Private ruling: GST - medical aids and appliances
Date of advice: 29 October 2021
Published: January 2022
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is Product A, a medical aid or appliance in accordance with subsection 38-45(1) of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and therefore GST-free? | A1: No, Product A is not a medical aid or appliance in accordance with subsection 38-45(1) of the GST Act and therefore is not GST-free.

Relevant facts and circumstances: Product A is a corrector for protruding ears made from silicon and medical adhesives. It adheres to the ear and the contiguous part of the head, providing an immediate natural effect. Product A is used to pin back excessively protruding ears and is available for children and adults. Each Product A can last from 3 days to a week or sometimes more if properly applied. Product A is registered as Medical Device Class 1 by Therapeutic Goods Administration (TGA) Australia. The Australian Register of Therapeutic Goods (ARTG) is a register of therapeutic goods that can be lawfully supplied in Australia. Product A is registered with ARTG.

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

Reasons for decision: Summary: Under subsection 38-45(1) of GST Act, the supply of a medical aid or appliance is GST-free where the medical aid or appliance meet all of the following criteria: • is not widely used by people without an illness or disability. A medical aid or appliance can only be GST-free if it is listed in Schedule 3 to the GST Act or in the GST Regulations. The ATO cannot treat a medical aid or appliance as GST-free and cannot give a ruling that a medical aid or appliance is GST-free if it is not listed in Schedule 3 to the GST Act or in the GST Regulations. Only the Australian Government, and not the ATO, can add new medical aids and appliances to Schedule 3 to the GST Act or the GST Regulations. Items listed in Schedule 3 of the GST Act can be assessed by this link: https://www.ato.gov.au/law/view/document?DocID=PAC/19990055/Sch3&PiT=99991231235958 Items listed in the GST Regulations can be assessed by this link: https://www.ato.gov.au/law/view/document?DocID=REG/20190417/38-45.01&PiT=99991231235958 Product A is not listed in Schedule 3 of the GST Act or in the GST Regulations and therefore is not GST-free for the purposes of subsection 38-45 of the GST Act.

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) | is specifically designed for people with an illness or disability, and