TAXATION RULING NO. ST 2038

ST 2038

SALES TAX : HOVERCRAFT

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FOI status:

May be releasedFOI number: I 1104890

FACTS

Hovercraft are air-cushioned vehicles capable of use over water, mud, shingle, swamps, sand, ice, land etc. They travel a short distance above the surface.

RULING

2. Hovercraft have been considered for exemption under the following items in the First Schedule to the Sales Tax (Exemptions and Classifications) Act -

3. Although hovercraft have some of the characteristics of each of the abovementioned items they are not -

.

"ships or other vessels" for purposes of item 119(1). In this regard, they are distinguishable from the sidewall surface effect craft ruled conditionally exempt under that item. Those units were designed for, and capable of, use only on water and remain in contact with the water at all times;

.

aeroplanes, i.e. they are not flying machines; or

.

omnibuses, defined in the Shorter Oxford Dictionary as "... wheeled public vehicle(s) ..."

Hovercraft are taxable at the general rate.

COMMISSIONER OF TAXATION
15 July 1983

References

ATO references:
NO ST 66E/267 P1 F213

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2115

Subject References:
HOVERCRAFT
SHIPS
AEROPLANES
OMNIBUSES

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT FIRST SCHEDULE ITEMS 119(1), 119A(1), 119C(1)