TAXATION RULING NO. ST 2025

ST 2025

SALES TAX - AIDS TO MANUFACTURE/AUXILIARIES TO AIDS TO MANUFACTURE: - "BETTEREX" LIQUID SPILLAGE ABSORBENT AND FIRE RETARDENT

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FOI status:

FACTS

"Betterex" is manufactured from kiln dried wood shavings which are then mixed with red oxides and other chemicals to give the product fire retarding properties. "Betterex" is intended for use principally as an absorbent to contain spillages of oil and other similar liquids.

RULING

2. "Betterex" is taxable at the general rate unless it is sold in circumstances where conditional exemption or the conditional tax rate of 7.5% applies.

3. "Betterex" is conditionally exempt under items 113A and 113C First Schedule, when used as an aid to manufacture in the disposal of waste substances resulting from manufacturing operations. It is also conditionally exempt when used to dispose of waste substances resulting from the repair or maintenance of aids to manufacture within the scope of item 113E, First Schedule.

4. "Betterex" is taxable at the conditional rate of 7.5% when used within the terms of items 7(1) and 7(2) Third Schedule, for example to soak up spillages of oil resulting from the servicing, repairing or reconditioning of motor vehicles.

COMMISSIONER OF TAXATION
14 April 1983

References

ATO references:
NO ST 66/E88
BO Sydney: 22/8/2 107 304

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2299

Subject References:
AIDS TO MANUFACTURE
MATERIALS FOR REPAIR OR MAINTENANCE OF AIDS TO MANUFACTURE
REPAIR OR MAINTENANCE OF MOTOR VEHICLES

Legislative References:
SALES TAX (EXEMPTIONS & CLASSIFICATIONS) ACT FIRST SCHEDULE ITEMS 113A,113C,113E
THIRD SCHEDULE ITEMS 7(1), 7(2)