TAXATION RULING NO. ST 2426

ST 2426

SALES TAX : PORTABLE ELECTRONIC TIME SWITCHES

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FOI status:

May be releasedFOI number: I 1183855

PREAMBLE

This Ruling considers the classification of portable electronic time switches also known as electronic time clocks or electronic timers.

2. Portable time switches were ruled to be taxable at the general rate of 20% in Taxation Ruling No ST 2049. Time switches are now being marketed that are designed for lighting only and the question has arisen as to whether these time switches are covered by subitem 1(p) in the Third Schedule to the Sales Tax (Exemptions and Classifications) Act. That item taxes at the rate of 10% goods of a kind ordinarily used for household purposes namely, appliances and fittings used for or in connection with electric, gas or other lighting, candles and tapers.

FACTS

3. Portable electronic time switches or electronic timers plug direct into a 240V power socket. They may be pre-programmed or pre-set to automatically switch electrical appliances that are connected to them ON or OFF at selected times. Time switches are available in two kinds, general purpose time switches and those designed for use for lighting only.

4. General purpose time switches can be used with a variety of electrical appliances. For example, they can be used to turn lights, television, radio or stereo ON or OFF. They can also be used to control cooking appliances, electric blankets, electric radiators, swimming pool filters, air conditioners, security and display lighting and electric water heaters.

5. Time switches designed only for lighting purposes incorporate a number of characteristics that distinguish them from general purpose time switches. For example, they incorporate a light activated sensor, have a maximum switching wattage of 150 watts which means that they are unsuitable for use with many normal household electrical appliances and are marketed as being for use with lighting only.

RULING

6. Time switches marketed for lighting only that incorporate the special features mentioned in paragraph 5 are considered to be appliances used for, or in connection with, electric lighting. They are covered by subitem 1(p), Third Schedule, and taxable at the rate of 10%. General purpose time switches that are marketed for use with a variety of electrical appliances are not covered by subitem 1(p), Third Schedule and remain taxable at the general rate of 20%.

COMMISSIONER OF TAXATION
16 June 1988

References

ATO references:
NO 84/1830-6

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2049

Subject References:
PORTABLE ELECTRONIC TIME SWITCHES

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 1, THIRD SCHEDULE