Commonwealth Numbered Regulations - Explanatory Statements

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SALES TAX ASSESSMENT AMENDMENT REGULATIONS (NO. 1) 1999 NO. 292

EXPLANATORY STATEMENT

STATUTORY RULE 1999 No. 292

Issued by authority of the Assistant Treasurer

Sales Tax Assessment Act 1992

Sales Tax Assessment Amendment Regulations (No. 1)

Paragraph 131(2)(a) of the Sales Tax Assessment Act 1992 (the Act) provides that the GovernorGeneral may make regulations allowing goods to be brought into Australia, on a temporary basis, without the payment of sales tax.

Subsection 33(3) of the Acts Interpretation Act 1901 ensures that the power to make a regulation under section 131 also includes a power to repeal a regulation.

The amending regulations repeal Regulations 10 and 11 of the Sales Tax Assessment Regulations (the Regulations), and repeal supporting definitions in Regulation 3. The provisions of Regulations 10 and 11, which cover the temporary importation of goods, are now contained in section 51A, which was inserted into the Act by the Sales Tax Legislation Amendment Act (No. 1) 1999 (STLAA (No. 1) 1999).

Wholesale sales tax is imposed on goods which have been locally manufactured or imported into Australia. Goods which have been previously used in Australia are not subject to sales tax. Regulations 10 and 11 of the Act provide an exemption from sales tax for goods imported into Australia for short periods. Under these provisions, goods can be imported for periods of less than twelve months free of sales tax, provided a security or undertaking is given and the goods are exempt from customs duty. This temporary importation exemption is intended to cover goods temporarily imported, for example, by a visiting tourist, or for sporting events, exhibitions, or other special events.

Recent amendments to the Act, made by the STLAA (No. 1) 1999, amalgamated Regulations 10 and 11 and put the requirements of these two regulations into the Act as section 5 1 A. This was done in order to improve the structure of the sales tax law by having the relevant requirements relating to the temporary importation exemption in the primary legislation. New section 51A complements the insertion of new section 9B, an anti-avoidance measure designed to prevent an abuse of the temporary importation exemption, whereby goods imported under the exemption were exported and then subsequently re-imported on a permanent basis free of sales tax.

As the provisions of Regulations 10 and 11 are now in the Act, they are no longer required. The amending regulations also repeal the definitions of 'Collector' and 'Comptroller' in Regulation 3, which are terms used only in Regulations 10 and 11.

The amending regulations commence on the commencement of Schedule 3 of the STLAA (No. 1) 1999. Schedule 3 commenced on Royal Assent. This Act received Royal Assent on 14 May 1999. Whilst the commencement date for the amending regulations is retrospective, Regulations 10 and 11 have been effectively inoperative since the commencement of new section 51A. Section 51A covers the same ground as Regulations 10 and 11. In these circumstances, sales tax payers will not be adversely affected by the retrospective commencement of the amending regulations.

Details of the amending . regulations are set out in the Attachment.

ATTACHMENT

DETAILED NOTES OF THE AMENDING REGULATIONS

Name of Regulations

The amending regulations are called the Sales Tax Assessment Amendment Regulations 1999 (No. 1). [Regulation 1]

Commencement

The regulations commence on the commencement of Schedule 3 of the Sales Tax Legislation Amendment Act (No. 1) 1999 (Act No. 33 of 1999), which commenced on Royal Assent. This Act received Royal Assent on 14 May 1999. [Regulation 2]

Amendments

The changes to the existing Regulations are in Schedule 1 to the amending regulations. [Regulation 3]

The name of the Regulations made under the Sales Tax Assessment Act 1992 is changed from the Sales Tax Assessment Regulations to the Sales Tax Assessment Regulations 1992 [Schedule 1, Item 1]. This change accords with the new naming method for Regulations.

The Regulations omit the definitions of 'Collector' and 'Comptroller' in Regulation 3. [Schedule 1, Item 2]

The Regulations are amended to omit Regulations 10 and 11. [Schedule 1, Item 3]


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