Sales Tax (Securities and Exemptions) Act 1935

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SALES TAX (SECURITIES AND EXEMPTIONS).

No. 61 of 1935.

An Act to amend, in relation to Securities and Exemptions, Acts relating to the Imposition, Assessment and Collection of a Tax upon the sale value of goods.

[Assented to 7th December, 1935.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citations.

1.—(1.) This Act may be cited as the Sales Tax (Securities and Exemptions) Act 1935.

(2.) Section two of the Sales Tax (Financial Relief) Act 1935 is amended by omitting sub-sections (1.), (3.), (4.), (5.), (6.), (7.), (8.) and (9.).

(3.) Section one of the Sales Tax Assessment Act (No. 9) 1935 is amended by omitting sub-section (3.).

(4.) The Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1) 1935, by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 1) 1930–1935.

(5.) The Sales Tax Assessment Act (No. 2) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 2) 1930–1935.

(6.) The Sales Tax Assessment Act (No. 3) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 3) 1930–1935.

(7.) The Sales Tax Assessment Act (No. 4) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 4) 1930–1935.

(8.) The Sales Tax Assessment Act (No. 5) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 5) 1930–1935.

(9.) The. Sales Tax Assessment Act (No. 6) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 6) 1930–1935.

(10.) The Sales Tax Assessment Act (No. 7) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 7) 1930–1935.

(11.) The Sales Tax Assessment Act (No. 8) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 8) 1930–1935.

(12.) The Sales Tax Assessment Act (No. 9) 1930–1934, as amended by the Sales Tax Assessment Act (No. 9) 1935 and by this Act, may be cited as the Sales Tax Assessment Act (No. 9) 1930–1935.

Securities.

2.—(1.) Section eleven of the Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1) 1935, and by the Sales Tax (Financial Relief) Act 1935 (which Act as so amended is in this section referred to as “the Principal Act”), is amended—

(a) by omitting from sub-section (1.) and from sub-section (2.) the words “and give security to the satisfaction of the Commissioner, in such amount, not exceeding One thousand pounds, as the Commissioner considers reasonable, for compliance with the conditions of the certificate” (wherever occurring);

(b) by omitting sub-section (4a.);

(d) by omitting from sub-section (4b.) all the words after the words “wholesale merchant” (second occurring);

(e) by inserting after sub-section (8.) the following sub-sections:—

“(8a.) In any case where, in the opinion of the Commissioner, it is necessary for the protection of the revenue to do so, he may, in writing, require any registered person to give security for compliance by that person with the conditions of any certificate issued to him under this Act, and that person shall, within twenty-eight days after the date of the requirement, give security to the satisfaction of the Commissioner, in such amount, not exceeding One thousand pounds, as the Commissioner considers reasonable, for compliance with the conditions of the certificate.

(8b.) Every security given under the last preceding sub-section shall remain in force until—

(a) fresh security satisfactory to the Commissioner is furnished in lieu thereof by the registered person;

(b) the expiration of the prescribed period after the Commissioner has received from any party to the security, other than the taxpayer, a request, in writing, to be discharged from his obligations under the security; or

(c) the Commissioner, by notice in writing, relieves the parties to the security from their obligations under the security:

Provided that nothing in this sub-section shall relieve any party to a security from his obligations under the security in respect of any period prior to the date of the termination of the security.”; and

(f) by inserting in sub-section (11.) after the word “security” (first occurring) the words “, other than the taxpayer,”.

(2.) Nothing in this section shall affect the liability of any person under any security given under the Principal Act and in force immediately prior to the commencement of this Act in so far as that liability directly or indirectly relates to tax payable in respect of transactions, acts or operations entered into, done or carried out prior to the commencement of this Act, but otherwise no liability shall attach to any person under any such security.

Failure to register or give security.

3. Section thirteen of the Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1) 1935, and by the Sales Tax (Financial Relief) Act 1935, is amended by inserting after the word “Commissioner” the words “if so required by him”.

4. Section twenty of the Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1) 1935 and by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

“20. Notwithstanding anything contained in section nineteen of this Act, sales tax shall not be payable under this Act by the person specified in that section upon the sale value of goods the sale value of which is, by virtue of the Sales Tax Exemptions Act 1935, exempt from sales tax under this Act.”.

5. Section six of the Sales Tax Assessment Act (No. 2) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

“6. Notwithstanding anything contained in section five of this Act, sales tax shall not be payable under this Act by the person specified in that section upon the sale value of goods the sale value of which is, by virtue of the Sales Tax Exemptions Act 1935, exempt from sales tax under this Act.”.

6. Section six of the Sales Tax Assessment Act (No. 3) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

“6. Notwithstanding anything contained in section five of this Act, sales tax shall not be payable under this Act by the person

specified in that section upon the sale value of goods the sale value of which is, by virtue of the Sales Tax Exemptions Act 1935, exempt from sales tax under this Act.”.

7. Section six of the Sales Tax Assessment Act (No. 4) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

8. Section six of the Sales Tax Assessment Act (No. 5) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

9. Section six of the Sales Tax Assessment Act (No. 6) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

10. Section six of the Sales Tax Assessment Act (No. 7) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

11. Section six of the Sales Tax Assessment Act (No. 8) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is repealed and the following section inserted in its stead:—

Exemptions.

12. Section six of the Sales Tax Assessment Act (No. 9) 1930–1934, as amended by the Sales Tax Assessment Act (No. 9) 1935, is repealed and the following section inserted in its stead:—

Exemptions.

“6. Notwithstanding anything contained in section five of this Act, sales tax shall not be payable under this Act by the person

specified in that section upon the sale value of goods the sale value of which is, by virtue of the Sales Tax Exemptions Act 1935, exempt from sales tax under this Act.”.

Refunds in respect of exempt goods.

13. Section twenty-six of the Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1) 1935 and by the Sales Tax (Financial Relief) Act 1935, is amended—

(a) by omitting from paragraph (a) of sub-section (4.) the words “paragraph (aa) of sub-section (1.) of section twenty of this Act” and inserting in their stead the words “item 74 in the Schedule to the Sales Tax Exemptions Act 1935”; and

(b) by omitting from paragraph (a) of sub-section (4.) the word “paragraph” (second occurring) and inserting in its stead the word “item”.

Refunds in respect of exempt goods.

14. Section eleven of each of the following Acts:—

The Sales Tax Assessment Act (No. 2) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 3) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935,

is amended—

(a) by omitting from paragraph (a) of sub-section (3.) the words “paragraph (aa) of section six of this Act” and inserting in their stead the words “item 74 in the Schedule to the Sales Tax Exemptions Act 1935”; and

(b) by omitting from paragraph (a) of sub-section (3.) the word “paragraph” (second occurring) and inserting in its stead the word “item”.

Refunds in respect of exempt goods.

15. Section eleven of the Sales Tax Assessment Act (No. 5) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935, is amended by omitting from paragraph (a) of sub-section (3.) the words “by virtue of the provisions of paragraph (a) of section six of this Act” and inserting in their stead the words “under item 74 in the Schedule to the Sales Tax Exemptions Act 1935”.

Refunds in respect of exempt goods.

16. Section eleven of each of the following Acts:—

The Sales Tax Assessment Act (No. 6) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 7) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935,

is amended—

(a) by omitting from paragraph (a) of sub-section (3.) the words “paragraph (a) of section six of this Act” and inserting in their stead the words “item 74 in the Schedule to the Sales Tax Exemptions Act 1935”; and

(b) by omitting from paragraph (a) of sub-section (3.) the word “paragraph” (second occurring) and inserting in its stead the word “item”.

Repeal of Schedules.

17. The First Schedule to the Sales Tax Assessment Act (No. 1) 1930–1934, as amended by the Sales Tax Assessment Act (No. 1)

1935 and by the Sales Tax (Financial Relief) Act 1935, and the Schedule to each of the following Acts:—

The Sales Tax Assessment Act (No. 2) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 3) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 4) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 5) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 6) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 7) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935;

The Sales Tax Assessment Act (No. 8) 1930–1934, as amended by the Sales Tax (Financial Relief) Act 1935,

are repealed.

Saving.

18. Notwithstanding anything contained in sections four to twelve (inclusive) and section seventeen of this Act, the sections and Schedules repealed by the first mentioned sections shall continue in force for all purposes in connexion with liability for sales tax arising out of transactions, acts or operations which were entered into, done or carried out prior to the commencement of this Act.

Overview

The Sales Tax (Securities and Exemptions) Act 1935 was enacted by the Commonwealth Parliament to amend the Sales Tax Assessment Acts in relation to securities and exemptions, addressing gaps in the previous tax legislation. The primary purpose of the Act was to modify the requirements for securities and to introduce specific exemptions for certain goods as outlined in the Sales Tax Exemptions Act 1935. The Act also facilitated the refund of sales tax for exempt goods, aligning the various Sales Tax Assessment Acts with the new provisions. This legislative change aimed to streamline the tax collection process and ensure that certain goods exempt from sales tax were properly identified and managed within the tax framework.

Scope and Application

The Sales Tax (Securities and Exemptions) Act 1935 amends existing legislation to address the imposition, assessment, and collection of a tax on the sale value of goods, particularly focusing on securities and exemptions. This Act applies to registered persons, entities, and transactions involving the sale of goods within the Commonwealth of Australia. It amends various Sales Tax Assessment Acts, removing certain subsections and adding new provisions regarding the requirement and conditions of giving security for compliance with sales tax certificates. The Commissioner may require registered persons to provide security if necessary for revenue protection, with such security remaining in force until specific conditions are met. Exemptions from sales tax are detailed, with the Sales Tax Exemptions Act 1935 specifying which goods are exempt. Refunds for exempt goods are also addressed, with amendments made to various Sales Tax Assessment Acts to align with the Sales Tax Exemptions Act 1935. The Act extends to the entire Commonwealth, affecting all entities and persons engaged in taxable transactions of goods within Australia. Certain repealed schedules and sections remain in force for transactions occurring prior to the Act's commencement.

Key Provisions

The Sales Tax (Securities and Exemptions) Act 1935 amends several existing acts related to the imposition, assessment, and collection of tax on the sale value of goods, particularly focusing on securities and exemptions. Section 2 of the Act removes certain requirements for security under the Sales Tax Assessment Act (No. 1) 1930–1935, including the mandatory provision of security by registered persons. It introduces discretionary authority for the Commissioner to require security if necessary to protect the revenue. The Commissioner can require a registered person to provide security within 28 days, up to a maximum of One thousand pounds, as deemed reasonable. The security remains in force until it is replaced, the parties request its termination, or the Commissioner discharges the parties from their obligations. Additionally, this Act ensures that liabilities under existing securities remain unaffected for transactions occurring before the Act's commencement. The Act imposes several obligations on the parties it governs, primarily concerning the registration and the provision of security. Section 3 amends the requirement for registration to include a condition that the Commissioner may require security if necessary. Section 4 and subsequent sections insert new provisions concerning exemptions from sales tax for certain goods as specified in the Sales Tax Exemptions Act 1935. These amendments ensure that sales tax is not payable for goods that are exempt under the Sales Tax Exemptions Act. Regarding refunds, Section 13 and subsequent sections amend various provisions to align with the Sales Tax Exemptions Act 1935, ensuring that refunds for exempt goods are granted according to the updated criteria. Finally, Section 17 repeals certain schedules of the Sales Tax Assessment Acts, while Section 18 ensures that repealed sections and schedules continue to apply to liabilities arising from transactions before the Act's commencement. The Act does not explicitly state specific offences, penalties, or consequences for breach. However, the failure to comply with the Commissioner's requirements, such as not providing the necessary security when requested, could potentially lead to enforcement actions by the Commissioner. This may include administrative penalties, legal proceedings, or other measures to ensure compliance with the tax laws. The exact penalties would depend on the specific circumstances and the broader tax legislation in place at the time.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Exemptions & Exclusions; Regulatory Standards

Interactions

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.

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