TAXATION RULING NO. ST 2249

ST 2249

SALES TAX : CLAY - CASTING SLIP

• Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
  This document has been Withdrawn.
  View the Withdrawal notice for this document.

FOI status:

May be releasedFOI number: I 1137334

PREAMBLE

Sub-item 82(2) in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts clay from sales tax.

2. The term "clay" embraces a very wide range of earths having plastic properties and extends to various products which are commercially known as clay which do not have additives or have not been subject to any chemical activation process. Products such as Bentonite, Fuller's earth and Kaolin come within the term clay and are exempt under sub-item 82(2).

3. Consideration has recently been given to the classification of casting slip used in the production of pottery and ceramics.

4. Casting slip may be produced in a dry or liquid form. In its dry form the slip is a blend of different clays to which is added certain flux found naturally in clay. Flux found naturally in clay includes feldspar, whiting, talc and silica. Different clays are blended to produce the slip because an individual clay may not have all the properties necessary to produce pottery and ceramic ware. To produce a liquid casting slip water and deflocculant chemicals are added to the dry product. The deflocculants keep the clay particles in suspension so that it can readily be used to produce slip cast products such as ceramic dolls, dinnerware, vitreous sanitary ware, etc.

5. Casting slip can be produced without the addition of deflocculent chemicals but this requires more water to be added to make the clay fluid. This can produce problems in the moulding process as the extra water has to be absorbed by the moulds.

RULING

6. The addition of deflocculant chemicals does not cause a clay based casting slip to lose its essential characteristic as clay. All that the deflocculants do is to allow the clay slip to be fluid with less water. The pieces produced from slip casting are still clay products.

7. Dry casting clay slip and wet casting clay slip still retain their identity as clay and are exempt under sub-item 82(2).

COMMISSIONER OF TAXATION
26 May 1986

References

ATO references:
NO 84/5184-2
BO Melb.6/C5/SC4/1/82(2)

Date of effect:
Immediate

Subject References:
CLAY - CASTING SLIP

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 82, FIRST SCHEDULE