Private ruling: GST and supply of lift
Date of advice: 30 June 2016
Published: August 2016

Ruling: Q1: Is the supply of the lift GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. The supply of the lift is GST-free because all the requirements of subsection 38-45(1) of the GST Act are satisfied as follows: • the lift is covered by item 88 in the table in Schedule 3 of the GST Act • the lift is specifically designed for people with an illness or disability and • it is not widely used by people without an illness or disability.

Relevant facts and circumstances: You are supplying the lift to customers in Australia. You provided a copy of the user manual for the lift which includes a picture and the following information: • The lift is designed for transportation of users with impaired mobility, as well as users in wheelchairs, with or without a companion, to the specified floor. • The lift is electrically operated and slow moving. • The lift has a floor area to accommodate a wheelchair. • The lift has design features that indicate that they are specifically designed for people with an illness or disability. You provided a copy of a certificate issued to the manufacturer stating that the lift satisfies International Standards being a vertical lifting platform for transport of persons with impaired mobility. You advised that the State Work and Safety authority now accepts International Standards as an acceptable standard for these types of lifts to be installed in Australia. You provided a copy of a registration certificate issued to you.

Relevant legislative provisions: 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.

Reasons for decision: Summary: Subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that a supply is GST-free if: (a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and (b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. For a medical aid or appliance to be GST-free, it must satisfy all the requirements of subsection 38-45(1) of the GST Act. Schedule 3 Item 88 in the table in Schedule 3 (Item 88) is listed under the "Mobility of people with disabilities - physical transfer aids" category and the medical aids and appliance listed under this items are 'manual, electric, ceiling track or pool hoists specifically designed for people with disabilities'. Therefore the usual devices that are covered by Item 88 are medical aids and appliance that are used to "hoist" people with disabilities and transfer them, for example, from a bed to a wheelchair or from a wheelchair into a pool. The word 'hoists' is not defined in the GST Act and therefore will take on the ordinary meaning. The ordinary meaning of 'hoist' is explained in The Macquarie Dictionary (published by The Macquarie Library Pty Ltd) as: 1. To raise or lift, especially by some mechanical appliance 4. An apparatus for hoisting, as a lift. 5. the act of hoisting a lift. Based on the above we consider that the ordinary meaning of 'hoist' also covers lifts such as the limited mobility lifts for people with illness or disability. These lifts are used to "hoist" people with disabilities and transfer them between floors. As the lift is electrically operated, it is therefore in the range of hoists to which Item 88 relates subject to it satisfying Item 88 in relation to specific design requirements - specifically designed for people with disabilities. Specifically designed for people with disabilities The second requirement in subsection 38-45(1) of the GST Act is that the thing supplied be specifically designed for people with an illness or disability. The GST Pharmaceutical Health Forum - issues register provides the following guidance. 1.c. What factors should be taken into account in determining whether a medical aid or appliance is specifically designed for people with an illness or disability? In determining whether a medical aid and appliance is specifically designed for people with an illness or disability reference should be made to the designer's/manufacturer's intention of how the good is to be used and it's features. Indicators of the designer's/manufacturer's intention of how a good is to be used include how the good is marketed and the type of retail outlets at which the goods can be purchased. The lift is electrically operated and slow moving. The lift complies with International Standards being a vertical lifting platform for transport of persons with impaired mobility. You advised that the State Work and Safety authority now accepts International Standards as an acceptable standard for these types of lifts to be installed in Australia. Based on the information you provided, the model and design of the lift satisfies the requirements of item 88 as a lift specifically designed for people with an illness or disability. Accordingly, the lift satisfies the second requirement in subsection 38-45(1) of the GST Act. You should note that the fact that a particular customer has mobility impairment will not mean that the lift sold to them is specifically designed for people with a disability. Not widely used by people without an illness or disability The third requirement in subsection 38-45(1) of the GST Act is that the thing supplied is not widely used by people without an illness or disability. The GST Pharmaceutical Health Forum - issues register provides the following guidance. 1.d. What factors should be taken into account in determining whether a medical aid or appliance is widely used by people without an illness or disability? In determining whether a medical aid and appliance is used by people without an illness or disability reference should be made to how the wider community uses these goods. That is, the common purpose for which the goods are purchased. Subsection 38-45(1) does not require the GST treatment of a medical aid and appliance to be determined by reference to the actual use for which an item is being purchased but rather focuses on the purpose for which the wider community purchases these products. Accordingly, it is considered that irregular and uncommon use of a medical aid and appliance in a way contrary to it's manufactured purpose will not prevent the good from being GST-free. As can be seen from issue 1(d), the actual use of individual lifts does not appear to be the determining factor in whether a lift can be sold GST-free; rather it is the purpose for which that type of lift is used by the wider community. The lift is a slow moving lift with a floor area to accommodate a wheel chair. The model and design of the lift shows that it is not widely used by people without an illness or disability. Therefore, the third requirement is also satisfied. As all the requirements in subsection 38-45(1) of the GST Act are satisfied, the supply of the lift that is specifically designed to transport of persons with impaired mobility is GST-free under subsection 38-45(1) of the GST Act.