Sales Tax (Exemptions and Classifications) Amendment (Off-shore Installations) Act 1982

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Sales Tax (Exemptions and Classifications) Amendment (Off-shore Installations) Act 1982

No. 64 of 1982

 

An Act to amend the Sales Tax (Exemptions and Classifications) Act 1935

[Assented to 16 June 1982]

BE IT ENACTED by the Queen, and the Senate and the 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 (Off-shore Installations) Act 1982.

(2) The Sales Tax (Exemptions and Classifications) Act 19351 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation, or shall be deemed to have come into operation, as the case requires, on the twenty-eighth day after the day on which the Off-shore Installations (Miscellaneous Amendments) Act 1982 receives the Royal Assent.


3. After section 6c of the Principal Act the following sections are inserted:

Certain installations to be part of Australia

“6d. (1) For the purposes of this Act, an installation that—

(a) becomes attached to the Australian seabed after the commencement of this sub-section; or

(b) at the commencement of this sub-section, is attached to the Australian seabed,

shall, subject to sub-section (2), be deemed to be part of Australia.

“(2) An installation that is deemed to be part of Australia by virtue of the operation of this section shall, for the purposes of this Act, cease to be part of Australia if—

(a) the installation is detached from the Australian seabed, or from another installation that is attached to the Australian seabed, for the purpose of being taken to a place outside the outer limits of Australian waters (whether or not the installation is to be taken to a place in Australia before being taken outside those outer limits); or

(b) after having been detached from the Australian seabed otherwise than for the purpose referred to in paragraph (a), the installation is moved for the purpose of being taken to a place outside the outer limits of Australian waters (whether or not the installation is to be taken to a place in Australia before being taken outside those outer limits).

“6e. (1) Where an overseas installation (not being an installation referred to in sub-section (2) ) becomes attached to the Australian seabed, the installation and any goods on the installation at the time when it becomes so attached shall, for the purposes of this Act, be deemed to have been imported into Australia at the time when the installation becomes so attached.

“(2) Where an overseas installation—

(a) is brought to a place in Australia; and

(b) is to be taken from that place into Australian waters for the purpose of becoming attached to the Australian seabed,

the installation and any goods on the installation at the time when it is brought to that place shall, for the purposes of this Act, be deemed to have been imported into Australia at the time when the installation is brought to that place.

Goods taken to installations

“6f. Where goods are taken from a place other than a place in Australia on to an Australian installation, the goods shall, for the purposes of this Act, be deemed to have been imported into Australia upon being taken on to the installation.


Export of off-shore installations

“6g. (1) Where an installation ceases to be part of Australia, the installation and any goods on the installation at the time when it ceases to be part of Australia shall, for the purposes of this Act, be deemed to have been exported from Australia.

“(2) Where an installation is taken from a place in Australia into Australian waters for the purpose of becoming attached to the Australian seabed, the installation and any goods on the installation shall not be taken, for the purposes of this Act, to have been exported from Australia.

Export of goods from off-shore installations

“6h. For the purposes of this Act, where goods are taken from an Australian installation for the purpose of being taken to a place outside Australia, the goods shall be deemed to have been exported from Australia at the time when they are so taken from the installation.”.

 

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 and 181, 1973; No. 216, 1973 (as amended by No. 20, 1974); No. 24, 1975; No. 175, 1976; No. 107, 1978; Nos. 3, 94 and 157, 1979; and No. 142, 1981.

Overview

The Sales Tax (Exemptions and Classifications) Amendment (Off-shore Installations) Act 1982 was enacted by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia. The Act amends the Sales Tax (Exemptions and Classifications) Act 1935 to address the issue of sales tax implications for off-shore installations. The primary purpose of this Act is to clarify the tax treatment of installations attached to the Australian seabed, deeming certain installations to be part of Australia for tax purposes, and outlining the conditions under which installations cease to be part of Australia. The Act also provides for the tax treatment of goods imported to or exported from these installations, ensuring consistency and fairness in the application of sales tax to activities related to offshore installations.

Scope and Application

The Sales Tax (Exemptions and Classifications) Amendment (Off-shore Installations) Act 1982 amends the Sales Tax (Exemptions and Classifications) Act 1935 to extend the application of sales tax to certain offshore installations and the goods associated with them. The Act applies to offshore installations that become attached to the Australian seabed after the commencement of the Act or are already attached at the time of commencement, deeming them part of Australia for tax purposes. This application extends to goods imported onto these installations and to installations that are moved from Australia to another location outside Australian waters. Conversely, the Act also addresses the tax treatment of offshore installations and goods when they are exported from Australia, defining specific conditions under which an installation ceases to be part of Australia for tax purposes. The Act’s jurisdictional reach encompasses all offshore installations within Australia’s defined waters, thereby impacting entities and individuals involved in offshore operations. The Act does not explicitly provide for exclusions or thresholds, nor does it mention the use of subordinate instruments to extend its application.

Key Provisions

The Sales Tax (Exemptions and Classifications) Amendment (Off-shore Installations) Act 1982 introduces significant changes to the Sales Tax (Exemptions and Classifications) Act 1935 by amending the classification and treatment of certain off-shore installations and goods in relation to sales tax. The key operative sections (sections 6d, 6e, 6f, 6g, and 6h) define the circumstances under which off-shore installations and associated goods are considered part of Australia for sales tax purposes. For example, section 6d deems installations that are attached to the Australian seabed to be part of Australia, while section 6f specifies that goods brought onto such installations from outside Australia are considered imported. Section 6e addresses overseas installations that become attached to the Australian seabed, treating them as imported goods at the time of attachment. Conversely, section 6g addresses the export of installations and goods when they are detached from the Australian seabed or moved to a location outside Australian waters. Section 6h further specifies that goods taken from an Australian installation to a location outside Australia are considered exports. The Act imposes specific obligations on entities involved with off-shore installations. It requires these entities to accurately classify and report the importation and exportation of goods and installations under the defined conditions. For example, entities must ensure that any goods brought onto an installation from outside Australia are reported as imports, and any goods removed from an Australian installation to a location outside Australia are reported as exports. This classification is crucial for determining the applicability of sales tax on these transactions. Additionally, entities must ensure that installations that become detached from the Australian seabed or are moved outside Australian waters are appropriately reported as exports. Failure to comply with the provisions of this Act can result in significant consequences. While the Act does not explicitly state penalties, breaches of sales tax laws generally can lead to both civil and criminal penalties under the broader tax legislation. Civil penalties can include fines, interest on unpaid taxes, and additional administrative costs. Criminal penalties, which are generally reserved for more severe or deliberate breaches, can include substantial fines and imprisonment. The exact penalties would be determined in accordance with the applicable tax legislation, but they can be severe enough to deter non-compliance.

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Taxation Law
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Commencement Provisions
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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.