TAXATION RULING NO. ST 2156

ST 2156

SALES TAX : SEALED CONDENSING UNITS AND SEALED COMPRESSORS FOR REFRIGERATION USE

• 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  This document has been Withdrawn.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:

May be releasedFOI number: I 1199260

PREAMBLE

Sub-item 1(e) in the Third Schedule to the Sales Tax (Exemptions and Classifications) Act taxes at 7.5% goods of a kind ordinarily used for household purposes, namely refrigerators, ice chests and other appliances used for the cooling or freezing of food. Parts, fittings and accessories for such goods are covered by item 2, Third Schedule, and are also taxable at 7.5%.

FACTS

2. Sealed condensing units comprise a sealed compressor, condensor, fan unit and other components, mounted on a metal base plate for insertion as replacement components into refrigeration equipment. These units are designed for and used in commercial refrigeration units. They are not used with household refrigeration units.

3. Sealed compressors are designed for use as replacement components and are used in both commercial and household refrigeration units. However, sealed compressors having an electric motor capacity exceeding 375 watts (1/2 horse- power) are generally not used in household refrigeration units. They are used for commercial freezer and refrigeration units. Those compressors with electric motor capacities up to and including 375 watts are almost invariably used in household refrigeration units.

RULING

4. Sealed condensing units of the kinds described in paragraph 2 are not parts, fittings and accessories for goods of a kind ordinarily used for household purposes. Therefore, they are not covered by item 2, Third Schedule. They are taxable at the general rate, which is currently 20%.

5. The "covered" ruling under item 2, Third Schedule for "sealed condensing units not exceeding 1 horse-power capacity" at page 608 of Sales Tax Exemptions and Classifications 1983 is withdrawn.

6. Sealed compressors having an electric motor capacity up to and including 375 watts are covered by item 2, Third Schedule. They are taxable at 7.5%. Sealed compressors having an electric motor capacity in excess of 375 watts are taxable at the general rate.

COMMISSIONER OF TAXATION
7 August 1985

References

ATO references:
NO ST 51/1 P13
BO MELB : 6/C9/SC 4/3/2

Date of effect:
Immediate

Date original memo issued:
20 May

Subject References:
SEALED CONDENSING UNITS
SEALED COMPRESSORS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935; ITEMS 1 AND
2, THIRD SCHEDULE.