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This Digest was prepared for debate. It reflects the legislation as
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Sales Tax (Industrial Safety Equipment) (Transitional
Provisions) 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 were mainly used for industrial safety purposes will qualify
for sales tax exemption. The Bill contains transitional provisions
in relation to certain dealings between 1 January 1993 and 5
October 1999.
For background on the Bill, including the
transitional provisions, the reader is referred to the Digest for the Sales Tax (General) (Industrial
Safety Equipment) Bill 2000.(1)
Persons may claim sales tax credit on sales
between 1 January 1993 and 5 October 1999 in respect of equipment
'ordinarily' but not 'mainly' used in industrial safety operations
only if the benefit has been, or will be, passed on to the end user
of the goods (clause 5). If the goods have become
an integral part of property (for example, shields fitted to
industrial machines) and are no longer identifiable as 'goods', the
end user is taken to be either the lessee or owner of the property
(subclause 5(2)).
Any claim for sales tax credit under this
provision must have been lodged before 5 October 1999, the date the
Government's decision to amend the sales tax exemption was
announced. If the benefit of the sales tax credit is not passed on,
then sales tax is payable retrospectively on such dealings.
Clause 6 provides that where
sales tax has not been paid in respect of equipment 'ordinarily'
but not 'mainly' used in industrial safety operations, and the
dealing occurred before 5 October 1999, the dealing is sales tax
exempt and no liability to pay tax or to any penalty arises.
- Bills Digest no. 172,
1999-2000
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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