TAXATION RULING NO. ST 2385

ST 2385

: SALES TAX : RUBBISH BINS

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FOI status:

May be releasedFOI number: I 1010413

PREAMBLE

Paragraph 1(ja) of the Third Schedule to the Sales Tax (Exemptions and Classifications) Act taxes at the rate of 10% goods (not being goods covered by an item in the Second Schedule or goods of a kind used exclusively, or primarily and principally in sport or games) of a kind ordinarily used for household purposes, namely:

incinerators, compost bins, garbage cans and stands and holders for garbage sacks.

2. This Ruling considers the classification for sales tax purposes of two types of rubbish bins.

FACTS

3. The first is known as a 'Handybin'. It is a large rectangular heavy duty metal bin with a capacity of 2 cubic metres (equivalent to about three trailer loads) and is advertised as a handy size for garden refuse, building rubble, sand and household junk. It can be supplied with an optional ramp to enable loading of the bin by a wheelbarrow.

4. The Handybin is generally supplied on a hire basis to householders and others to be filled over a period of time and then collected. The filled Handybin is collected by the hiring company using a truck with a rear mounted crane which lifts the bin onto the truck.

5. The second type of bin is a metal rubbish bin that is fixed 'in situ' in a public place such as a shopping centre. The bin consists of the main body (permanently fixed by means of a plate bolted to the floor and cemented in place) a removable lid and a galvanised removable insert.

RULING

6. The Handybin, although used for the removal of household rubbish, is not a garbage can within the ordinary meaning of that term. Rather, it is a large heavy duty rubbish container. A household garbage can is light in construction and has a limited capacity, generally up to 70 litres or so.

7. The metal rubbish bin for use in shopping centres is not of the kind ordinarily used for household purposes. It is a commercial type rubbish bin which remains fixed in place and is used virtually exclusively in public places.

8. Neither of the two bins is considered to be covered by paragraph 1(ja), Third Schedule. The Handybin and metal rubbish bin described above are therefore taxable at the general rate, currently 20%.

Commissioner of Taxation
21 January 1988

References

ATO references:
NO 87/10608-0
BO PERTH 9 281 871 MELB 5 746 534

Date of effect:
Immediate

Subject References:
HEAVY DUTY
RUBBISH BINS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 1, THIRD SCHEDULE