Sales Tax (No. 7) Amendment Act 1985

Overview

The Sales Tax (No. 7) Amendment Act 1985 was enacted by the Queen, with the assent of the Senate and the House of Representatives of the Commonwealth of Australia, to amend the Sales Tax Act (No. 7) 1930. This amendment aimed to update the sales tax rates and provisions to better align with economic and fiscal policies of the time. The Act repealed certain sections of the Principal Act and introduced new rates for sales tax, effective from 20 September 1985. The sales tax was set at different rates depending on the classification of goods, with 20%, 10%, or 30% tax rates applied according to the schedules outlined in the Sales Tax (Exemptions and Classifications) Act 1935. The policy objective was to provide a more structured and equitable sales tax framework to ensure consistent and fair taxation on goods sold within Australia.

Scope and Application

The Sales Tax (No. 7) Amendment Act 1985 amends the Sales Tax Act (No. 7) 1930, and applies to the sale value of goods imported into Australia. This amendment specifically affects taxpayers who sell goods that they are not the importers of, and imposes sales tax at specified rates on these transactions. The Act came into operation on 20 September 1985. It outlines new rates of sales tax based on the classification of goods under the Sales Tax (Exemptions and Classifications) Act 1935, with rates ranging from 10% to 30%, and specifies that any sales tax imposed before the commencement of this Act continues to be imposed as if the provisions had not been repealed. The jurisdictional reach of this Act is Commonwealth-wide, affecting all sales of imported goods within Australia. There are no stated exclusions or exemptions within the Act itself, but the specific rates and classifications are determined by reference to the Sales Tax (Exemptions and Classifications) Act 1935, which may include various exclusions.

Key Provisions

The Sales Tax (No. 7) Amendment Act 1985 (section 1) modifies the Sales Tax Act (No. 7) 1930, introducing new tax rates and clarifying the scope of sales tax imposition. The Act came into operation on 20 September 1985 (section 2). The most significant changes are the repeal of sections 3 and 4 of the Principal Act and their substitution with new provisions (section 3(1)). These new provisions outline the imposition of sales tax on the sale value of goods imported into Australia and sold by a taxpayer who is not the importer of the goods (section 3). The rates of sales tax are specified as 20% for goods covered by the Fourth or Fifth Schedule, 10% for goods covered by the Third or Sixth Schedule, 30% for goods covered by the Second Schedule, and 20% for all other goods (section 4(a)-(d)). The Sales Tax (No. 7) Amendment Act 1985 imposes obligations on taxpayers to ensure they correctly identify the goods subject to sales tax, calculate the appropriate tax rate, and remit the sales tax to the relevant authorities. This applies particularly to those selling imported goods where they are not the importers. These taxpayers must be aware of the new rates and ensure they comply with the updated legislative framework. It is crucial for taxpayers to keep accurate records and documentation to substantiate their tax calculations and ensure they are meeting their obligations under the amended legislation. Breaches of the Sales Tax (No. 7) Amendment Act 1985 may result in civil or criminal consequences. The Act does not explicitly state the penalties for non-compliance, but under the broader Sales Tax Act (No. 7) 1930, penalties for non-compliance can be severe. These may include fines, imprisonment, or both, depending on the severity and intent of the breach. The specific penalties would be determined by the courts based on the circumstances of each case, but they can include substantial financial penalties and potential jail time for serious or repeated violations. It is essential for taxpayers to understand and adhere to the requirements of the Act to avoid these potential consequences.