Senate

Addendum to Supplementary Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon. J.S. Dawkins, M.P.)

General Outline

Deemed manufacturers

Replacement amendments of the Sales Tax (Exemptions and Classifications) Bill 1992 will make one change to the original proposed amendments. The proposed business inputs exemption for a person who supplies materials to be made up into goods will be extended. The exemption will now be allowed if the made-up goods are for wholesale sale, and/or indirect marketing sale, by the supplier. The original amendments did not allow the exemption if the goods were for indirect marketing sale.

Exempt use

The original amendments of the Sales Tax (Exemptions and Classifications) Bill 1992 will allow exemption for goods that are:

.

donated to always exempt bodies;

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incorporated into other goods that are for use by a person in exempt circumstances; and

.

incorporated into property owned by or leased to, an always exempt body.

The additional amendment to the Sales Tax Assessment Bill 1992 will allow a credit for goods used in these circumstances if the goods have already borne tax.