Sales Tax (Exemptions and Classifications) Amendment Act (No. 2) 1985

Overview

The Sales Tax (Exemptions and Classifications) Amendment Act (No. 2) 1985 was enacted to amend the Sales Tax (Exemptions and Classifications) Act 1935, addressing specific issues concerning the classification and exemption of goods under sales tax. This Act was passed by the Queen, in accordance with the authority vested in the Senate and the House of Representatives of the Commonwealth of Australia, and it received assent on 16 December 1985. The primary purpose of this amendment is to modify the scope of goods exempt from sales tax, particularly in relation to goods imported by passengers, crew members, and goods sold in airport shops. By making these amendments, the Act aims to align the sales tax exemptions more closely with current trade practices and international standards, ensuring that the tax system remains fair and efficient.

Scope and Application

The Sales Tax (Exemptions and Classifications) Amendment Act (No. 2) 1985 amends the Sales Tax (Exemptions and Classifications) Act 1935. This Act applies to transactions, acts and operations related to goods that occur after its commencement. The amendments introduced by this Act affect the classification and exemption of certain goods from sales tax, particularly in relation to goods imported by passengers or crew members of a ship or aircraft, and goods purchased from an inwards duty-free shop by a relevant traveller, as defined under the Customs Act 1901. The scope of the Act encompasses various goods and specific scenarios where sales tax may be exempted. The Act applies nationally within the Commonwealth of Australia and is enforced through the subordinate instruments and regulations associated with the Customs and Excise Legislation Amendment Act (No. 2) 1985. There are no specific exclusions, exemptions, or thresholds explicitly stated within the Act itself, but these may be defined in the referenced Acts and regulations.

Key Provisions

The Sales Tax (Exemptions and Classifications) Amendment Act (No. 2) 1985 amends the Sales Tax (Exemptions and Classifications) Act 1935, introducing specific changes to the application and interpretation of sales tax provisions. This Act modifies the definition of certain terms (section 3) and clarifies the interpretation of references in the First Schedule of the Principal Act (section 4). It repeals section 6ac of the Principal Act (section 5), which previously dealt with exemptions for goods imported by passengers or crew members. The First Schedule is amended to exclude certain goods from the scope of sales tax, specifically those imported by passengers or crew members or purchased from airport shops by relevant travellers (section 6). These amendments apply to transactions occurring after the commencement of this Act (section 7). The Act imposes obligations on businesses and individuals to ensure that they do not charge sales tax on goods that are exempt under the amended provisions. This includes verifying the status of goods being imported or purchased, such as whether they are airport shop goods and whether they are being purchased by a relevant traveller from an inwards duty free shop. Businesses must also ensure that their records and transactions comply with the updated definitions and classifications set out in the amended Act. Failure to adhere to these requirements can result in legal consequences. For breaches of the sales tax provisions, the Act does not explicitly state specific penalties or consequences. However, given the context of the legislation and related Acts, penalties for non-compliance with sales tax laws generally include fines and potential prosecution. The severity of the penalties depends on the nature and extent of the breach, and could involve substantial fines or imprisonment for persistent or significant violations. It is crucial for businesses and individuals to remain compliant to avoid these legal repercussions.