SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1992 (Repealed)

SCHEDULE 1

EXEMPTION ITEMS

CHAPTER 1: GOODS FOR USE IN BUSINESS OR INDUSTRY

Sub-Chapter 1.1: Mining and primary production

[Division 2 of Part 3 of this Act has general rules that affect this Chapter.]

ITEM 1: [Mining activities] [R]  

1(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  mining or prospecting operations in the course of a business of carrying out mining or prospecting operations;

(b)  restoring or rehabilitating a site on which the exemption user has carried out operations covered by paragraph (a):

(i) to a reasonable approximation of its condition before any mining or prospecting operations were carried out at the site; or

(ii) to a lesser condition;

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a) or (b);

(d)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (c).

1(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

1(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

and is not for use, to any extent, in any part of premises described in subparagraph (i) that is used, or for use, mainly in connection with a township, accommodation complex or similar place;

(c)  goods for use mainly in connection with administrative activities (other than activities covered by paragraph (1)(c) or (d)).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

1(4) 

In this Item, ``mining or prospecting operations'' means:

(a)  mining operations;

(b)  quarrying operations;

(c)  exploring or prospecting for deposits that are to be recovered by mining or quarrying operations.

ITEM 2: [Primary production activities] [R]  

2(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities in the course of a primary production business:

(a)  a primary production activity;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

2(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

2(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  goods for use mainly in connection with administrative activities (other than activities covered by paragraph (1)(b) or (c)).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

2(4) 

In this Item:

``primary production activity'' means agriculture, forestry, fishing (including fish farming) or pearling;

``primary production business'' means a business of carrying on primary production activities.

ITEM 3: [Vehicles etc for use in agricultural industry]  

The following goods for use by a person mainly in carrying out activities in agricultural industry:

(a)  motor vehicles known as four wheel drive vehicles, with body type of jeep, platform, pick-up or utility;

(b)  motor cycles that:

(i) have a heavy duty rear carrier; and

(ii) have a front mudguard position that allows high clearance; and

(iii) have no passenger footrests and no seat strap;

(c)  trailers and similar vehicles, but not including motor vehicles or semi-trailers;

(d)  livestock carriers designed for use with vehicles.[Parts, accessories and attachments]

ITEM 4: [Heavy motor vehicles etc for transporting livestock in remote areas]  

4(1) 

The following goods for use by a person exclusively in a remote area, if that use is mainly for transporting livestock:

(a)  motor vehicles (other than articulated motor vehicles or prime movers for articulated motor vehicles) with:

(i) a net power rating of at least 74.57kW; and

(ii) a gross vehicle weight rating of at least 9.071 tonnes;

(b)  prime movers with:

(i) a net power rating of at least 74.57kW; and

(ii) a gross combination weight rating of at least 13.607 tonnes;

(c)  trailers;

(d)  stock crates, or livestock carriers, designed for use with vehicles.

4(2) 

Chassis for use by a person exclusively in the construction of goods covered by paragraph (1)(a).

4(3) 

In this Item:

``articulated motor vehicle'' means a motor vehicle that consists of a prime mover and a trailer, where part of the trailer is superimposed on the prime mover;

``rating'' means the rating specified by the manufacturer;

``remote area'' means the prescribed area that is defined in section 79A of the Income Tax Assessment Act 1936;

``trailer'' means an unpowered vehicle that is designed to be towed by a motor vehicle.

ITEM 5: [Tanks for bulk milk tankers]  

5(1) 

Tanks for a bulk milk tanker if the tanks are for use by a person exclusively for collecting milk from farms.[Parts, accessories and attachments]

5(2) 

Pumping equipment and other fittings for use by a person exclusively with a tank covered by subitem (1).[Parts, accessories and attachments]

ITEM 6: [Fencing, dam-building etc equipment for use in agricultural industry]  

The following goods for use by a person mainly in carrying out activities in agricultural industry:

(a)  fencing tools;

(b)  road ploughs and road scarifiers;

(c)  earthmoving scoops;

(d)  soil packers and soil pulverisers.[Parts, accessories and attachments]

ITEM 7: [Agricultural fencing, gates etc]  

The following goods of a kind ordinarily used in agricultural industry:

(a)  field wire fencing and gates;

(b)  fencing droppers and posts for wire fencing.[Parts, accessories and attachments]

ITEM 8: [Machinery etc for constructing drains or ditches in agricultural industry]  

Machinery, implements or apparatus for use by a person mainly in constructing drains or ditches in agricultural industry.[Parts, accessories, attachments and fittings]

ITEM 9: [Wool packs]  

Wool packs.

ITEM 10: [Dairying equipment]  

10(1) 

The following dairying goods:

(a)  cream and milk bottles, and wads, caps and stoppers for those bottles;

(b)  cream cans, milk cans, and dairy utensils (but not including buckets of a kind ordinarily used for other than dairying purposes).[Parts, accessories and attachments]

10(2) 

Equipment and materials for use by a person mainly in testing, pasteurising or cooling milk or cream in the dairying industry.[Parts, accessories and attachments]

ITEM 11: [Equipment for distributing milk or cream]  

11(1) 

Machinery, implements or apparatus for use by a person mainly in distributing milk or cream in the dairying industry.[Parts, accessories and attachments]

11(2) 

This Item does not cover general-purpose road vehicles or parts for those vehicles.

ITEM 12: [Bulk grain handling equipment]  

Machinery, implements or apparatus (other than general-purpose road vehicles or parts for those vehicles) for use by a person mainly for handling grain in bulk.[Parts, accessories and attachments]

ITEM 13: [Equipment for handling or treating fruit]  

13(1) 

The following machinery, implements or apparatus for use by a person mainly in handling or treating fruit:

(a)  cranes for use in connection with the dipping of fruit;

(b)  fruit grading rings;

(c)  fruit grading, sorting and cleansing machines.[Parts, accessories and attachments]

13(2) 

Machinery, implements or apparatus, and refrigerating agents, for use by a person mainly for regulating atmospheric conditions for the purpose of preserving, ripening or storing fruit in the fruit-growing industry.[Parts, accessories and attachments]

ITEM 14: [Equipment for grading, sorting or cleansing vegetables]  

Vegetable grading, sorting and cleansing machines.[Parts, accessories and attachments]

ITEM 15: [Refrigerators etc for use by egg marketing body]  

15(1) 

Refrigeration equipment and refrigerating agents for use by an egg marketing body mainly for preserving eggs.[Parts, accessories and attachments]

15(2) 

In this Item, ``egg marketing body'' means:

(a)  an authority established under Commonwealth, State or Territory law for the purpose of marketing eggs;

(b)  a person who grades and stores eggs on behalf of an authority covered by paragraph (a).

ITEM 16: [Refrigerators etc for use by fish marketing body or co-operative]  

16(1) 

Refrigeration equipment and refrigerating agents for use by an authority established under a State Act relating to fish marketing, if the use is mainly for preserving fish or other marine animals.[Parts, accessories and attachments]

16(2) 

Refrigeration equipment and refrigerating agents for use by a co-operative company or society, if the use is mainly for preserving fish or other marine animals that have been produced, and supplied to the company or society, by members of the company or society who are engaged in the fishing industry.[Parts, accessories and attachments]

ITEM 17: [Cranes and winches for hauling log timber]  

Cranes and winches for use by a person mainly for hauling log timber in the timber-getting industry. The cranes and winches must be for attachment to motor vehicles.[Parts, accessories and attachments]

Sub-Chapter 1.2: Manufacturing and industrial etc

ITEM 18: [Manufacture-related activities] [R]  

18(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  a manufacture-related activity carried out by the exemption user in the course of a business;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

18(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

18(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

and is not for use, to any extent, in any part of premises described in subparagraph (i) that is used, or for use, mainly in connection with a township, accommodation complex or similar place;

(c)  vending machines, and other appliances of a kind ordinarily used for the sale of goods;

(d)  property for use mainly in producing electric current, gases, steam, compressed air or hydraulic power, except where the production is for purposes of:

(i) sale by the producer; or

(ii) use by the producer mainly in carrying out one or more activities covered by subitem (1);

(e)  property for use mainly in duplicating computer programs, if the duplication produces tax-advantaged computer programs;

(f)  author/secretary equipment that is for use mainly in connection with the manufacture of printed matter by any person.

The exclusions in this subitem do not apply to goods covered by paragraph (i) of the definition of ``manufacture-related activity'' in subitem (5).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

18(4) 

The usual requirement that the exemption user must intend to use the exemption goods during the whole of the statutory period does not apply if all the following conditions are met in respect of the exemption goods:

(a)  the exemption goods are for use by the exemption user mainly in applying a process or treatment to or in relation to goods ( ``the manufactured goods'' ) that have been manufactured, or are to be manufactured;

(b)  the process or treatment is covered by paragraph (a), (b) or (c) of the definition of ``manufacture-related activity'' in subitem (5);

(c)  the exemption user intends to sell the exemption goods together with some of the manufactured goods;

(d)  either:

(i) the manufactured goods are always-exempt goods; or

(ii) the exemption goods are to be sold to a registered person who quotes for the purchase of the manufactured goods and gives evidence before the time of purchase (in a form approved by the Commissioner) that the registered person does not intend to resell the exemption goods to any person to whom any of the manufactured goods are to be resold.

18(5) 

In this Item:

``goods/equipment'' means goods, or machinery, implements or apparatus;

``manufacture-related activity'' means:

(a)  applying a process or treatment to goods that are to be used as raw materials for other goods to be manufactured by the exemption user or anyone else;[For example, purifying chemicals that are to be used in manufacturing cosmetics]

(b)  applying a process or treatment to goods so that the goods, or an essential element of the goods, become an integral part of other goods that are being manufactured by the exemption user or anyone else;[For example, applying a moulding process to plastic in order to make plastic door knobs]

(c)  applying a process or treatment to goods for the purpose of bringing them into, or keeping them in, the form or condition in which they are to be marketed or used by a person:

(i) who is the manufacturer of the goods; or

(ii) in relation to whom the goods are wholesaler's-materials goods; or

(iii) in relation to whom the goods are qualifying goods because paragraph (ac) of the definition of that expression in subsection 3(2) applies;

whether or not the person is the exemption user;[For example, applying a coating of grease to manufactured hand tools to prevent corrosion]

(d)  packaging or labelling goods that are:

(i) manufactured by the exemption user; or

(ii) wholesaler's-materials goods in relation to the exemption user; or

(iii) qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user;

or labelling receptacles for such goods, except if the packaging or labelling is carried out mainly for purposes connected with the delivery of the goods;

(e)  testing or checking the quality or specifications of goods that:

(i) have been manufactured by the exemption user; or

(ia) are wholesaler's-materials goods in relation to the exemption user; or

(ib) are qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user; or

(ii) have been, or are to be, processed or treated by the exemption user as described in paragraph (a), (b) or (c);

(f)  disposing of waste substances that result from a manufacture-related activity carried out by the exemption user;[For example, disposing of sawdust resulting from furniture manufacturing]

(g)  cleaning, sterilising or repairing receptacles that the exemption user uses mainly in:

(i) the storage or marketing of goods that have been manufactured by the exemption user, or that the exemption user processes or treats as described in paragraph (a), (b) or (c); or

(ia) the storage or marketing of goods that are wholesaler's-materials goods in relation to the exemption user; or

(ib) the storage or marketing of goods that are qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user; or

(ii) the storage of goods/equipment that is used or for use by the exemption user mainly in carrying out one or more manufacture-related activities;

(h)  operating, applying, cleaning, sterilising, repairing or maintaining machinery, implements or apparatus that is used by the exemption user mainly in carrying out one or more manufacture-related activities;

(ha)  supplying materials, wholly or partly out of which wholesaler's-materials goods in relation to the exemption user are to be manufactured;

(i)  carrying out scientific research in relation to manufacture-related activities of the exemption user;

(j)  processing or treating:

(i) goods/equipment that is for use by the exemption user mainly in carrying out one or more activities covered by any of paragraphs (a) to (i); or

(ii) goods covered by subitem (2);[For example, applying a purifying process to acid that is to be used as a consumable in an etching process]

``packaging'' , in relation to goods, includes placing the goods in a receptacle of any kind.

ITEM 19: [Raw materials for manufacturing goods] [R]  

19(1) 

Goods for use by a person exclusively as raw materials for goods to be manufactured by the person in Australia in the course of any business carried on by the person.

19(2) 

This Item does not cover materials or mixes for use in manufacturing any of the following:

(a)  thick-shakes or similar goods;

(b)  biscuit goods;

(c)  ice-cream goods;

in premises or vehicles in which the business of manufacturing those goods is carried on mainly for the purpose of retail sale directly from those premises or vehicles.

ITEM 20: [Industrial safety equipment]  

Equipment of a kind mainly used in the course of industrial operations to protect persons engaged in those operations, including masks, respirators, shields, goggles, visors, helmets, belts and machine guards.[Parts]

ITEM 21: [Industrial time-recording apparatus etc]  

Time-recording apparatus, and clock systems, of a kind ordinarily used for business or industrial purposes, but not including goods covered by Item 6 or 7 in Schedule 5.[Parts]

ITEM 22: [Pest killers]  

Preparations, materials and appliances for use by a person exclusively in destroying insect pests or other invertebrate pests in the course of business or industrial operations.[Parts]

ITEM 23: [Activities relating to printing] [R]  

23(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  editing or formatting text or images mainly for the purpose of bringing them into the final form necessary to:

(i) make a bromide, printing plate or similar thing; or

(ii) allow the generation of electronic instructions for a printing machine;

where the bromide, printing plate, similar thing or instructions are to be used by any person in manufacturing printed matter;

(b)  recording advertisements that are to be included in a newspaper, periodical or magazine manufactured by the exemption user or that is wholesaler's-materials goods in relation to the exemption user;

(c)  preparing text or images for inclusion in technical manuals or other documentation that is for use by the exemption user mainly in connection with carrying out an activity of the exemption user that is covered by exemption Item 1, 2, 18, 28, 29, 30, 33, 34, 35 or 38;

(d)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a), (b) or (c);

(e)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (d).

23(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

23(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  author/secretary equipment.[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

ITEM 24: [Printing plates etc]  

24(1) 

The following goods for use by a person mainly in, or in connection with, producing always-exempt goods that are printed matter:

(a)  compositions produced by Linotype, Intertype, Monotype, Ludlow, Elrod and similar machines;

(b)  stereotypes, matrices, electrotypes and electrotype moulds;

(c)  printers type, printers borders, printers ornaments, printers spacing materials and printers rules;

(d)  blocks;

(e)  lithographic plates, lithographic stones, offset plates and letterset plates;

(f)  etched plates, etched sleeves and etched printing cylinders for use in photogravure, rotogravure and other similar processes of printing;

(g)  silk screens for use in printing by the silk screen process.

24(2) 

Photographic negatives and diapositives for use in connection with producing goods described in paragraph (1)(d), (e), (f) or (g).

24(3) 

Drawings, sketches, cartoons, paintings, pictures, photographs, printed matter, and combinations of any of those goods, for use in connection with producing:

(a)  goods described in paragraph (1)(e) or (g); or

(b)  goods covered by subitem (2).

ITEM 25: [Cinematograph film for business use]  

25(1) 

The following goods for use by a person mainly in producing motion picture films in the course of a business:

(a)  unexposed cinematograph film;

(b)  cinematograph film that has been exposed but not developed;

(c)  negatives, positives and reversals produced on cinematograph film.

25(2) 

This Item does not cover goods that (with or without further processing) are for use as exhibition copies of motion picture films.

25(3) 

In this Item, ``motion picture film'' does not include a film that is for the private, domestic or personal use of the person by whom or for whom the film is produced.

ITEM 26: [Cinematograph cameras etc for business use]  

26(1) 

The following goods for use by a person mainly in producing motion picture films in the course of a business:

(a)  cinematograph cameras;

(b)  apparatus and materials for use by the person mainly in reproducing or recording sound or editing sound recordings;

(c)  apparatus and materials for use by the person mainly in developing, editing or otherwise processing goods that are covered by exemption Item 25.[Parts and accessories]

26(2) 

This Item does not cover general-purpose road vehicles or parts for those vehicles.

Sub-Chapter 1.3: Containers, transport, storage etc

ITEM 27: [Containers for assessable goods]  

27(1) 

Goods ( ``the main container'' ) for use by a person ( ``the exemption user'' ) as a container exclusively for contents consisting wholly of assessable goods (or of assessable goods and containers for those assessable goods).

27(2) 

In addition, the exemption user must intend or expect that:

(a)  the main container will be used as a container in relation to the contents at the time of an assessable dealing that consists of:

(i) a sale of the contents; or

(ii) a delivery of the contents that is covered by AD4a; or

(iii) a lease AOU of the contents; and

(b)  possession or control of the main container will pass to the person who is the purchaser, customer or lessee, as the case requires, for that assessable dealing.

27(3) 

This Item does not cover goods that are for use by the exemption user in marketing or delivering:

(a)  ice-cream goods, or biscuit goods, that are manufactured in premises or vehicles in which the exemption user carries on a business of manufacturing goods of that kind mainly for the purpose of retail sale directly from those premises or vehicles;

(b)  take-away beverages or foodstuffs (whether for consumption on the premises from which they are sold or elsewhere).

ITEM 28: [Storage, transport etc] [R]  

28(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  storing, handling, transporting or dispatching qualifying goods of the exemption user on premises that are controlled by the exemption user, except where the storing, handling, transporting or dispatching is on premises, or parts of premises, used mainly in connection with the retail sale of goods at those premises to the general public;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

28(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

28(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises that are controlled by the exemption user (not including so much of those premises as is used, or for use, mainly in connection with the retail sale of goods at those premises to the general public); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both.[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

ITEM 29: [Transport by rail, pipeline etc] [R]  

29(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  operating, repairing or maintaining a railway, pipeline or conveyor that is used or for use by the exemption user mainly for transporting qualifying goods of the exemption user within or between (or both):

(i) premises that are controlled by the exemption user; or

(ii) premises that are used (by any person or persons) mainly in carrying out one or more activities covered by subitem (1) of exemption Item 30;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

29(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

29(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises that are controlled by the exemption user or are used (by any person or persons) mainly in carrying out one or more activities covered by subitem (1) of exemption Item 30; or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both.[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

ITEM 30: [Handling etc ship's cargo or international air cargo]  

30(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  storing, handling, transporting, protecting, preserving or decontaminating:

(i) qualifying cargo; or

(ii) receptacles that are for repeated use for storing or handling qualifying cargo;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

30(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

30(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises that are used (by any person or persons) mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  goods for use mainly in connection with qualifying cargo that has been, or is to be, sold by the exemption user (not counting goods that are qualifying goods of the exemption user).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

30(4) 

In this Item, ``qualifying cargo'' means:

(a)  ship's cargo, but not including:

(i) the ship's stores, fuel or ballast;

(ii) goods to be used, consumed or sold on the ship;

(iii) passengers' baggage; or

(b)  air cargo that is consigned to or from a place outside Australia, but not including:

(i) the aircraft's stores or fuel;

(ii) goods to be used, consumed or sold on the aircraft;

(iii) passengers' baggage.

ITEM 32: [Cylinders for marketing or delivering gases]  

32(1) 

Cylinders of a kind ordinarily used in marketing gases for industrial, medical or domestic use, but only if the cylinders are portable cylinders in which the gases are delivered to consumers.[Parts and accessories]

32(2) 

Goods for use by a person exclusively as materials placed in a cylinder covered by subitem (1) in order to facilitate its use as a container for acetylene gas.

Sub-Chapter 1.4: Research and development, design etc

ITEM 33: [Research and development by manufacturer etc] [R]  

33(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  an eligible R&D activity that is carried out mainly for one or more of the following purposes:

(i) creating new or improved goods that will be, or are likely to be, qualifying goods of the exemption user;

(ii) creating a new or improved activity that will be, or is likely to be, carried out by the exemption user and would be covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35;

(iii) acquiring new knowledge mainly for either of those purposes;

(b)  an activity carried out mainly for a purpose directly related to an activity covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a) or (b);

(d)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (c).

33(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

33(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  goods for use mainly in the development or duplication of computer programs that will be, or are likely to be, tax-advantaged computer programs (not counting programs that will be, or are likely to be, mainly for use by the exemption user in carrying out an activity covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

33(4) 

In this Item, ``eligible R&D activity'' means a systematic, investigative or experimental activity that involves innovation or technical risk, but does not include:

(a)  market research, market testing or market development, or sales promotion (including consumer surveys);

(b)  management studies or efficiency surveys;

(c)  feasibility studies.

ITEM 34: [Research and development by approved R&D body]  

34(1) 

Goods for use by an approved R&D body ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  an eligible R&D activity that is carried out mainly for one or more of the following purposes:

(i) creating new or improved goods that will be, or are likely to be, manufactured in Australia or to which a process or treatment will be, or is likely to be, applied in Australia by anyone as described in paragraph (a), (b) or (c) of the definition of ``manufacture-related activity'' in exemption Item 18;

(ii) creating a new or improved activity that will be, or is likely to be, carried out in Australia by anyone and would be covered by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35;

(iii) acquiring new knowledge mainly for either of those purposes;

(b)  an activity carried out mainly for a purpose directly related to an activity covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a) or (b);

(d)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (c).

34(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

34(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  goods for use mainly in the development or duplication of computer programs that will be, or are likely to be, tax-advantaged computer programs (not counting programs that will be, or are likely to be, mainly for use by the exemption user in carrying out an activity covered by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

34(4) 

For the purposes of this Item, a person is an ``approved R&D body'' at a particular time if any of the following conditions is met:

(a)  before that time, the person has entered into an agreement under section 28 or 31 of the Industry Research and Development Act 1986 for a project that is being carried on at that time;

(b)  the person is registered at that time under section 39F of that Act;

(c)  the person is registered at that time under section 39J or 39P of that Act for the year of income of the person in which that time happens.

34(5) 

In this Item, ``eligible R&D activity'' means a systematic, investigative or experimental activity that involves innovation or technical risk, but does not include:

(a)  market research, market testing or market development, or sales promotion (including consumer surveys);

(b)  management studies or efficiency surveys;

(c)  feasibility studies.

ITEM 35: [Engineering, technical design etc] [R]  

35(1) 

Goods for use by a person ( ``the exemption user'' ) mainly in carrying out one or more of the following activities:

(a)  the engineering, or technical design, of any of the following:

(i) goods that will be, or are likely to be, qualifying goods of the exemption user;

(ii) an activity that will be, or is likely to be, carried out by the exemption user and would be covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 33;

(iii) computer programs for computer-controlled equipment that will be used, or is likely to be used, by the exemption user in such a way that it would be covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 33;

(b)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a);

(c)  an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b).

35(2) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).

35(3) 

This Item does not cover:

(a)  generally-excluded property (as defined by section 12);

(b)  a general-purpose road vehicle, unless it is for use exclusively:

(i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or

(ii) in going between adjacent premises covered by subparagraph (i); or

(iii) for a combination of both;

(c)  author/secretary equipment that is for use mainly in connection with the manufacture of printed matter by any person;

(d)  goods for use mainly in developing or duplicating computer programs that will be, or are likely to be, tax-advantaged computer programs (other than computer programs for computer-controlled equipment that will be used, or is likely to be used, by the exemption user in such a way that it would be covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 33).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).]

Sub-Chapter 1.5: Miscellaneous

ITEM 36: [Subcontractors]  

36(1) 

Goods ( ``the exemption goods'' ) for use by a person ( ``the exemption user'' ) mainly in carrying out one or more activities described in subitem (1) of exemption Item 1, 2, 18, 23, 28, 29, 30, 33, 34 or 35, on behalf of one or more other persons ( ``the principals'' ). For this subitem to apply, either the condition in subitem (2) of this Item or the conditions in subitem (3) of this Item must be met for each activity ( ``countable activity'' ) that is relied on to establish that this subitem applies.

36(2) 

If the exemption goods were for use by the principal concerned mainly in carrying out the countable activity at the place at which the activity is to be carried out by the exemption user, the exemption goods would (in relation to the principal) be covered by the Item in which the countable activity is referred to.

36(3) 

All the following conditions must be satisfied:

(a)  the countable activity is to be carried out by the exemption user on premises controlled by the exemption user;

(b)  the exemption goods are not for use by the exemption user mainly in connection with any business of the exemption user that involves selling goods (other than qualifying goods of the exemption user);

(c)  the goods would be covered by exemption Item 28 (in relation to the principal concerned) if:

(i) the goods were for use by the principal mainly in carrying out the countable activity on the premises at which the activity is to be carried out by the exemption user; and

(ii) those premises were controlled by the principal.

36(4) 

Subitems (2) and (3) are to be applied on the assumption that the principal concerned is registered at all relevant times.

36(5) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property that is expressly excluded from the relevant Item.]

ITEM 37: [Earth-moving contractors]  

37(1) 

Machinery, implements or apparatus (other than general-purpose road vehicles or parts for those vehicles) for use by a person mainly in earth-moving in the course of carrying out contracts for a body whose own use of the machinery or equipment would be covered by exemption Item 64, 126 or 127.

37(2) 

In this Item, ``earth-moving'' means the excavation or movement of earth, rock or natural deposits in the soil.[Parts, accessories and attachments]

ITEM 38: [Mixed activities] [R]  

38(1) 

Goods ( ``the exemption goods'' ) for use by a person ( ``the exemption user'' ) mainly in carrying out 2 or more activities described in subitem (1) of exemption Item 1, 2, 18, 23, 28, 29, 30, 33, 34 or 35. For this subitem to apply, the condition in subitem (2) of this Item must be met for each activity ( ``countable activity'' ) that is relied on to establish that this subitem applies.

38(2) 

If the exemption goods were for use by the exemption user mainly in carrying out the countable activity, they would be covered by the Item in which the countable activity is referred to.

38(3) 

In applying the test in subitem (2), a reference in exemption Item 1, 2, 18, 23, 28, 29, 30, 33, 34, or 35 to premises used by the exemption user mainly in carrying out activities described in that Item is to be read as a reference to premises used by the exemption user mainly in carrying out one or more of the countable activities.

38(4) 

If none of the countable activities is in an exemption Item marked [R], then this Item has effect as if it were not marked [R].

38(5) 

Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1).[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property that is expressly excluded from the relevant Item.]

ITEM 38A: [Computer related equipment for RHQ company]  

38A(1) 

Imported goods, being computer related equipment for use by an RHQ company mainly in providing regional headquarters support, if:

(a)  at all times during the 9 months before the local entry, the goods:

(i) were in existence; and

(ii) were owned or leased by:

(A) the RHQ company; or

(B) a company ( ``the RHQ group company'' ) that, at the time of the local entry, was a group company in relation to the RHQ company; or

(C) a company that is a group company in relation to the RHQ group company; and

(iii) were not leased or subleased to a person who is not covered by subparagraph (ii); and

(b)  the goods are locally entered within 2 years after the day on which the first goods covered by this Item that are for use by the RHQ company are locally entered.

38A(2) 

In this Item:

``computer equipment'' includes:

(a)  equipment for networking computers; or

(b)  equipment mainly used in communications between computers; or

(c)  monitors;

``computer related equipment'' means:

(a)  computer equipment; or

(b)  equipment mainly used for producing, supplying, monitoring or regulating power for computer equipment; or

(c)  equipment mainly used for controlling the temperature in the area where equipment covered by paragraph (a) or (b) is situated;

``provide regional headquarters support'' has the same meaning as in Subdivision CB of Division 3 of Part III of the Income Tax Assessment Act 1936;

``RHQ company'' means:

(a)  an RHQ company within the meaning of Subdivision CB of Division 3 of Part III of the Income Tax Assessment Act 1936; or

(b)  a transitional RHQ company within the meaning of subsection 154(4) of the Taxation Laws Amendment Act (No 3) 1994.