ATO ID 2004/467: GST and a plate surround
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 plate surround?

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

Facts
The entity is a supplier of medical aids and appliances. The entity supplies a plate surround. The plate surround is a metal piece that has been designed to attach to a plate so as to stop food from sliding off the plate. The plate surround is often used by people who have had strokes. The plate surround 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 of the supply 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 or appliance is GST-free where the medical aid or appliance: Item 28 in the table in Schedule 3 (Item 28) lists 'customised eating equipment for people with disabilities'. The term 'customised' is not defined in the GST Act and therefore, it is appropriate to consider its ordinary meaning. The Macquarie Dictionary , 1997, 3rd edn, The Macquarie Library Pty Ltd NSW defines customised to mean, 'to adapt to suit the needs of a particular customer'. Item 28, therefore, covers eating equipment that has been adapted to suit the needs of people with disabilities. The plate surround is designed to attach to a plate so as to assist a person to eat their meal without food sliding off the plate and is often used by people who have had strokes. The plate surround has been designed to suit the needs of people with disabilities and falls within the scope of customised eating equipment for people with disabilities. As such, the plate surround is covered by Item 28. In addition, the plate surround 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 entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a plate surround.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 28
Other references: The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd NSW
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances