Sales Tax (Exemptions and Classifications) (No. 2)
No. 87 of 1972
An Act relating to the Exemption from Sales Tax of certain Works of Art.
[Assented to 4 October 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 (No. 2) 1972.
(2.) The Sales Tax (Exemptions and Classifications) Act 1935–1970, as amended by the Sales Tax (Exemptions and Classifications) Act 1972, is in this Act referred to as the Principal Act.
(3.) Section 1 of the Sales Tax (Exemptions and Classifications) Act 1972 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 1935–1972.
Commencement.
2. This Act shall be deemed to have come into operation on the sixteenth day of August, One thousand nine hundred and seventy-two.
First Schedule-item 68.
3. The First Schedule to the Principal Act is amended by adding to item 68 the following sub-item:—
“(3) Imported goods consisting of— | |
(a) paintings, drawings and pastels, being goods to which sub-item 99.01.1 in Part II. of the First Schedule to the Customs Tariff applies; | Nos. 5 to 9”. |
(b) original engravings, prints and lithographs, being goods to which item 99.02 in that Part applies; or |
(c) original sculptures and statuary, being goods to which item 99.03 in that Part applies. | |
First Schedule—item 69c.
4. The First Schedule to the Principal Act is amended by omitting item 69c.
Overview
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1972 was enacted to address the need for specific exemptions from sales tax on certain works of art, thus amending the Sales Tax (Exemptions and Classifications) Act 1935–1970. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, with the intent of ensuring that certain categories of imported artworks, such as paintings, drawings, pastels, original engravings, prints, lithographs, and original sculptures and statuary, are exempt from sales tax. This legislative change was designed to alleviate the financial burden on art collectors and galleries while promoting the cultural and aesthetic enrichment of the nation through the acquisition and display of significant artistic works.
Scope and Application
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1972 amends the Sales Tax (Exemptions and Classifications) Act 1935–1972 to exempt certain imported works of art from sales tax. This Act applies to imported goods that fall under specific categories of art, including paintings, drawings, pastels, original engravings, prints, lithographs, original sculptures, and statuary, provided these items meet the classifications outlined in Part II of the First Schedule to the Customs Tariff. The amendment affects entities and individuals engaged in the importation of these works of art, and its reach is limited to the Commonwealth of Australia. The Act excludes these specified art items from the purview of sales tax, thereby providing a financial relief for those involved in the importation of these culturally and historically significant goods. The application of this Act can be further defined or extended through subordinate instruments, which may specify additional details or clarifications regarding the scope and application of the exemptions provided.
Key Provisions
The Sales Tax (Exemptions and Classifications) Act (No. 2) 1972 amends the Sales Tax (Exemptions and Classifications) Act 1935–1970 by adding new provisions regarding the exemption from sales tax for certain works of art. The key provision of this Act, detailed in section 3, is the addition of sub-item (3) to item 68 of the First Schedule of the Principal Act. This new sub-item specifies that imported goods consisting of paintings, drawings, pastels, original engravings, prints, lithographs, original sculptures, and statuary are exempt from sales tax, provided they fall under the corresponding items in the Customs Tariff.
The Act imposes specific obligations on parties involved in the import and sale of these works of art. Importers and sellers must ensure that the works of art they are dealing with meet the criteria set out in sub-item (3) of item 68. This means that the imported goods must be accurately classified as paintings, drawings, pastels, original engravings, prints, lithographs, original sculptures, or statuary, and must correspond to the items listed in the Customs Tariff. Failure to correctly identify and classify these goods could result in the imposition of sales tax, which would otherwise be avoided under this Act.
In terms of legal consequences, section 4 of the Act mandates the removal of item 69c from the First Schedule of the Principal Act. While the Act does not explicitly state offences or penalties for breaches, it is implicit that any incorrect classification or failure to comply with the provisions for exemption could lead to the imposition of sales tax on the goods in question. In general, the Sales Tax Act provides for various penalties, including fines and potential prosecution, for non-compliance with its provisions.
Given the specific nature of the works of art exempted from sales tax, it is crucial for parties involved to ensure that they understand and apply the correct classifications to avoid any unintended tax liabilities. Accurate record-keeping and adherence to the stipulated criteria are essential to benefit from the exemptions provided by this Act.