Commonwealth Numbered Regulations - Explanatory Statements

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SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) REGULATIONS 1992 NO. 363

STATUTORY RULES 1992 No. 363

ISSUED BY THE AUTHORITY OF THE TREASURER

Sales Tax (Exemptions and Classifications) Act 1992

Sales Tax (Exemptions and Classifications) Regulations

These regulations are made under the Sales Tax (Exemptions and Classifications) Act 1992 (the Act) and will facilitate the Act's administration.

The regulations relate principally to the circumstances in which motor vehicles may be acquired free of sales tax by members of certain visiting defence forces. They also cover the kinds of goods that may be sold by a military facility established in Australia by the United States Forces.

An explanation of the regulations appears below.

Citation

Regulation 1 provides for these regulations to be cited as the Sales Tax (Exemptions and Classifications) Regulations.

Commencement

Regulation 2 provides that these regulations will come into effect on 1 January 1993.

Interpretation

Regulation 3 provides that unless the contrary intention appears, "Act" means the Sales Tax (Exemptions and Classifications) Act 1992.

United Kingdom, Canadian and New Zealand armed forces

Regulation 4 sets out the conditions under which members of the United Kingdom, Canadian and New Zealand armed forces serving in Australia can purchase a motor vehicle manufactured in Australia free of sales tax.

The relevant exemption Items are 134, 136 and 137 in Schedule 1 to the Act.

Subregulation 4(a) provides that a member can purchase a motor vehicle manufactured in Australia free of sales tax where the member has not during the current tour of duty imported a motor vehicle (unless it had been imported under the provisions relating to the temporary importation of goods) or previously purchased a locally manufactured vehicle free of sales tax.

Subregulation 4(b) provides that a member can purchase a motor vehicle manufactured in Australia free of sales tax where the member has in the current tour of duty previously imported or purchased a vehicle but has paid sales tax on the importation or purchase of the vehicle.

Subregulation 4(c) provides that although a member may have already in the current tour of duty purchased or imported a vehicle free of sales tax, a further vehicle may be purchased free of sales tax if the first vehicle is still owned by the member and the Commissioner of Taxation is satisfied that for domestic purposes two motor vehicles are reasonably needed for the member and his or her family.

United States Forces

Regulation 5 sets out the sales tax concessions that are available to members of the United States Forces.

Subregulation 5(1) provides that the kinds of prescribed goods that can be for use or for sale by a military facility are all goods other than motor vehicles.

Subregulation 5(2) sets out the conditions under which a member of the United States Forces can purchase a motor vehicle manufactured in Australia free of sales tax. The subregulation provides that the member can only purchase such a vehicle free of sales tax where:

(a)       the member has not during the current tour of duty imported a motor vehicle covered by subitem 135(4) in Schedule 1 to the Act free of sales tax or previously purchased a locally manufactured vehicle under subitem 135(2) in Schedule 1 free of sales tax; or

(b)       the member has in the current tour of duty purchased or imported a vehicle free of sales tax which is still owned by the member and the Commissioner of Taxation is satisfied that for domestic purposes two motor vehicles are reasonably needed for the member and his or her family.

Subregulation 5(3) details the kinds of goods that are prescribed goods for the purposes of subitem. 135(3) in Schedule 1 to the Act. Subitem 135(3) limits exemption to prescribed goods that are imported from the United States for the personal use of a member of the United States Forces or a member of the civilian component or a dependant of those members. The kinds of goods prescribed are those covered by item 11 in Part I of Schedule 4 to the Customs Tariff.