TAXATION RULING NO. ST 2237

ST 2237

SALES TAX : POWER OPERATED PAINTING SYSTEMS

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FOI status:

PREAMBLE

The sales tax classification of power operated painting units has recently been considered in relation to sub-item 5(1) in the Third Schedule to the Sales Tax (Exemptions and Classifications) Act. Sub-item 5(1), Third Schedule, taxes at the rate of 10% hand tools of the kinds used for industrial purposes.

FACTS

2. The units are marketed under the name Wagner Power Roller home interior painting systems and Power Flo roller painting system and consist of a base tray, an electric pump, six metres of vinyl hose with connections and a hand held roller unit. The units are operated by inserting a four litre paint tin into the base tray, removing the lid, attaching the pump to the top of the tin and connecting the hose and roller unit with screw on connections. While the systems are designed to operate from a stationary position on the floor and only the rollers are hand held, the systems are nevertheless portable. The roller handle is fitted with push buttons to control the paint flow and the roller covers are specially designed for the system. Standard roller covers are not compatible with the systems.

RULING

3. The parts of the painting systems are specifically designed to form one unit and have therefore been classified as such. Power operated painting systems, such as the Wagner Power Roller and Power Flo systems, are hand tools of the kinds used for industrial purposes and are taxable at the rate of 10% under sub-item 5(1), Third Schedule.

COMMISSIONER OF TAXATION
5 May 1986

References

ATO references:
NO 86/262-2

Related Rulings/Determinations:

ST 2302

Subject References:
POWER OPERATED PAINTING SYSTEMS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 5, THIRD SCHEDULE.