Private ruling: GST and importation of medical device
Date of advice: 17 March 2016
Published: May 2016

Ruling: Q1: Is the importation of the relevant health devices a non-taxable importation under section 13-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act): | A1: Yes. Under section 13-10 of the GST Act, an importation is a non-taxable importation if: a) it is a non-taxable importation under Part 3-2, or b) it would have been a supply that was GST-free or input taxed if it had been a supply. To determine whether the imported health devices would be GST-free we need to look at subsection 38-45(1) of the GST Act. Under subsection 38-45(1) of the GST Act, the supply of certain medical aids or appliances is GST-free where the medical aid or appliance is: a) 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); b) specifically designed for people with an illness or disability and not widely used by people without an illness or disability. Device 1 and 2 Item 70 in Schedule 3 lists 'upper limb orthoses', which is considered to be a device designed to be applied to the body to change or alter position or motion, or prevent movement of the shoulder, arm, forearm, wrist or hand for the treatment of an illness or disability to that shoulder etc. Device 1 and Device 2 fit the definition of 'orthoses' in item 70 as these devices do more than just provide support when applied to the upper body since it aids the patient to have a change of movement of the upper body in a particular motion during the training. Device 1 and Device 2 are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. The supplies of the devices are therefore GST-free under subsection 38-45(1) of the GST Act. Consequently the importation of the devices is a non-taxable importation under paragraph 13-10(b) of the GST Act. GST is therefore not payable on the importation. Device 3 Item 102 in Schedule 3 lists 'specialised ambulatory orthoses', which is considered to be an orthosis which has an additional specialised character or function, or has been made or adapted to the specific illness or disability of a person, for the purpose of enabling that person to be capable of walking. It is therefore considered that this device is covered under item 102. Device 3 is a device that is designed for use by people with restricted walking movement and would not be widely used by people with a disability Accordingly the supply of Device 3 is GST-free under subsection 38-145(1) of the GST Act. Consequently the importation of device 3 is a non-taxable importation under paragraph 13-10(b) of the GST Act. GST is therefore not payable on the importation.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. Device 1 and 2 Device 1 and device 2 are an instrumented arm exoskeleton with spring mechanism which is adapted to the upper body of the patient The devices are used as an aid for the training of affected patients in improving the mobility and range of motion of their upper body and also provides an arm weight support to the patients during the training session. Device 1 and device 2 are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability Device 3 Device 3 is a robotic locomotion therapy system with driven gait orthoses, dynamic body weight support and integrated augmented performance feedback for training of patients with gait impairments. It is a driven orthosis with electrical drives in knee and hip joints that guides leg movements during the training for the rehabilitation of the patient's walking. Device 3 is a device that is designed for use by people with restricted walking movement and would not be widely used by people with a disability.