ATO ID 2004/450: GST and a carry apron for a walking frame
Date of decision: 4 July 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 carry apron for 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 carry apron for a walking frame as a carry apron is an accessory associated with a walking frame under item 17 in the table in Schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations).

Facts
The entity is a supplier of medical aids and appliances. The entity supplies a carry apron for a walking frame. The carry apron is a bag that attaches to a walking frame and provides a person with somewhere to put things. This product enables the person to have their hands free to hold and control their walking frame. The carry apron is specifically designed for people with an illness or disability and is not widely used by 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 GST Act, the supply of a medical aid or appliance is GST-free where the medical aid or appliance: Item 17 in the table in Schedule 3 to the GST Regulations (Item 17) lists 'accessories associated with walking frames or specialised ambulatory ortheses'. The word 'accessories' is not defined in the GST Act. Therefore, it is appropriate to consider the ordinary meaning of this word. The Macquarie Dictionary (1997), 3rd edn, The Macquarie Library Pty Ltd, New South Wales defines 'accessory' as 'a subordinate part or object, something added or attached for convenience, attractiveness, etc., such as a spotlight, heater, driving mirror, etc., for a vehicle.' The carry apron for a walking frame is a bag that attaches to a walking frame to provide a person with the convenience of having somewhere to put things in and have their hands free to hold and control their walking frame. Accordingly, the carry apron is an 'accessory' within the ordinary meaning of the term. As such, the carry apron for a walking frame is covered by Item 17. In addition, the carry apron for a walking frame is specifically designed for people with an illness or disability and not widely used by people without an illness or disability. As such, the requirements under subsection 38-45(1) of the GST Act are satisfied. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a carry apron for a walking frame.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3
Related ATO interpretative decisions: ATO ID 2002/864
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances