Sales Tax Assessment Act 1992

Part 1—Preliminary

1 Short title [see Note 1]

This Act may be cited as the Sales Tax Assessment Act 1992.

2 Commencement [see Note 1]

This Act commences on the 28th day after the day on which it receives the Royal Assent.

3 How the sales tax law applies to things outside Australia and things happening before commencement

(1) The sales tax law extends to acts, omissions, matters and things outside Australia (except where a contrary intention appears). (2) The sales tax law applies to acts and omissions happening before or after the commencement of this Act (except where there is an express statement to the contrary).

4 States and Territories are bound by the sales tax law

The sales tax law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.

Part 2—General definitions

5 General definitions

In this Act, unless the contrary intention appears:

accompanied baggage, in relation to the export of goods, means goods that are exported on a flight or voyage on which the owner of the goods is a passenger.

Accredited has the meaning given by Division 2 of Part 7A.

AD1a means the assessable dealing of that name in Table 1, and AD1b, AD2a etc. have corresponding meanings.

Airport shop goods has the same meaning as in the Customs Act.

Always‑exempt goods means assessable goods that are covered by an exemption Item that has effect no matter how, or by whom, the goods are dealt with.

Always‑exempt person means a person whose use of goods of whatever kind is always covered by an exemption Item, regardless of the way in which the goods are used by the person. For the purposes of this definition, it is to be assumed that the following provisions of Schedule 1 to the Exemptions and Classifications Act had not been enacted:

(a) subitem 64(2);
(b) subitem 126(2A);
(c) subitem 126A(2);
(d) subitem 127(1A);
(e) subitem 128(2);
(f) subitem 130(2).

AOU means application to own use.

Application to own use, in relation to goods, includes any of the following:

(a) consuming the goods;
(b) giving the goods away, or transferring property in the goods under a contract that is not a contract of sale;
(c) granting a lease of the goods, or granting any other right or permission to use the goods;
(d) using the goods as materials in manufacture, construction, repair, renovation or other treatment or processing, whether or not it relates to or results in other goods;
(e) doing anything with the goods that results in the goods becoming a container for other property;
(f) if a person other than the owner has locally entered the goods—anything done by the person that would be an application to own use of the goods by the owner if it had been done by the owner;

but does not include: (g) selling the goods or consigning them for sale by consignment; (h) if the goods are imported goods—anything done with them after importation and before they are locally entered; (i) if a person processes or treats any exposed photographic or cinematograph film for another person (the customer) so as to produce a negative, transparency or film strip—anything done with the negative, transparency or film strip before it is delivered to the customer.

Application to own use in Australia or AOU in Australia, in relation to goods, means an application to own use that happens while the goods are in Australia.

Assessable dealing means any dealing covered by Table 1.

Assessable goods means Australian goods or imported goods, but does not include Australian‑used goods.

Assessment means an assessment under Division 1 of Part 10 or under section 93A or 99.

Australia does not include:

(a) the Territory of Christmas Island;
(b) the Territory of Cocos (Keeling) Islands;

and has a meaning affected by section 6.

Australian goods means goods that have been manufactured in Australia, but does not include imported goods.

Australian‑used goods means:

(a) goods that have been applied to a person’s own use in Australia (whether the goods are Australian goods or imported goods); or
(b) imported goods that were a container at the time of importation;

but has a meaning affected by sections 9, 9A, 10 and 10A.

Authorisation has the meaning given by Division 3 of Part 7A.

authorised officer, when used in a particular provision of this Act, means a person authorised by the Commissioner to exercise powers or perform functions under that provision.

Borne tax has the meaning given by section 11.

Commissioner means the Commissioner of Taxation.

Company includes any body or association (whether or not it is incorporated), but does not include a partnership.

Computer program has the same meaning as in the Copyright Act 1968.

Container means:

(a) packaging in which, or with which, any property (the contents) is packed or secured, in the ordinary course of a business, for the purpose of the marketing or delivery of the contents;
(b) ancillary items that are packed or secured with the contents and are intended, and reasonably necessary, to allow or facilitate the use of the contents.

CR1 means the credit ground of that name in Table 3, and CR2, CR3 etc. have corresponding meanings.

Credit means a credit under Part 4.

Customs Act means the Customs Act 1901.

Customs clearance area means an area that is designated or set aside for the performance of functions under the Customs Act.

Customs dealing means AD4b, AD10 or AD14b.

customs duty means any duty of customs imposed by that name under a law of the Commonwealth.

Customs Tariff means the Customs Tariff Act 1995 as amended by any Act, and as proposed to be amended by Customs Tariff Proposals introduced into the House of Representatives.

Delivery of customer’s materials goods has the meaning given by section 22.

Deputy Commissioner means a Deputy Commissioner of Taxation.

Duplicate, in relation to a computer program, means:

(a) to copy or reproduce the program (with or without related information) so as to embody the program in goods; or
(b) to convert the computer program to another language so as to embody the program in goods.

Duplicate, in relation to visual images or sounds, means to copy or reproduce the images or sounds so as to embody them in goods.

Eligible Australian traveller means a person defined to be an eligible Australian traveller by regulations made for the purposes of this definition.

Eligible foreign traveller means a person defined to be an eligible foreign traveller by regulations made for the purposes of this definition.

Eligible long‑term lease means a lease of goods that meets all the following conditions:

(a) the term of the lease is at least as long as the statutory period;
(b) at or before the time of the grant of the lease, the lessor has been given evidence, in a form approved by the Commissioner, of the intention of the lessee or a sub‑lessee to use the goods, during the whole of the statutory period, so as to satisfy an exemption Item;
(c) no part of any tax borne by the lessor on the goods before the grant has been passed on by the lessor to any person.

Eligible repair goods has the meaning given by section 15C.

eligible short‑term lease has the meaning given by section 15A.

embodied has the meaning given by section 13.

Excise duty means any duty of excise imposed by that name under a law of the Commonwealth.

Exemption declaration means a statement or declaration for the purposes of any provision of the sales tax law that refers to quoting an exemption declaration.

Exemption Item means an Item or subitem in Schedule 1 to the Exemptions and Classifications Act.

Exemption [R] Item means an exemption Item that is marked [R].

Exemptions and Classifications Act means the Sales Tax (Exemptions and Classifications) Act 1992.

Export, in relation to goods, means export the goods from Australia, but:

(a) has a meaning affected by section 6;
(b) in relation to an eligible Australian traveller, includes taking the goods out of Australia as accompanied baggage;
(c) in relation to Australian‑used goods, includes taking or sending the goods out of Australia for alteration, repair, renovation or upgrading.

Export alteration goods has the meaning given by section 15D.

first taxing day means the first day of the 4th month after the month of the year in which this Act receives the Royal Assent.

General interest charge means the charge worked out under Division 1 of Part IIA of the Taxation Administration Act 1953.

Goods means any form of tangible personal property, but:

(a) does not include property that is sold as second‑hand and is manufactured exclusively or principally from goods that:
(i) were already Australian‑used goods before the manufacture began; and
(ii) in their condition as parts of the property so manufactured, retain their character as  
Australian‑used goods; and
(b) has a meaning affected by section 12.

Goods for use as part of a car remuneration package has the meaning given by section 15E.

import means import into Australia, but has a meaning affected by section 6.

Imported goods means goods that have been imported (whether or not the goods were manufactured in Australia).

Increase includes increase from nil.

increased duty alcoholic goods has the meaning given by section 23A.

Indirect marketing sale has the meaning given by section 20.

Inwards duty free shop has the same meaning as in section 96B of the Customs Act.

Late‑payment penalty means the general interest charge under section 68.

Lease, in relation to goods, means a lease by the owner of the goods and includes the letting or hiring of the goods under a hire‑purchase agreement.

Lease AOU means an application to own use that consists of granting a lease.

Liquidator means a person who is required by law to carry out the winding‑up of a company (whether or not the person has been appointed as a liquidator).

Local entry has the meaning given by section 23.

Locally enter goods under quote has the meaning given by section 15.

Manufacture includes:

(a) production;
(b) combining parts or ingredients so as to form an article or substance that is commercially distinct from the parts or ingredients;
(c) applying a treatment to foodstuffs as a process in preparing them for human consumption;
(d) processing or treating exposed photographic film or cinematograph film so as to produce a negative, transparency or film strip;
(e) duplicating a computer program;
(f) duplicating visual images or sounds, or both;

but does not include: (g) any action or process by which goods come into existence incidentally to the performance of work whose essential character is the performance of skilled services and not the bringing into existence of goods for the essential object of selling the goods or applying them to own use; (h) the duplication of a computer program by a person (the duplicator) if: (i) the duplication results in a tax‑advantaged computer program that is embodied in goods that are to be for retail sale by the duplicator; and (ii) the duplicator did not manufacture the goods in which the program was to be embodied, and tax had become payable (either by the duplicator or someone else) on those goods sometime before the duplication; (i) any prescribed combination of parts or ingredients.

Manufacturer, in relation to particular goods, means the person who (not as an employee) manufactured the goods, whether or not the person owned the materials out of which the goods were manufactured.

Monthly remitter has the meaning given by section 62.

Motor vehicle depreciation limit means the motor vehicle depreciation limit that applies under section 57AF of the Income Tax Assessment Act 1936 or the car depreciation limit that applies under Division 42 of the Income Tax Assessment Act 1997.

Non‑lease AOU means an application to own use that does not consist of the granting of a lease.

Obtain goods under quote has the meaning given by section 15.

Packing AOU means an AOU that consists of doing something with goods that results in the goods becoming a container for other property.

Part 7A goods has the meaning given by section 91C.

passed on, in relation to an amount of tax that has been borne by a person, does not include an amount that the person has passed on to another person, but has later refunded to that other person.

Person means any of the following:

(a) a company;
(b) a partnership;
(c) a person in a particular capacity of trustee;
(d) a body politic;
(e) any other person.

Prescribed rules for export sales means the rules prescribed by the regulations setting out conditions that must be complied with in order for dealings with goods to be exempted, or otherwise relieved from sales tax, on the basis of the export, or intended export, of the goods.

Purchase goods under quote has the meaning given by section 15.

Quarterly remitter has the meaning given by section 62.

Quote means quote a registration number or exemption declaration.

Raw materials has the meaning given by section 7.

Reduce includes reduce to nil.

Registered person means a person who is registered under Part 6.

Registration number means the number allocated by the Commissioner in respect of a registration under this Act.

Relevant traveller has the same meaning as in section 96B of the Customs Act.

Retail sale means any sale that is not a wholesale sale.

Sale includes barter or exchange.

Sales tax or tax means tax that is payable under this Act and imposed as sales tax by another Act.

Sales tax law means:

(a) this Act and the regulations under this Act;
(b) the Exemptions and Classifications Act;
(c) any Act that imposes any of the tax payable under this Act;
(d) the Sales Tax Amendment (Transitional) Act 1992;
(e) the Taxation Administration Act 1953, so far as it relates to the Acts covered by paragraphs (a) to (d);
(f) any other Act, so far as it relates to any Act covered by paragraphs (a) to (e);
(g) regulations under an Act other than this Act, so far as the regulations relate to any Act covered by paragraphs (b) to (f).

For the purposes of this definition, a reference to an Act includes a reference to part of an Act, and a reference to an Act covered by a paragraph of this definition is a reference to that Act so far as it is covered by that paragraph.

Sales tax quarter means a period of 3 months ending on 31 July, 31 October, 31 January or 30 April.

Second Commissioner means a Second Commissioner of Taxation.

Statutory period, in relation to goods, means the period that starts at the time when the goods are first applied to a person’s own use in Australia and ends at the earliest of the following times:

(a) the end of 2 years after the time of that first application to own use;
(b) the time when the goods are no longer reasonably capable of being used for the purpose for which goods of that kind are ordinarily used;
(c) a time that the Commissioner considers to be appropriate in special circumstances.

Table 1, Table 2 or Table 3 means the table of that number in Schedule 1.

Taxable dealing means an assessable dealing that happens on or after the first taxing day and for which no exemption is available under Division 2 of Part 3.

Taxable value means the taxable value that applies under Division 3 of Part 3.

Tax‑advantaged computer program has the meaning given by section 14.

Tax‑bearing dealing, in relation to an amount of tax borne by a person, means the dealing through which, or because of which, the tax was borne.

Tax borne has the meaning given by section 11.

Tax file number has the meaning given by section 202A of the Income Tax Assessment Act 1936.

Taxpayer means:

(a) a person who is, has been or may be liable to tax;
(b) a person who is or has been the claimant for a credit.

tradex order has the meaning given by section 4 of the Tradex Scheme Act 1999.

tradex scheme goods means imported goods that:

(a) are nominated goods (within the meaning of the Tradex Scheme Act 1999) in relation to a tradex order; and
(b) were covered by exemption Item 185A at the time of their local entry.

However, the goods cease to be tradex scheme goods if: (c) any of the circumstances referred to in subsection 21(1) of that Act occur in respect of any of the goods; or (d) the goods are exported.

Trustee includes any of the following:

(a) a person appointed or constituted as trustee by act of parties, by order or declaration of a court, or by operation of law;
(b) an executor, administrator or other personal representative of a deceased person;
(c) a guardian or committee;
(d) a receiver, or a receiver and manager;
(e) an official manager of a company or a liquidator of a company;
(ea) an administrator, within the meaning of the Corporations Law, of a company;
(eb) an administrator of a deed of company arrangement executed by a company under Part 5.3A of that Law; or
(f) a person who has the administration or control of any property that is affected by any express or implied trust;
(g) a person who is acting in any fiduciary capacity;
(h) a person who has the possession, control or management of any property of another person who is under any legal or other disability.

Wholesale sale means a sale to a person who purchases for the purpose of resale, but does not include:

(a) a sale of goods from stock in a retail store (or retail section of a store) to make up for a temporary shortage of stock of the purchaser, if the goods are of a kind that are usually manufactured by the purchaser or are usually purchased by the purchaser for resale;
(b) a sale of school requisites or sporting equipment to a teacher or school authority, for resale to students;
(c) a sale of sporting equipment to a club for resale to members of the club.

6 Offshore installations: modified meaning of Australia, export and import

(1) An installation (within the meaning of the Customs Act) that is deemed by section 5C of the Customs Act to be part of Australia is also taken to be part of Australia for the purposes of the sales tax law. (2) Goods (within the meaning of the Customs Act) that are deemed by section 49B of the Customs Act to be imported at a particular time are also taken to be imported at that time for the purposes of the sales tax law. (3) Goods (within the meaning of the Customs Act) that are deemed by section 126A or 126B of the Customs Act to be exported at a particular time are also taken to be exported at that time for the purposes of the sales tax law.

7 Use of goods as raw materials in manufacturing goods, or in constructing or repairing property

(1) Goods (the materials) are taken to be used as raw materials in manufacturing other goods if, and only if, the materials are dealt with in such a way in manufacturing the other goods that the materials, or some essential element of the materials, become an integral part of the other goods. (2) Goods are taken to be used as raw materials in constructing or repairing property if, and only if, the goods are dealt with in such a way in constructing or repairing the property that the goods, or some essential element of the goods, become an integral part of the property.

8 Manufacture of certain goods treated as happening in the course of a business

(1) In certain circumstances, the manufacture of goods (the current goods) is treated as having happened in the course of a business even though it did not. (2) This treatment applies if all the following conditions are met: (a) the current goods were manufactured on premises that had been sold, leased or otherwise made available to the manufacturer under an agreement entered into for the purpose, or for purposes that included the purpose, of bringing about the manufacture of the current goods; (b) when the current goods were manufactured, the premises were ordinarily used by any person in the course of carrying on a business in the ordinary course of which goods identical in all material respects with the current goods could reasonably be expected to be manufactured; (c) more than half of the labour used in the manufacture of the current goods was paid labour. (3) In this section:

paid labour does not include labour provided by the manufacturer.

Premises includes land or a building or part of a building.

9 Goods sent overseas for alteration: affects meaning of Australian‑used goods

(1) This section applies if: (a) Australian‑used goods have been exported for alteration; and (b) the goods are later imported, after having been altered outside Australia. (2) In applying the sales tax law at or after the time of that importation, the goods are not taken to be Australian‑used goods only because of an AOU of the goods that happened before they were taken or sent outside Australia for alteration. (3) In this section:

alteration includes repair, renovation or upgrading.

9A Export alteration goods: affects meaning of Australian‑used goods

(1) This section applies to Australian‑used goods if: (a) the export of the goods gave rise to a CR23 credit in relation to the goods or goods that became an integral part of the goods; and (b) the goods are later imported. (2) In applying the sales tax law at or after the time of the importation, the goods are not taken to be Australian‑used goods only because of an AOU of the goods that happened before they were exported as mentioned in paragraph (1)(a).

9B Goods temporarily imported: affects meaning of Australian‑used goods

(1) This section applies if: (a) Australian‑used goods that were the subject of a dealing covered by section 51A have been exported; and (b) the goods are later imported. (2) In applying the sales tax law at or after the time of the importation, the goods are not taken to be Australian‑used goods only because of an AOU of the goods that happened before they were exported as mentioned in paragraph (1)(a).

10 Leased goods exported before being used: affects meaning of Australian‑used goods

(1) This section applies to particular goods if: (a) the first AOU in Australia of the goods consists of granting a lease of the goods; and (b) the intended export or actual export of the goods after the grant had either of the following results: (i) the grant of the lease was exempted by section 32; or (ii) the lessor became entitled to a credit under CR19; and (c) the goods are later imported (after having been exported). (2) In applying the sales tax law at or after the time of that importation, the goods are not taken to be Australian‑used goods only because of the AOU referred to in paragraph (1)(a).

10A Tradex scheme goods: affects meaning of Australian‑used goods

(1) This section applies to goods if they were tradex scheme goods and are no longer tradex scheme goods. (2) In applying the sales tax law at or after the time such a circumstance occurs, or the goods are exported, the goods are not taken to be Australian‑used goods only because of an AOU of the goods that happened during the period: (a) starting when the goods became tradex scheme goods; and (b) ending when the goods ceased to be tradex scheme goods.

11 Meaning of borne tax and tax borne

(1) This section sets out the 3 situations in which a person is taken to have borne tax on goods. (2) A person is taken to have borne tax on goods if the person has become liable to tax on an assessable dealing with the goods. However, the tax for which the person has become liable is not counted to the extent to which it has been the basis of a credit entitlement. (3) A person is taken to have borne tax on goods if the person purchased the goods for a price that included tax. However, the amount of tax borne is to be reduced by any amount of the tax included in that price that has been refunded or credited to the person. (4) A person is taken to have borne tax on goods if the person was the customer for an AD4a delivery of the goods and did not quote for the delivery.

12 Inserts in newspapers, magazines etc. are to be treated as separate goods

(1) This section applies if: (a) a newspaper, magazine or other printed matter (the publication) would (apart from this section) be goods covered by exemption Item 100 or 101; and (b) any part (the insert) of the publication is inserted separately into the remainder of the publication after it has been made, or differs from most of the remainder of the publication in any one or more of the following respects: (i) it has a different sheet size; (ii) it is printed by a different process; (iii) it consists of different paper or other material. (2) The insert is taken to be separate goods unless: (a) the publication is a newspaper and the insert is a news, sport, entertainment, travel, leisure or similar section (other than an advertising section); or (b) the publication is a magazine or similar publication (other than a newspaper) and the insert is a detachable part that is attached by perforation or is glued, sewn or stapled to the remainder of the publication.

12A Construction of pools in situ

(1) This section applies to the construction of a pool shell if: (a) a person (the pool builder) who is in the business of constructing or erecting pools constructs the pool shell in situ in Australia under a contract with another person (the pool purchaser); and (b) the construction does not, apart from this section, constitute the manufacture of goods; and (c) the contract is entered into on or after the first taxing day. (2) This section also applies to the construction of a pool shell if: (a) a person (the owner‑builder) constructs the pool shell in situ in Australia in a case where paragraph (1)(a) does not apply; and (b) the construction does not, apart from this section, constitute the manufacture of goods; and (c) the construction begins on or after the first taxing day. (3) If this section applies to the construction of a pool shell: (a) the pool shell is taken to be goods that are Australian goods; and (b) the construction is taken to be the manufacture of the goods; and (c) the pool builder or owner‑builder, as the case requires, is taken to be the person who manufactured the goods, other than as an employee, and to have done so in the course of a business. (4) If this section applies because of subsection (1), the pool builder is taken to have sold the goods by retail, immediately after the manufacture, to the pool purchaser. (5) If this section applies because of subsection (2), the owner‑builder is taken to have applied the goods to own use immediately after the manufacture. (6) Section 29 does not apply to any assessable dealing in respect of the goods that results from this section applying. (7) The taxable value of any taxable dealing in respect of the goods that results from this section applying is the price (excluding sales tax) for which the person who is taken to have manufactured the goods could reasonably be expected to have purchased a fibreglass pool shell (being a shell that is manufactured goods apart from this section) of similar dimensions and shape to the goods by wholesale under an arm’s length dealing. (8) If for any reason it is not possible or practicable to work out that price, the taxable value of the dealing in respect of the goods is instead the price (excluding sales tax) that the person could reasonably be expected to have paid another person, who is in the business of constructing or erecting pools, for the manufacture of the goods if: (a) all the materials used in or in connection with the manufacture were supplied by that other person; and (b) the 2 people were dealing with each other at arm’s length in relation to the manufacture. (9) In this section:

construct, in relation to a pool shell, means construct or erect the pool shell, but does not include:

(a) undertaking of excavation or other earthworks or clearing, levelling or landscaping of land; or
(b) painting, tiling, treating or finishing the pool shell; or
(c) constructing or erecting coping in connection with the pool shell; or
(d) installing any drainage, heating, lighting, power supply, water supply or filtering or pumping equipment in or in connection with the pool shell.

Pool means a swimming pool, spa pool or hot tub.

Pool shell means the walls and floor, or other structure, that forms the shell or container for a pool.

13 Meaning of embodying visual images, sounds or computer programs in goods

Visual images, sounds or a computer program are taken to be embodied in goods only if the goods have been treated in such a way in relation to the images, sounds or computer program that the images, sounds or computer program can be reproduced from the goods (either with or without the aid of some other device).

14 Meaning of tax‑advantaged computer program

(1) Any computer program that is not embodied in a microchip is a tax‑advantaged computer program. (2) A computer program that is embodied in a microchip in a cartridge is a tax‑advantaged computer program if both the following conditions are met: (a) the cartridge is marketed as being exclusively for use with: (i) a personal computer; or (ii) a home electronic device that is for use with a computer monitor or with a television screen; or (iii) either a personal computer or such a home electronic device; (b) the program is marketed as being exclusively for educational use, entertainment use or a combination of both. (3) In this section:

home electronic device does not include a device that consists of, or includes, one or more of the following:

(a) a compact disc player;
(b) a television;
(c) a video camera;
(d) a video cassette player;
(e) a video cassette recorder;
(f) an electronic device prescribed by the regulations for the purposes of this paragraph.

15 Meaning of obtain goods under quote etc.

(1) This section sets out the circumstances in which goods are taken to be obtained by a person under quote. (2) A person purchases goods under quote if the person quotes on the purchase of the goods, and either: (a) the sale is an assessable dealing by the seller that is exempted from tax only because of the quote; or (b) on the basis of the quote, the seller agrees to exclude tax from the price of the goods. (3) A person locally enters goods under quote if the person quotes on the local entry of the goods and the local entry is exempted from tax only because of the quote. (4) A person obtains goods under quote if: (a) the person purchases, or locally enters, the goods under quote as described in subsections (2) and (3); or (b) the person quotes on a customs dealing with the goods and the dealing is exempted from tax only because of the quote; or (c) the person is the customer for an AD4a delivery and: (i) the delivery is exempted from tax only because of the quote; or (ii) on the basis of the quote, the manufacturer agrees to exclude tax from a charge made by the manufacturer for the manufacture of the goods; or (d) the person has obtained a CR2 credit or a CR2A credit for tax borne on a dealing with the goods.

15A Meaning of eligible short‑term lease etc.

(1) A lease of goods is an eligible short‑term lease if the goods are covered by an agreement under subsection (2). (2) The Commissioner and a person (the lessor) who grants leases of goods in the course of a business may agree on a percentage (other than nil) as the exempt percentage in relation to goods of a particular kind. The percentage agreed on must be the percentage of the statutory period during which it is agreed to be likely that the goods will be used by the lessor for lease (other than eligible long‑term lease) to persons who, or whose sub‑lessees, intend to use the goods during the whole of the term of the lease or sub‑lease so as to satisfy one or more exemption Items. (3) The Commissioner and the lessor may agree on a percentage (other than nil) as the exempt percentage in relation to goods (the associated goods) of a particular kind that are for use by the lessor exclusively: (a) as parts, accessories, fittings or attachments for goods that are covered by an agreement with the lessor under subsection (2); or (b) so as to become an integral part of goods that are covered by such an agreement. The percentage agreed on must be the percentage of the statutory period during which it is agreed to be likely that the use of the associated goods as mentioned in paragraph (a) or (b) will satisfy one or more exemption Items. (4) The Commissioner and the lessor may, subject to subsection (5), agree on a percentage as the exempt percentage in relation to goods of a particular kind that are for use by the lessor exclusively for repairing or maintaining other goods that are: (a) covered by an agreement with the lessor under subsection (2); and (b) for use so as to satisfy one or more of exemption Items 1, 2, 18, 23, 28, 29, 30, 33, 34, 35, 36 and 38. The percentage agreed on must be the percentage of the statutory period during which it is agreed to be likely that the other goods will satisfy the requirements of paragraphs (a) and (b). (5) The Commissioner and the lessor must not make an agreement under subsection (4) unless the percentage to be specified is greater than 50%. (6) An agreement under this section may include conditions that are to be complied with for the agreement to have effect.

15B Post‑trial sale or post‑trial lease

(1) A sale by a person (the claimant) is a post‑trial sale and a lease by a person (also the claimant) is a post‑trial lease if: (a) the sale or lease occurs after one or more exempt trial‑leases or exempt trial‑loans in relation to the goods; and (b) in the case of a lease—the lease is for the remainder of the statutory period; and (c) the purchaser or lessee, at or before the time of the sale or lease, gives evidence to the claimant, in a form approved by the Commissioner, of the purchaser’s or lessee’s intended use of the goods during the remainder of the statutory period so as to satisfy an exemption Item; and (d) immediately before the first exempt trial‑lease or exempt trial‑loan the goods were assessable goods; and (e) in the period starting at the end of the exempt trial‑lease or exempt trial‑loan referred to in paragraph (d) and ending at the time of the sale or lease: (i) the goods were not sold by the claimant; and (ii) any AOU of the goods was an exempt trial‑lease or an exempt trial‑loan. (2) In this section:

exempt trial‑lease means a lease of goods where, before the end of the lease, the person to whom the goods are leased gives evidence to the lessor, in a form approved by the Commissioner, that the lessee used, or intended to use, the goods during the lease so as to satisfy an exemption Item.

Exempt trial‑loan means a loan of goods where, before the end of the loan, the person to whom the goods are lent gives evidence to the lender, in a form approved by the Commissioner, that the person used, or intended to use, the goods during the loan so as to satisfy an exemption Item.

(3) A reference in subsection (1) or (2) to a loan includes a reference to a demonstration, and, in relation to a demonstration, a reference in that subsection to use of goods by a person includes use by another person demonstrating the goods to the person.

15C Eligible repair goods

(1) Goods are eligible repair goods if: (a) the goods are parts that are used by a person (the claimant) exclusively in the repair, renovation or reconditioning of Australian‑used goods owned by the claimant; and (b) as a result of that use, the goods become an integral part of the Australian‑used goods; and (c) after the goods become an integral part of the Australian‑used goods, property in the Australian‑used goods passes under a contract from the claimant to another person (the exemption user); and (d) the exemption user gives the claimant: (i) a declaration that the exemption user is an always‑exempt person; or (ii) a declaration under subsection (2). (2) The declaration referred to in subparagraph (1)(d)(ii) is a declaration that either: (a) the Australian‑used goods; or (b) if the claimant has used the Australian‑used goods as parts exclusively in the repair, renovation or reconditioning of other Australian‑used goods so as to become an integral part of those other goods—those other goods; are for use by the exemption user so as to satisfy one or more of exemption Items 1, 2, 18, 23, 28, 29, 33, 35, 36 and 38. (2A) A declaration under subparagraph (1)(d)(i) or subsection (2) must be in writing in a form approved by the Commissioner and signed by the exemption user. (3) The time when the goods become eligible repair goods is the later of the time when property in the Australian‑used goods passes to the exemption user and the time when the exemption user gives the declaration to the claimant.

15D Export alteration goods

(1) Goods are export alteration goods if: (a) the goods are parts, fittings or accessories that are used by a person (the claimant) exclusively in the alteration of other goods (the altered goods); and (b) as a result of that use, the goods become an integral part of the altered goods; and (c) after the goods become an integral part of the altered goods, either: (i) the altered goods are exported by another person and that person gives the claimant a declaration under subsection (2); or (ii) the altered goods are exported by the claimant; and (d) the goods were not used (other than in a manner covered by paragraphs (a) and (b)) in the period commencing at the end of the alteration and ending at the start of the export of the goods. (2) The declaration referred to in paragraph (1)(c) is a declaration that either: (a) the altered goods; or (b) if the claimant has used the altered goods as parts, fittings or accessories exclusively in the alteration of other goods—those other goods; were exported by the person making the declaration and were not used (other than in a manner covered by paragraphs (1)(a) and (b)) in the period commencing at the end of the alteration and ending at the start of the export of the goods. The declaration must be in writing in a form approved by the Commissioner and must be signed by the person making the declaration. (3) The time when the goods become export alteration goods is the time when the claimant exports the goods, or is given the declaration, as the case requires. (4) In this section:

alteration includes repair, renovation or upgrading.

15E Goods for use as part of a car remuneration package

(1) This section sets out the 2 circumstances in which goods are taken to be used, or for use, by a person as part of a car remuneration package. Circumstance 1—cars (2) Goods are used, or are for use, by a person as part of a car remuneration package if: (a) the goods are a car; and (b) the person uses, or proposes to use, the car, to any extent, to provide car benefits to any or all of the following: (i) an employee of the person; (ii) an associate of an employee referred to in subparagraph (i); (iii) an employee of an associate of the person; (iv) an associate of an employee referred to in subparagraph (iii). Circumstance 2—parts or accessories for cars (3) Goods are for use by a person as part of a car remuneration package if: (a) the goods are parts or accessories for a car; and (b) the car is used, or is for use, by the person as part of a car remuneration package; and (c) an assessable dealing with the car occurred, or will occur, after the commencement of this section. Modifications of fringe benefits tax rules (4) For the purposes of this section, the following assumptions are to be made about the Fringe Benefits Tax Assessment Act 1986: (a) it is to be assumed that the application of a car to a private use, or the availability of a car for private use, does not give rise to a car benefit if the application or availability, as the case may be: (i) related exclusively to work‑related travel of the employee concerned; or (ii) was minor, infrequent and irregular; (b) it is to be assumed that motor cycles and similar vehicles were not excluded from the definition of car in subsection 136(1) of that Act; (c) it is to be assumed that paragraphs (d) and (e) of the definition of employer in subsection 136(1) of that Act had not been enacted. Note 1: Paragraph (d) excludes the Commonwealth from the definition of employer. Note 2: Paragraph (e) excludes an authority of the Commonwealth that cannot, by a law of the Commonwealth, be made liable to taxation by the Commonwealth, from the definition of employer. Members of local governing bodies not excluded (5) For the purposes of this section, the meaning of an expression used in the Fringe Benefits Tax Assessment Act 1986 is to be determined as if paragraph (pa) of the definition of salary or wages in subsection 221A(1) of the Income Tax Assessment Act 1936 had not been enacted.

Note: Paragraph (pa) excludes remuneration or allowances paid to members of certain local governing bodies from the definition of salary or wages.

Definitions (6) In this section:

application to private use, in relation to a car, has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Associate has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Availability for private use, in relation to a car, has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Car has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Car benefit has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Employee has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Work‑related travel has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.