Item 18: [Manufacture‑related activitiesItem 18: [Manufacture‑related activities] [R]

#### Item 18: \[Manufacture‑related activities\] \[R\] (1) Goods for use by a person (the exemption user) mainly in carrying out one or more of the following activities: (a) a manufacture‑related activity carried out by the exemption user in the course of a business; (b) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a); (c) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (b). (2) Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1). (3) This Item does not cover: (a) generally‑excluded property (as defined by section 12); (b) a general‑purpose road vehicle, unless it is for use exclusively: (i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or (ii) in going between adjacent premises covered by subparagraph (i); or (iii) for a combination of both; and is not for use, to any extent, in any part of premises described in subparagraph (i) that is used, or for use, mainly in connection with a township, accommodation complex or similar place; (c) vending machines, and other appliances of a kind ordinarily used for the sale of goods; (d) property for use mainly in producing electric current, gases, steam, compressed air or hydraulic power, except where the production is for purposes of: (i) sale by the producer; or (ii) use by the producer mainly in carrying out one or more activities covered by subitem (1); (e) property for use mainly in duplicating computer programs, if the duplication produces tax‑advantaged computer programs; (f) author/secretary equipment that is for use mainly in connection with the manufacture of printed matter by any person. The exclusions in this subitem do not apply to goods covered by paragraph (i) of the definition of manufacture‑related activity in subitem (5). > Note: \[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).\] (4) The usual requirement that the exemption user must intend to use the exemption goods during the whole of the statutory period does not apply if all the following conditions are met in respect of the exemption goods: (a) the exemption goods are for use by the exemption user mainly in applying a process or treatment to or in relation to goods (the manufactured goods) that have been manufactured, or are to be manufactured; (b) the process or treatment is covered by paragraph (a), (b) or (c) of the definition of manufacture‑related activity in subitem (5); (c) the exemption user intends to sell the exemption goods together with some of the manufactured goods; (d) either: (i) the manufactured goods are always‑exempt goods; or (ii) the exemption goods are to be sold to a registered person who quotes for the purchase of the manufactured goods and gives evidence before the time of purchase (in a form approved by the Commissioner) that the registered person does not intend to resell the exemption goods to any person to whom any of the manufactured goods are to be resold. (5) In this Item: > goods/equipment means goods, or machinery, implements or apparatus. > manufacture‑related activity means: (a) applying a process or treatment to goods that are to be used as raw materials for other goods to be manufactured by the exemption user or anyone else; > Note: \[For example, purifying chemicals that are to be used in manufacturing cosmetics\] (b) applying a process or treatment to goods so that the goods, or an essential element of the goods, become an integral part of other goods that are being manufactured by the exemption user or anyone else; > Note: \[For example, applying a moulding process to plastic in order to make plastic door knobs\] (c) applying a process or treatment to goods for the purpose of bringing them into, or keeping them in, the form or condition in which they are to be marketed or used by a person: (i) who is the manufacturer of the goods; or (ii) in relation to whom the goods are wholesaler’s‑materials goods; or (iii) in relation to whom the goods are qualifying goods because paragraph (ac) of the definition of that expression in subsection 3(2) applies; whether or not the person is the exemption user; > Note: \[For example, applying a coating of grease to manufactured hand tools to prevent corrosion\] (d) packaging or labelling goods that are: (i) manufactured by the exemption user; or (ii) wholesaler’s‑materials goods in relation to the exemption user; or (iii) qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user; or labelling receptacles for such goods, except if the packaging or labelling is carried out mainly for purposes connected with the delivery of the goods; (e) testing or checking the quality or specifications of goods that: (i) have been manufactured by the exemption user; or (ia) are wholesaler’s‑materials goods in relation to the exemption user; or (ib) are qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user; or (ii) have been, or are to be, processed or treated by the exemption user as described in paragraph (a), (b) or (c); (f) disposing of waste substances that result from a manufacture‑related activity carried out by the exemption user; > Note: \[For example, disposing of sawdust resulting from furniture manufacturing\] (g) cleaning, sterilising or repairing receptacles that the exemption user uses mainly in: (i) the storage or marketing of goods that have been manufactured by the exemption user, or that the exemption user processes or treats as described in paragraph (a), (b) or (c); or (ia) the storage or marketing of goods that are wholesaler’s‑materials goods in relation to the exemption user; or (ib) the storage or marketing of goods that are qualifying goods, because paragraph (ac) of the definition of that expression in subsection 3(2) applies, in relation to the exemption user; or (ii) the storage of goods/equipment that is used or for use by the exemption user mainly in carrying out one or more manufacture‑related activities; (h) operating, applying, cleaning, sterilising, repairing or maintaining machinery, implements or apparatus that is used by the exemption user mainly in carrying out one or more manufacture‑related activities; (ha) supplying materials, wholly or partly out of which wholesaler’s‑materials goods in relation to the exemption user are to be manufactured; (i) carrying out scientific research in relation to manufacture‑related activities of the exemption user; (j) processing or treating: (i) goods/equipment that is for use by the exemption user mainly in carrying out one or more activities covered by any of paragraphs (a) to (i); or (ii) goods covered by subitem (2). > Note: \[For example, applying a purifying process to acid that is to be used as a consumable in an etching process\] > packaging, in relation to goods, includes placing the goods in a receptacle of any kind.