EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 324
ISSUED BY THE AUTHORITY OF THE TREASURER
Introductory Note
These Statutory Rules amend regulation 7 of the Sales Tax (Exemptions and Classifications) Regulations to alter a reference to a Customs Tariff item contained in the regulation which item no longer exists following a restructuring of the Customs Tariff in 1982.
Regulation 7 prescribes goods which are exempt under sub-item 114B(3) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act. The goods formerly prescribed were those covered by item 11 in Part I of the Second Schedule to the Customs Tariff. Sub-item 114B(3) gives effect to certain sales tax concessions required under the Status of Forces Agreement (SOFA) between the United States of America and Australia. The sub-item aims to exempt goods, as prescribed, imported by parcel post from the United States of America for the personal use of members of the United States Forces, or of members of the civilian component, or for the personal use of dependants of such members.
Following the restructuring of the Customs Tariff in 1982 by the Customs Tariff Act No. 113 of 1982, tariff item 11 was omitted from Part I of the Second Schedule and was incorporated in Part I of Schedule 4 (effective from 1 January 1983). Sales tax regulation 7, however, was not amended at that time to reflect this change.
The amendment to the regulations, which is effective on and after 1 January 1983, omits the reference to “the Second Schedule” and includes a reference to “Schedule 4”. It restores legislative effect to the exemption intended under sub-item 114B(3).
Regulation 1 amends regulation 7 of the Sales Tax (Exemptions and Classifications) Regulations by omitting “the Second Schedule” and substituting “Schedule 4”. The amendment is designed to facilitate exemptions from sales tax for goods which are intended to be covered by sub-item 114B(3) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act but which, since changes made to the Customs Tariff by the Customs Tariff Act No.113 of 1982, have not formally been provided for under that sub-item.
Regulation 2 deems regulation 1 to have come into operation on 1 January 1983.
Overview
The Statutory Rules 1984 No. 324, issued under the authority of the Treasurer, make amendments to the Sales Tax (Exemptions and Classifications) Regulations to address the issue of outdated references following a restructuring of the Customs Tariff in 1982. This restructuring, implemented by the Customs Tariff Act No. 113 of 1982, led to the omission of certain tariff items, including item 11, which was incorporated into Schedule 4. However, these changes were not reflected in the Sales Tax regulations, resulting in a gap in the application of sales tax exemptions intended for goods imported by parcel post from the United States for the personal use of members of the United States Forces, their civilian components, or their dependants. The policy objective of these amendments is to ensure that the intended sales tax exemptions under sub-item 114B(3) of the First Schedule to the Sales Tax (Exemptions and Classifications) Act are accurately applied, reflecting the current structure of the Customs Tariff.
Scope and Application
This Statutory Rule, issued under the authority of the Treasurer, amends regulation 7 of the Sales Tax (Exemptions and Classifications) Regulations to update a reference to a Customs Tariff item that was omitted following the restructuring of the Customs Tariff in 1982. Regulation 7 prescribes goods exempt under sub-item 114B(3) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act, which includes certain sales tax concessions for goods imported by parcel post from the United States for the personal use of members of the United States Forces, members of the civilian component, or their dependants. The amendment corrects the oversight of not updating the regulation to reflect the changes in the Customs Tariff, ensuring that the intended sales tax exemptions continue to apply. The amendment is retrospective, applying as if it came into effect on 1 January 1983, the date the changes to the Customs Tariff were implemented. The amendment ensures that the legislative intent behind the sales tax exemption is preserved and accurately reflected in the relevant regulations.
Key Provisions
The Statutory Rules 1984 No. 324, issued under the authority of the Treasurer, amend regulation 7 of the Sales Tax (Exemptions and Classifications) Regulations. The amendment specifically involves Regulation 7, which prescribes goods exempt under sub-item 114B(3) of the First Schedule to the Sales Tax (Exemptions and Classifications) Act. The primary change is the substitution of "Schedule 4" for "the Second Schedule" in Regulation 7 (Reg 1). This amendment addresses the omission of tariff item 11 from Part I of the Second Schedule and its incorporation into Part I of Schedule 4, effective from 1 January 1983, under the Customs Tariff Act No. 113 of 1982. By updating the regulation, the amendment ensures that goods intended to be covered by sub-item 114B(3) continue to be exempt from sales tax for members of the United States Forces, their civilian components, and their dependants.
The obligations imposed by the amendment in Regulation 1 are primarily on the administrators and enforcers of the Sales Tax (Exemptions and Classifications) Act and its regulations. They must ensure that the updated regulation is applied correctly, providing the intended sales tax exemption to the specified goods. This means that any goods imported by parcel post from the United States for the personal use of members of the United States Forces, their civilian components, or their dependants, as prescribed under sub-item 114B(3), should now be exempt from sales tax in accordance with the updated regulation. The obligation extends to ensuring that the correct schedule reference is used for these goods, now Schedule 4, to maintain the legislative intent behind the exemption.
Failure to comply with the amended regulation could result in unintended tax liabilities for the individuals or entities involved. While the Statutory Rules do not explicitly outline specific offences, penalties, or consequences for non-compliance, breaches of the Sales Tax (Exemptions and Classifications) Act can generally lead to civil and criminal penalties. Under the Act, non-compliance with tax obligations can result in the imposition of penalties and interest on any unpaid tax, as well as potential prosecution for serious breaches. The maximum penalties for tax evasion or fraud can include fines and imprisonment, depending on the severity and intent of the breach. It is therefore crucial for all parties involved to adhere to the updated regulation to avoid any adverse consequences.