Private ruling: GST and lift for people with limited mobility
Published: January 2013

Ruling: A1: Yes, the limited mobility lift for people with illness or disability is GST-free under subsection 38-45(1) of the GST Act.

Relevant facts and circumstances: You are installing a limited mobility passenger lift (lift) in your residential dwelling for your mother. Your mother has difficulty with using stairs and has limited mobility. The lift will be primarily used by your mother. The lift will not be widely used by people without an illness or disability. The supplier of the lift is an Australian company which is registered for goods and services tax (GST). The lift is designed for people with limited mobility. The lift is a slow speed vertical lift that is for use primarily by people with limited mobility. The lift is not widely used by people without an illness or disability. The lift complies with the Australian Standard Code AS1735 part 16 disabled access lift. The lift is electrically operated The cost for the supply and installation of the lift will be $ XXX. You will complete a declaration with the supplier advising that the lift will be restricted in use for your mother who has a limited mobility and not for the carriage of goods other than the passenger.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-45(1) | A New Tax System (Goods and Services Tax) Act 1999 Schedule 3 | A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-47(1)

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: · is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) · is specifically designed for people with an illness or disability, and · is not widely used by people without an illness or disability. Item 88 in the table in Schedule 3 (Item 88) lists 'manual, electric, ceiling track or pool hoists specifically designed for people with disabilities'. The ordinary meaning of 'hoist' as defined in The Macquarie Dictionary , 2001, rev. 3rd ed, The Macquarie Library Pty Ltd, New South Wales is: 4. an apparatus for hoisting, as a lift. 5. a lift for heavy goods; goods lift. The usual devices that are covered by Item 88 are used to lift an individual and transfer them, for example, from a bed to a wheelchair or from a wheelchair into a pool. The ordinary meaning of 'hoist' also covers lifts. The lift is electrically operated. Therefore, it is included in the range of hoists to which Item 88 relates subject to it satisfying Item 88 in relation to specific design requirements. Item 88 restricts the device to those which are specifically designed for people with disabilities. The Australian Standards in relation to lifts, escalators and moving walks (AS 1735) have parts which relate to people with limited mobility, for example, AS 1735.16 applies to 'passenger lifts that are intended primarily to provide vertical access for persons with limited mobility'. This evidences that some lifts are specifically designed for people with disabilities and are not merely general purpose passenger lifts with additional facilities for people with disabilities such as Braille information and lower buttons which are accessible by people in wheelchairs. From the facts provided, the lift complies with the relevant part of the Australian Standard Code AS1735 part 16 and is especially designed for people with limited mobility. Therefore, the lift satisfies all the requirements of Item 88. Accordingly, the lift satisfies first and the second requirements in subsection 38-45(1) of the GST Act. The third requirement in subsection 38-45(1) of the GST Act is that the thing supplied is not widely used by people without an illness or disability. You advised us that the lift is for use primarily by your mother who has a limited mobility. It will not be widely used by people without an illness or disability. Therefore, the third requirement is also satisfied. As all the requirements in subsection 38-45(1) of the GST Act are satisfied, the supply of the lift that is specifically designed for use primarily by people with limited mobility is GST-free under section 38-45 of the GST Act. Please note: Where the lift is intended to be used by people without an illness or disability, the third requirement in subsection 38-45(1) of the GST Act will not be satisfied and the supply of the lift will not be GST-free under section 38-45 of the GST Act.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Issue 1: Is a limited mobility lift (lift) for people with illness or disability GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?