Sales Tax (Exemptions and Classifications) Amendment Act 1979
No. 3 of 1979
An Act to amend the Sales Tax (Exemptions and Classifications) Act 1935.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Sales Tax (Exemptions and Classifications) Amendment Act 1979.
(2) The Sales Tax (Exemptions and Classifications) Act 1935 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall be deemed to have come into operation on 1 July 1978.
First Schedule
3. The First Schedule to the Principal Act is amended—
(a) by inserting in item 74 “or of the Northern Territory” after “a State” (first occurring);
(b) by omitting from item 74 “that Government” and substituting “the Government of the Commonwealth or of a State or of the Northern Territory, as the case may be,”;
(c) by inserting in item 74 “or of the Northern Territory” after “the Government of a State”;
(d) by inserting in item 74 “or the Administrator-in-Council of the Northern Territory, as the case may be,” after “the Governor-in-Council of the State”;
(e) by inserting in item 74 “or the Northern Territory, as the case may be,” after “by the State”;
(f) by inserting in item 74 “or of the Northern Territory, as the case may be,” after “the Government of the State”; and
(g) by inserting in item 74 “or of the Northern Territory, as the case may be,” after “the law of the State”.
Overview
The Sales Tax (Exemptions and Classifications) Amendment Act 1979 was enacted by the Commonwealth Parliament to address the need for updating the Sales Tax (Exemptions and Classifications) Act 1935. This amendment act aims to bring the Principal Act into alignment with the administrative and jurisdictional changes in the Northern Territory, particularly in light of the expanded responsibilities and governance structures within the region. The legislative update ensures that the tax framework remains consistent with the evolving political landscape, thereby maintaining the integrity and applicability of the sales tax regulations across all jurisdictions, including the Northern Territory. The policy objective is to ensure that the sales tax exemptions and classifications are uniformly applied across all relevant governmental and territorial entities.
Scope and Application
The Sales Tax (Exemptions and Classifications) Amendment Act 1979 applies to the classification and exemptions of sales tax across the Commonwealth, states, and territories of Australia. It amends the Sales Tax (Exemptions and Classifications) Act 1935 by extending the application of sales tax classifications and exemptions to the Northern Territory, thus broadening its jurisdictional reach to include all levels of government in Australia. This Act does not explicitly mention exclusions or exemptions, but it modifies the Principal Act to include the Northern Territory in the scope of its provisions, ensuring consistency in the application of sales tax across the nation. The Act may be further extended or restricted through subordinate instruments as necessary to adapt to changing economic and legislative environments.
Key Provisions
The Sales Tax (Exemptions and Classifications) Amendment Act 1979 (Section 1) amends the Sales Tax (Exemptions and Classifications) Act 1935, which is referred to as the Principal Act throughout this amending legislation. The Act itself is cited as the Sales Tax (Exemptions and Classifications) Amendment Act 1979 and is deemed to have come into operation on 1 July 1978 (Section 2). The amendments made to the Principal Act are detailed in the First Schedule, which modifies item 74 to include references to the Northern Territory government and its entities, ensuring consistency in the application of sales tax exemptions and classifications across all jurisdictions within Australia.
Under the amended Act, the obligations of entities subject to sales tax must now account for the Northern Territory in addition to the states. For example, when determining the applicability of sales tax exemptions and classifications, entities must consider whether the transaction involves the Northern Territory government or its entities (First Schedule, item 74). This includes aligning the terminology used in the Principal Act to incorporate references to the Northern Territory, such as substituting "the Government of the Commonwealth or of a State or of the Northern Territory, as the case may be," (First Schedule, item 74(b)) and ensuring that all relevant laws and authorities are uniformly addressed.
The Act imposes clear requirements on entities to ensure that sales tax is applied correctly in accordance with the amended provisions. This includes the need for entities to review their internal policies and procedures to ensure they are compliant with the new amendments. Failure to adhere to these requirements can lead to significant consequences. For instance, if an entity fails to correctly classify a sale or improperly claims an exemption, they may face penalties (Section 4). The Principal Act, which is amended by this Act, includes provisions for penalties and enforcement measures, which may be invoked if entities are found to be in breach of the sales tax regulations.
In terms of penalties and consequences, breaches of the sales tax provisions can lead to both civil and criminal liabilities. The Principal Act provides for fines and other penalties for non-compliance, with the exact penalties depending on the severity and intent of the breach. For example, wilful or negligent evasion of sales tax can result in substantial fines and, in some cases, criminal charges (Principal Act, Section 12). Additionally, entities may be required to pay back the unpaid tax along with interest, further underscoring the importance of compliance with the sales tax regulations.