TAXATION RULING NO. ST 2257

ST 2257

SALES TAX : CIRCULAR LETTERS AND CIRCULAR NOTICES

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FOI status:

May be releasedFOI number: I 1209271

PREAMBLE

Sub-item 51(1) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts books, pamphlets, leaflets, periodicals, magazines and printed music.

2. In paragraph 1063 of Australian Sales Tax, 1984, a leaflet is stated to be:-

"a small sized leaf or a sheet folded but not stitched and containing, printed matter, chiefly for gratuitous distribution".

The meaning corresponds to accepted dictionary definitions of the term. A leaflet is ordinarily associated with the expression of views in a public campaign.

3. Consideration has recently been given to whether circular letters or circular notices are exempt under sub-item 51(1), i.e. whether or not they are leaflets. Circular letters and circular notices are generally printed matter addressed to particular persons. They are not usually disseminated to the public at large. Examples of circular letters are letters to shareholders from a company and letters addressed to individual members of the public seeking support for a particular purpose or advertising the services of a particular company or organisation. Circular notices are advices to members of meetings, advices to employees of company events and advices to individual members of the public notifying a coming event.

RULING

4. While circular letters and circular notices may consist of a small sized leaf or a sheet folded but not stitched and containing printed matter they also have a different identity and purpose to leaflets. They are not usually for dissemination to the public at large. They are more particular. Usually a letter is a written message addressed to one or more persons and sent by post. A notice can take a variety of forms from a simple news item to a legal document with the object of providing news or information of what has happened or is about to happen.

5. Circular letters and circular notices for distribution to members, other interested parties and individual members of the public to inform them of meetings, events, services, etc. are not leaflets as that term is ordinarily understood. Nor are they covered by any of the other descriptions in sub-item 51(1). They are taxable at the general rate, currently 20%.

COMMISSIONER OF TAXATION
24 June 1986

References

ATO references:
NO 86/1980-8

Date of effect:
Immediate

Subject References:
PRINTED MATTER
CIRCULAR LETTERS AND NOTICES

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 51, FIRST SCHEDULE