TAXATION RULING NO. ST 2183

ST 2183

SALES TAX: MONITORS

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FOI status:

May be releasedFOI number: I 1205226

FACTS

Colour monitors and monochrome (black and white) monitors are visual display apparatus which process and display video signals and are for use essentially in commercial, industrial or office applications.

2. There are two broad classes of colour and monochrome monitors -

(i)

those that incorporate a tuner; and

(ii)

those that do not contain a tuner

3. The tuner is the device that enables television broadcasts to be received and monitors in class (i) above are commonly referred to as "receiver/monitors". Monitors without tuners can display television broadcasts only when they are connected to a tuner or device containing a tuner, e.g. television set, video recorder.

4. Colour monitors are used mainly -

(a)

by television stations and production houses -

(i)

to monitor what is being recorded through a video camera on to a video tape recorder;

(ii)

to monitor what is being recorded from one video tape recorder to another;

(iii)

to edit recorded video tapes;

(iv)

to dub commercials etc. from several video tapes on to one tape; and

(v)

to play back recorded video tapes;

(b)

by companies and Government Departments, to play back recorded video tapes (training films etc).

5. Most monochrome units are used for similar purposes as well as being used for a wider range of commercial purposes. However, certain monochrome models are electronic viewfinders for use with video cameras and are marketed as video camera accessories. These models are appliances used as components of or auxiliaries to video cameras.

RULING

6. Items 45A and 47 to 49 in the Second Schedule refer respectively to:-

.

appliances of a kind used primarily or principally for recording on video tapes and/or reproducing from video tapes

.

combination appliances used primarily or principally for recording and reproducing from video tapes

.

appliances or other goods of a kind used as components of or auxiliaries to appliances of any of the kinds to which item 45A or item 47 applies or systems of a kind used primarily or principally for any purpose, or for any 2 or more purposes specified in item 45A

.

goods that include or contain any component or components which, either alone or in conjunction with other goods, enables or enable the goods to be used for any purpose, or for any 2 or more purposes specified in item 45A.

7. Colour and monochrome monitors, whether or not incorporating a tuner, are used in circumstances that bring them within the scope of one or more of the items 45A, 47 and 48 in the Second Schedule. Where items 45A, 47 or 48 do not apply the monitors are covered by item 49, Second Schedule. It follows that all monitors, both colour and monochrome, whether or not incorporating a tuner, are covered by items in the Second Schedule and taxable at 30%.

COMMISSIONER OF TAXATION
19 November 1985

References

ATO references:
NO 84/298-2

Date of effect:
Immediate

Date original memo issued:
24.4.85

Subject References:
VISUAL DISPLAY APPARATUS MONITORS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEMS 45A,
47,
48
AND 49, SECOND SCHEDULE.