TAXATION RULING NO. ST 2230 (as amended 24/4/86)

ST 2230 (as amended 24/4/86)

SALES TAX : SATELLITE EARTH STATIONS : DOMESTIC SATELLITE RECEIVING EQUIPMENT

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FOI status:

PREAMBLE

Item 152 in the First Schedule to the Sales Tax (Exemptions and Classifictions) Act exempts satellite earth stations exclusively for non-business use and accessories and parts for use therewith.

2. For the purposes of the item "satellite earth stations" means a device designed for the reception on earth of signals transmitted from a space satellite, being signals constituting a satellite programme service, and includes any goods exclusively or principally designed to be ancillary to, or to be associated with, that device for the purposes of receiving those signals.

3. Taxation Ruling No. ST 2219 deals with the sales tax classification of the various components of satellite earth stations designed to receive the service described as the "Homestead and Community Broadcasting Satellite Service" (HACBSS). It was stated in the Ruling that the receiver/converter which converts the satellite signal to a signal suitable for television reception was not exempt under item 152. That conclusion was reached on an understanding that the receiver/converter could carry out other functions e.g. it could be used as a tuner. Further enquiries however have established that the receiver/converter used in conjunction with HACBSS is a piece of equipment that has been specifically designed to process satellite signals for that system and that it is the heart of the system. Without it the HACBSS satellite earth station system would be useless.

RULING

4. Receiver/converters designed to process signals from Aussat satellites and other space satellites in conjunction with HACBSS are exempt under item 152. Taxation Ruling No ST 2219 is modified accordingly.

COMMISSIONER OF TAXATION
15 April 1986

References

ATO references:
NO 85/9193-8

Date of effect:
20 September 1985

Related Rulings/Determinations:

ST 2219

Subject References:
DOMESTIC SATELLITE RECEIVING EQUIPMENT
SATELLITE EARTH STATIONS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 152, FIRST SCHEDULE