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Draft Taxation Determination

TD 92/D227

Income tax: are payments to concrete pump truck operators within the building and construction industry liable to deductions of tax under the Prescribed Payments System (PPS)?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/25.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes. Concrete pump operators are contractors engaged in pumping concrete on a construction site. They are involved in construction, and not in the delivery of materials. Therefore payments to such operators fall within the PPS provisions in accordance with sub-regulation 126(1) and paragraph 126(2)(d) of the Income Tax Regulations.

2. This situation is distinct from that of a concrete truck operator i.e. a cement mixer, who merely delivers the concrete to a construction site, and does not take part in the construction phase.

Commissioner of Taxation
10/12/92

References

ATO references:
NO NEW TD26

ISSN: 1038-8982

Subject References:
prescribed payments system
building industry

Legislative References:
ITR 126(1)
ITR 126(2)(d)


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