TAXATION RULING NO. ST 2048

ST 2048

SALES TAX : SUNSCREEN PREPARATIONS : LIP BALMS

• Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
  This document has been Withdrawn.
  View the Withdrawal notice for this document.

FOI status:

PREAMBLE

Item 38A, First Schedule, which exempts certain sunscreen preparations from sales tax, specifically excludes from exemption -

(i)

goods of the following kinds, namely, face creams, face oils, face lotions, body creams, body oils, body lotions, rouge, lip-sticks, eye-brow pencils and eye shadows, being goods that are cosmetics, cosmetic preparations or goods in the nature of cosmetic preparations; or

(ii)

other goods that are cosmetics, cosmetic preparations or goods in the nature of cosmetic preparations.

FACTS

2. The product 'Lip Balm by Starlet' is marketed as a sunscreen product which filters out 99% of harmful ultra-violet rays. It is also claimed to help protect lips from sun and wind burn. The Department of Health has certified that the product is a preparation which provides an acceptable level of protection from solar ultra-violet rays.

RULING

3. 'Lip Balm by Starlet' is not a lip-stick that is a cosmetic, cosmetic preparation or in that nature. It qualifies for exemption under item 38A, First Schedule.

COMMISSIONER OF TAXATION
18 October 1983

References

ATO references:
NO ST 11/270/12 F33

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2041

Subject References:
SUNSCREEN PREPARATIONS

Legislative References:
ITEM 38A, FIRST SCHEDULE
ITEM 20, SECOND SCHEDULE