Commonwealth Numbered Acts

SALES TAX ASSESSMENT ACT 1992 No. 114, 1992 - SECT 29

29.(1) This section exempts an assessable dealing ("the current dealing") by a
taxpayer who has a small annual sales tax liability.

(2) The basic rule is that the current dealing is not taxable if the total tax
liability for the current dealing and all countable dealings in the 12 months
before the current dealing is $10,000 or less.

(3) In addition, at the time of the current dealing the taxpayer must have an
expectation (based on reasonable grounds) that the total tax liability for
the current dealing and all countable dealings in the 12 months after the
current dealing will be $10,000 or less. (Note: Credits are not deducted in
making calculations under subsections (2) and (3). Although section 53 allows
credits to be deducted from the tax payable on a return, they do not affect
the amount of the liability.)

(4) The exemption is not available in any of the following cases:
(a) the taxpayer obtained under quote the goods ("the current goods") that are
the subject of the current dealing;

   (b)  the taxpayer has obtained a tax concession for any other goods that
        are connected with the current goods in the way described in
        subsection (5);

   (c)  the current dealing is a customs dealing or is an AD3a or AD13a;

   (d)  the current goods were manufactured by the taxpayer in circumstances
        covered by section 8.
(5) The taxpayer has obtained a tax concession for other goods ("the input
goods") that are connected with the current goods if both the following
conditions are met:

   (a)  the input goods are linked with the current goods in any of the
        following ways:

        (i)    the input goods, or some essential element of the input goods,
               has become an integral part of the current goods; (For example,
               the input goods were used as raw materials in manufacturing the
               current goods)

        (ii)   the input goods were first applied to the taxpayer's own use
               less than 2 years before the time of the current dealing and
               have been used by the taxpayer, in connection with
               the current goods, in carrying out an activity covered by an
               exemption (R) Item (whether or not the taxpayer was registered
               at the time of using the input goods or at any other relevant
               time); (For example, the input goods were machinery used in
               manufacturing the current goods)

        (iii)  something that formed part of the input goods at the time of an
               assessable dealing with the input goods has become an integral
               part of the current goods; (For example, some part of defective
               input goods that were returned by a purchaser has been re-used
               in manufacturing the current goods)

   (b)  either of the following applies:

        (i)    the taxpayer has not borne tax on the input goods before the
               time of the current dealing, but would have borne tax except
               for the operation of an exemption (R) Item; or

        (ii)   the taxpayer has borne tax on the input goods before the time
               of the current dealing, but has become entitled to a credit for
               any of that tax.

(6) The tax on the current dealing, and on any countable dealing that was
exempted by this section, is to be calculated on the assumption that the
dealing is or was a taxable dealing.

(7) In this section:

"countable dealing" means any assessable dealing except:

   (a)  a customs dealing;

   (b)  a dealing that would have been exempted from tax because of an
        exemption (R) Item, if the taxpayer had been registered at the time of
        the dealing. (Appendix B has a chart for use in deciding whether the
        small business exemption is available for a particular dealing.)