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Wednesday, 27 May 1987
Page: 3450

(Question No. 4320)


Mr Andrew asked the Treasurer, upon notice, on 19 August 1986:

(1) What revenue has been gathered from (a) sales tax and (b) customs duty on saddlery and related equipment for horses in each year since 1982-83.

(2) Are there any exemptions granted for those sales tax and customs duties; if so, (a) who or what are exempt and, in particular, is the Australian Equestrian Team exempt and (b) what was the loss of revenue because of those exemptions.


Mr Keating —The answer to the honourable member's question is as follows:

(1) (a) Sales tax collected on particular commodities is not recorded separately. A coding system is used whereby a sales taxpayer is allocated a code (upon registration with the Australian Taxation Office) according to his major taxable sales. Taxable sales of all goods are totalled together for each code and therefore statistics on the particular commodities being sought cannot be tabulated separately.

It is estimated however that the sales tax payable (at a rate of 20%) by taxpayers whose major taxable sales are ``saddlery and harnesses'' in each year since 1982-83 was as follows:

Year

$m

1982-83...

2.4

1983-84...

2.4

1984-85...

2.6

1985-86...

2.6

(b) Customs duty collected on ``saddlery and harness, collars, traces, knee pads and boots, of any material, for any kind of animal'' and ``certain base metal fittings and mountings suitable for saddlery'' in each year since 1982-83 was as follows:

Year

$m

1982-83...

2.6

1983-84...

5.2

1984-85...

7.5

1985-86...

9.6

(2) Saddlery and related equipment for horses are subject to sales tax at the general rate of 20%. Persons engaged in agricultural industry are entitled to exemption from sales tax on saddlery, harness, trace chains and horse rugs where those goods are for use exclusively, or primarily and principally, in carrying out agricultural operations. Exemption also applies where the saddlery is purchased for the use of an exempt organisation such as a government department or authority, or a non-profit university or school.

There is no exemption from sales tax on saddlery, or other taxable goods, for use by the Australian Equestrian Team.

The loss of sales tax revenue because of the exemptions mentioned above is unknown.

Exemption from customs duty on saddlery and related equipment for horses applies to imports (i) from Forum Island countries and (ii) by exempt organisations such as government departments and authorities. Forum Island countries are listed in Part 1 of Schedule 1 of the Customs Tariff Act 1982. There is no specific customs concession available to the Australian Equestrian Team.

The loss of customs duty revenue because of these exemptions is unknown.