Private ruling: GST and medical aids and appliances
Date of advice: 10 September 2019
Published: November 2019

Ruling: Q1: Are your supplies of the listed items GST-free under subsections 38-45(1) or 38-47(1) of the A New System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No, your supplies of the listed items are not GST-free under subsections 38-45(1) or 38-47(1) of the GST Act. The supply of your listed items is a taxable supply.

Relevant facts and circumstances: · You are registered for the goods and services tax (GST). · You supply items that are not designed to be worn by those without an illness or disability.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-47(1)

Reasons for decision: Detailed Reasoning - Subsection 38-45(1): 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 2019 (GST Regulations) · is specifically designed for people with an illness or disability, and · is not widely used by people without an illness or disability. All the above elements must be satisfied for an item to be GST-free under subsection 38-45(1) of the GST Act. There are no items in Schedule 3 that specifically cover any of the items listed. The closest item of relevance is Item 18 in Schedule 3 (Item 18) which lists 'disposable/reusable continence pads, pants and nappies required for continence use (excluding nappies for babies, sanitary pads or tampons)' | Detailed Reasoning - Subsection 38-47(1): Under subsection 38-47(1) of the GST Act a supply of health goods is GST-free if it is a supply of goods of a kind that the Health Minister, by determination in writing, declares to be goods the supply of which is GST-free. There are no goods of a kind listed within any determination that would make the listed items you supply GST-free under subsection 38-47 of the GST Act. | Summary: It is accepted that the listed items you supply are designed for people with an illness or disability and is not widely used by people without an illness or disability. However to be GST-free under subsection 38-45(1) of the GST Act the listed items must also be covered by Schedule 3 or specified in the GST Regulations. As such, the supply of the listed items is a taxable supply under section 9-5 of the GST Act.