Sales Tax (Exemptions and Classifications) Amendment Act 1990
No. 82 of 1990
An Act to amend the law relating to sales tax
[Assented to 23 October 1990]
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 1990.
(2) In this Act, “Principal Act” means the Sales Tax (Exemptions and Classifications) Act 19351.
Commencement
2. This Act is taken to have commenced at 7.30 p.m., by standard time in the Australian Capital Territory, on 21 August 1990.
Interpretation
3. Section 3 of the Principal Act is amended by adding at the end the following subsection:
“(8) Where:
(a) disregarding:
(i) this subsection; and
(ii) subsection 3 (15) of the Sales Tax Assessment Act (No. 1) 1930 (including in its application in accordance with any of the other Sales Tax Assessment Acts);
goods (in this subsection called the ‘item 51/54 goods’) are covered by item 51 or 54 in the First Schedule to this Act; and
(b) any one or more of the following subparagraphs applies to any part (in this subsection called the ‘insert’) of the item 51/54 goods:
(i) it has a different sheet size than most of the remainder of the goods;
(ii) it is printed by a different process than most of the remainder of the goods;
(iii) it consists of different paper or other material than most of the remainder of the goods;
(iv) it is inserted separately into the remainder of the goods after they have been made; and
(c) if the item 51/54 goods are a magazine or similar publication (other than a newspaper)—the insert is not a detachable part that is attached by perforation, or glued, sewn or stapled, to the remainder of the goods; and
(d) if the item 51/54 goods are a newspaper—the insert is not a news, sport, entertainment, travel, leisure or similar section (other than an advertising section);
then, for the purposes of this Act, the insert is taken not to be, and never to have been, part of the item 51/54 goods, but to be, and always to have been, separate goods.”.
Application of amendment
4. The amendment made by this Act applies in relation to transactions, acts and operations effected or done in relation to goods after the commencement of the amendment.
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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; Nos. 78, 89 and 152, 1988; Nos. 63 and 72, 1989; and Nos. 18, 55, 57 and 58, 1990.
[Minister's second reading speech made in—
House of Representatives on 10 October 1990
Senate on 15 October 1990]
Overview
The Sales Tax (Exemptions and Classifications) Amendment Act 1990 was enacted to address specific issues in the sales tax regime concerning the classification and treatment of goods. This Act amends the Sales Tax (Exemptions and Classifications) Act 1935 by refining the definitions and conditions under which certain goods are classified, particularly focusing on items listed under items 51 and 54 in the First Schedule of the Principal Act. The aim of this amendment is to provide clarity and precision in determining whether certain inserts or parts of goods should be considered separate from the main goods, thereby ensuring that sales tax is applied accurately. This Act was passed by the Parliament of Australia and came into effect on 21 August 1990. The policy objective is to ensure that the sales tax system remains fair and consistent by providing clear guidelines on the classification of goods.
Scope and Application
The Sales Tax (Exemptions and Classifications) Amendment Act 1990 applies to transactions and operations concerning goods that are affected by the amendments introduced by this Act. These transactions must occur after the commencement of the Act, which is specified as 7.30 p.m. by standard time in the Australian Capital Territory on 21 August 1990. The Act amends the Sales Tax (Exemptions and Classifications) Act 1935, which pertains to the classification and exemptions of goods subject to sales tax. The amendments are intended to refine the criteria under which certain goods are considered separate from others, specifically addressing items covered by items 51 or 54 in the First Schedule of the Principal Act. This amendment applies to goods that differ in sheet size, printing process, material, or insertion method from the main body of the goods, excluding certain types of inserts in magazines, newspapers, and similar publications. The Act's provisions extend across jurisdictions governed by the Principal Act, thereby impacting entities and individuals involved in the sale and classification of goods under sales tax regulations.
Key Provisions
The Sales Tax (Exemptions and Classifications) Amendment Act 1990 (Act) amends the Sales Tax (Exemptions and Classifications) Act 1935 (Principal Act). This Act introduces changes to the classification of goods for sales tax purposes, particularly those covered by items 51 or 54 in the First Schedule of the Principal Act, such as magazines, newspapers, and similar publications. Section 3 of the Principal Act is amended by adding a new subsection (8) that specifies circumstances under which an insert within these goods is considered separate from the primary goods if it differs in sheet size, printing process, material, or insertion method. For instance, if a magazine has an insert that is not a detachable part attached by perforation, glue, sewing, or stapling, or if a newspaper has an insert that is not a news, sport, entertainment, travel, leisure, or similar section, the insert is deemed separate goods for sales tax purposes.
The Act imposes obligations on entities dealing with goods covered by items 51 or 54 in the First Schedule. These entities must ensure that any inserts within these goods are accurately classified according to the criteria set out in the amended section 3(8) of the Principal Act. Specifically, they must verify whether an insert meets any of the specified conditions that would classify it as separate goods, thereby potentially altering its tax status. This involves careful examination of the physical characteristics and production processes of both the primary goods and any inserts.
Failure to comply with the requirements of the Act can result in civil consequences. The Principal Act outlines various penalties for non-compliance with sales tax regulations, which may include fines and interest on unpaid taxes. Although the Act itself does not specify maximum penalties, under the general provisions of the Principal Act, penalties can be substantial, often calculated based on the amount of tax evaded or unpaid. Additionally, persistent or deliberate non-compliance may lead to criminal charges, which could result in more severe penalties, including imprisonment. These consequences underscore the importance of adhering to the amended classification rules to avoid legal repercussions.