TAXATION RULING NO. ST 2373

ST 2373

SALES TAX : SPEED HUMPS USED IN TRAFFIC SPEED CONTROL

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FOI status:

May be releasedFOI number: I 1010106

PREAMBLE

Division 12 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act exempts from sales tax a wide range of building materials.

2. The question has been raised whether speed humps qualify for exemption from sales tax under items in Division 12.

FACTS

3. Speed humps are used to control traffic speed principally in and around car parks and adjacent to major commercial developments and public places.

4. Speed humps which have come under notice may be pre-fabricated from rubber or steel or built up in situ using asphalt or concrete.

5. The pre-fabricated units are bolted to the road or other surface and, while they are intended to remain in position, may be relocated if traffic patterns change. They are normally pre-cut to individual order and can be butted together for continuous runs. They can be adapted to allow for the passage of different vehicles such as fork lift trucks or bikes.

6. Speed humps built up in situ are formed by cutting a channel into the road or other surface and forming up the hump using asphalt or concrete.

RULING

7. Sub-item 82(1) exempts structural or architectural building units. Rubber speed humps are accepted to be structural or architectural building units and exempt from sales tax under sub-item 82(1).

8. Sub-item 84(1) exempts metal building materials (including fabricated units) for use in the construction of, and to be wrought into, or attached to, so as to form part of, fixtures. Metal speed humps are accepted to be fabricated metal building materials and where they are attached to roads or other fixtures are exempt from sales tax under sub-item 84(1).

9. Speed humps built up in situ are not manufactured goods for sales tax purposes. Where a speed hump is constructed in this way tax is payable only on the value of the taxable materials used in building up the speed hump. Most goods used in their construction are, however, exempt from sales tax under items in the First Schedule to the Sales Tax (Exemptions and Classifications) Act. Asphalt and related products and concrete and related products are exempt under item 89A and item 89 First Schedule respectively, while gravel and sand are exempt under sub-item 82(2), First Schedule. Where taxable materials or goods are used in the construction of speed humps built up in situ they remain taxable.

COMMISSIONER OF TAXATION
26 November 1987

References

ATO references:
NO 86/9975-5

Date of effect:
IMMEDIATE

Subject References:
SPEED HUMPS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 82
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 84, FIRST SCHEDULE.