SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) (No. 2).
No. 76 of 1961.
An Act to provide for Exemption from Sales Tax of certain Goods for use in connexion with Transport.
[Assented to 27th October, 1961.]
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 (No. 2) 1961.
(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1960, as amended by the Sales Tax (Exemptions and Classifications) Act 1961, is in this Act referred to as the Principal Act.
(3.) Section one of the Sales Tax (Exemptions and Classifications) Act 1961 is amended by omitting sub-section (3.).
(4.) The Principal Act, as amended by this Act, may be cited as the Sales Tax (Exemptions and Classifications) Act 1935–1961.
Commencement.
2. This Act shall be deemed to have come into operation on the sixteenth day of August, One thousand nine hundred and sixty-one.
First Schedule.
3. The First Schedule to the Principal Act is amended by inserting after item 119a the following items:—
“119b. Goods for use (whether as goods or in some other form, but not as goods for sale) by a person exclusively in, or exclusively in connexion with, the establishment, operation or maintenance by that person of a railway providing, for use by the public, a service for the transport of persons or goods | Nos. 1 to 9 |
“119c.—(1) Omnibuses providing seating accommodation for not less than twelve adult passengers for use exclusively or principally in the transport of passengers for reward | Nos. 1 to 9 |
“(2) Chassis for the construction of omnibuses specified in sub-item (1) of this item | Nos. 1 to 9 |
“119d.—(1) Goods for use exclusively in the prescribed area, being goods for use primarily and principally for the transport of livestock and being— (a) motor vehicles, other than articulated motor vehicles or prime movers for articulated motor vehicles, in respect of which— (i) the net brake horsepower rating specified by the manufacturer of the chassis is not less than 100 horsepower; and (ii) the gross vehicle weight rating specified by the manufacturer of the chassis is not less than 20,000 pounds; (b) prime movers for articulated motor vehicles, being prime movers in respect of which— (i) the net brake horse-power rating specified by the manufacturer is not less than 100 horsepower; and (ii) the gross combination weight rating specified by the manufacturer is not less than 30,000 pounds; | Nos. 1 to 9 |
(c) trailers; or (d) stock crates or livestock carriers designed to be carried on vehicles | |
“(2) Chassis for the construction of motor vehicles specified in paragraph (a) of sub-item (1) of this item | Nos. 1 to 9 |
“For the purposes of this item— ‘articulated motor vehicle’ means a motor vehicle consisting of a prime mover and a trailer, being a trailer part of which is superimposed upon the prime mover; | |
‘the prescribed area’ has the same meaning as in section 79a of the Income Tax and Social Services Contribution Assessment Act 1936–1961; | |
‘trailer’ means a vehicle without motive power designed for drawing by a motor vehicle”. | |
Overview
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1961 was enacted to address specific gaps in the classification and exemption of goods used in transport from sales tax. This Act was introduced by the Australian Parliament to amend the Sales Tax (Exemptions and Classifications) Act 1935–1960, focusing on providing exemptions for certain goods used in transport. The policy objective of this legislation was to ensure that goods integral to the transport sector, such as those used in railways, omnibuses, and livestock transport, were exempt from sales tax to support the operational efficiency and economic viability of these services. By inserting new items into the First Schedule of the Principal Act, the legislation aimed to clarify and expand the categories of goods eligible for tax exemption, thereby alleviating the tax burden on essential transport-related goods and services.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1961 applies to goods that are specifically designated for use in connection with transport services, with a particular focus on those used for the transport of persons or goods by rail, road, or for livestock transport. The Act exempts certain goods from sales tax when they are used exclusively or principally for transport services, including omnibuses with seating for not less than twelve adult passengers, chassis for constructing such omnibuses, motor vehicles and prime movers used for livestock transport, and trailers. These exemptions are applicable to the Commonwealth of Australia and any territories or states under its jurisdiction. The Act provides detailed specifications regarding the types of vehicles and equipment eligible for exemption, including horsepower and weight requirements. The application of the Act can be extended or modified through subordinate instruments, allowing for flexibility in adapting to changes in transport technologies and practices. The exemptions apply to goods used in the establishment, operation, or maintenance of transport services, thereby ensuring that the core activities involved in providing transport services are not unduly burdened by sales tax.
Key Provisions
The Sales Tax (Exemptions and Classifications) (No. 2) 1961 Act introduces specific exemptions from sales tax on certain goods used in transport. Section 3 of the Act amends the First Schedule to the Principal Act by inserting new items that outline the types of goods eligible for this exemption. For example, item 119b exempts goods used by a person exclusively in the establishment, operation, or maintenance of a railway service for the public transport of persons or goods (section 3(a)). Similarly, item 119c provides an exemption for omnibuses seating at least twelve adult passengers, used primarily for transporting passengers for reward, as well as their chassis (section 3(b)). Moreover, item 119d offers an exemption for goods used exclusively in prescribed areas for the transport of livestock, including specific types of motor vehicles, trailers, and stock crates or livestock carriers (section 3(c) and (d)).
The Act imposes specific obligations on the entities it governs, particularly those involved in the transport sector. For example, it requires that the goods specified in the exemptions must be used exclusively or principally in the activities described. This means that if the goods are used for any other purpose, they may not qualify for the exemption. Additionally, the Act mandates that the specifications for motor vehicles and their components, such as net brake horsepower rating and gross vehicle weight rating, must meet the criteria outlined in the schedule (section 3(d)(i) and (ii)). These specifications are crucial for determining the eligibility of the goods for the sales tax exemption.
Failure to comply with the provisions of this Act may result in legal consequences. Although the Act does not explicitly state the penalties for non-compliance, breaches of sales tax regulations typically attract penalties under the broader sales tax framework. Generally, penalties for non-compliance can include fines and legal action to recover unpaid taxes. In cases of deliberate or repeated non-compliance, more severe penalties, such as imprisonment, may apply. The specific penalties and enforcement mechanisms would be governed by the overarching sales tax legislation and relevant regulatory frameworks.