Commonwealth Numbered Regulations - Explanatory Statements

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SALES TAX REGULATIONS (AMENDMENT) 1991 NO. 239

STATUTORY RULES 1991 No. 239

Issued by the Authority of the Treasurer

Sales Tax Assessment Acts (Nos. 1-4 & 6-8) 1930

Sales Tax Assessment Act (No. 10) 1985

Sales Tax Regulations (Amendment)

Sales tax law previously required sales taxpayers to lodge returns and pay tax within 21 days after the close of the month in which a taxable dealing occurs. Sales Tax Laws Amendment Act (No. 2) 1991 amended the sales tax law to introduce a system of quarterly payments of sales tax for taxpayers whose annual sales tax liability for the previous financial year did not exceed the quarterly remitter threshold for the current year.

A person who is a quarterly remitter has the option of lodging returns and paying tax either on a quarterly or a monthly basis. However, a return must be lodged and all tax owing must be paid within 21 days after the end of a quarter on the taxable dealings that occurred in that quarter.

For various reasons taxpayers may overpay their sales tax and need to claim a refund of the overpaid amount. The Sales Tax Regulations set out the rules for claiming refunds of these amounts. To claim a refund the taxpayer must furnish a written statement to the Commissioner of Taxation. This statement may be furnished at the same time as the monthly return is lodged or within thirty days after the sale of the goods. The taxpayer may deduct the amount of the refund claimed from the monthly payment of tax that is due.

Taxpayers who remit monthly are entitled to claim refunds when they lodge monthly returns. The Sales Tax Regulations (Amendment) has amended the regulations to also allow quarterly remitters to claim refunds when they lodge their returns.

Details of the proposed regulations are as follows:

Regulation 1 provides that the amendments to the Sales Tax Regulations come into effect on 1 August 1991 which is the date the Sales Tax Laws Amendment Act (No. 2) 1991 comes into operation.

Regulation 2 provides that the Sales Tax Regulations are amended as set out in these Regulations.

Regulation 3 replaces subregulation 51(2) with a new subregulation 51(2). Paragraph (a) of that regulation allows a person who is registered for sales tax purposes to claim a refund of tax, where appropriate, at the time of lodging a monthly or a quarterly return. Paragraph 51(2)(b) allows an unregistered person to claim a refund within 30 days after the sale of the goods.

Regulation 52 allows a registered person who is claiming a refund to deduct the amount of the refund from the tax payable in respect of the monthly return with which the refund statement is lodged. Regulation 4 amended this regulation to allow a registered person to deduct the amount of the refund claim from a quarterly return.

Where the Commissioner, a Second Commissioner or a Deputy Commissioner is not satisfied that a refund is necessary or is satisfied that the amount of the refund is incorrect, regulation 54 requires that an adjustment be made by the sales taxpayer in the next monthly return. Regulation 5 amended that regulation to allow a quarterly remitter to make an adjustment in the next quarterly return.

Regulation 6 amended subregulation 55(1) to allow refunds in special cases to be deducted from each monthly return or each quarterly return as the case may be.