TAXATION RULING NO. ST 2260

ST 2260

SALES TAX : RADIO TRANSCEIVERS FOR USE IN CONJUNCTION WITH THE ROYAL FLYING DOCTOR SERVICE

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FOI status:

May be releasedFOI number: I 1209358

PREAMBLE

Sub-item 81(2) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts from sales tax wireless transceivers for use, in conjunction with the radio service conducted by the Royal Flying Doctor Service (R.F.D.S.), by the holder of a licence issued under the Wireless Telegraphy Regulations for that purpose.

2. In Taxation Ruling No. ST 2124 it is stated that, in order to be licensed to use R.F.D.S. frequencies, a radio transceiver must be issued with an item 22 or item 49 class of licence under the Wireless Telegraphy Regulations. Items 22 and 49 referred to Fixed Outpost Station and Mobile Outpost Station licences respectively, which are the two classes of licence in the Outpost Radiocommunication Service (O.R.S.).

3. The Wireless Telegraphy Act and Regulations have been repealed and replaced by the Radiocommunications Act 1983 and the Radiocommunications (Transmitter Licence Tax) Act 1983 and various regulations. The item numbers for transceiver licences are now contained in the Schedule to the Radiocommunications (Transmitter Licence Tax) Regulations. The Schedule is amended regularly in line with changes in licensing requirements and the fee structure. It is no longer appropriate to identify licences which authorise use of R.F.D.S. frequencies by reference to licence item numbers - they are continually changing in line with changes to the Schedule.

4. Furthermore, it has been ascertained that, in at least one State, owners of transceivers which are located in O.R.S. areas may have been issued with a Base Station or Fixed Station licence and not a Fixed Outpost Station or Mobile Outpost Station licence. They may apply to have their licences endorsed to authorise operation on R.F.D.S. frequencies or in the O.R.S. rather than apply for issue of an outpost station licence.

5. This ruling updates Taxation Ruling No. ST 2124 to reflect the legislative changes.

RULING

6. To qualify for exemption under sub-item 81(2) owners of wireless transceivers must -

(a)

be issued with a Fixed Outpost Station or Mobile Outpost Station class of licence;

(b)

have their licences endorsed to operate on R.F.D.S. frequencies; or

(c)

have their licences endorsed to operate in the O.R.S.

Paragraphs (b) and (c) are to the same effect; they reflect the different terminology used in endorsing the licences.

7. Ordinarily it would be expected that a wireless transceiver covered by a licence of the kind referred to in paragraph 6(a) or a licence endorsed as per paragraphs 6(b) or (c) would be for use in conjunction with the R.F.D.S. radio service. There may be cases, however, where a wireless transceiver is not intended to be so used; for example, a wireless transceiver may be located in an area in which the R.F.D.S. does not operate. Exemption from sales tax would not be available in these circumstances.

COMMISSIONER OF TAXATION
25 June 1986

References

ATO references:
NO 86/3763-6
BO Perth - E/C 1/81(2)

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2124

Subject References:
RADIO TRANSCEIVERS
ROYAL FLYING DOCTOR SERVICE

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 81, FIRST SCHEDULE