TAXATION RULING NO. ST 2206

ST 2206

SALES TAX : WATER HEATING EQUIPMENT

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FOI status:

PREAMBLE

Sub-item 12(1) in the Third Schedule to the Sales Tax (Exemptions and Classifications) Act taxes at the rate of 10% water heating and hot water storage equipment, being goods of a kind installed as fixtures in domestic premises, but not including goods covered by sub-item 153(1), First Schedule.

2. Sub-item 153(1), First Schedule exempts from sales tax goods of a kind used exclusively, or primarily and principally, for collecting, absorbing or concentrating solar rays for the purpose of using them as a source of heat.

RULING

3. Domestic hot water systems of the kind installed as fixtures are taxable at the rate of 10% under sub-item 12(1), Third Schedule.

4. Following the decision in Sherwood Overseas Pty. Ltd v. C. of T. 85 ATC 4267; 16 ATR 473; a backyard swimming pool is accepted as being within domestic premises. Domestic swimming pool heaters of a kind installed as fixtures are also covered by sub-item 12(1), Third Schedule and taxable at the rate of 10%.

5. Commercial water heating equipment and water heating equipment not of a kind installed as fixtures (i.e. portable) are taxable at the general rate of 20%.

6. Solar panels or collectors, whether for use in connection with domestic or commercial water heating equipment, for heating swimming pools or otherwise, are exempt from sales tax under sub-item 153(1), First Schedule. The sales tax treatment of solar panels sold in company with or incorporated into water heating equipment or other goods is dealt with in Taxation Ruling No ST 2198.

COMMISSIONER OF TAXATION
8 January 1986

References

ATO references:
NO 86/51-7

Date of effect:
Immediate

Related Rulings/Determinations:

ST 2198

Subject References:
WATER HEATING EQUIPMENT
SWIMMING POOL HEATERS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 153, FIRST SCHEDULE,
ITEM 12, THIRD SCHEDULE.

Case References:
- Sherwood Overseas Pty. Ltd v. C. of T.
85 ATC 4267
16 ATR 473