ATO ID 2002/865: GST and walking sticks
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 stick?

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

Facts
The entity is a supplier of medical aids and appliances. The entity supplies a walking stick. The walking stick is designed to aid a person to walk. The walking stick is not non-functional nor is it purely ornamental. The walking stick is specifically designed for people with an illness or disability and is not widely used for people without an illness or disability. 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: Item 97 in the table in Schedule 3 (Item 97) lists 'walking sticks - specialised'. A specialised walking stick is a hand held device the principal function of which is to assist a person to walk by taking some of the weight of that person. Walking sticks that are non-functional or are purely ornamental are not walking sticks for the purposes of Item 97. The entity is supplying a walking stick that assists people to walk. They are not purely ornamental nor are they non-functional. Therefore, the walking stick is covered by Item 97. In addition, the walking stick is specifically designed for people with an illness or disability and is 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 stick.

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 97
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances