Private ruling: GST and supply of medical aids and appliances
Date of advice: 24 February 2016
Published: April 2016

Ruling: Q1: Are the supplies of the specified new products (the products) GST-free supplies under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) ? | A1: Yes, based on the information that you have provided, the supplies of the products are GST-free supplies because all of the requirements of subsection 38-45(1) of the GST Act are satisfied, as follows: • the products are considered 'transcutaneous nerve stimulator machines' (TENS machines), which are covered by item 141 in the table in Schedule 3 to the GST Act (item 141); • the products are designed for people with an illness or disability; and • the products are not widely used by people without an illness or disability.

Relevant facts and circumstances: You sell medical equipment to hospitals and pharmacies. You are about to launch a number of new products into the pharmacy market. You will be acting as a distributor for the manufacturer. You will be selling the products only within Australia for a recommended retail price of $X. All the products use the same technology. The products use a small battery to generate a small electromagnetic current, which stimulates blood flow and reduces the perception of pain. You have provided a brochure for the products and directed us to your supplier's website for further information.

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. | A New Tax System (Goods and Services Tax) Act 1999 Schedule 3.