A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
and not by one or more partners alone
Richard runs a business as a carpenter. He enters into a contract with his client who is a home builder to erect frames for homes. After measuring the sites and determining the areas for the footings of the frames, Richard engages a stump hole driller to drill the holes for the footings. When the timber was delivered, Richard engages a frame cutter to cut the timber.
The work performed by the stump hole driller and frame cutter is a necessary part of and is supplied in the course of Richard’s business. The work is considered a normal occurrence of Richard’s business. Condition (d) is met.
Peter is a plumber. He enters into a contract with a client to carry out some plumbing work. He performs the plumbing work which is the object of his contract. His spouse, Sharon, only provides the plumbing business with administrative services such as maintaining the accounts and banking for the business.
Administration work is not considered the object of the contract. Condition (e) is not met.
Samantha carries on a business as an electrician. She enters into a contract with a client to install electrical items in a room and restore the walls to their original state. To perform the work required under the contract, she engages a plasterer and a painter.
The work performed by the plasterer and painter is considered part of the object of the contract. Condition (e) is met.
Michelle is a builder. She has 20 separate contracts to build houses and sub-contracts all the carpentry work to a carpenter, Frank. Frank provides his services on all contracts but engages the services of a frame cutter in respect of only 15 of the 20 houses. The exemption applies to those 15 contracts.
Payments made by Michelle to Frank on the remaining five contracts are taxable unless another exemption applies.
Commissioner of State Revenue
Date of issue: 3 July 2009
|Public Ruling||Issued||Dates of effect|
|PTA023.2||3 July 2009||3 July 2009||Current|
|PTA023.1||24 February 2009||1 July 2008||2 July 2009|