Private ruling: GST-free medical aids and appliances
Date of advice: 10 April 2026
Published: 15 June 2026
Ruling period: XX XXX 20XX to XX XXX 20XX

Ruling: Q1: Are supplies of the product by you GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No, your supplies of the product are not GST-free under subsection 38-45(1) of the GST Act. | Q2: Are your supplies of the product to NDIS participants GST-free under section 38-38 of the GST Act? | A2: No, your supplies of the product to NDIS participants are not GST-free under section 38-38 of the GST Act.

Relevant facts and circumstances: You are registered for GST. As part of your business activities, you supply several models of the product. The product are marketed primarily to individuals who will benefit from the service that the product provide. You primarily supply your products through: • direct retail sales. • other specialist health retailers. You supply your product to National Disability Insurance Scheme (NDIS) participants.

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

Reasons for decision: Detailed Reasoning - Detailed reasoning: Under subsection 38-45(1) of the GST Act, a supply is GST-free if it satisfies both of the following requirements: (a) it is covered by Schedule 3 to the GST Act (medical aids or appliances), or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST 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. | Detailed Reasoning - Paragraph 38-45(1)(a) of the GST Act: Item 86 in the table in Schedule 3 (Item 86) lists 'electrically operated therapeutic lounge/recliner chairs specifically designed for people with disabilities'. We accept that your product are X. The information provided, did not enable us to conclude that the product were specifically designed for people with disabilities, rather than product intended for use by the general public that would benefit from their features. To determine whether the product are 'specifically designed for people with disabilities' we would require further information on the designer's or manufacturer's intention of how the particular product is to be used. | Detailed Reasoning - Paragraph 38-45(1)(b) of the GST Act: With regards to the requirement in paragraph 38-45(1)(b), products are only GST-free if they are: • specifically designed for people with an illness or disability and • are not widely used by people without an illness or disability. The Commissioner's view on how the key elements under subsection 38-45(1) are to be interpreted was stated in Goods and Services Tax Determination GSTD 2021/2 Goods and services tax: adjustable beds, pressure mattresses and pressure management overlays (GSTD 2021/2). Although GSTD 2021/2 is concerned with bedding products for people with disabilities, the principles discussed are equally applicable to any product being considered under subsection 38-45(1). Paragraph 3 of GSTD 2021/2 states the Commissioner's view that in determining if a supply is GST-free involves applying an essential character test to examine the basic nature of the thing supplied, taking its composition, function and other factors into account. As per the footnote to paragraph 3, it is our view that, '... the task ... is to determine the essential character of the goods, what essentially the goods are, not some characteristic that the goods might have'. The intended use of the product is to be determined by objective consideration of all the evidence, including how it is marketed and by reference to the type of outlets through which the product is sold. [1] The question here is, is there a design focus on people with an illness or disability or some special design feature for people with an illness or disability? Paragraph 7 of GSTD 2021/2 states: Specifically designed 7. The following factors are a non-exhaustive list of matters you should take into account when considering whether a particular product is specifically designed for people with an illness or disability: • 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. Paragraphs 8 to 10 of GSTD 2021/2 state: Not widely used 8. The phrase 'not widely used' is not defined in the GST Act. It therefore takes its ordinary meaning, having regard to the context in which it appears. It is a question of degree whether a product is not widely used by people without an illness or disability. The Commissioner considers that it is reasonable to conclude that the test is not satisfied if the product is widely purchased by or on behalf of people without an illness or disability, without the need to examine how this class of people in fact use the product. 9. In the context of paragraph 38-45(1)(b), the Commissioner considers 'not widely used' to mean not used by many people who do not have an illness or disability. 10. The following factors will be relevant, but are not an exhaustive list, when considering whether a product is widely used by people without an illness or disability: • The product is widely sold in retail or other outlets that predominantly sell standard beds (that is, beds that do not have features specifically designed for people with an illness or disability) to the general public. • The marketing material for the product emphasises how it enhances the lifestyle of people without an illness or disability. | Detailed Reasoning - Not widely used: Your website identifies the users who may benefit from your product and includes people who do not have an illness or disability. | Detailed Reasoning - Conclusion: Although your product may be sometimes used by people with an illness or disability, the manner in which they are marketed and the channels in which they are sold means that your product are widely used by people without an illness or disability. The design and essential character of your product is to provide different massage techniques that will assist people in different ways. Your product are promoted as a general lifestyle product with the benefits of service. The product are recommended for use by individuals under various circumstances for comfort, to relax and improve their overall wellbeing. | Detailed Reasoning - Question 2: Is your supply of the product to NDIS participants GST-free under section 38-38 of the GST Act? | Detailed Reasoning - Detailed reasoning: Section 38-38 of the GST Act provides that a supply of a disability support to a NDIS participant is GST-free if the supply: (a) is a supply to a participant within the meaning of the National Disability Insurance Scheme Act 2013 (NDIS Act 2013) for whom a participant's plan is in effect under section 37 of the NDIS Act; and (b) is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant's plan; and (c) is made under a written agreement, between the supplier and the participant or another person, that: (i) identifies the participant; and (ii) states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and (d) is of a kind that the Disability Services Minister has determined in writing. Your supplies of product to NDIS participants are GST-free if you satisfy all of the requirements of section 38-38 of the GST Act. Each of these requirements is considered below. | Detailed Reasoning - NDIS plan is in effect: To satisfy paragraph 38-38(a), a supply must be made to NDIS participants whose NDIS plan is in effect under section 37 of the NDIS Act and approved by the National Disability Insurance Agency (NDIA). (NDIS plans cease to be in effect when they are replaced by another plan, if the plan is a new framework plan or in any case when the NDIS participant ceases to be a participant (subsection 37(2) of the NDIS Act 2013)). The participant's NDIS plan must be in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act), which means it must be approved by the National Disability Insurance Agency (NDIA). If, at the time of supply of a product to an NDIS participant, they have a NDIS plan in effect that meets the above requirements, then paragraph 38-38(a) would be satisfied. | Detailed Reasoning - Reasonable and necessary supports: To satisfy paragraph 38-38(b) of the GST Act, the supply must be of one or more reasonable and necessary supports, as defined in the participant's NDIS plan. Where the participant's NDIS plan specifies an amount such as time or quantity of reasonable and necessary supports, any supplies of supports in excess of these specifications will not be a GST-free NDIS supply. In respect of each supply of a product to a NDIS participant, you would need to establish whether the supply qualifies as one or more reasonable and necessary supports under the participant's NDIS plan for 38-38(b) of the GST Act to be satisfied. | Detailed Reasoning - Made under a written agreement: To satisfy paragraph 38-38(c) of the GST Act, a written agreement must be made between you and the NDIS participant (or another authorised person). The written agreement must: (a) identify the NDIS participant; and (b) state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant's NDIS plan. The written agreement may be a single document or a combination of documents, such as letters between you and the other party and receipts or invoices you issue. It may include documents in electronic form. As long as you have written evidence of a legally binding obligation for you to make the supply to the NDIS participant and that it is a reasonable and necessary support as specified in the participant's NDIS plan, the requirement for a written agreement is satisfied. You have not provided enough information for us to determine whether paragraph 38-38(c) of the GST Act is satisfied when you make a supply of a product to a NDIS participant. | Detailed Reasoning - A supply of a kind determined by the Disability Services Minister: The last requirement is that the supply must be of a kind determined in writing by the Disability Services Ministers. The A New Tax System (Goods and Services Tax) (GST-free Supply-National Disability Insurance Scheme Supports) Determination 2021 , as amended (NDIS Determination 2021), and the A New Tax System (Goods and Services Tax) (GST-free Supply - National Disability Insurance Scheme Supports) Amendment (Application Period) Determination 2025 (the 2025 Amending Determination) (together, the NDIS Determination), is made under subsection 177-10(5) of the GST Act. Together, they apply to supplies made on or after 1 July 2021 and on or before 30 June 2027 and provide as follows: • subsection 6(1) of the NDIS Determination (Table 1) lists the supplies of supports covered by the Determination; and • subsection 6(2) of the NDIS Determination (Table 2) lists the supports that are covered only if they are also covered by another listed determination. If a supply is covered by Table 1 of the NDIS Determination, the requirement in paragraph 38-38(d) of the GST Act is satisfied. However, if the supply is not covered by Table 1 but is covered by Table 2 of the NDIS Determination, your supply must also be covered by one of the other determinations listed under paragraph 6(2)(b) to satisfy paragraph 38-38(d) of the GST Act. Table 1: NDIS Determination lists the following | Detailed Reasoning - Kind of supply: 1 Specialist disability accommodation (within the meaning of the National Disability Insurance Scheme rules) and accommodation/tenancy assistance 2 Assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement 3 Household tasks 4 Assistance with and training in travel/transport arrangements, excluding taxi fares 5 Interpreting and translation 6 Assistance to access and maintain education and employment 7 Assistive equipment for recreation 8 Early intervention supports for early childhood 9 Management of funding for supports in a participant's plan We do not consider that the product are covered by any item under Table 1 of the NDIS Determination. Where your supply of product is not covered by Table 1 of the NDIS Determination, paragraph 38-38(d) of the GST Act may only be satisfied if: • it is of a kind listed in Table 2 of the NDIS Determination; and • it is also of a kind covered by one of the following determinations listed in paragraph 6(2)(b) of the NDIS Determination (as in force from time to time) made for the purposes of sections 38-15, 38-25 or 38-30 of the GST Act: • Schedule 1 to the GST-free Supply (Care) Determination 2025 • section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply - Residential Care - Government Funded Supplier) Determination 2025 ); • sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017 . | Detailed Reasoning - Table 2: Table 2: NDIS Determination lists the following | Detailed Reasoning - Kind of supply: 1 Assistance with daily personal activities 2 Specialised assessment and development of daily living and life skills, including community participation 3 Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training 4 Behavioural support and therapeutic supports 5 Home modifications Item 3 under Table 2 of the NDIS Determination lists 'Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training'. The Explanatory Statement provides examples of supports that are covered by item 3 under Table 2 of the NDIS Determination. The only relevant example in this case is: Table 3: Item 3 from Table 2 of the NDIS Determination | Detailed Reasoning - Description: 3. Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training Specialised seating and chairs Chairs which have been specially adapted to enable people with disability to sit Please note that the explanatory statement cannot dictate the meaning of the law, nor can it substitute text. The Explanatory Statement merely sets out the purpose of the law. | Detailed Reasoning - Assistive technology may also help you do something more easily or safely.: We do not consider that your product are covered by item 3 (example listed in table 3) as they have not been specifically adapted to enable people with a disability to sit. Your products do not assist NDIS participants to sit and instead provide a therapeutic relief for people with a disability. There are no other items in Table 2 that would cover the product. We now need to consider item 4 under Table 2 of the NDIS Determination. Item 4 under Table 2 of the NDIS Determination lists 'therapeutic supports.' | Detailed Reasoning - Therapy supports are evidence-based supports to help build or maintain your skills and independence.: The Explanatory Statement provides examples of supports that are covered by item 4 under Table 2 of the NDIS Determination. There are no relevant examples in the Explanatory Statement that would include your supply of product. The examples cover different types of therapy available to NDIS participants such as counselling. Your supply does not satisfy services of a kind under item 4 under Table 2 of the NDIS Determination. For the avoidance of doubt, for a support to be GST-free where it is covered by an Item in Table 2 of the NDIS Determination it would also have to be covered by one of the three other determinations listed further above. There are no items in these determinations that would be relevant to your supplies of product. On that basis, your supply does not satisfy services of a kind in either Table 1 or Table 2 of the NDIS Determination and paragraph 38-38(d) of the GST Act is not satisfied. Therefore, your supplies of product are not GST-free under section 38-38 of the GST Act.

Question 1: Are supplies of your product by GST-free under subsection 38-45(1) of theGST Act?