TAXATION RULING NO. ST 2067

ST 2067

SALES TAX : INSECTICIDES/FUNGICIDES/WEED KILLERS

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FOI status:

May be releasedFOI number: I 1072959

PREAMBLE

The classification of a range of insecticides etc., has been reviewed in the light of legislative changes to Items 3 and 139 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act. Item 3 was amended with effect on and after 24 August 1983 to provide conditional exemption for certain equipment, preparations and materials when acquired for use in agricultural industry for the checking or eradication of diseases or pests. Item 139 was amended with effect on and after 19 August 1981 to provide conditional exemption for certain preparations and materials such as insecticides, fly traps and fly papers and appliances for use with them when acquired exclusively for use in the destruction of insect and other invertebrate pests, or both, for business or industrial purposes.

RULING

2. Attached as Appendix A and Appendix B are two lists of products of the kinds that may qualify for conditional exemption under item 3 or item 139. While not definitive it is expected that the insecticides etc, listed in Appendix A would generally be purchased by persons engaged either in agricultural industry or for use for business or industrial purposes in the destruction of insect or invertebrate pests and thus entitled to conditional exemption. These products come within this category because of the size of the packs in which they are sold or the manner in which they are promoted and marketed. Exemption is conditional, however, and where these products are sold in circumstances where exemption does not apply tax is payable.

3. Goods listed in Appendix B are generally put up for sale for use in the control of home garden pests and it is unlikely that they would be used for either agricultural or for business or industrial purposes. They are identifiable by the fact that they are sold in small quantities and generally are marketed in attractive glossy packs, some in aerosol or spray form. Although the products in this Appendix would generally not be sold in circumstances where exemption would apply some sales in exempt circumstances could occur and conditional exemption will apply under the appropriate item.

COMMISSIONER OF TAXATION
7 March 1984

APPENDIX

APPENDIX A

APPENDIX B

References

ATO references:
NO ST11/18

Subject References:
INSECTICIDES/ FUNGICIDES/ WEED KILLERS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT SUB-ITEMS 3(1)
AND 139(1), FIRST SCHEDULE