Sales Tax (Exemptions and Classifications) Act 1973
No. 17 of 1973
AN ACT
Relating to the Exemption from Sales Tax of Contraceptives, and of Parts and Accessories for the Metric Conversion of Equipment.
[Assented to 11 April 1973]
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title and citation.
1. (1) This Act may be cited as the Sales Tax (Exemptions and Classifications) Act 1973.
(2) The Sales Tax (Exemptions and Classifications) Act 1935–1972 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 1935–1973.
Commencement.
2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent.
(2) The amendment made by paragraph 3 b), in so far as it adds item 149 to the First Schedule to the Principal Act, shall be deemed to have had effect on and from 1st July, 1971.
(3) The amendments made by paragraph 3(a), by paragraph 3(b), in so far as it adds item 150 to the First Schedule to the Principal Act, and by section 4, shall be deemed to have had effect on and from 8th December, 1972.
First Schedule.
3. The First Schedule to the Principal Act is amended—
(a) by omitting from sub-item (16) of item 42 the words “, not being goods covered by item 62 in the Second Schedule to this Act”; and
(b) by adding at the end thereof the following items:—
“149. Goods that— | |
(a) are parts or accessories for equipment used or to be used exclusively, or primarily and principally, for business or industrial purposes; and | |
(b) are to be used for the purpose of converting or adapting that equipment for use in connexion with the metric system, that is to say, the metric system of measurement as denned by section 3 of the Metric Conversion Act 1970, not being recording charts, chart paper or similar goods | Nos. 1 to 9 |
“150. Contraceptives................................ | Nos. 1 to 9”. |
Second Schedule.
4. The Second Schedule to the Principal Act is amended by omitting item 62.
Overview
The Sales Tax (Exemptions and Classifications) Act 1973 was enacted by the Queen, the Senate and the House of Representatives of Australia to address the need for updating the exemptions and classifications under the Sales Tax system. This legislation specifically aimed to exempt contraceptives and parts and accessories for the metric conversion of equipment from sales tax. The Act amends the Sales Tax (Exemptions and Classifications) Act 1935–1972, with certain provisions retroactively effective from 1 July 1971 and others from 8 December 1972. The purpose of these amendments is to clarify and expand the scope of items exempt from sales tax, reflecting contemporary economic and societal needs, including reproductive health and the transition to the metric system.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act 1973 applies to the exemptions and classifications of goods under sales tax law in Australia. Specifically, the Act provides exemptions from sales tax for certain goods, namely contraceptives and parts or accessories for equipment used primarily for business or industrial purposes that are intended for metric conversion. This Act extends to the entire Commonwealth of Australia and applies to all entities and persons who are subject to sales tax. The amendments made by the Act to the Principal Act are effective from specified dates, with certain provisions backdated to 1 July 1971 and 8 December 1972. The Act also removes certain items from the Second Schedule of the Principal Act, thereby clarifying the scope of sales tax exemptions. There are no stated exclusions or thresholds in the Act, and it does not extend or restrict application through subordinate instruments.
Key Provisions
The Sales Tax (Exemptions and Classifications) Act 1973 (Act) introduces specific exemptions from sales tax for certain goods, as detailed in its operative sections. Section 1(1) provides the short title and citation of the Act, while Section 1(2) and 1(3) clarify the reference to the Principal Act and its amended citation. The Act's commencement is outlined in Section 2. Section 2(1) stipulates that the Act comes into operation on the day it receives Royal Assent. However, specific amendments concerning the addition of items 149 and 150 to the First Schedule of the Principal Act have retrospective effect dates: 1 July 1971 for item 149 and 8 December 1972 for item 150, as per Section 2(2) and 2(3).
The Act imposes obligations on entities dealing with goods that are exempt from sales tax. According to the amendments in Section 3, businesses must ensure that goods specified as parts or accessories for equipment used for business or industrial purposes, and intended for metric conversion, are exempt from sales tax. These goods must not include recording charts, chart paper, or similar items, as specified in the new item 149 of the First Schedule. Additionally, contraceptives, as included in item 150 of the First Schedule, are exempt from sales tax. The removal of item 62 from the Second Schedule, as per Section 4, further clarifies the scope of goods subject to these exemptions.
Breach of the Act's provisions may result in both civil and criminal consequences. While the Act itself does not explicitly state penalties for non-compliance, general sales tax laws and related legislation may impose fines or other penalties for failing to adhere to the exemptions and classifications as specified. Entities that incorrectly charge sales tax on exempted goods could face financial penalties, and in severe cases, criminal prosecution for tax evasion or fraud. The exact penalties would be determined by the relevant tax authorities and applicable tax laws.