ATO ID 2001/472: GST and mastectomy bras
Date of decision: 27 August 2001
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 sells a mastectomy bra?

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

Facts
The entity is a supplier of medical aids and appliances. The entity sells mastectomy bras. The mastectomy bra is specifically designed to conceal and hold a mammary prosthesis securely in place. The bra differs from regular bras and is not widely used by women who have not undergone medical treatment such as a mastectomy or lumpectomy. 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, the supply of a medical aid and appliance is GST-free where the medical aid or appliance: Item 15 in the table in Schedule 3 to the GST Regulations (Item 15) specifies 'supplements and aids associated with mammary prostheses'. Generally, where a word or phrase is not defined, it is usually interpreted in accordance with its ordinary meaning unless it has a special or technical meaning. Where a word or phrase has a special or technical meaning, it is necessary to determine the meaning by reference to the industry to which the word or phrase relates ( Herbert Adams Pty Ltd V FCT (1932) 47 CLR 222 ). It is considered, in consultation with the Pharmaceutical Health Sector, that 'supplements and aids associated with mammary prostheses' include items that are worn to support and conceal mammary prostheses. In this case, the mastectomy bra is specifically designed to conceal and hold a mammary prosthesis securely in place. As such, the mastectomy bra is covered by Item 15. The bra is specifically designed for people with an illness or disability; and is not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells a mastectomy bra.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3
Case references: Herbert Adams Pty Ltd v FCT (1932) 47 CLR 222
Other references: GST Pharmaceutical Issues Register - Issue 1b
Subject references: Goods & services tax GST free GST health section 38-45 Medical aids & appliances