House of Representatives

Explanatory Memorandum

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

Chapter 3

The Imposition Bills

A. Introduction

3.1 This chapter explains the Imposition Bills. These are the Bills that will formally impose the sales tax.

B. Explanation and Commentary

Constitutional requirements

3.2 Imposition laws must be separate: The Constitution requires that laws imposing taxation deal only with the imposition of taxation. To the extent that a law imposing taxation deals with anything apart from the imposition of the tax, those other parts of the law will be of no effect. [Section 55 of the Constitution]

3.3 One subject of taxation: The Constitution requires that laws imposing a duty of customs and laws imposing a duty of excise must be in separate Acts. [Section 55 of the Constitution]

The Imposition Bills

3.4 There are 3 Imposition Bills to give effect to the new law.

•

the Sales Tax Imposition (Excise) Bill 1992;

•

the Sales Tax Imposition (Customs) Bill 1992; and

•

the Sales Tax Imposition (General) Bill 1992.

These Bills will replace the 14 Rating Acts under the existing law. [clause 1 of each Imposition Bill]

Sales Tax Imposition (Excise) Bill 1992

3.5 This Bill will impose sales tax to the extent that it is a duty of excise. [clause 3]

Sales Tax Imposition (Customs) Bill 1992

3.6 This Bill will impose sales tax to the extent that it is a duty of customs. [clause 3]

Sales Tax Imposition (General) Bill 1992

3.7 This Bill will impose sales tax to the extent that it is neither a duty of excise nor a duty of customs. [clause 3]

Property of a State will not be taxed

3.8 Each of the Imposition Bills contains a provision to the effect that it will not impose a tax on property of any kind belonging to a State. The term 'property of any kind belonging to a State' will have the same meaning that the term has in section 114 of the Constitution. [clause 4 of each Imposition Bill]

An example of an assessable dealing under the new law that would not apply to property of a State is an application to own use by a State of goods manufactured by the State. An example of an assessable dealing under the new law that would apply to a State is a wholesale sale by a State of goods manufactured by the State.

Commencement of the Imposition Acts

3.9 The Imposition Bills will commence on the 28th day after they receive Royal Assent. This is the same commencement date for all the Bills that are a part of this package. [clause 2 of each Imposition Bill]