Sales Tax (Exemptions and Classifications) Act 1972

Legislation au C1972A00067 Not in force Act

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Sales Tax (Exemptions and Classifications)

No. 67 of 1972

An Act relating to the Exemption from Sales Tax of Goods for the Use of certain Representatives of Governments of Countries other than Australia.

[Assented to 31 August 1972]

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 1972.

(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1970 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 1935–1972.

Commencement.

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

Limitation on exemption from sales tax on imported goods for use by Trade Commissioners.

3. Section 5a of the Principal Act is amended—

(a) by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(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 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 1901–1971, intended for the use of the person and the Minister, by instrument in writing, declares that, in his opinion, the reasonable requirements of the person have adequately been met by the other goods.”; and

(b) by omitting paragraph (a) of sub-section (2.) and inserting in its stead the following paragraph:—

“(a) the person for whose use the goods are intended agrees that, if the goods are sold or otherwise disposed of in Australia or in a Territory of the Commonwealth not forming part of the Commonwealth within two years after the date of entry of the goods for home consumption under the Customs Act 1901–1971, he will pay to the Commonwealth an amount equal to so much (if any) as the Minister determines of the sales tax that, but for that item, would have been payable in respect of the goods; and”.

Limitation on exemption from sales tax on excisable goods for use by Trade Commissioners.

4. Section 5b of the Principal Act is amended—

(a) by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(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 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 person and the Minister, by instrument in writing, declares that, in his opinion, the reasonable requirements of the person have adequately been met by the other goods.”; and

(b) by omitting paragraph (a) of sub-section (2.) and inserting in its stead the following paragraph:—

“(a) the person for whose use the goods are intended agrees that, if the goods are sold or otherwise disposed of in


Australia or in a Territory of the Commonwealth not forming part of the Commonwealth 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 to the Commonwealth an amount equal to the sales tax that, but for that item, would have been payable in respect of the goods; and”.

First Schedule.

5. The First Schedule to the Principal Act is amended by omitting items 71 and 72 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 1901–1971, are intended for the official use of a Trade Commissioner in Australia of any country, being goods that—

(a) 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 Trade Commissioner; or

(b) 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 Trade Commissioner.

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 the official use of a Trade Commissioner in Australia of any country.

Nos. 1 to 3”.

 

Overview

The Sales Tax (Exemptions and Classifications) Act 1972 was enacted by the Commonwealth Parliament to amend the Sales Tax (Exemptions and Classifications) Act 1935–1970. This Act addresses the issue of sales tax exemptions for goods intended for the use of Trade Commissioners of foreign governments. It modifies the conditions under which certain goods can be exempt from sales tax if they are imported for the official use of a Trade Commissioner, particularly focusing on ensuring that the reasonable requirements of the Trade Commissioner have been met by other goods already imported. The policy objective appears to be to balance the need for certain tax exemptions with the requirement to prevent abuse of these exemptions by ensuring that they are only applicable when genuinely necessary.

Scope and Application

The Sales Tax (Exemptions and Classifications) Act 1972 applies specifically to certain imported and excisable goods intended for the official use of Trade Commissioners in Australia of countries other than Australia. This Act amends the Sales Tax (Exemptions and Classifications) Act 1935–1970 to refine the conditions under which these goods can be exempt from sales tax. The Act applies at the Commonwealth level and is effective from the date of Royal Assent. It modifies the exemption criteria by requiring that the Minister must declare, in writing, that the reasonable requirements of the Trade Commissioner have been met by other imported goods of the same or similar kind before the new goods can be exempt from sales tax. Additionally, the Act stipulates that if the goods are sold or otherwise disposed of within two years of entry for home consumption, the Trade Commissioner must agree to pay the sales tax that would have been due if the exemption had not applied. This Act does not explicitly mention any exclusions, exemptions, or thresholds other than those outlined in the amendments.

Key Provisions

The Sales Tax (Exemptions and Classifications) Act 1972 (C1972A00067) amends the Sales Tax (Exemptions and Classifications) Act 1935–1970, which is now referred to as the Principal Act. This Act, which came into operation on the day it received Royal Assent, primarily focuses on the exemption from sales tax of goods intended for the use of Trade Commissioners from countries other than Australia. Specifically, it modifies the Principal Act to limit the sales tax exemption for goods imported for Trade Commissioners. Section 5a of the Principal Act is amended to clarify that goods intended for a Trade Commissioner's use are exempt from sales tax only if the Minister determines that the Trade Commissioner's reasonable requirements have not been met by other similar goods already imported. Additionally, it stipulates that if the goods are sold or disposed of within two years of entry into Australia, the Trade Commissioner must pay a sales tax determined by the Minister. The Act imposes specific obligations on Trade Commissioners and the Minister. Trade Commissioners must agree to pay a sales tax if their goods are sold or disposed of within two years of entry into Australia, provided the Minister determines that their reasonable requirements were met by other similar goods already imported. The Minister, on the other hand, must make a written declaration that the Trade Commissioner's reasonable requirements have been met by other similar goods. This involves assessing whether the goods already imported are sufficient to meet the Trade Commissioner's needs. Furthermore, the Minister has the authority to determine the amount of sales tax payable if the goods are sold or disposed of within the stipulated period. Failure to comply with the requirements of this Act can lead to civil consequences. If a Trade Commissioner sells or disposes of the goods within the two-year period without paying the determined sales tax, they may be liable for the unpaid tax amount. The Act does not specify a maximum penalty for these breaches, but the consequences would typically involve financial penalties as determined by the Minister. The Act aims to ensure that Trade Commissioners do not unduly benefit from tax exemptions if their needs are already met by other goods.

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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.