TAXATION RULING NO. ST 2034

ST 2034

SALES TAX : THICK SHAKE POWDER MIXES

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FOI status:

FACTS

Advice has been sought in respect of the sales tax classification of a thick shake powder mix. In the powder form the mix contains less than 95% milk powder. When it is reconstituted according to the mixing instructions, the resultant product contains over 95% equivalent whole milk.

RULING

2. As the powder mix does not contain 95% milk powder, exemption under item 26(1), does not apply. As thickshakes are considered to be beverages, the powder mix is specifically excluded from exemption under item 35C, as goods to be mixed with, or added to, a beverage. The powder mix is taxable at the general rate of 20%. However, when the mix is used as a material in the manufacture of exempt thick shakes, i.e. those which contain at least 95% milk and are exempt under item 26(1), the powder mix qualifies for conditional exemption under item 113. The classification of other thick shake powder mixes should be determined accordingly.

COMMISSIONER OF TAXATION
22 June 1983

References

ATO references:
NO ST 11/14

Date of effect:
Immediate

Date original memo issued:
17.06.83

Subject References:
THICK SHAKE POWDER MIXES
BEVERAGES PRODUCED BY RETAILERS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT FIRST SCHEDULE ITEMS 26(1), 35C AND 113