TAXATION RULING NO. ST 2175

ST 2175

SALES TAX : PLASTIC BANGLES : IMITATION JEWELLERY : ITEMS OF PERSONAL ADORNMENT

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FOI status:

May be releasedFOI number: I 1199541

PREAMBLE

Item 1 in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act lists a range of jewellery, imitation jewellery and personal adornments which are taxable at 30%.

2. The question has arisen whether inexpensive plastic bangles, worn mainly by children, are covered by item 1 in the Second Schedule in the light of Taxation Ruling No. ST 2086.

3. Ruling ST 2086 stated that a range of goods consisting of various animal, doll and other characters of moulded plastic which were principally used as children's playthings were taxable at the general rate of 20%. While they were capable of being attached to children's clothing, such a use was incidental and, even in that use, the goods did not have the appearance of typical personal adornments. They were not covered by item 1, Second Schedule.

FACTS

4. Bangles for wearing on the arms or legs are marketed at a wide range of prices depending upon their composition, e.g. of precious metals or plastic. Some bangles which are brightly coloured and inexpensive and made of materials such as plastic are aimed in the market chiefly at small children.

RULING

5. There is no specific item covering "toys" as such in the Schedules to the Act. Where an article, although capable of being described as a toy, is covered by an item in one of the Schedules to the Act, the rate applicable to that Schedule will apply. Where the article is not covered in any Schedule, it is taxable at the general rate, currently 20%.

6. Bangles, plain or otherwise, irrespective of their value and whether or not described as "toy" bangles are, for the purposes of item 1 in the Second Schedule, no different in principle from more expensive bangles for use by children or adults. They are imitation jewellery or personal adornments for the purpose of item 1 in the Second Schedule and are taxable at 30%.

COMMISSIONER OF TAXATION
8 October 1985

References

ATO references:
NO 84/1695-8
BO SYD 22/A/2 048 402

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2086

Subject References:
IMITATION JEWELLERY
ITEMS OF PERSONAL ADORNMENT
TOYS

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