Sales Tax Laws Amendment Act 1987

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Sales Tax Laws Amendment Act 1987

No. 42 of 1987

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1. Short title

2. Commencement

PART II—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 1) 1930

3. Principal Act

4. Insertion of new section:

20a. Non-exempt authorities

5. Heading to Schedule

6. Non-exempt authorities established before 14 May 1987

PART III—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 2) 1930

7. Principal Act

8. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART IV—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 3) 1930

9. Principal Act

10. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART V—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 4) 1930

11. Principal Act

12. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART VI—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 5) 1930

13. Principal Act

14. Application of provisions of Sales Tax Assessment Act (No. 1) 1930


TABLE OF PROVISIONS—continued

Section

PART VII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 6) 1930

15. Principal Act

16. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART VIII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 7) 1930

17. Principal Act

18. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART IX—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 8) 1930

19. Principal Act

20. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART X—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 9) 1930

21. Principal Act

22. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART XI—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 10) 1985

23. Principal Act

24. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART XII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 11) 1985

25. Principal Act

26. Application of provisions of Sales Tax Assessment Act (No. 1) 1930

PART XIII—AMENDMENT OF SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935

27. Principal Act

28. Insertion of new section:

6ac. Sales tax not payable on proportion of value of certain goods

29. First Schedule

PART XIV—SUPPLEMENTARY

30. Avoidance of sales tax

31. Application of amendments

SCHEDULE

Sales Tax Laws Amendment Act 1987

No. 42 of 1987

 

An Act to amend the laws relating to sales tax, and for related purposes

[Assented to 5 June 1987]

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

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Sales Tax Laws Amendment Act 1987.

Commencement

2. (1) This Part shall come into operation on the day on which this Act receives the Royal Assent.

(2) Section 28, the amendment made by paragraph 29 (d), and subsection 31 (1) shall come into operation on 1 July 1987.


(3) The remaining provisions of this Act shall be deemed to have come into operation on 14 May 1987.

PART II—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 1) 1930

Principal Act

3. The Sales Tax Assessment Act (No. 1) 19301 is in this Part referred to as the Principal Act.

4. After section 20 of the Principal Act the following section is inserted in Part IV:

Non-exempt authorities

“20a. (1) In this section, ‘authority’ means:

(a) an authority established before 14 May 1987, being an authority specified in Schedule 2; or

(b) an authority established on or after 14 May 1987, being:

(i) a corporation established for a public purpose by a law of the Commonwealth;

(ii) a company in which the Commonwealth has a controlling interest; or

(iii) a company in which a corporation referred to in subparagraph (i) or a company referred to in subparagraph (ii) has a controlling interest.

“(2) Subject to subsection (3), to the extent that, but for this section, an Act (whether enacted before, on or after 14 May 1987) would:

(a) exempt a particular authority from liability to pay tax under this Act; or

(b) exempt a person from liability to pay tax under this Act in relation to goods for use by a particular authority;

then, by force of this section, the exemption has no effect.

“(3) Subsection (2) does not apply to an exemption if:

(a) the provision containing the exemption is enacted after 13 May 1987; and

(b) the exemption expressly refers to sales tax (however described).

“(4) The regulations may amend Schedule 2 by:

(a) removing an authority from the Schedule; or

(b) adding to the Schedule an authority that:

(i) was established before 14 May 1987; and

(ii) is a corporation or company of a kind referred to in subparagraph (b) (i), (ii) or (iii) of the definition of ‘authority’ in subsection (1).”.


Heading to Schedule

5. The heading to the Schedule to the Principal Act is amended by-omitting “SCHEDULE” and substituting “SCHEDULE 1”.

Non-exempt authorities established before 14 May 1987

6. The Principal Act is amended by adding at the end the Schedule set out in the Schedule to this Act.

PART III—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 2) 1930

Principal Act

7. The Sales Tax Assessment Act (No. 2) 19302 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

8. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART IV—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 3) 1930

Principal Act

9. The Sales Tax Assessment Act (No. 3) 19303 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

10. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART V—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 4) 1930

Principal Act

11. The Sales Tax Assessment Act (No. 4) 19304 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

12. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART VI—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 5) 1930

Principal Act

13. The Sales Tax Assessment Act (No. 5) 19305 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

14. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART VII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 6) 1930

Principal Act

15. The Sales Tax Assessment Act (No. 6) 19306 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

16. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART VIII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 7) 1930

Principal Act

17. The Sales Tax Assessment Act (No. 7) 19307 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

18. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART IX—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 8) 1930

Principal Act

19. The Sales Tax Assessment Act (No. 8) 19308 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

20. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART X—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 9) 1930

Principal Act

21. The Sales Tax Assessment Act (No. 9) 19309 is in this Part referred to as the Principal Act.


Application of provisions of Sales Tax Assessment Act (No. 1) 1930

22. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART XI—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 10) 1985

Principal Act

23. The Sales Tax Assessment Act (No. 10) 198510 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

24. Section 12 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART XII—AMENDMENT OF SALES TAX ASSESSMENT ACT (No. 11) 1985

Principal Act

25. The Sales Tax Assessment Act (No. 11) 198511 is in this Part referred to as the Principal Act.

Application of provisions of Sales Tax Assessment Act (No. 1) 1930

26. Section 16 of the Principal Act is amended by inserting in subsection (1) “20a,” before “23”.

PART XIII—AMENDMENT OF SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935

Principal Act

27. The Sales Tax (Exemptions and Classifications) Act 193512 is in this Part referred to as the Principal Act.

28. After section 6ab of the Principal Act the following section is inserted:

Sales tax not payable on proportion of value of certain goods

“6ac. Notwithstanding anything contained in any law relating to sales tax, where, under by-laws made for the purposes of item 15 in Part I of Schedule 4 to the Customs Tariff, a proportion only of the value of goods to which that item applies is not liable to duties of Customs, sales tax is not payable on the equivalent proportion of the amount that is the sale value of the goods under the Sales Tax Assessment Act (No. 5) 1930”.


First Schedule

29. The First Schedule to the Principal Act is amended:

(a) by adding at the end of item 74 the following definition:

“In this item, ‘authority’ does not include an authority as defined by subsection 20a (1) of the Sales Tax Assessment Act (No. 1) 1930.”;

(b) by adding at the end of item 77 the following definition:

“In this item, ‘public transport authority’ does not include an authority as defined by subsection 20a (1) of the Sales Tax Assessment Act (No. 1) 1930.”;

(c) by adding at the end of item 78 the following definition:

“In this item, ‘public authority’ does not include an authority as defined by subsection 20a (1) of the Sales Tax Assessment Act (No. 1) 1930.”; and

(d) by omitting subitem 114 (2).

PART XIV—SUPPLEMENTARY

Avoidance of sales tax

30. Where:

(a) at any time (in this section called the “relevant time”) after 7.30 in the evening, by standard time in the Australian Capital Territory, on 13 May 1987 and before 14 May 1987 a person entered into, performed or carried out a transaction, act or operation (in this section called the “dealing”) in relation to goods; and

(b) the person entered into, performed or carried out the dealing at the relevant time for the purpose, or for purposes that included the purpose, of enabling any person to avoid liability to pay an amount, or part of an amount, of sales tax that would have been, or might reasonably be expected to have been, payable in relation to the dealing under the laws relating to sales tax if the dealing had been entered into, performed or carried out on 14 May 1987;

then, for the purposes of those laws, the dealing shall be deemed to have been entered into, performed or carried out on 14 May 1987.

Application of amendments

31. (1) The amendments made by section 28 and paragraph 29 (d) apply in relation to transactions, acts and operations effected or done in relation to goods at or after the commencement of this subsection.

(2) The other amendments made by this Act apply in relation to transactions, acts and operations effected or done in relation to goods at or after the commencement of this subsection.

—————


SCHEDULE Section 6

SCHEDULE TO BE ADDED TO SALES TAX ASSESSMENT ACT (No. 1) 1930

—————

SCHEDULE 2 Section 20a

NON-EXEMPT AUTHORITIES ESTABLISHED BEFORE 14 MAY 1987

Army and Air Force Canteen Service

Aussat Pty Ltd

Australian Canned Fruits Corporation

Australian Capital Territory Gaming and Liquor Authority

Australian Dairy Corporation

Australian Dried Fruits Corporation

Australian Honey Board

Australian Industry Development Corporation

Australian Meat and Live-stock Corporation

Australian Meat and Live-stock Research and Development Corporation

Australian National Airlines Commission

Australian Postal Commission

Australian Shipping Commission

Australian Telecommunications Commission

Australian Tobacco Board

Australian Wheat Board

Australian Wine and Brandy Corporation

Australian Wool Corporation

Building and Construction Industry Long Service Leave Board

Commonwealth Accommodation and Catering Services Ltd

Commonwealth Banking Corporation

Commonwealth Serum Laboratories

Housing Loans Insurance Corporation

Overseas Telecommunications Commission

Phosphate Mining Corporation of Christmas Island

Qantas Airways Ltd

Snowy Mountains Engineering Corporation

Stevedoring Industry Finance Committee

Superannuation Fund Investment Trust

 

NOTES

1. No. 25, 1930, as amended. For previous amendments, see No. 62, 1930; No. 25, 1931; Nos. 39 and 64, 1932; Nos. 17 and 47, 1933; Nos. 16 and 29, 1934; Nos. 8, 45 and 61, 1935; No. 78, 1936; Nos. 30 and 64, 1940; No. 54, 1942; No. 1, 1953; No. 40, 1962; No. 93, 1966; No. 216, 1973; No. 197, 1978 (as amended by No. 47, 1985); No. 19, 1979; No. 134, 1980; Nos. 51 and 122, 1982; No. 39, 1983; No. 123,


NOTES—continued

1984 (as amended by No. 47, 1985); Nos. 47, 123 and 144, 1985; and Nos. 41, 48 and 99, 1986.

2. No. 27, 1930, as amended. For previous amendments, see No. 64, 1930; No. 27, 1931; Nos. 40 and 64, 1932; Nos. 17 and 48, 1933; Nos. 16 and 30, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 198, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

3. No. 29, 1930, as amended. For previous amendments, see No. 65, 1930; No. 29, 1931; Nos. 41 and 64, 1932; Nos. 17 and 49, 1933; No. 16, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 199, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

4. No. 31, 1930, as amended. For previous amendments, see No. 66, 1930; No. 31, 1931, Nos. 42 and 64, 1932; Nos. 17 and 50, 1933; No. 16, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 200, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

5. No. 33, 1930, as amended. For previous amendments, see No. 67, 1930; No. 33, 1931; Nos. 43 and 64, 1932; Nos. 17, 25 and 51, 1933; Nos. 16 and 62, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 26, 1939; No. 71, 1953; No. 45, 1963; No. 93, 1966; No. 109, 1968; No. 216, 1973; No. 91, 1976; No. 201, 1978; Nos. 51 and 80, 1982; No. 123, 1984 (as amended by No. 144, 1985); No. 144, 1985; and Nos. 48 and 99, 1986.

6. No. 35, 1930, as amended. For previous amendments, see No. 68, 1930; No. 35, 1931; Nos. 44 and 64, 1932; Nos. 17, 25 and 52, 1933; Nos. 16 and 62, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 202, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

7. No. 37, 1930, as amended. For previous amendments, see No. 69, 1930; No. 37, 1931; Nos. 45 and 64, 1932; Nos. 17, 25 and 53, 1933; Nos. 16 and 62, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 203, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

8. No. 39, 1930, as amended. For previous amendments, see No. 70, 1930; No. 39, 1931; Nos. 46 and 64, 1932; Nos. 17, 25 and 54, 1933; Nos. 16 and 62, 1934; Nos. 45 and 61, 1935; No. 78, 1936; No. 93, 1966; No. 216, 1973; No. 204, 1978; No. 123, 1984; No. 47, 1985; and Nos. 48 and 99, 1986.

9. No. 41, 1930, as amended. For previous amendments, see No. 71, 1930; No. 41, 1931; No. 47, 1932; No. 55, 1933; Nos. 9 and 61, 1935; No. 78, 1936; No. 13, 1946; No. 93; 1966; No. 216, 1973; No. 205, 1978; No. 123, 1984; Nos. 47 and 144, 1985; and Nos. 48 and 99, 1986.

10. No. 43, 1985. For previous amendments, see Nos. 48 and 99, 1986.

11. No. 179, 1985. For previous amendments, see No. 48, 1986.

12. 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,


NOTES—continued

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; and Nos. 28, 76 and 98, 1986.

[Minister’s second reading speech made in—

House of Representatives on 14 May 1987

Senate on 27 May 1987]

Overview

The Sales Tax Laws Amendment Act 1987 was enacted to revise and update the existing sales tax laws in Australia, ensuring consistency and clarity across various sales tax acts. This Act was passed by the Commonwealth Parliament and received Royal Assent on 5 June 1987. The primary aim of the Act was to align the various Sales Tax Assessment Acts and the Sales Tax (Exemptions and Classifications) Act 1935, providing a more streamlined and coherent legislative framework for sales tax. The Act addresses issues such as the definition of non-exempt authorities, the application of sales tax to certain goods, and measures to prevent tax avoidance strategies. The Act ensures that sales tax is imposed on entities and goods that were previously exempt, thereby broadening the tax base and enhancing revenue collection for the Commonwealth.

Scope and Application

The Sales Tax Laws Amendment Act 1987 is an Act of the Commonwealth of Australia that amends the Sales Tax Assessment Act (No. 1) 1930 and other related Acts. This Act applies to certain authorities, specifically those established for public purposes by Commonwealth law or those in which the Commonwealth has a controlling interest. These amendments ensure that such authorities are not exempt from sales tax liability, overriding any previous exemptions that may have been in place. The Act also includes provisions to prevent tax avoidance by transactions conducted on or around the commencement date of the Act. It applies across the Commonwealth of Australia, aligning sales tax regulations with the broader legislative intent to ensure uniform application of sales tax laws. The Act does not specify any exclusions but allows for the regulation to amend the list of non-exempt authorities through subordinate instruments.

Key Provisions

The Sales Tax Laws Amendment Act 1987 (No. 42 of 1987) makes several amendments to existing sales tax legislation. It introduces new sections and amends existing ones to redefine and extend sales tax liability to certain authorities previously exempt from such taxes. Section 20a, inserted into the Sales Tax Assessment Act (No. 1) 1930, specifies that certain authorities, particularly those established for public purposes by Commonwealth law or in which the Commonwealth has a controlling interest, are no longer exempt from sales tax. This applies to authorities established before and after 14 May 1987. These amendments ensure that the exemption from sales tax does not apply unless the exemption provision was enacted after 13 May 1987 and explicitly refers to sales tax. Additionally, the Act makes technical amendments to various Sales Tax Assessment Acts to incorporate these changes and ensures that the amendments apply to transactions occurring after specific commencement dates. The Act imposes obligations on entities previously exempt from sales tax to now account for and pay sales tax on goods used for their operations. These entities must comply with the new provisions by ensuring that any transactions that would have been exempt are now subject to sales tax. Furthermore, the Act mandates that certain definitions in the Sales Tax Assessment Acts be amended to exclude the newly defined authorities from previous exemptions. This includes modifying definitions related to 'authority', 'public transport authority', and 'public authority' to reflect the changes brought by the Act. Breach of the provisions in the Sales Tax Laws Amendment Act 1987 can result in civil and criminal penalties. While the specific penalties are not detailed in the provided excerpt, typically, failure to comply with sales tax laws can lead to fines, interest on unpaid taxes, and potential prosecution for tax evasion. The severity of penalties can vary based on the extent and intent of the non-compliance. The Act also includes provisions to prevent the avoidance of sales tax by deeming certain transactions to have occurred on the commencement date if they were intended to evade tax liability.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards
Avoidance of sales tax

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