ATO ID 2002/864: GST and walking frames
Date of decision: 1 May 2002
Business line: Indirect Tax

Issue
Is the entity, a supplier of medical aids and appliances, 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 supplies a walking frame?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a walking frame.

Facts
The entity is a supplier of medical aids and appliances. The entity supplies various types of walking frames including walking frames without wheels, with wheels, brakes and/or seats. The walking frames are designed to support both adults and children with ambulatory difficulties while they are walking. The walking frames are specifically designed for people with an illness or disability and are not widely used for people without an illness or disability. However, they have not been adapted to the specific illness or disability of a particular patient. There is no agreement between the entity and the recipient that the supply is not to 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, the supply of a medical aid or appliance is GST-free where the medical aid or appliance: Items of relevance in Schedule 3 are: Standard walking frames for adults and children are frames designed to support adults and children while they are walking. Specialised walking frames are frames that have additional special characteristics or functions, or have been made or adapted to the specific illness or disability of a particular person. The entity's walking frames do not have any special characteristics nor have they been adapted to the specific illness or disability of a particular patient. Therefore, they are not considered to be specialised walking frames under Item 100. The walking frames in question are designed to support adults and children whilst they are walking. As such, the walking frames designed for adults are covered by Item 98 and the frames designed for children are covered by Item 99. In addition, the walking frames are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. As such, the requirements in subsection 38-45(1) of the GST Act are met. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a walking frame for an adult or child.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 13-10 subsection 38-45(1) Schedule 3 Schedule 3 table item 98 Schedule 3 table item 99 Schedule 3 table item 100
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances