TAXATION RULING NO.ST 2086

ST 2086

SALES TAX : IMITATION JEWELLERY : ITEMS OF PERSONAL ADORNMENT : TOYS

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FOI status:

May be releasedFOI number: I 1121934

PREAMBLE

Item 1 in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act taxes at 32.5%, inter alia, jewellery, imitation jewellery and personal adornments.

2. A range of products imported from U.S.A., referred to in U.S.A. advertising literature as jewellery playmates, were classified at the 32.5% rate under Item 1, Second Schedule, as items of personal adornment. The Australian distributor submitted that because of the manner in which the products are marketed and principally used, they are not items of personal adornment nor imitation jewellery and should be classified at the 20% rate as toys.

FACTS

3. The range of goods consists of various animal and doll characters of moulded plastic generally less than 4cm in height. Some pieces have the scent of flowers. The characters are purchased separately or in small sets and can be attached to items of clothing, hair clips, bracelets, etc. The range is supplemented by other items for use in play situations including some which are storage containers for the individual pieces. The storage containers are in the form of a dollshouse, windmill and hot-air balloon.

4. The goods are marketed in blister packs with a cardboard backing on which is printed a story about the various characters in the product range. Sales are made by the distributor exclusively to toy wholesalers and major retail chain stores who sell the products to the public through the toy sections of their stores.

RULING

5. The manner of packaging and the channels through which the children's playmate animals and dolls and their storage containers are marketed supports trade opinion that the range of products are not imitation jewellery nor items of personal adornment and any use of the items for personal adornment is incidental to their main function as children's playthings.

6. It has accordingly been decided that all products in the range are not covered by Item 1, Second Schedule and are taxable at the general rate of sales tax, currently 20%.

COMMISSIONER OF TAXATION
22 August 1984

References

ATO references:
NO ST 50/11 P3 (f.341,343)
BO SYD 22/B/D.48/9 P2

Date of effect:
Immediate

Subject References:
IMITATION JEWELLERY
ITEMS OF PERSONAL
ADORNMENT
TOYS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT ITEM 1 SECOND SCHEDULE