Private ruling: GST and medical aids and appliance
Published: March 2015

Ruling: Q1: Is the supply of specified models of a brand of footwear a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. The shoes are considered to be surgical shoes, boots covered by Item 41 in Schedule 3 to the GST Act. This is because they are specifically designed with unique features to support or correct deformed feet. Furthermore, they have been specifically designed for people with an illness or disability, and are not widely used by people without an illness or disability.

Relevant facts and circumstances: You are a discretionary trust and are registered for GST. You are a supplier of orthopaedic footwear with a retail shop in a State in Australia. You aim to achieve medical outcomes for people with foot pain and deformity both pre-surgically and post-surgically. You aim to correct or manage foot related health issues by fitting footwear for high risk clients and clients with illness or deformity that poses a risk to their foot health. You plan to distribute the brand of footwear through medically focussed footwear stores and podiatrists. You plan to distribute a number of specific models of the brand of shoes (the Shoes). You advise that the Shoes support and correct a deformed foot. Your footwear is available in multiple width sizing's and in a number of forms or styles which allows you to match a shoe to a foot. As a person may have different conditions on each of their feet, you are able to match different size shoes to different feet. The Shoes have been designed by health professionals (podiatrists and pedorthists) to address the following specific medical conditions: • osteoarthritis • rheumatoid arthritis • neuroma • stress fractures • tendonitis • degenerative joint disease from trauma or congenital deformities • diabetes. The Shoes have unique features which other shoes do not have and which facilitate their use in treating these medical conditions.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) | A New Tax System (Goods and Services Tax) Act 1999 Schedule 3 table item 41