Private ruling: GST and medical aids and appliances
Published: July 2014

Ruling: Q1: Will you be making a GST-free supply when you supply a particular medical aid and appliance (device)? | A1: No.

Relevant facts and circumstances: • You are registered for goods and services tax (GST). • You are to import and sell the device. • The device is self-administered and allows the user to collect cells so that a specimen can then be sent to a pathology laboratory for analysis. • The device has been approved by the Department of Health (Therapeutic Goods Administration). • You do not supply medical services or other health services or hospital treatment.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 9-5 | Subsection 38-7(3) | Subsection 38-10(3) | Subsection 38-20(3) | Subsection 38-45(1) | Subsection 38-47(1).

Reasons for decision: Summary: A supply of a medical aid and appliance is GST-free in the following circumstances: (1) It is made to an individual in the course of supplying them a GST-free medical service and is supplied at the premises where the medical service is supplied (subsection 38-7(3) of the GST Act). (2) It is made to an individual in the course of supplying them a GST-free health service (apart from herbal medicine, naturopathy, optometry, or pharmacy) and is supplied and used (or consumed) at the premises where the health service is supplied (subsection 38-10(3) of the GST Act). (3) It is a supply that is directly related to a supply of GST-free hospital treatment and is supplied by, or on behalf of, the supplier of the hospital treatment (subsection 38-20(3) of the GST Act). (4) It is a medical aid and appliance that the Health Minister has determined in writing it is to be GST-free when supplied (subsection 38-47(1) of the GST Act). (5) It is a supply where: • the medical aid and appliance is covered by Schedule 3 of the GST Act or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) (copies enclosed), and • the medical aid and appliance is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability (subsection 38-45(1) of the GST Act). In this case, you do not supply medical or other health services or hospital treatment. Also the Health Minister has not determined in writing that this sort of device is GST-free when supplied. For (5) above, Schedule 3 and the GST Regulations do not list the device or any similar type of aid and appliance. Given this, there are no legislative provisions in the GST Act or any other Act that would allow your supply of this device to be GST-free. Consequently, its supply would be taxable under section 9-5 of the GST Act.