Sales Tax (Exemptions and Classifications) Amendment Act 1988

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No. 89 of 1988

An Act to amend the Sales Tax (Exemptions and Classifications) Act 1935, and for related purposes

[Assented to 14 November 1988]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title etc.

1. (1) This Act may be cited as the Sales Tax (Exemptions and Classifications) Amendment Act 1988.

(2) In this Act, “Principal Act” means the Sales Tax (Exemptions and Classifications) Act 19351.

Commencement

2. (1) Subject to subsection (2), this Act shall be taken to have commenced at 8 o’clock in the evening, by standard time in the Australian Capital Territory, on 23 August 1988.

(2) The amendment relating to sub-item 36 (1) in the First Schedule to the Principal Act shall be taken to have commenced on 24 August 1988.

Amendments of Schedules to Principal Act

3. The First, Second and Third Schedules to the Principal Act are amended as set out in the Schedule to this Act.

Application of amendments

4. (1) Subject to subsection (2), the amendments made by this Act apply in relation to transactions, acts and operations effected or done in relation to goods after 8 o’clock in the evening, by standard time in the Australian Capital Territory, on 23 August 1988.

(2) The amendment relating to sub-item 36 (1) in the First Schedule to the Principal Act applies in relation to transactions, acts and operations effected or done in relation to goods after 23 August 1988.

SCHEDULE Section 3

amendment of schedules to principal act

PART I—AMENDMENT OF FIRST SCHEDULE

Subclause 1 (1) (definition of “confectionery”):

After paragraph (c), insert the following paragraph:

“(ca) goods known either as muesli bars or health food bars, and similar foodstuffs;”.

Item 23:

After paragraph (j), insert the following paragraph:

“(ja) mixes marketed exclusively or principally for use (other than household use) in the manufacture of thick-shakes or of similar goods;”.

Sub-item 26 (2):

Insert in paragraph (a) “, (j), (ja)” after “(h)”.

Sub-item 26 (4):

Insert in paragraph (c) “, (j), (ja)” after “(h)”.

After item 26:

Insert the following item:

“26aa.

Beverages consisting wholly or principally of soy milk, but not including goods covered by item 4aa in the Third Schedule.”.

Nos. 1 to 9

Sub-item 35a (4a):

Omit the sub-item, substitute the following sub-item:

“(4a) Sub-items (2), (3) and (4) do not include beverages which consist partly of:

(a) milk (including skim milk);

(b) milk powder (including skim milk powder);

(d) any combination of any of the foregoing.”.

Sub-item 36 (1):

Omit the sub-item.

SCHEDULE—continued

Sub-item 82 (1):

Before paragraph (a) insert the following paragraph:

“(aa) goods covered by item 14 or 14a in the Third Schedule;”.

Sub-item 84 (1):

Insert in paragraph (f) “, 14 or 14a” after “item 12”.

Sub-item 84 (2):

Insert “, 14 or 14a” after “item 12”.

Sub-item 91 (1):

Add at the end “, but not including:

(a) goods of a kind used to wrap up or secure goods for marketing, namely:

(i) wrapping material or bags consisting of paper, netting, flexible film or metallic foil, or of any combination of those materials;

(ii) single-faced corrugated fibreboard; and

(iii) twine, lashing, rubber bands and adhesive tape;

(b) strapping of a kind used to secure goods for marketing, and seals for use with that strapping;

(d) goods covered by item 18 in the Third Schedule.”.

Sub-item 93 (1):

Add at the end “, but not including boxes, cases or crates covered by item 18 in the Third Schedule.”.

Item 96:

Omit the item.

After item 108:

Insert the following item:

“108a.

Goods marketed exclusively or principally as food for aquatic or marine animals (including fish, oysters, crayfish, prawns and crabs) farmed for commercial purposes.”.

Nos. 1 to 9

Sub-item 119a (1):

Omit the sub-item, substitute the following sub-item:

“(1) Aircraft other than:

(a) gliders (including motorised gliders); or

(b) hang gliders (including motorised hang gliders)”.

SCHEDULE—continued

PART II—AMENDMENT OF SECOND SCHEDULE

Items 19 to 30 (inclusive) and 39 to 42 (inclusive):

Omit the items.

PART III—AMENDMENT OF THIRD SCHEDULE

Item 4:

Insert “(ja),” after “(j),”.

After item 4a:

Insert the following item:

“4aa. Beverages consisting principally of soy milk, being beverages which contain any flavouring.”.

Item 13:

Omit the item.

After item 14:

Insert the following item:

“14a. Bathroom fittings and sanitary ware (and parts therefor, including chains, plugs and washers) of a kind installed in houses or other buildings so as to become fixtures therein, but not including:

(a) spa baths; or

(b) goods covered by item 14.”.

After item 17:

Insert the following item:

“18. Containers used or for use in marketing:

(a) biscuits manufactured in premises or vehicles in which the business of manufacturing biscuits is carried on exclusively or principally for the purpose of sale by retail directly from those premises or vehicles;

(b) ice-cream, ice-cream cakes, ice-creams, ice-cream substitutes, frozen confectionery (other than frozen yoghurt), flavoured iceblocks (whether or not marketed in a frozen state) or similar goods, being goods manufactured in premises or vehicles in which the business of manufacturing goods of that kind is carried on exclusively or principally for the purpose of sale by retail directly from those premises or vehicles; or

SCHEDULE—continued

NOTE

1. No. 60, 1935, as amended. For previous amendments, see No. 41, 1936; No. 78, 1938; No. 32, 1939; Nos. 29 and 76, 1940; No. 32, 1941; No. 6, 1942; Nos. 35 and 44, 1943; No. 31, 1944; No. 36, 1945; Nos. 12 and 67, 1946; No. 65, 1947; No. 42, 1948; No. 54, 1949; No. 37, 1950; No. 42, 1951; No. 44, 1952; No. 53, 1953; No. 45, 1954; No. 5, 1956; No. 71, 1957; Nos. 17 and 92, 1959; Nos. 65 and 88, 1960; Nos. 1 and 76, 1961; No. 4, 1962; No. 44, 1963; No. 30, 1965; Nos. 26 and 62, 1966; Nos. 21, 29 and 80, 1967; No. 78, 1970; Nos. 67 and 87, 1972; Nos. 17, 181 and 216, 1973; No. 24, 1975; No. 175, 1976; No. 107, 1978; Nos. 3, 94 and 157, 1979; No. 142, 1981; Nos. 64, 93 and 115, 1982; Nos. 63, 84 and 136, 1983; Nos. 81, 123 and 165, 1984; Nos. 65 and 67, 1985; Nos. 28, 76 and 98, 1986; Nos. 42, 135 and 140, 1987; and No. 78, 1988.

[Minister’s second reading speech made in—

House of Representatives on 23 August 1988

Senate on 19 October 1988]

Overview

The Sales Tax (Exemptions and Classifications) Amendment Act 1988 was enacted to amend the Sales Tax (Exemptions and Classifications) Act 1935, addressing various issues related to the classification and exemptions of goods under sales tax regulations. The Act was passed by the Queen, in accordance with the Australian Constitution, through the Australian Parliament, which comprises the Senate and the House of Representatives. The objective of the Act was to revise the existing classifications and exemptions in the Principal Act to ensure a more accurate and equitable application of sales tax across different goods and services. The amendments introduced by this Act are designed to update the tax framework to reflect changes in the marketplace and to improve the efficiency and fairness of the sales tax system. The Act amends the First, Second, and Third Schedules of the Principal Act, introducing new classifications and exemptions for various goods, such as muesli bars, health food bars, thick-shake mixes, beverages made from soy milk, and other specific items. Additionally, it refines the definitions and scope of existing categories to better align with current market practices and to address specific economic and social considerations. The amendments apply to transactions involving these goods after the specified commencement dates, ensuring that the changes are implemented in a timely and orderly manner.

Scope and Application

The Sales Tax (Exemptions and Classifications) Amendment Act 1988 amends the Sales Tax (Exemptions and Classifications) Act 1935, introducing modifications to the classification and exemptions of goods subject to sales tax. The Act applies to transactions involving goods after its commencement date of 23 August 1988. This includes entities and individuals engaged in the manufacture, sale, or distribution of goods within Australia. The Act provides specific amendments to the First, Second, and Third Schedules of the Principal Act, detailing the classification and exemption criteria for various goods such as muesli bars, thick-shake mixes, soy milk beverages, and packaging materials. Notably, certain goods like wrapping materials, strapping, and corner brackets for securing goods are exempted from sales tax. The Act also specifies exclusions for particular items such as spa baths and goods covered by certain items in the Third Schedule. These amendments extend to subordinate instruments as necessary to implement the changes outlined in the Act.

Key Provisions

The Sales Tax (Exemptions and Classifications) Amendment Act 1988 (C2004A03682) amends the Sales Tax (Exemptions and Classifications) Act 1935. The Act introduces several modifications to the schedules of the Principal Act, impacting the classification and exemptions of certain goods and services. Section 3 of the Amendment Act amends the First, Second and Third Schedules to the Principal Act as detailed in the Schedule to this Act. These amendments primarily focus on the classification of goods and the introduction of new categories subject to sales tax. For instance, new categories such as muesli bars, health food bars, mixes for thick-shakes, and beverages consisting of soy milk are included. Additionally, the amendments introduce exemptions for certain goods used in the marketing process, such as wrapping materials, strapping, and specific containers used in marketing. The obligations imposed by the Sales Tax (Exemptions and Classifications) Amendment Act 1988 primarily revolve around the accurate classification of goods for sales tax purposes. Businesses must ensure that they correctly classify their goods according to the amended schedules. This includes distinguishing between goods that are subject to sales tax and those that are exempt. Furthermore, businesses must comply with the specific definitions and criteria set out in the amended schedules, ensuring that they apply the correct tax treatment to their goods. Accurate record-keeping and proper documentation are essential to demonstrate compliance with the Act's requirements. Breaches of the Sales Tax (Exemptions and Classifications) Amendment Act 1988 can result in both civil and criminal consequences. Under the Principal Act, failure to comply with the sales tax obligations can lead to civil penalties, including fines. The maximum penalties for non-compliance can vary based on the nature and extent of the breach. In more severe cases, particularly where there is evidence of willful or repeated non-compliance, criminal charges may be pursued. Convictions can result in significant fines and, in some instances, imprisonment. It is imperative for businesses to understand and adhere to the requirements of the Act to avoid these potential consequences.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Reporting & Disclosure Obligations; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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