ATO ID 2002/441: GST and bathroom rod accessories
Date of decision: 18 December 2001
Business line: Indirect Tax

Issue
Is the entity, a supplier of bathroom accessories, 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 bathroom rod accessories, namely a modular shelf and a towel holder, installed for people with a physical disability?

Decision
No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder, installed for people with a physical disability. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts
The entity is a supplier of bathroom accessories. The entity is supplying a modular shelf and a towel holder that are accessories for a bathroom rod. The bathroom rod is fixed to the wall of the bathroom, but is not designed to support the weight of an individual. The modular shelf and the towel holder are then attached to the bathroom rod. The modular shelf and towel holder are installed for people with a physical disability. The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

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: Item 18 in the table in Schedule 3 to the GST Regulations (Item 18) lists 'customised modifications and accessories for the aids and appliances mentioned in items 111 to 121 of Schedule 3 to the GST Act'. The entity is supplying accessories (a modular shelf and a towel holder) for a bathroom rod. Therefore, it must first be determined whether the bathroom rod is a medical aid or appliance covered by items 111 to 121 in the table in Schedule 3 to the GST Act. The relevant items listed in the table in Schedule 3 to the GST Act that may cover the bathroom rod are: For the bathroom rod to be accepted as a bath support, a shower support, or a toilet support, it is considered that the bathroom rod must be able to support the weight of an individual when the rod is attached to a wall. In this case, although the bathroom rod is attached to a wall, it is not designed to support the weight of an individual. Therefore, the bathroom rod is not a bath support, shower support or a toilet support as listed in Schedule 3 to the GST Act. Further, it is not covered by anything else in items 111 to 121 in the table in Schedule 3 to the GST Act. Accordingly, the modular shelf and towel holder, are not covered by Item 18 because they are not customised modifications and accessories for a medical aid or appliance that is covered by items 111 to 121 in the table in Schedule 3 to the GST Act. Therefore, the first requirement of subsection 38-45(1) of the GST Act is not satisfied. Accordingly, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder. The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any of the other provisions in Division 38 of the GST Act not input taxed under Division 40 of the GST Act. The entity is making a taxable supply under section 9-5 of the GST Act when it supplies bathroom rod accessories, namely a modular shelf and a towel holder installed for people with a physical disability.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 Division 38 subsection 38-45(1) Division 40 Schedule 3 Schedule 3 table item 111 Schedule 3 table item 112 Schedule 3 table item 113 Schedule 3 table item 114 Schedule 3 table item 115 Schedule 3 table item 116 Schedule 3 table item 117 Schedule 3 table item 118 Schedule 3 table item 119 Schedule 3 table item 120 Schedule 3 table item 121
Related ATO interpretative decisions: ATO ID 2002/442
Subject references: Goods & services tax GST free GST health Section 38-45 - medical aids & appliances GST supplies & acquisitions Taxable supply