Private ruling: GST and medical aids and appliances
Date of advice: 9 January 2026
Published: 2 March 2026
Ruling period: XX/XX/20XX to XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Is your supply of the chair GST-free under section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. Your supply of the chair is GST-free as it is a medical aid or appliance under section 38-45 of the GST Act.

Relevant facts and circumstances: You have an active ABN and are registered for GST. You sell the chair as part of your enterprise. The chair is adjustable and is designed for people with an illness or disability. The chair is not widely used by people without an illness or disability. You currently only sell in Australia.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-45 | A New Tax System (Goods and Services Tax) Act 1999 schedule 3 | A New Tax System (Goods and Services Tax) Regulations 2019 section 38-45.01

Reasons for decision: Summary: A supply is taxable under section 9-5 of the GST Act if: • it is made for consideration; • it is made in the course or furtherance of an enterprise; • it is connected with the indirect tax zone; and • the supplier is registered or required to be registered for GST. However, a supply is not taxable to the extent that it is GST-free or input taxed. Section 38-45 of the GST Act provides that medical aids and appliances are GST-free if: a) it is covered by Schedule 3, or specified in the regulations; and b) it is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. | Detailed Reasoning - Covered by schedule 3 or specified in the regulations: Item 9 of subsection 38-45.01(1) of the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations) provides: Table 1: Medical aids and appliances | Detailed Reasoning - Medical aid or appliance: 9 Mobility of people with disabilities - physical: seating aids postural support seating The phrase 'postural support seating' is not defined in the GST Act. ATO Interpretative Decision ATO ID 2001/364 GST and the supply of an orthopaedic chair provides guidance on its meaning. While the decision refers to a previous version of the GST regulations, the category and item remain unchanged. Postural support seating will generally include the following characteristics: (i) Custom made to suit the particular persons anatomical shape in order to provide correct postural support; or (ii) Adjustable to such an extent that the product can be customised to the individual's body shape or size in order to provide correct postural support; or (iii) Incorporate several of the following design characteristics which will ensure the product provides the necessary postural support for people with an illness or disability: • adjustable height so as to attain correct seating position for the requirements of the individual; • adjustable back angle to enable proper support (other than simply reclining) and contain appropriately positioned/shaped back supports; • adjustable seat height and depth; • adjustable seat base angle; • adjustable shoulder and trunk supports; • side supports; • calf support; • footrests specifically designed for injured or disabled persons; • swing away arms or removable armrests; • wide arm rests; • integral push handles; • specifically designed to provide a correct sitting position that results in sitting firmly on the pelvic bones and that aligns and lifts the head, neck and back; • fitted with wheels, glides or a mobile base suitable for movement of disabled people; • locking brakes; • suitable hand grips for disabled people; • specific features to enable people with difficulties in rising to get in and out of the seating; and • pressure reducing cushions. The chair incorporates several relevant design characteristics. Accordingly, it is covered by item 9 of subsection 38-45.01(1) of the GST Regulations as postural support seating. | Detailed Reasoning - Specifically designed for people with an illness or disability: Goods and Services Tax Determination GSTD 2021/2 Goods and services tax: adjustable beds, pressure management mattresses and pressure management overlays (GSTD 2021/2) provides our view on how to determine whether a product is specifically designed for people with an illness or disability and not widely used by people without an illness or disability. Although GSTD 2021/2 focuses on bedding products, the principles apply to other products that may be GST-free under section 38-45 of the GST Act. The terms 'illness' and 'disability' are not defined in the GST Act. We interpret an illness or disability for GST purposes as a personal health condition above the level of minor or trivial, involving either: • impairment of some bodily function or structure; or • an activity limitation resulting from an impairment involving difficulty executing everyday activities. Paragraph 7 of GSTD 2021/2 outlines non-exhaustive factors to consider when determining whether a product is specifically designed for people with an illness or disability. These include: • An objective view of the design features and characteristics of the product indicate whether its essential character is that it is specifically designed for people with an illness or disability. • The designer's or manufacturer's intention of how the particular product is to be used. Indicators of the designer's or manufacturer's intention include an objective consideration of how the product is marketed and the type of outlets at which the product can be purchased. The chair assists users with various functions, and adjustment is needed to suit an individual. It is therefore specifically designed for people with an illness or disability. | Detailed Reasoning - Not widely used by people without an illness or disability: Paragraphs 8 to 10 of GSTD 2021/2 provide guidance on the 'not widely used' test. It is a question of degree whether a product is widely used by people without an illness or disability. Factors include: • whether the product is widely sold in retail outlets that predominantly sell standard products to the general public; and • whether marketing material emphasises lifestyle benefits for people without an illness or disability. The product is marketed primarily to people with an illness or disability and is not widely used by people without an illness or disability. | Detailed Reasoning - Conclusion: The chair meets the requirements of section 38-45 of the GST Act. It is covered by item 9 of subsection 38-45.01 of the GST Regulations, is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. Therefore, its supply is GST-free.