ATO ID 2001/217: GST and Wheelchair Ramp
Date of decision: 18 June 2001
Business line: Indirect Tax

Issue
Is the entity, an installer of wheelchair ramps, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it constructs a wheelchair ramp and incorporates it into the structure of a house?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it constructs a wheelchair ramp and incorporates it into the structure of a house.

Facts
The entity is an installer of wheelchair ramps. The entity constructs a wheelchair ramp and incorporates it into the structure of a house in order to provide access to an individual in a wheelchair. Various components are used to build the wheelchair ramp in situ (on site). To function properly, the wheelchair ramp is incorporated into the structure of the house. The wheelchair ramp is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: Under subsection 38-45(1) of the GST Act a supply of a medical aid and appliance will be GST-free if: The category of medical aids and appliances listed in Schedule 3 that is of particular relevance to this case is 'mobility of people with disabilities - motor vehicles'. Within this category, item 56 in the table in Schedule 3 lists 'wheelchair ramp'. The category heading 'mobility of people with disabilities - motor vehicles' is not an operative part of Schedule 3 (section 182-15 of the GST Act and Note 2 in Schedule 3). As such, the category heading may only be used as an interpretation tool in certain circumstances, for example, where the description of an item listed in Schedule 3 is ambiguous or obscure (paragraph 182-10(2)(c) of the GST Act). In this case, the meaning of the term 'wheelchair ramp' is clear. Therefore, the interpretation of 'wheelchair ramp' is not restricted by its category heading. It is considered that a wheelchair ramp that provides access to a house, falls within the scope of item 56 in the table in Schedule 3. Furthermore, in this case, the wheelchair ramp is built up in situ (on site) from various components. As the wheelchair ramp needs to be incorporated into the structure of the house to function properly, it is only upon the completion of its construction and incorporation that the ramp becomes identifiable as a wheelchair ramp. As such, the supply by the entity, of the construction and incorporation of the wheelchair ramp (which includes materials and labour), is the supply of a 'wheelchair ramp' as specified in item 56 in the table in Schedule 3. As this wheelchair ramp is covered by Schedule 3, is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability; its supply and installation is a GST-free supply of a medical aid or appliance under subsection 38-45(1) of the GST Act.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 182-10 paragraph 182-10(2)(c) subsection 38-45(1) section 182-15 Schedule 3 Schedule 3 Note 2 Schedule 3 item 56
Other references: GST Consultative Forum on Health Issues Log - Issue 4.a.14
Subject references: Goods & services tax GST free GST health Medical aids & appliances