Private ruling: GST and adjustable mattresses
Date of advice: 4 June 2019
Published: July 2019

Ruling: Q1: Is your supply of an adjustable bed mattress a GST-free supply under subsection 38-45(1) of A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes, your supply of an adjustable bed mattress is a GST-free under subsection 38-45(1) of the GST Act.

Relevant facts and circumstances: · You are registered for goods and services tax (GST) and supply mattresses. · A mattress that serves the same purpose as an adjustable bed.

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

Reasons for decision: Summary: Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance is GST-free where it is: · Covered by an item listed in Schedule 3 to the GST Act (Schedule 3) or in Schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations). · Specifically designed for people with an illness or disability, and · Not widely used by people without an illness or disability. Item 60 of Schedule 3 (Item 61) lists 'electronically operated adjustable beds'. It is considered a mattress can fall under this category where it can be used on its own as a bed. It is considered that the adjustable mattress that is subject to this ruling is covered by Item 60. | Detailed Reasoning - Specifically designed for people with an illness or disability: In determining whether the mattress is specifically designed for people with an illness or disability we need to consider the designer/manufacturers intention of how the good is to be used and its features. Consequently we consider that the design features of the mattress and the manner in which the mattresses are marketed indicate that the mattress satisfies the requirement of being specifically designed for people with an illness or disability. | Detailed Reasoning - Not widely used by people without an illness or disability: To determine whether the adjustable mattress is not widely used by people without an illness or disability we need to consider factors such as how it is marketed and where it is supplied. Consequently we agree that the adjustable mattress is not widely used by people without an illness or disability. Accordingly, the supply by you of the adjustable mattress is a GST-free supply pursuant to the GST Act.