Sales Tax (Exemptions and Classifications) (No. 2)
No. 29 of 1967
An Act to amend the law relating to Sales Tax with respect to Seat Belt Assemblies designed for the Protection of Persons in Motor Vehicles.
[Assented to 23 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 (No. 2) 1967.
(2.) The Sales Tax (Exemptions and Classifications) Act 1935-1966, as amended by the Sales Tax (Exemptions and Classifications) Act 1967, is in this Act referred to as the Principal Act.
(3.) Section 1 of the Sales Tax (Exemptions and Classifications) Act 1967 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 1935-1967.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent but the amendments made by this Act shall be deemed to have come into operation on the twelfth day of April, One thousand nine hundred and sixty-seven.
3. After section 6aa of the Principal Act the following section is inserted:—
Goods incorporating seat belt assemblies.
“6ab. Notwithstanding anything contained in any Sales Tax Assessment Act, sales tax is not payable upon so much of the sale value under any Sales Tax Assessment Act of goods in which are incorporated seat belt assemblies or other goods as specified in item 147 in the First Schedule to this Act as is equal to the amount which would have been the sale value of those seat belt assemblies or other goods under that Act if the transaction, act or operation in relation to which the first-mentioned sale value arose had been a transaction, act or operation in relation to those seat belt assemblies or other goods only.”.
First Schedule.
4. The First Schedule to the Principal Act is amended by adding at the end thereof the following item:—
“147.—(1) Seat belt assemblies, including harness assemblies, designed for the protection of persons in motor vehicles | | Nos. 1 to 9 |
“(2) Parts and fittings for goods covered by sub-item (1) of this item | Nos. 1 to 9”. |
Overview
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1967 was enacted to address the need for a specific exemption for sales tax on seat belt assemblies designed for the protection of persons in motor vehicles. This Act amends the Sales Tax (Exemptions and Classifications) Act 1935-1966 by exempting sales tax on the portion of the sale value of goods that includes seat belt assemblies, ensuring that the tax is not levied on the value attributable to these safety components. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this Act seeks to promote the adoption of safety measures in motor vehicles by making these essential protective devices more affordable. The insertion of section 6ab into the Principal Act ensures that the sale value of seat belt assemblies is not subject to sales tax, thereby encouraging their widespread use and integration into motor vehicles.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1967 amends the Sales Tax (Exemptions and Classifications) Act 1935-1967 to exempt from sales tax the sale value of goods incorporating seat belt assemblies or other specified goods. This amendment applies to any sale where seat belt assemblies or specified goods are incorporated into other goods, with the sales tax exemption applying to the portion of the sale value that would have been attributable to the seat belt assemblies or specified goods if they were sold individually. The Act’s reach extends nationally as it pertains to the Commonwealth of Australia, and its application is not restricted by geographic or jurisdictional boundaries within the country. The exemptions provided by the Act are clear and do not include any stated exclusions or thresholds beyond the specified goods and their components. The application of this Act may be further refined or extended through subordinate instruments, which are not detailed within the text provided.
Key Provisions
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1967 amends the existing Sales Tax (Exemptions and Classifications) Act 1935-1966 by introducing a specific exemption for sales tax on seat belt assemblies designed for the protection of persons in motor vehicles. Section 6ab of the amended Act clarifies that sales tax does not apply to the portion of the sale value of goods that includes seat belt assemblies, which are specified in item 147 of the First Schedule. This means that if a product incorporates a seat belt assembly, the part of the sale price attributable to the seat belt assembly itself is exempt from sales tax.
The Act imposes obligations on entities involved in the sale of goods that include seat belt assemblies. Sellers must ensure that the portion of the sale price attributable to the seat belt assemblies is not subject to sales tax. This requires accurate calculation and documentation of the sale value of the seat belt assemblies separately from the rest of the goods sold. In addition, the Act mandates that this information be presented in sales tax assessments to ensure compliance with the exemption provision.
Failure to comply with the requirements set out in the Sales Tax (Exemptions and Classifications) Act (No. 2) 1967 may result in legal consequences. While the Act does not explicitly outline penalties for non-compliance, breaches of sales tax laws generally attract penalties under the relevant Sales Tax Assessment Acts. These penalties can include fines and, in severe cases, criminal charges. The specific penalties would depend on the jurisdiction and the particular Sales Tax Assessment Act in force at the time. It is important for entities to adhere to the requirements to avoid any potential legal repercussions.