Sales Tax (No. 9) Amendment Act 1985

Overview

The Sales Tax (No. 9) Amendment Act 1985, enacted by the Commonwealth Parliament, was introduced to amend the Sales Tax Act (No. 9) 1930. This Act aimed to update and revise the tax rates and scope of sales tax imposed on goods sold or leased in Australia, effective from 20 September 1985. The objective of this legislation was to adjust the sales tax rates and ensure consistency in the application of sales tax across different categories of goods. By repealing and substituting certain sections of the Principal Act, the 1985 Amendment Act established new tax rates for various classifications of goods, ensuring a more structured and equitable sales tax system.

Scope and Application

The Sales Tax (No. 9) Amendment Act 1985 applies to taxpayers involved in the sale of goods in Australia, including leases of goods, as of 20 September 1985. This legislation amends the Sales Tax Act (No. 9) 1930 by repealing certain sections and substituting new provisions regarding the imposition and rates of sales tax. It specifically targets the sale value of goods leased on or after the commencement date and applies to various categories of goods, as classified in the Sales Tax (Exemptions and Classifications) Act 1935. The tax rates vary according to the schedule under which the goods fall, ranging from 10% to 30%. Importantly, the Act ensures that sales tax imposed before its commencement continues to apply as if the repealed provisions had not been altered. The geographic scope of this Act is confined to Australia, and it does not specify any exclusions, exemptions, or thresholds beyond those defined in the referenced schedules of the Sales Tax (Exemptions and Classifications) Act 1935.

Key Provisions

The Sales Tax (No. 9) Amendment Act 1985 amends the Sales Tax Act (No. 9) 1930 by introducing new provisions regarding the imposition and rates of sales tax on goods sold or leased in Australia. The Act repeals and replaces sections 3 and 4 of the Principal Act with new provisions. Section 3 of the Act states that sales tax is imposed on the sale value of goods in Australia leased or sold by a taxpayer to a lessee on or after 20 September 1985. The rates of sales tax are specified in section 4, with a 20% tax for goods covered by the Fourth or Fifth Schedule to the Sales Tax (Exemptions and Classifications) Act 1935, a 10% tax for goods covered by the Third or Sixth Schedule, a 30% tax for goods covered by the Second Schedule, and a 20% tax for goods not covered by any of the Schedules to that Act. Under this Act, taxpayers have the obligation to calculate and remit the appropriate sales tax on the sale value of goods in accordance with the specified rates. Taxpayers must also ensure they are aware of the classification of goods as outlined in the Sales Tax (Exemptions and Classifications) Act 1935 to correctly determine the applicable tax rate. Failure to correctly calculate and remit the sales tax can lead to financial penalties and legal consequences. Section 2 of the Act provides that it came into operation on 20 September 1985. Any sales tax imposed before this date under the repealed provisions of the Principal Act continues to be imposed as if those provisions had not been repealed. The Act also includes a provision in section 3(2) ensuring that any sales tax imposed prior to the Act's commencement continues to apply. Non-compliance with the obligations set out in the Act can result in enforcement actions, including fines and other penalties as prescribed by the Sales Tax Act (No. 9) 1930. The specific maximum penalties for breaches would be detailed within the Principal Act.