TAXATION RULING NO. ST 2315

ST 2315

SALES TAX : POKER MACHINE STANDS

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FOI status:

May be releasedFOI number: I 1210353

PREAMBLE

Sub-item 60(1) in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act taxes poker machines at the rate of 30%. Sub-item 60(3) taxes at the same rate accessories and parts for goods to which sub-item (1) applies.

2. The question has arisen whether poker machine stands are accessories for the purposes of sub-item 60(3) and, therefore, taxable at the rate of 30%.

FACTS

3. Poker machine stands are timber cabinets specifically designed to support a number of poker machines. The poker machines are bolted to the stand over a hole cut into the top of the cabinet to allow excess coins to fall through to a lockable coin draw. The lockable coin draw is located at the front of the cabinet.

RULING

4. In Deputy Federal Commissioner of Taxation v Polaroid Australia Pty. Ltd. 71 ATC 4249; 2 ATR 653, Gibbs J. said that the term accessory in the sales tax law takes the ordinary dictionary meaning, i.e. an adjunct, which itself is defined as something joined to another, but subordinate, as auxiliary, or dependent upon it. By way of illustration he stated that an accessory for a camera is an extra and additional part of the equipment of the camera itself, such as a light meter, a filter or a wide angle lens.

5. Poker machine stands are not extra and additional parts or accessories of poker machines. While they are specially designed cabinets the poker machines are not dependent upon them for their operation. The stands may reduce the number of times a poker machine requires servicing to remove the build up of coins but this does not affect or add to the ordinary operation of the machines. The machines can be operated just the same without the stands.

6. The stands are not covered by sub-item 60(3) or any other items in the sales tax law. They are taxable at the general rate, which is currently 20%.

COMMISSIONER OF TAXATION
22 January 1987

References

ATO references:
NO 86/9766-3
BO New : STOT P/ST 60(3)

Date of effect:
Immediate

Subject References:
POKER MACHINE STANDS
SLOT, COIN OR TOKEN MACHINES
ACCESSORIES

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 60, SECOND SCHEDULE

Case References:
- Deputy Federal Commissioner of Taxation v Polaroid Australia Pty. Ltd.
71 ATC 4249
2 ATR 653