Private ruling: GST - ergonomic chairs
Date of advice: 21 October 2025
Published: 8 December 2025

Ruling: Q1: Is your supply of the ergonomic chairs GST-free under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No. Your supply of the ergonomic chairs is not GST-free under subsection 38-45(1) of the GST Act. The supply is taxable under section 9-5 of the GST Act.

Relevant facts and circumstances: You are in the business of manufacturing chairs and other furniture. You are registered for goods and services tax (GST). You manufacture ergonomic chairs and promote them through your website under the category of office chairs and describe them as being suited for commercial office or domestic use. You do not sell them retail to the general public. You have exclusive distributors who resells them through their own websites also under the category of officer chair suitable for commercial office or domestic use. The ergonomic chairs have design features that provide postural support.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 s ection 38-45 | A New Tax System (Goods and Services Tax) Regulations 2019 section 38-45.01(1)

Reasons for decision: Summary: All legislative references are to the GST Act, unless otherwise stated. Section 9-5 provides that you make a taxable supply if: (a) you make the supply for consideration; and (b) you make the supply in the course or furtherance of an enterprise that you carry on; and (c) the supply is connected with the indirect tax zone; and (d) you are registered or required to be registered. However, the supply is not taxable supply to the extent that it GST-free or input taxed. You supply the ergonomic chairs for consideration and in the course of your enterprise. The supply is connected with the indirect tax zone as the ergonomic chairs are delivered or made available in Australia to the recipient. You are registered for GST. Therefore, the supply is a taxable supply unless it is GST-free or input taxed. There is no provision in the GST Act under which the supply of the ergonomic chairs is input taxed; thus, what remains to be determined is whether the supply is GST-free. | Detailed Reasoning - GST-free supply: Subsection 38-45(1) provides that the supply of medical aids and appliances is GST-free where the medical aid or appliance satisfies all the following requirements: • is covered by Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability. If any of the above three requirements is not satisfied, the supply of the medical aid or appliance will not be GST-free. | Detailed Reasoning - Specified in Schedule 3 or GST Regulations: Item 76 in the table in Schedule 3 (Item 76) lists alternative positional seating corner chairs as medical aid or appliance. Table 1: Schedule 3 Medical aids and appliances | Detailed Reasoning - Medical aids or appliances: 76 Mobility of people with disabilities - physical: positioning aids alternative positional seating corner chairs Item 9 in the table under subsection 38-45.01(1) of the GST Regulations (Item 9) lists postural support seating. Table 2: Section 38-45.01 Medical aids and appliances | Detailed Reasoning - Medical aids or appliances: 9 Mobility of people with disabilities - physical: seating aids Postural support seating The phrases alternative positional seating corner chairs and postural support seating are not defined under the GST Act nor the GST Regulations. Therefore, we will look at their ordinary meaning. Alternative positional seating corner chairs For the purposes of Item 76, we consider that an 'alternative positional seating corner chair' is designed with a corner-shaped back to provide external support for the occupant who has inadequate postural control of the head, neck and/or trunk. This postural control is essential for visual scanning and attending, breathing, speaking and/or eating. The 'alternative positional seating corner chair' is adjustable for seat height. We consider that the ergonomic chairs are not 'alternative positional seating corner chairs' because each chair does not have a corner-shaped back as described above. As such, they are not covered by Item 76. Postural support seating For the purposes of Item 9, we consider that 'postural support seating' should: (i) be custom made to suit the particular person's anatomical shape in order to provide correct postural support; or (ii) be 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 sitting 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. We consider that the ergonomic chairs may likely be covered by Item 9 in that they have incorporated several of the design characteristics listed above. However, we need to consider if the other two requirements under subsection 38-45(1) are satisfied. | 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 mattresses and pressure management overlays (GSTD 2021/ 2 ) provides the Commissioner's view on how we determine whether something is: • specifically designed for a person with an illness or disability; and • not widely used by people without an illness or disability. Although GSTD 2012/2 is made in the context of bedding products for people with disabilities, the principles discussed are applicable to other products that may be GST-free under subsection 38-45(1). The terms 'illness' and 'disability' are not defined in the GST Act. However, for GST purposes, we interpret an illness or disability as a personal health condition above the level of minor or trivial involving either: • the impairment of some bodily function or structure; or • an activity limitation resulting from an impairment involving difficulty executing everyday activities. Paragraph 7 of GSTD 2021/2discusses that when considering whether a particular product is specifically designed for people with an illness or disability, the following factors are a non-exhaustive list of matters you should take into account: • 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. While the ergonomic chairs may be covered by Item 9 as medical aids or appliances, their design features do not indicate that they are specially designed for people with an illness or disability. The essential character of the ergonomic chairs is that of chairs generally used in work and home offices by students, professionals and other individual for comfort and postural support. As such, we consider that the ergonomic chairs are not specifically designed for a person 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 give guidance on the 'not widely used' test and advise that it is a question of degree whether a product is not widely used by people without an illness or disability. It is considered 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. The following factors are set out in GSTD 2012/2 for the purposes of determining whether adjustable beds are 'not widely used' and is 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. You do not sell the ergonomic chairs retail to end-users or the general public. You distribute them exclusively through commercial resellers and dealers. On your website and your exclusive distributor's website, the ergonomic chairs are promoted under the category of office chairs and described as suitable for commercial office or domestic use. The ergonomic chairs are recommended for use by individuals under various circumstances for comfort, postural support and enhanced wellbeing and productivity. This is a strong indication that the ergonomic chairs are widely used by people without an illness or disability | Detailed Reasoning - Conclusion:: As not all the requirements in subsection 38-45(1) are satisfied, your supply of the ergonomic chairs is not GST-free. The supply is taxable under section 9-5.