TAXATION RULING NO. ST 2141

ST 2141

SALES TAX : RAILWAY : PERISHER SKITUBE

• Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
  This document has been Withdrawn.
  View the Withdrawal notice for this document.

FOI status:

PREAMBLE

Item 119B in the First Schedule exempts goods for use (whether as goods or in some other form, but not as goods for sale) by a person exclusively in or in connection with the establishment, operation or maintenance by that person of a railway providing, primarily and principally for use by the public, a service for the transport of persons or goods (other than a service provided for, or in connection with, purposes of recreation, pleasure or amusement).

FACTS

2. A 3.6 kilometre tube railway is in course of construction to provide an all weather link to a ski resort from a point below the snow line. Although it will be used predominantly by skiers and other persons visiting the resort and more frequent services will be run in the winter months, the railway will operate all year round. It will also provide freight services. The project will be subject to the overriding control of the NSW Government including setting of the timetable and its operators will be independent from the resort owners.

RULING

3. The intended use of the tube railway in transporting skiers and other visitors to the ski resort is, in the circumstances, regarded as a separate and distinct function from that of the ski resort. It is accepted, therefore, that the service will not be provided for or in connection with the purposes of recreation, pleasure or amusement provided at the resort within the meaning of item 119B.

4. Being a railway operated primarily and principally for use by the public, goods for use by the railway operators in the establishment, operation or maintenance of the railway will ualify for exemption under item 119B.

COMMISSIONER OF TAXATION
17 July 1985

References

ATO references:
NO 84/6424-3

Date of effect:
Immediate

Date original memo issued:
14 Jan. 1985

Subject References:
RAILWAY - PERISHER SKITUBE

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT. ITEM 119B, FIRST SCHEDULE