ATO ID 2003/1144: GST and the supply of a home massage recliner chair
Date of decision: 10 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 supplies a home massage recliner chair that is designed to provide therapeutic massage for people with disabilities?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a home massage recliner chair that is specifically designed to provide therapeutic massage for people with disabilities.

Facts
The entity is a supplier of medical aids and appliances. The entity is supplying a home massage recliner chair. The recliner is not designed for general massage, but rather, it is designed to provide therapeutic massage for people with disabilities. The recliner is electronically operated and provides a robotic massage that simulates techniques used by massage therapists, physicians, chiropractors and other healthcare professionals. The recliner 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, the supply of certain medical aids and appliances is GST-free where the medical aid or appliance: Item 86 in the table in Schedule 3 (Item 86) lists 'electrically operated therapeutic lounge/recliner chairs specifically designed for people with disabilities'. The entity's recliner is not designed for general massage, but rather, it is designed to provide therapeutic massage for people with disabilities. The recliner is electronically operated and provides a robotic massage that simulates techniques used by massage therapists, physicians, chiropractors and other healthcare professionals. As such, the therapeutic recliner is specifically designed for people with disabilities and is covered by Item 86. Furthermore, the recliner is not widely used by people without an illness or disability. Therefore, as all of the requirements of subsection 38-45(1) of the GST Act have been met, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a home massage recliner chair that is designed to provide therapeutic massage for people with disabilities.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 86
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances