason of their being intended for the use of that consular post or of that person; or

(e) are of a kind not subject to duties of customs but would, if they were of a kind so subject, be free from duties of customs by reason of their being intended for the use of that consular post or of that person

 

Nos. 5 to 7

 

“72. Goods that are of a kind otherwise subject to duties of excise but are free from duties of excise by reason of their being, at the time when they are entered for home consumption under an Act relating to duties of excise, intended for—

(a) the official use of a consular post in Australia of any country;

(b) the official use of a Trade Commissioner in Australia of any country; or

(c) the personal use of—

(i) the head of a consular post in Australia of any country or a person, not being the head of such a post, who is entrusted in the capacity of a consular officer with the exercise of consular functions at such a post; or

(ii) a member of the family of a person referred to in the last preceding sub-paragraph

 

Nos. 1 to 3

 

“72a. Goods intended for official use, and not for sale, by the Government of any country, other than goods intended for the official use of the diplomatic mission, of a consular post or of a Trade Commissioner in Australia of that country

 

Nos. 1 to 9”.

 

Overview

The Sales Tax (Exemptions and Classifications) Act 1967 was enacted to provide for the exemption from sales tax of goods for the use of governments of countries other than Australia and for the use of certain representatives of those governments and their staffs and families. This Act was introduced to address the issue of ensuring that goods intended for the use of consular posts, trade commissioners, and other officials and their families are not subjected to sales tax, subject to certain conditions. The Act was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The policy objective of this Act is to provide clarity and limitations on the exemption from sales tax for imported goods and excisable goods intended for the use of consular posts and other officials, ensuring that the reasonable requirements of these posts and officials are met without imposing unnecessary tax burdens.

Scope and Application

The Sales Tax (Exemptions and Classifications) Act 1967 pertains to the exemption from sales tax on goods intended for use by governments of countries other than Australia and certain representatives of those governments, including consular officers and their families. This Act applies to goods that are imported or otherwise subject to duties of customs or excise and are intended for the official use of a consular post, a Trade Commissioner, or the personal use of specified individuals associated with such posts. The Act's jurisdiction extends to the Commonwealth of Australia, and it modifies the Sales Tax (Exemptions and Classifications) Act 1935–1966 by inserting specific conditions under which exemptions from sales tax may be denied. Notably, the Act includes provisions for the Minister to declare that the reasonable requirements of a consular post or person have already been met if similar goods have been imported previously, thus limiting the exemption. Additionally, it stipulates that individuals or entities must agree to pay sales tax if the goods are sold or disposed of within two years of entry into Australia. The Act allows for further restrictions and conditions to be set by the Minister through written instruments.

Key Provisions

The Sales Tax (Exemptions and Classifications) Act 1967 (referred to as the Act) introduces specific provisions regarding the exemption from sales tax for goods intended for use by foreign governments and their representatives in Australia. Section 5a (subsections 1 and 2) provides that if goods intended for the use of a consular post or person are imported and other similar goods have already been imported and the Minister determines that the reasonable requirements of the consular post or person have been met by those goods, then the sales tax exemption will not apply to the new goods. Additionally, for the exemption to apply, the individual or entity intending to use the goods must agree to pay an amount equal to the sales tax if the goods are sold or otherwise disposed of within two years of entry into Australia. This section also applies to goods that are of a kind otherwise subject to duties of excise but are free from duties of excise for the same reasons (Section 5b, subsections 1 and 2). The Act imposes several obligations on the parties it governs. It requires the Minister to declare in writing that the reasonable requirements of a consular post or person have been met when considering the exemption from sales tax on imported goods (Section 5a(1)). Furthermore, individuals or entities intending to use goods that are exempt from sales tax must agree in writing to pay an amount equal to the sales tax if the goods are sold or otherwise disposed of within two years (Section 5a(2)(a)). If such an individual or entity has breached a previous agreement, they must comply with any conditions set by the Minister, which may include providing security to ensure compliance with the new agreement (Section 5a(2)(b)). The Act does not explicitly state any offences or penalties for breach of its provisions. However, any breach of the conditions set by the Minister under Section 5a(2)(b) may be subject to the general legal consequences of breaching a contract or agreement, such as the requirement to compensate the affected party for any losses incurred. The absence of specific penalties in the Act suggests that the primary focus is on ensuring compliance through the conditions set by the Minister rather than through punitive measures.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Exemptions & Exclusions
Compliance 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.