Commonwealth Numbered Regulations - Explanatory Statements

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SALES TAX ASSESSMENT REGULATIONS (AMENDMENT) 1998 NO. 218

STATUTORY RULES 1998 NO. 218

Issued by the Authority of the Assistant Treasurer

Sales Tax Assessment Act 1992

Sales Tax Assessment Regulations (Amendment)

Section 131 of the Sales Tax Assessment Act 1992 (the Act) provides that the GovernorGeneral may make regulations for the purposes of the Act.

The purpose of these regulations is to insert a start date of 1 September 1998 into the Sales Tax Assessment Regulations. From this date new provisions of the Act which require dealings in computers and related computer equipment to be authorised and tax to be withheld from unauthorised dealings will commence to apply.

The sales tax law has recently been amended to insert a new Part to establish a new sales tax regime for the suppliers of personal computers and related goods. The new regime requires people to be accredited and dealings to be authorised if goods are to be obtained free of sales tax.

The authorisation and withholding provisions apply to dealings on or after a date to be specified. This regulation provides for the 1 September 1998 to be the specified date. It is proposed that the regulations shall commence on the date of gazettal. The date of 1 September 1998 was chosen to allow sufficient time for suppliers to apply for accreditation and to allow time to make changes to computer systems to accommodate the new regime. This represents a period of just over four months from the date the amendments to the Act obtained Royal Assent.

This Minute recommends that the Regulations be made in the form proposed.

Authority: section 131 of the Sales Tax Assessment Act 1992

Purpose of the regulations

The purpose of these regulations is to insert a date from which sales tax legislation providing additional requirements for dealings with computers and related computer equipment can commence.

An explanation of the Regulations appears below:

Regulation 1 - Commencement

Regulation 1 provides that these Regulations commence on gazettal.

Regulation 2 - Amendment

Regulation 2 provides that these Regulations amend the Sales Tax Assessment Regulations.

Regulation 3 - Regulation 8A (Application of Divisions 3 and 4 of Part 7A of the Act)

Regulation 3.1 inserts a prescribed date of 1 September 1998 as that from which dealings covered by Divisions 3 and 4 of Part 7A of the Act apply.