WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
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Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Sales Tax (Customs) (Industrial Safety
Equipment) Bill 2000
Date Introduced: 11 May 2000
House: House of
Representatives
Portfolio: Treasury
Commencement: On Royal Assent
The Bill forms
part of a package of Bills that modify the sales tax exemption for
industrial safety equipment to provide that only goods of a kind
that are mainly used for industrial safety purposes will qualify
for sales tax exemption. The Bill provides for that modification to
the extent that sales tax is a duty of customs.
This Bill, together with the Sales Tax (General)
(Industrial Safety Equipment) Bill 2000 and the Sales Tax (Excise)
(Industrial Safety Equipment) Bill 2000, are Bills which impose
taxation.(1) Three separate Bills are required to
satisfy section 55 of the Constitution, which in part provides:
'Laws imposing taxation, except laws imposing
duties of customs or of excise, shall deal with one subject of
taxation only; but laws imposing duties of customs shall deal with
duties of customs only, and laws imposing duties of excise shall
deal with duties of excise only.'
For further background the reader is referred to
the Digest for the Sales Tax (General)
(Industrial Safety Equipment) Bill 2000.(2)
Main
Provisions
Clause 6 modifies Item 20 of Schedule 1 of the
Exemptions Act 1992 by replacing 'ordinarily' with 'mainly'. This
modification applies retrospectively to sales from 1 January 1993,
which is the first taxing day under the Assessment Act
1992.(3)
Clause 4 deems the Act to be
included in the definition of 'sales tax amending Act' in section
129 of the Assessment Act 1992. Section 129 provides that
a sales tax amending Act may not make a person liable to a sales
tax penalty for any act or omission which occurred within 28 days
after Royal Assent to the sales tax amending Act. The package of
Bills will operate principally on conduct prior to 1 July 2000,
thus almost certainly prior to Royal Assent to these Bills if
passed. Thus, the effect of section 129 is that although persons
may be retrospectively liable to sales tax, they will not be liable
to pay a penalty or be convicted for an offence.
-
- On one view, the Bills impose taxation, in that certain sales
of industrial safety equipment which were formerly exempt from
sales tax will now be subject to sales tax. On another view, as the
Bills merely reflect Parliament's original intention, they do not
alter any taxation liabilities. Out of caution, the Bills have been
treated as though they do impose taxation.
- Bills Digest no. 172,
1999-2000.
- Section 5 of the Sales Tax Assessment Act 1992 defines
'first taxing day' as the first day of the fourth month after the
month of the year in which the Act receives the Royal Assent. Royal
Assent was given on 30 September 1992.
Katrine Del Villar
30 May 2000
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2000
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Published by the Department of the Parliamentary Library,
2000.
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