Sales Tax (Exemptions and Classifications)
No. 78 of 1970
An Act relating to Sales Tax Exemptions and Classifications.
[Assented to 21 October 1970]
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 1970.
(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1967 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 1935–1970.
Commencement.
2.—(1.) Subject to the next three succeeding sub-sections, this Act shall come into operation on the day on which it receives the Royal Assent.
(2.) Section 3 of this Act shall be deemed to have come into operation on the twentieth day of August, One thousand nine hundred and seventy.
(3.) Section 4 of this Act shall come into operation on the day on which the Anglo-Australian Telescope Agreement Act 1970 comes into operation.
(4.) Sections 5 and 7 of this Act shall be deemed to have come into operation on the first day of October, One thousand nine hundred and sixty-nine.
First Schedule—items 74m and 74n.
3. The First Schedule to the Principal Act is amended by omitting items 74m and 74n.
First Schedule—new item 74q.
4. The First Schedule to the Principal Act is amended by inserting after item 74p the following item:—
“74q. Goods for use (whether as goods or in some other form), and not for sale, by the Anglo-Australian Telescope Board | Nos. 1 to 9”. |
First Schedule—item 114.
5. The First Schedule to the Principal Act is amended by omitting sub-item (2) of item 114 and inserting in its stead the following sub-item:—
“(2) Goods contained in the personal baggage of a passenger in a ship or aircraft, being goods in respect of which no duty of Customs is payable but not being goods that, to the knowledge or belief of the passenger, are intended to be sold, or used in the course of trading, in Australia | No. 5”. |
First Schedule—new items 115a and 115b.
6. The First Schedule to the Principal Act is amended by inserting after item 115 the following items:—
“115a. Motor vehicles for use by members of the armed forces of the Government of Canada serving in Australia, in such cases or circumstances as are prescribed | Nos. 1 to 3 |
“115b. Motor vehicles for use by members of the armed forces of the Government of New Zealand serving in Australia, in such cases or circumstances as are prescribed | Nos. 1 to 3”. |
First Schedule—item 134.
7. The First Schedule to the Principal Act is amended by omitting from item 134 the words “section 129 of the Customs Act 1901–1960” and inserting in their stead the words “section 130 of the Customs Act 1901–1968”.
Overview
The Sales Tax (Exemptions and Classifications) Act 1970 was enacted to provide amendments to the Sales Tax (Exemptions and Classifications) Act 1935–1967, addressing gaps in the tax exemption and classification framework. The Act was enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, with the objective of refining and updating the sales tax system to better accommodate certain specific items and services. The Act modifies the Principal Act by amending the First Schedule to remove and add certain items, including exemptions for goods used by the Anglo-Australian Telescope Board and adjustments to the classification of goods in personal baggage. Additionally, it introduces new exemptions for motor vehicles used by members of the armed forces of Canada and New Zealand serving in Australia.
The Act’s amendments aim to ensure that the sales tax system remains fair and consistent with the evolving economic and international relationships, particularly in areas such as scientific cooperation and military engagements. The specified commencement dates for various sections of the Act reflect a phased implementation, aligning with related legislative changes and practical operational requirements.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act 1970 provides specific exemptions and classifications related to sales tax within the Commonwealth of Australia. This Act applies to a range of entities and transactions by detailing specific exemptions and classifications that are outlined in the First Schedule. These include goods intended for use by certain international armed forces, such as those from Canada and New Zealand, as well as goods contained in the personal baggage of passengers, provided they are not intended for sale or use in trading within Australia. The geographic reach of this Act is limited to the Commonwealth of Australia, applying national standards and exemptions for sales tax purposes. Additionally, the Act allows for further clarification and specification through subordinate instruments, thereby extending or restricting its application as necessary. The Act also makes amendments to the Principal Act, reflecting changes in relevant legal frameworks such as the Customs Act.
Key Provisions
The Sales Tax (Exemptions and Classifications) Act 1970 establishes various exemptions and classifications for sales tax purposes, as outlined in its First Schedule (sections 3, 4, 5, 6, 7). For instance, the Act exempts goods intended for use by the Anglo-Australian Telescope Board from sales tax (item 74q). It also modifies the tax treatment of goods in personal baggage to exempt those not intended for sale or use in trading within Australia (item 114). Additionally, it introduces exemptions for motor vehicles used by members of the armed forces of Canada and New Zealand serving in Australia (items 115a and 115b). The Act further updates the reference to the Customs Act 1901–1968 in item 134.
Under this Act, certain entities and individuals are subject to specific obligations. These include ensuring that any goods exempt from sales tax under the provisions of the Act are used strictly for the purposes outlined and not for commercial sale or trade within Australia. The Anglo-Australian Telescope Board and members of the armed forces of Canada and New Zealand must comply with any prescribed conditions regarding the use of motor vehicles exempt from sales tax. Furthermore, passengers must ensure that the goods in their personal baggage meet the criteria for exemption, particularly that they are not intended for sale or use in the course of trading.
Failure to comply with the provisions of this Act may result in various consequences. While the Act itself does not explicitly state offences or penalties, non-compliance could lead to sales tax being applied to exempted goods, resulting in additional costs or financial penalties. The Act may also allow for enforcement actions to be taken by tax authorities to rectify non-compliance, which could include fines or other civil or administrative penalties as stipulated by related tax legislation. The specific penalties would be determined in accordance with the broader tax laws applicable at the time.