17Sales tax

17 Sales tax

(1) Subject to, and in accordance with, the provisions of this Act, the sales tax imposed by the Sales Tax Act (No. 1) 1930 shall be levied and paid upon the sale value of goods manufactured in Australia by a taxpayer and sold by him or treated by him as stock for sale by retail or applied to his own use. (1A) The reference in subsection (1) to goods manufactured in Australia by a taxpayer and applied to the taxpayer’s own use does not include a reference to goods that would be taken to be manufactured in Australia by the taxpayer by reason only of paragraph (e) of the definition of Manufacture in subsection 3(1) and applied by the taxpayer to the taxpayer’s own use. (2) Subject to subsection (1A), the reference in subsection (1) to goods manufactured in Australia by a taxpayer and applied to his own use shall be read as a reference: (a) to goods manufactured in Australia by a manufacturer in the course of carrying on a business and applied to his own use, whether for the purposes of that business or for any other purpose and whether or not the goods are of a class manufactured by the manufacturer for sale; and (b) to goods manufactured in Australia by a manufacturer as provided in subsection (3) and applied to his own use. (3) For the purposes of paragraph (2)(b) where: (a) goods (in this subsection referred to as the relevant goods) have been manufactured in Australia by a manufacturer, otherwise than in the course of carrying on a business; (b) the manufacture of the relevant goods commenced after 16 November 1978; (c) the manufacture of the relevant goods was carried out in whole or in part on premises made available to the manufacturer, under an agreement entered into after 16 November 1978, for the purpose of, or for purposes which included the purpose of, manufacturing the relevant goods; (d) the premises so made available to the manufacturer were premises ordinarily used by a person in the course of carrying on a business in the ordinary course of the carrying on of which goods identical in all material respects with the relevant goods could reasonably be expected to be manufactured; and (e) the whole, or the principal part, of the labour used in the manufacture of the relevant goods was provided by persons who provided their labour otherwise than voluntarily and without remuneration; the relevant goods are goods manufactured in Australia by the manufacturer as provided in this subsection. (4) For the purposes of subsection (3): (a) where: (i) the manufacture of goods has been carried out in whole or in part on premises, being land, a building or a part of a building; and (ii) under an agreement entered into after 16 November 1978, the manufacturer acquired an estate or interest in, or obtained permission to use or occupy, the land, the building or the part of the building, as the case may be, for the purpose of, or for purposes which included the purpose of, manufacturing the goods on the land, or in the building or the part of the building; the premises shall be deemed to have been made available to the manufacturer for the purpose of manufacturing those goods; and (b) where goods have been manufactured in Australia by a manufacturer and the manufacturer himself worked on the manufacture of the goods, the manufacturer shall be deemed to have provided his labour voluntarily and without remuneration. (5) In this section, agreement means any agreement, arrangement or understanding: (a) whether formal or informal; (b) whether express or implied; or (c) whether or not enforceable, or intended to be enforceable, by legal proceedings.